NBCC Nauroji Nagar Project Details

Super Area and Carpet Area:

Unlike most modern commercial office buildings, NBCC is claiming to provide over 75% efficient floor plates. This is a straight saving of over 15 – 20 percent compared to other similar modern buildings. Ground floor retail spaces does have slightly higher wastage and also a PLC cost over and above the base price.  More usable area means more value for your money on each square foot that your pay for.

Project Scale:

The commercial office space complex at Nauroji Nagar is spread on an impressive 25 Acre land parcel with over a staggering 3 million sq ft of built-up space. This size makes it in the top 10 projects across the globe in terms of the total sq ft offered in a single project. Bigger, undivided floor plates ranging between 26000 – 40000 sq ft on single floor level will attract big companies with deep pockets as tenants. Project also provides for a 3 level undivided basement which have over 8000 parking spots. 

Project Construction:

Construction quality is paramount for any development to have lasting legacy. NCC, which features consistently as one of India’s top 3 construction companies for many years now, has been trusted with the job and they enjoy a great working relationship with NBCC, since they have  already developed the Kidwai Nagar residential complex for them in a time bound and successful manner.  NCC has many commercial, residential, institutional buildings to its credit apart for major infrastructure projects in railways, electrical, mining, irrigation and environmental. 

Energy Efficiency:

The entire project itself is being developed as energy-efficient system that draws from and conserves nature to save operating costs. From recycled environment-friendly building material and equipment to efficient use of water, natural light, use of solar for partial electricity generation, water heating/cooling, motors and pumps equipped with variable frequency and speed drives, roof insulation to prevent heat gain into the building and many more such features naturally make it a low overhead cost building.

Price and rental yield:

The project is currently priced at around 37000/sq ft and based on our study of current comparable assets as well as some of the future development which will come about in 2020, we are certain that the property will be able to harness at least Rs 225-250/sq ft, which could go as high as 400/sq ft as the inventory dries up and we approach the project completion date. So even if we do the math on the lower side, a 235 rupee per sq ft rental at 37000/sq ft cost means an annualized return upwards of 7.5% for the investor. Property is freehold and thus there is good scope for capital appreciation too. We foresee project touching about 55-60K/sq ft within the first 3-4 years after completion certificate is obtained and transactions start taking place in secondary market. 

WTCA certification:

Last but not least the project has been successful in acquiring a world trade tower certification from the prestigious WTCA body, which is the hallmark of quality when it comes to top-quality office space development across the globe.

The only caution that we foresee in the project is that NBCC properties attract a lot of PSU’s, which are not very demanding in terms of overall maintenance of the asset, and often times the upkeep of NBCC properties is less than perfect. Having said that, this project has acquired the seal of WTC plus the project is also seen as an extension of Prime Minister Modi’s smart city development plan. NBCC being a prime government PSU would like to showcase this project as the centerpiece of the smart city development plan.