Real Estate in India (Commercial & Premium): Key Market Players, Registration Norms, Due Diligence, and Tax/Compliance “Claim” Process

Commercial and premium real estate in India typically includes:

• Commercial: office spaces, IT parks, retail malls, warehouses, industrial units, co-working assets

• Premium: high-value Grade-A assets (prime locations, branded developments, luxury positioning), and institution-grade portfolios (often via REIT structures)

For buyers/investors, the most important “how to take” questions are:

• Who are the major companies operating in India (developers, operators, REITs)?

• How are projects/agents legally governed and registered (RERA, SEBI for REITs, local registrations)?

• What norms should a buyer follow (title, approvals, occupancy, tax, compliance)?

• How to “claim” the transaction (commonly: GST ITC on rent/services where eligible, and Income Tax depreciation for business-owned property, plus audit-ready documentation)

This article is technical + compliance focused (not legal advice). Real estate rules also vary by state (stamp duty, registration fees, local approvals). Use it as a checklist and validate with your legal counsel and CA.

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1) Major Companies Operating in India (Commercial & Premium)

A) Developers / owners (examples commonly seen in India’s commercial and premium market)

• DLF, Godrej Properties, Oberoi Realty, Prestige Estates, Brigade, Phoenix Mills, Sobha, Indiabulls Real Estate (examples from market listings).

B) Institutional-grade portfolios via REITs (India)

REITs are regulated by SEBI; these are a major vehicle for premium commercial real estate exposure.

• Embassy Office Parks REIT (example: registered with SEBI; operates large office portfolio).
  (Other market participants include Brookfield India REIT, Mindspace, Nexus Select Trust, etc. as reflected in market landscape summaries.)

C) Brokers / property consultants (transaction facilitation)

Common categories:

• National/international property consultancies (leasing, valuations, due diligence support)

• Local channel partners / commercial brokers (often state-registered as per local rules; agents are governed under RERA in many contexts)

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2) How Real Estate Companies/Projects Are “Registered” in India (Practical View)

A) Company registration (developer/owner/operator)

Real estate companies typically operate as:

• Private Limited company / LLP, incorporated through MCA processes (SPICe+ is commonly referenced for incorporation).

B) Project and agent registration under RERA (Real Estate Regulation and Development Act, 2016)

RERA introduces mandatory registration of many projects and agents with the State Real Estate Regulatory Authority.

Key points (buyer relevance):

• Section 3: promoters cannot market/sell/offer without project registration (subject to exceptions).

• Threshold exceptions include projects not exceeding 500 sq. meters or 8 apartments, etc. (details in official FAQs).

• RERA requires strong financial discipline: 70% of amounts realised from allottees to be deposited in a separate account for that project (commonly referenced from Section 4(2)(l)(D) compliance guidance).

• Official RERA information and FAQs are available through MoHUA RERA resources.

Practical buyer rule: Always verify the RERA registration number for any covered project and confirm it on the state RERA portal.

C) REIT registration (for premium commercial portfolios via markets)

REITs are regulated by SEBI (REIT Regulations); they operate as regulated trusts with disclosure and governance requirements. (Example: Embassy REIT’s SEBI registration statement).

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3) Norms for Buying/Leasing Commercial & Premium Real Estate (Buyer Checklist)

A) Title and encumbrance checks (non-negotiable)

• Title chain verification (minimum 30 years typical practice, varies by state and counsel)

• Encumbrance search (EC), charge/mortgage verification

• Litigation check (civil/criminal, NCLT if corporate seller, etc.)

• Land use/zoning conformity (commercial, mixed-use, industrial)

B) Approvals and completion readiness

• Building plan approvals, environmental approvals (if applicable), fire NOC

• Completion certificate / occupancy certificate (critical for readiness and operational permissions)

• For strata/office units: association formation, common area rights, parking rights

C) RERA compliance check (where applicable)

• Project registration validity and disclosures

• Promoter track record on timelines and delivery

• Escrow compliance expectation (70% account discipline)

D) Lease norms (if you are taking commercial property on rent/lease)

• Lease deed: lock-in, escalation, CAM (common area maintenance), fit-out terms

• Security deposit and refund triggers

• Service levels: power backup, HVAC, security, access control

• Repair/maintenance responsibilities (landlord vs tenant)

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4) “On What Ground” Should You Procure Commercial & Premium Real Estate?

Use these grounds to justify internally (board/management approvals, audits, bank funding):

A) Business operations grounds

• Location advantage (client proximity, talent pool, logistics)

• Business continuity (multiple sites, disaster recovery office, redundancy)

• Scalability (expandable floor plates, additional units, future phases)

B) Financial grounds

• Total occupancy cost (rent + CAM + utilities + fit-out)

• Asset life and residual value (for owned property)

• Rental yield comparability (for investment properties)

C) Compliance and risk grounds

• Legal compliance: RERA checks, approvals, occupancy readiness

• Governance: clear audit trail, transparent contracts

• Tenant safety and statutory readiness (fire systems, electrical safety, insurance)

D) Premium/Grade-A grounds (specific)

• Institutional quality: security, MEP systems, uptime, access control

• Documentation maturity: clear operating manuals, logs, vendor SLAs

• Better leasing prospects and tenant quality (lower vacancy risk)

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5) Step-by-Step Implementation: Procurement / Purchase / Lease Workflow

Step 1: Define requirements (technical + commercial)

• City/micro-market, carpet area/super area, parking ratio

• Power load, HVAC, floor loading, data connectivity options

• Fit-out scope and handover condition (shell & core vs warm shell vs furnished)

Step 2: Shortlist and validate compliance

• RERA registration verification (project and/or agent where applicable)

• OC/CC availability (for ready-to-occupy)

• Building safety and statutory readiness

Step 3: Due diligence pack (minimum documents)

• Title documents + EC + tax paid receipts

• Approved plans + OC/CC + fire NOC

• Maintenance agreements + society/association details

• Draft agreement/lease + stamp duty estimate (state-specific)

Step 4: Commercial finalization

• Price/rent negotiation, escalation, lock-in, deposit

• Fit-out and handover timeline

• Liability clauses, indemnities, dispute resolution

Step 5: Signing and registration

• Execute agreement to sell / sale deed OR lease deed

• Pay stamp duty and register as per state law

• Take possession and document snag list/handover

Step 6: Post-transaction controls

• Insurance (property + liability + fire)

• Vendor onboarding for maintenance/security

• Asset tagging and accounting capitalization (if owned)

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6) How to “Claim” Commercial Real Estate Costs in India (Tax + Audit Readiness)

Most businesses mean one or more of these by “claim”:

1. GST Input Tax Credit (ITC) on taxable rent and certain services (eligible cases)

2. Income Tax depreciation for business-owned buildings (and fit-outs, furniture)

3. Audit-ready proof for statutory and internal audits

A) GST on commercial renting (common scenario)

Renting/leasing of commercial property for business is commonly treated as a taxable service and often seen at 18% GST in many practical references.

ITC on rent (practical rule):

• GST-registered tenants may claim ITC if the premises is used for business/taxable supplies and ITC is not blocked by law. (Business use and correct documentation are key.)

B) ITC blocked credits (construction/immovable property caution)

Under GST, Section 17 covers apportionment and blocked credits.
A frequent pitfall:

• ITC can be blocked on certain construction/work-contract costs for immovable property (except specified cases such as “plant and machinery” and other lawful exceptions).

Practical takeaway: ITC on monthly rent is often simpler than ITC on construction/fit-out which may be blocked if capitalised into immovable property—your CA should confirm treatment for your exact case.

C) Income Tax depreciation (owned commercial property used in business)

Businesses can typically claim depreciation on building assets as per prescribed depreciation tables. Official depreciation reference is available from the Income Tax Department.
Practical summaries commonly indicate buildings (non-residential) around 10% (verify your asset classification and use-case).

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7) Commands / Examples (Practical, Non-Marketing)

A) RERA verification (process template)

Use the state RERA portal search and record evidence:

1) Get project RERA registration number from brochure/booking form.
2) Open State RERA portal → “Project Search / Registered Projects”.
3) Search by: RERA No / Promoter name / Project name.
4) Verify:
   - Registration validity dates
   - Approved plans/disclosures
   - Promoter details
5) Save PDF/screenshot to “Due Diligence Pack”.

B) Lease cost worksheet fields (for finance + approval)

Monthly Rent:
CAM Charges:
GST on Rent (if applicable):
Utilities estimate:
Fit-out capex (if any):
Security deposit:
Total 12-month occupancy cost:

C) Evidence integrity (audit)

sha256sum rera_disclosure.pdf > rera_disclosure.pdf.sha256
sha256sum lease_deed.pdf > lease_deed.pdf.sha256

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8) Common Issues & Fixes

Issue 1: Project/agent not RERA-registered (where required)

Fix

• Do not proceed until registration is verified on state RERA portal

• Use official RERA FAQs and Section 3 requirements as baseline

Issue 2: Missing Occupancy Certificate/Completion Certificate for “ready” property

Fix

• Treat it as high risk; obtain OC/CC or legal opinion before possession

• Confirm statutory readiness (fire NOC, completion conditions)

Issue 3: GST invoice errors (wrong GSTIN/place-of-supply)

Fix

• Request corrected invoice/credit note

• Don’t claim ITC until invoice data is corrected and documented

Issue 4: ITC blocked due to capitalised fit-out/construction

Fix

• Separate movable assets vs immovable work (where legitimately separable)

• Ask CA to classify expenses correctly and apply Section 17(5) rules

Issue 5: Lease disputes on CAM, escalation, maintenance responsibilities

Fix

• Put a clear responsibility matrix in the lease

• Attach building service standards and measurement basis for CAM

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9) Security Considerations (Commercial/Premium Real Estate)

Security is not just guards—treat the property as an operational risk domain:

• Physical security: access control, visitor logs, CCTV retention policy

• Life safety: fire systems, evacuation plans, compliance certificates

• IT security (for offices): secured MDF/server rooms, controlled cabling routes

• Vendor risk: security agency background verification, SLA, incident reporting

• Insurance: fire, burglary, liability, business interruption (as appropriate)

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10) Best Practices

• Always create a Due Diligence Pack before signing:

  • Title + EC + approvals + OC/CC + RERA verification evidence

• Prefer institutional-grade documentation for premium properties

• For leases: define TCO, not just rent (CAM, utilities, fit-out, GST)

• Keep a Claim Pack monthly/quarterly:

  • Invoices, payment proofs, lease deed, usage evidence, CA notes on ITC/depreciation

• Don’t assume GST ITC availability on all real estate spends—apply Section 17 blocked credit rules carefully

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Conclusion

Commercial and premium real estate procurement in India is a structured compliance-and-risk exercise. Success looks like:

• verified RERA/approvals status,

• tight legal and technical due diligence,

• clear lease/sale documentation,

• and a claim-ready accounting trail (GST ITC on eligible rent/services + depreciation for business-owned property), backed by evidence.

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