by THO
Coworking space operator WeWork India has leased 1.26 lakh sq ft of commercial space in the Powai area of Mumbai for a monthly rent of ₹1.38 crore or over ₹16 crore annually, according to property registration documents accessed by Propstack.
The commercial space is located in a building named Lightbirdge in the Saki Vihar area of Andheri East popularly known as Powai.
The transaction was registered on November 29, 2024. A stamp duty of ₹22 lakh and a registration fee of ₹1,000 were paid.
The documents further show that the lease tenure starts in August 2025 and lasts five years until August 2030.
The commercial space is on the building’s 6th, 7th, and 8th floors. The monthly rent is ₹109 per sq ft, and the security deposit is ₹4.14 crore.
The documents revealed that the transaction’s lock-in period is three years. The two companies, Gamma Construction Pvt Ltd of Surendra Hiranandani of the House of Hiranandani and Niranjan Hiranandani of Hiranandani Developers, have rented out the space.
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According to the documents, the property is leased along with 84 parking spaces measuring around 1,500 sq ft each. Sources said WeWork Indian had recently exited a Chromium building in Powai, so it has rented the above new commercial space.
In an email response, the Hiranandani Group confirmed the transaction.
The company stated there is a joint venture between Gamma Constructions Pvt Ltd (a joint company of Niranjan and Surendra Hiranandani) and Shrishti Developers.
Niranjan Hiranandani, Chairman of Hiranandani Group said, “The performance of India’s commercial real estate segment in FY 24 has been nothing short of stellar, and we anticipate this momentum will be sustained well into FY 25-26.”
“The robust increase in commercial leasing and absorption activity is driven by evolving market dynamics, strong investors’ confidence, a work-from-office scenario, and balanced economic growth. Notably, the share of flexible operators and managed office services has grown to represent 20% of the new commercial space being taken up in India, underscoring a significant shift in workplace dynamics,” Hiranandani added.
A query sent to WeWork India did not receive a response. The story will be updated if a response is received.
Also Read: Hyderabad real estate market: Facebook renews office lease for ₹2.8 crore per month rent
All about Powai
Powai, in the central suburbs of Mumbai, is known for the presence of Hiranandani Developers, who have developed residential, retail, and commercial properties in the vicinity. This micro-market is also famous for being home to one of the most prestigious institutes in the country, the Indian Institute of Technology (IIT)-Bombay.
Powai also has a large number of schools and hospitals. One of the largest global consulting firms, Deloitte Consulting, is located in this micro-market, followed by Amazon, L&T, and other major retail brands.
Commercial office space scenario across top Indian cities and Mumbai real estate market
The year 2024 is likely to register 83-85 mn sq ft of gross leasing of office space across eight major cities, which will be an almost 13% increase compared to the peak volume of 2023, a report by Cushman and Wakefield said on December 16.
The eight cities included Bengaluru, Hyderabad, Mumbai, Delhi-NCR, Chennai, Pune, Kolkata and Ahmedabad.
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Since 2022, India’s office real estate has consistently witnessed more than 70 million square feet of gross leasing volume (GLV) across the top 8 cities. The report said the current year 2024 is likely to register a historic high of 83-85 million square feet of GLV.
The report showed that growth was driven by healthy volumes seen in the IT-BPM, BFSI, Engineering & Manufacturing (E&M), and flex operator spaces.
