Investment option for millennials: A co-working seat for as low as Rs 6 lakh!

With millennials reluctant to purchase a property given their averseness to the idea of taking on huge debt to service EMIs, what investment options are available to them besides investing in equities?

A Delhi-NCR based real estate company seems to have hit the bull’s eye and has a tailor-made asset class just for this segment — a co-working seat that could be bought for posterity for as low as Rs 6 lakh.

MyPod by Noida-based Bhutani Infra is a fully furnished co-working space for millennials. A seat in its project Cyberthum located in Sector 140 A can be bought for as low as Rs 6 lakh. Returns range for 10 percent to 12 percent depending on the amount paid upfront to the developer.

“It is an altogether a new asset class located in an A grade office complex and each unit is spread across 67 sq ft. The total co-working area dedicated to the co-working space is about 5 lakh sq ft. This product is targeted at millennials,” Ashish Bhutani, Managing Director, Bhutani Group told Moneycontrol.

Anybody who earns as little as Rs 15,000 a month can think of investing in this product. The booking amount is Rs 1.5 lakh and the rest can be paid in monthly installments of  Rs 5,000. As of date, the returns may be around Rs 4,000 per month and not less than Rs 7,000 once the facility  is up and running, he explained.

“If you rent out space with a co-working company, it can cost you anything between Rs 8,000 to Rs 9,000 per seat in an A grade building. We are offering the same seat for Rs 6 lakh, within the same A grade building, with an EMI until possession of Rs 5,000 a month. The remaining amount can be paid at the time of possession and the seat can be yours for keeps. Once you receive possession, you can rent it out for between Rs 7,000 to 8,000, or utilise it for self-use. There is no limit on the number of pods that can be purchased,” he said.

Moneycontrol tried checking with other co-working operators for similar products, but this seems to be the only one on offer in the market. Experts said this product could be worth considering by other players going forward.

Bhutani Infra is a company that started operations way back in 1996 under the brand name Parmesh Complexes in Delhi’s Karkardooma. It has delivered close to 14 projects till date. Among its latest offerings, I-Thum, an IT Park in Noida 62, is already operational.

Cyberthum, slated to be North India’s tallest commercial tower with the region’s largest musical fountain and a mall in the sky, will be delivered by 2022 and another project Grandthum located in Noida Extension will be delivered by June 2023.

The company intends to deliver close to 15 million sq ft of commercial space by the same year, says Bhutani, adding the total investment for Alphathum would be Rs 1,200 crore, Cyberthum Rs 1,900 crore and Granthum Rs 1,400 crore.

Alphathum, a project located in Sector 90 Noida, consists of three towers of 27 floors combined with a common roof top. The company claims that the project would have the largest rooftop infinity pool in the world and that its size is almost twice the size of Marina Bay Sands in Singapore.

“Possession for B and C towers is likely by December, but we are offering it before Diwali. We would be delivering 1.4 million sq ft before Diwali. In the next phase, we would be delivering another 4.5 million sq ft by March 2021. All the three towers should be up and running by March 2021, but we are hoping they would be ready by July 2020, ahead of schedule,” he stated.

Oneculture has already leased 1,06,640 sq ft office space in the project, which is being constructed at an investment of about Rs 1,200 crore.

Cyberthum, located in Noida Sector 140 A, will be spread across close to 5.4 million sq ft and Alphathum and Grandthum across 4.5 million sq ft.

“We intend going vertical for retail in this project. The shopping space would start at the 32nd floor between two commercial towers and would be the first mall in the sky in the world,” he added.