The same pre-leased shop or floor can reach you from three or four people in one week. Each one quotes a different price. Some quote a yield, some quote a rent, and some quote neither. Before you pick the cheapest one, find out whether you are looking at three options or one property.
The short answer
When one pre-leased property shows up at different prices, it is usually the same asset passing through different hands, with different information attached. The price gap does not tell you which deal is better. First confirm it is the same property. Then compare every version on one rent figure taken from the lease, and on one date. Recompute the yield yourself. Finally, work with the person who can show the closest link to the owner, and confirm the owner against the title papers before you pay anything.
Why it happens
VRX observation: when the same building reaches us from two sources, the numbers rarely match. In our experience, the gap usually comes from one of these:
- A chain of intermediaries. A listing often passes from the owner to one person, then to another, then to you. The price can change at each step.
- Old information. A message forwarded months ago may show an old rent, a rent before the last escalation, or a property that is already sold.
- A different rent basis. One version may state the rent on carpet area and another on super area. See our guide on carpet area vs super area.
- A yield with no rent behind it. Some versions quote a neat yield, such as exactly 6% or 7%, without stating the rent. A price can be worked backwards from a target yield. Read why round-number yields need a second look.
A simple way to compare: one asset, one rent, one date
1. Prove it is the same property
Ask each person for the same basic details: area, sector and city, the tenant's name, the floor and the size. If these match, treat all the versions as one property, not as separate options.
2. Compare on one rent figure
Ask for the monthly rent as written in the lease, and the area it is paid on. Ignore any yield that is not backed by a stated rent. Then work out the yield yourself: annual rent divided by price.
3. Ask how fresh the information is
Ask when the price and rent were last confirmed with the owner. A lower price from an old message may no longer be on offer.
4. Ask how close each person is to the owner
Ask politely: are you in direct touch with the owner, or is someone else between you? The person closest to the owner can usually confirm the latest price, the lease terms and a visit faster.
5. Choose one channel and keep a record
Once you have picked who to work with, stay with that person for this property. Keep a dated note of who first shared it with you. If more than one person later says they introduced you, a simple written record helps.
Seeing the same property at different prices? Share the details with VRX Capital and we can help you compare them on the same basis. Call / WhatsApp: +91 9315368515.
Illustrative example
Illustrative example. Not a real property or tenant.
One shop with one tenant reaches an investor in three versions:
| Version | Price quoted | Rent quoted | Yield on the lease rent of ₹4,50,000/month |
|---|---|---|---|
| A | ₹8 Cr | ₹4,50,000/month | 6.75% |
| B | ₹8.6 Cr | ₹4,50,000/month | 6.28% |
| C | ₹9 Cr | Not stated, "7% yield" | 6.00% |
Version C looks attractive because of the 7% label. But a 7% yield on ₹9 Cr would need rent of ₹5,25,000 a month. The lease shows ₹4,50,000. On the real rent, C is the most expensive version. Version A is the cheapest, but it is only useful if it is current and the person quoting it can reach the owner.
VRX lens: price is checked last, not first
Yield is not the investment thesis. We look at tenant, lease, cash flow, asset, location, price and exit together. When the same property arrives at several prices, the price gap is the least useful number. The lease, the tenant and the owner's identity are the same in every version. Check those first.
At VRX Capital, we work out the yield from the rent and the price ourselves, rather than repeating a quoted percentage. When one building reaches us through two sources, we link the two records and check them before treating them as two options. A mistake we often see is comparing a price from one person with a yield from another, for what turns out to be the same building.
Common mistakes
- Treating two versions of one property as two separate options.
- Choosing the lowest price without asking when it was last confirmed.
- Comparing a quoted yield with a quoted rent instead of one rent from the lease.
- Asking several people to approach the same owner for you at once.
- Paying a token before confirming who the owner is.
Checklist before you shortlist
- Area, sector, city, tenant, floor and size match across versions
- Monthly rent as written in the lease, and the area it is paid on
- Yield recomputed by you from rent and price
- Date the price and rent were last confirmed with the owner
- How directly each person is connected to the owner
- Dated record of who first shared the property
- Owner's name checked against the title papers before any payment
Checking ownership and title before paying a token is a legal step. Please verify it with a qualified lawyer for your deal.
FAQ
Why is the same pre-leased property quoted at different prices?
Usually because it reaches you through different people, with different or older information. Some versions may also state rent on a different area basis, or quote a yield without a rent behind it.
Which price should I trust?
None of them on its own. Compare every version on the rent written in the lease and the date the price was last confirmed with the owner.
How do I know if two listings are the same property?
Match the area, sector, city, tenant, floor and size. If these match, treat them as one property.
Should I deal with more than one person for the same property?
It is better to choose one person for each property and keep a dated record of who first shared it with you.
Talk to VRX Capital
If a property you like is reaching you at different prices, VRX Capital can help you line the versions up on the same rent, check the lease and work out what the property is really worth to you. See our approach for investors, see current listings, or contact us.
Call / WhatsApp: +91 9315368515
Related reading: Who actually signed the lease? · Pre-leased due diligence checklist
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