A 27-year guaranteed lease is a serious commitment. Done right, it is the single biggest trust signal a commercial developer can offer. Done wrong, it is a marketing slogan that collapses the moment a tenant vacates. Here is what you actually need to understand before buying.
The structure
The developer signs a lease deed with you at a fixed rental — currently ₹200/sqft per month at CRC The Flagship — starting the day possession is handed over. The deed commits to paying that rent whether or not a tenant occupies the unit. Periodic escalations are spelled out in the agreement.
The operator behind the guarantee
A guarantee is only as credible as the party backing it. On a Hyatt-anchored, CBRE Group-managed campus with 40+ brands already signed across retail and F&B, the probability of actual tenant occupancy is very high. The guarantee is a backstop, not the base case.
The math — 27-year lease at ₹200/sqft
- Rent per month
- ₹200/sqft
- Rent per year
- ₹2,400/sqft
- Total rent · 27 years
- ~₹65,000/sqft
- Capital cost (example)
- ₹18,500/sqft
- Rental return
- ~3.5× capital outlay
- Residual asset
- Yours at year 27
The risks — what to read before signing
Rent revision clauses
Periodic escalations should be contractually fixed — not at the developer's discretion.
Tenant fit-out allowances
Who pays for fit-out when a tenant enters? Ambiguity here quietly erodes your yield.
Transferability on resale
Does the guarantee travel with the unit if you sell in year 7? This is the #1 question to ask.
Legal capture
The guarantee must live in the sale deed, not just the marketing brochure. Verify in writing.
Read the full investment case
Current lease terms, escalation structure and the operator lineup backing the guarantee.