The ROI table on this page computes correctly. The rents feeding it do not. At the only verified Gurugram office rent of Rs 105 a square foot, the same rates give 7.20% and 7.00%, not 8.9% and 9.6%.
Written by Mansi Joshi, Marketing Intelligence Lead, ZYN33 Investment Desk. Reviewed by Ritesh Arora, Founder, ZYN33 and Strata Capital Holdings, Gurugram. Advising on Gurugram residential capital allocation since 2023, with mandates ranging from Rs 3 Cr to Rs 50 Cr. Published 10 November 2025. Last reviewed 5 October 2026.
Disclosure: ZYN33 distributes residential projects in Gurugram and is paid a transaction fee when a purchase completes, including on projects we discuss with you. We do not give tax advice. This post is general information. Take it to your chartered accountant.
Credit first. The ROI table computes. Rs 3.5 Cr over 2,000 square feet is Rs 17,500 a foot, and Rs 130 does give 8.9%.
The rate is credible. The rent is the problem. The only verifiable Gurugram office lease pays Rs 105, 24% below the figure used. Keep the rate, use that rent, and the unit yields 7.20%, not 8.9%. Row two yields 7.00%, not 9.6%.
Still strong figures. But before buying office space in Cyber City Gurgaon there is a prior question this page never asks: whether to own at all.
|
Your situation |
What to do |
|
Your business earns above 5.6% on capital |
Lease. Keep the money in the business. |
|
Want passive income, no operations |
Buy tenanted at or under Rs 21,000. |
|
Budgeting on 8% to 10% yield |
Reset. The verified lease pays 6.00%. |
|
No rent figure in writing |
Do not proceed. The rent is the asset. |
If this is not you, stop here.
Rs 105 a square foot a month, on the one lease with a verified rate attached.
AIPL Business Club, Sector 62: Rs 2.10 Cr for 1,000 square feet, 9 year term from January 2024, 3 year lock-in. Exactly 6.00%.
|
Building |
Sector |
Rate a square foot |
|
AIPL Business Club |
62 |
Rs 21,000 |
|
AIPL Autograph |
66 |
Rs 20,000 |
|
M3M IFC |
66 |
Rs 20,000 |
|
Landmark One |
67 |
Rs 19,000 |
|
Spaze Business Park |
66 |
Rs 9,744 |
Two Sector 66 buildings print Rs 20,000 and Rs 9,744, a 105% spread. The building decides more than the address, which any Gurgaon Grade A office rent comparison should establish first.
Any honest Cyber City office rental yield lands between 7.00% and 7.20%. Row one gives Rs 17,500 a foot, which at Rs 105 is 7.20% against 8.9% stated, a gap of 170 basis points.
Row two gives Rs 18,000, which at the same rent is 7.00% against 9.6%, a gap of 260 basis points. Note that the rates here are the favourable assumption, both below the Rs 21,000 reference.
Each row holds alone, but the two use different methods. Row two adds 9.6% across five years to 30% growth and reports 78%, exactly right.
Row one adds 8.9% to 35% growth, which is 79.5%, yet reports 70% to 75%. Two rows, two methods, and neither says which is right.
Lease, if your business earns more than 5.6% on capital. That is the rule.
Buying 1,000 square feet at Rs 21,000 commits Rs 2.10 Cr, and duty at 7% takes it to about Rs 2.25 Cr.
Leasing the same space at Rs 105 a foot costs Rs 12.60 lakh a year, which is 5.6% of that capital.
So leasing beats owning whenever the business returns more than 5.6%. An operating company clears that; a passive investor does not.
It is the single thing deciding whether these yields survive to 2030.
Stock has passed 100 mn square feet and CBRE projects 120 to 125 mn by 2030. Over five years 21 mn was added against 40 mn leased: demand at 1.9 times supply.
Run it forward. Adding 20 to 25 mn over four years means 5.0 to 6.25 mn a year. The recent build rate is 4.2 mn. Planned supply runs 19% to 49% above the pace that created today's shortage. Holding the 1.9 ratio needs leasing at 11.9 mn a year, up 48%.
Expansion, with a supply test due before 2030.
Demand is real and institutional. International occupiers took 17 mn of the 40 mn square feet leased, and roughly $6 bn was invested since 2018.
About a third of city stock is institutionally owned. That is who you bid against, and it sets your entry price and your exit depth. Where a case rests on the metro, allow 12 to 24 months behind projection.
Verified reference, Sector 62. Entry Price Rs 21,000. Rental Yield 6.00%. Capital Appreciation unquoted. The only rate with a lease attached.
Row one here. Entry Price Rs 17,500. Rental Yield 7.20%. Capital Appreciation unquoted. A credible rate, an unverified rent on top.
Row two here. Entry Price Rs 18,000. Rental Yield 7.00%. Capital Appreciation unquoted. Same pattern, larger gap.
Low end, Sector 66. Entry Price Rs 9,744. Rental Yield 12.93%. Capital Appreciation unquoted. A yield that high says the rent will not last.
Each case places Rs 2 Cr at the stated rate per square foot. Illustrative, not guaranteed, a composite illustration.
|
Case |
Area |
Rent used |
Rent a year |
Yield |
|
Verified reference at Rs 21,000 |
952 sq ft |
Rs 105 |
Rs 12.00 lakh |
6.00% |
|
Page rate at Rs 17,500, verified rent |
1,143 sq ft |
Rs 105 |
Rs 14.40 lakh |
7.20% |
|
Page rate and page rent |
1,143 sq ft |
Rs 130 |
Rs 17.83 lakh |
8.91% |
Row two is the honest version of this page's case. Row three needs a rent 24% above anything verified.
|
Profile |
Budget |
Hold |
Action |
|
Passive income, tenanted |
Rs 2.25 Cr all in |
7 years plus |
Proceed, lease deed first |
|
Operating business |
Any |
Any |
Lease, deploy capital in the business |
|
Institutional scale |
Rs 25 Cr plus |
10 years |
Proceed, covenant underwriting |
|
First commercial purchase |
Rs 2.25 Cr |
7 years plus |
Tenanted only, never vacant |
Any operating business earning more than 5.6% on capital. Leasing is cheaper and the money compounds faster inside the business.
Anyone budgeting on 8% to 10%. The verified lease pays 6.00%, and the rates here give 7.00% to 7.20%.
Anyone taking a vacant unit as a first purchase. Without a lease you hold the letting risk.
|
What matters |
What is noise |
|
Rent a square foot, in the lease deed |
Tenant logos in the building |
|
Lock-in expiry and notice period |
Occupancy of 90% to 95% |
|
Rs 105 as the only testable rent |
Rent bands quoted for FY23 |
|
The 48% demand rise needed by 2030 |
Lease share of NCR in H1 2024 |
|
Whether to own the space at all |
Cumulative ROI percentages |
Annual leasing volume is first and matters most. Holding 8 mn square feet a year keeps rents firm.
Completions are second. Any year where new supply clears 6 mn square feet pressures the 1.9 times ratio.
Institutional flow is third, and the $6 bn placed since 2018 supports exit pricing. Green certification is fourth, at 59% of stock.
The lease deed first: rent a square foot, lock-in expiry, escalation clause, notice period. Those four clauses are the valuation.
Then divide price by area yourself, since a generous chargeable area flatters the rate.
Then the registration. Checked at HRERA Gurugram, the number should open the certificate and show the declared possession date. Confirm it at the authority yourself. Duty at 7% adds Rs 14.50 lakh on Rs 2 Cr.
The rent assumption is the first risk. A rent 24% above verified turns 7.20% into 8.91% on paper only.
Supply is second. Planned completions run 19% to 49% above the recent build rate, so the shortage setting today's rents will ease.
Building selection is third, since a 105% spread inside Sector 66 costs more than any market move. Concentration is fourth: one unit has one tenant, so the lock-in date carries the valuation.
Price based first. Sell when the rate clears Rs 25,000 a foot and rent holds near Rs 105.
Event based second. Sell into a fresh lease, not out of an expiring one, because institutional buyers pay most for signed term. Time based third: hold 7 years minimum, since 7% duty needs that long to amortise.
If you run a business, lease rather than buy office space in Cyber City Gurgaon. The 5.6% annual cost beats tying up Rs 2.25 Cr whenever operations earn more.
For passive income, buy tenanted at or below Rs 21,000 a foot with the rent in writing. Expect 6.00% to 7.20% on commercial property Cyber City returns, not 8% to 10%.
Placing Rs 2 Cr to Rs 25 Cr into commercial? We pull the lease deeds and test each rate against its rent. We take few mandates.
Strata Capital Holdings tracks price band shifts, infrastructure timelines and inventory movement across Gurugram's corridors. ZYN33 brings that into every allocation conversation.
The reference lease. AIPL Business Club, Sector 62: Rs 2.10 Cr for 1,000 square feet, let at Rs 105 a month on a nine year term from January 2024 with a three year lock-in. Retrieved 4 October 2026. The 6.00% yield is ours, exact rather than rounded.
Office rates. The five building rates above, retrieved 4 October 2026. The 105% spread and 12.93% figure are ours.
City office market. Stock past 100 mn square feet and largest in north India, projected at 120 to 125 mn by 2030, with 21 mn added against 40 mn leased over five years, 17 mn to international occupiers, 59% green certified and roughly $6 bn invested since 2018: CBRE, via Business Standard, 23 July 2026. The 1.9 times ratio, the 4.2 mn and 5.0 to 6.25 mn rates, the 19% to 49% comparison and the 11.9 mn figure are ours.
Recomputed from the live page. Rs 17,500 and Rs 18,000 a square foot follow from Rs 3.5 Cr over 2,000 square feet and Rs 1.8 Cr over 1,000. The 7.20% and 7.00% yields apply Rs 105 to those rates. The basis point gaps, the 79.5% figure and the 24% rent gap are ours.
Costs. Stamp duty of 7%, registration capped at Rs 50,000: Government of Haryana. Carpet area: HRERA Gurugram, Regulation 22 of 2021. The Rs 2.25 Cr all in figure and 5.6% leasing cost are ours.
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Disclaimer
This article is general information about tax and property mechanics in India. It is not tax advice, investment advice or a recommendation to buy a specific property, and it does not account for your personal circumstances. Rates, thresholds and deadlines change. Verify every figure against the source listed above and take your liquidation plan to a qualified chartered accountant before you sell anything. ZYN33 distributes residential projects in Gurugram and is paid a transaction fee when a purchase completes. We do not act as your tax adviser or your adviser on the equity side.
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