Hi,

I have been in touch with an agent who is telling me and advising me to buy a shop in WorldSquareMall, lower ground floor. Currently whole floor is rented to Spark for 25 years, 9 year lock in period and rent increase every 6 years. Current rent is 12% per year. Agent predicts that property rate will be 7 times in 8 years.

My concern is that if I buy this property, how easy it would be to resell it if I want to get back my money. I see it like an FD which will also appreciate in coming years, just that lock in period is very long. So all the future buyers will also be getting for the same reason as current tenant can't be vacated by us for next 25 years. Do you guys think its a good investment and it would be easier to sell it in future? This will be the first time I will be investing in a commercial property.

Thanks,
Saty
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  • Originally Posted by satymish
    Hi,

    I have been in touch with an agent who is telling me and advising me to buy a shop in WorldSquareMall, lower ground floor. Currently whole floor is rented to Spark for 25 years, 9 year lock in period and rent increase every 6 years. Current rent is 12% per year. Agent predicts that property rate will be 7 times in 8 years.

    My concern is that if I buy this property, how easy it would be to resell it if I want to get back my money. I see it like an FD which will also appreciate in coming years, just that lock in period is very long. So all the future buyers will also be getting for the same reason as current tenant can't be vacated by us for next 25 years. Do you guys think its a good investment and it would be easier to sell it in future? This will be the first time I will be investing in a commercial property.

    Thanks,
    Saty


    My POV Don't even think of investing the WSM it will surely shut down in coming 3-4 years and will see the same fate as MMX mall .The main reason for the same is due to the gentry living around the mohan nagar area i.e Khehera , loni and arthala which resist decent people coming to this mall and other is the ongoing metro work which sees huge traffic congestion in peak hours and deter people coming here.Recently "flavors banquets" had shut down their operations due to lack of business and all the stores are feeling this pain except Haldirams which is still doing some brisk business.Mall investments are highly risky investments as new malls are coming daily and I don't think their is any USP of this mall.
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  • I disagree, business will go upwards after metro work, as mohan nagar will be a junction of DG and Vaishali line. Currently new societies are coming in the vicinity of this mall, so I see a growth in future. People living in these societies have spending powers as they are not paying hefty EMIs.
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  • Here comes the EXPERT comment :D
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  • Thanks guys. I am not at all familiar with Ghaziabad and MMX mall shutdown got me thinking and concerned.

    I am planning to hold off on this. I also didn't really like the idea of buying a place which has tenant set for next 25 years with marginal rent increase of 10% every 6 years.
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  • Originally Posted by shivamgarg


    My POV Don't even think of investing the WSM it will surely shut down in coming 3-4 years and will see the same fate as MMX mall .The main reason for the same is due to the gentry living around the mohan nagar area i.e Khehera , loni and arthala which resist decent people coming to this mall and other is the ongoing metro work which sees huge traffic congestion in peak hours and deter people coming here.Recently "flavors banquets" had shut down their operations due to lack of business and all the stores are feeling this pain except Haldirams which is still doing some brisk business.Mall investments are highly risky investments as new malls are coming daily and I don't think their is any USP of this mall.


    WSM has been shut down :D
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  • Originally Posted by KaamDev


    WSM has been shut down :D


    Really ?

    You mean SPAR hypermarket also?
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  • Originally Posted by dceite


    Really ?

    You mean SPAR hypermarket also?


    Sarcasm Sir :D It is still running and doing good.
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  • I have been 2-3 times in that area but truely speaking i alwaz avoid World Square Mall due to congestion in that area. I rather prefer to go mall in Vaishali area. Mohan Nagar chowk i think will alwaz be a bottleneck for WSM due to overcrowed area. Others may differ from my view..its just a personal view.
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  • Correctly said Abhishek.. but IMO this mall has got the best brands in the area, after shipra n mahangun this is the third best in ghaziabad in terms of brands available. I never knew such good brands will appear in this Mall really. See the fate of Euro park, it is such a good mall n well designed, good parking ...open and big spaces. still the mall is heading extinction, only reason I think being on the other side of the road. Marks n Spencers shut down after few months of operation (this was the only one in gzbd). The congestion might be the issue but that actually is the very reason of such good footfall in this mall. This will always have good footfall due to being right at the centre.
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    1 Comments
    • Jaydee11 years ago
      Sir I have a ground floor shop in the mall for the past 3 years.After 3 yrs the builder had to increase rent by 15percent as per the agreement but wants to pay the same rent citing decrease in foot fall,earnings etc.What do you suggest?Should i hold or sell my property?.How's the mall doing?I havent visited it for more than two years
  • Originally Posted by maxcapri
    Correctly said Abhishek.. but IMO this mall has got the best brands in the area, after shipra n mahangun this is the third best in ghaziabad in terms of brands available. I never knew such good brands will appear in this Mall really. See the fate of Euro park, it is such a good mall n well designed, good parking ...open and big spaces. still the mall is heading extinction, only reason I think being on the other side of the road. Marks n Spencers shut down after few months of operation (this was the only one in gzbd). The congestion might be the issue but that actually is the very reason of such good footfall in this mall. This will always have good footfall due to being right at the centre.


    anybody faces problem at the entry point of the mall as three roads meet there and nobody follows traffic rule.
    A no. of people in this mall come from RNE because there is no other mall nearby.
    Obviously the footfall will decrease after VVIP mall becomes operational. Some others mall will come up in RNE.
    RED mall is coming up in Ghaziabad.
    Also watching movie in FUN is not so enjoyable. People visit FUN only because there is no nearby multiplex like PVR/WAVE.
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  • Slightly disagree, V3S mall in laxmi nagar is also congested, there are many nearby societies around WSM, Rajendra Nagar and Lajpat Nagar, Dilshad Garden etc. have population and demand, so this will go upwards in future.
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  • What is the current situation of WSM.How is it doing now?.Also the metro is all set to be operational in a few months.I have invested in this mall and all these comments have got me a little worried
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  • Originally Posted by KaamDev
    I disagree, business will go upwards after metro work, as mohan nagar will be a junction of DG and Vaishali line. Currently new societies are coming in the vicinity of this mall, so I see a growth in future. People living in these societies have spending powers as they are not paying hefty EMIs.
    Wish you are spot on sir.Please suggest me if i should hold on to my investment in the same or sell it off.


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  • The future of real estate is very uncertain at this moment. The footfall in WSM will obviously decrease after reopening(though not sure) of Red mall because it is just beside the Metro station and ten screen multiplex is there. Also most of the brands will be available there. Already both lifestyle and pantaloon were operational in Red Mall.

    However if you have any agreement regarding increase of rent you can pressurise them.
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  • Originally Posted by PULOKITO
    The future of real estate is very uncertain at this moment. The footfall in WSM will obviously decrease after reopening(though not sure) of Red mall because it is just beside the Metro station and ten screen multiplex is there. Also most of the brands will be available there. Already both lifestyle and pantaloon were operational in Red Mall.

    However if you have any agreement regarding increase of rent you can pressurise them.
    Had red mall opened and shut down.where is it located.WSM is right at the metro line junction station.Wont it benifit the most when metro becomes operational.Since you are well versed with that area you can forsee much better.please advise sir
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