WeWork India has leased 1.26 lakh square feet of commercial space in the Powai area of Mumbai, according to property registration documents accessed by Propstack, as published by Hindustan Times.
The lease agreement, which includes a monthly rent of ₹1.38 crore (over ₹16 crore annually), was registered on November 29, 2024.
The leased space is located in the Lightbridge building in the Saki Vihar area of Andheri East, known as Powai. The lease term is set to begin in August 2025 and will run for five years, concluding in August 2030. The commercial space spans the building’s 6th, 7th, and 8th floors.
The rent for the space is ₹109 per square foot, and the security deposit amounts to ₹4.14 crore. In addition, the lease includes 84 parking spaces, each covering around 1,500 square feet. The transaction also has a lock-in period of three years.
Gamma Construction Pvt Ltd, owned by Surendra and Niranjan Hiranandani of the Hiranandani Group, is the lessor. According to the documents, the two companies are joint venture partners in the property deal.
Niranjan Hiranandani, Chairman of the Hiranandani Group, commented on the booming commercial real estate market in India. “The performance of India’s commercial real estate segment in FY 24 has been nothing short of stellar, and we anticipate this momentum will continue into FY 25-26,” he said. He also noted that flexible office spaces now account for 20% of the new commercial space being leased in India, highlighting a shift in workplace dynamics.
This transaction follows WeWork India’s recent exit from the Chromium building in Powai, prompting the company to secure the new commercial space. While WeWork India did not respond to an inquiry, Hiranandani Group confirmed the lease.
Powai, located in Mumbai’s central suburbs, is a prominent business hub, home to numerous Hiranandani developments, including residential, retail, and commercial properties. The area is also known for the Indian Institute of Technology (IIT)-Bombay, one of the country’s top educational institutions. Powai has become a significant location for major firms such as Deloitte Consulting, Amazon, L&T, and various retail brands.
India’s office leasing market continues to show strong growth. A report from Cushman & Wakefield predicts that 2024 will see 83-85 million square feet of gross office leasing across major cities, marking a nearly 13% increase compared to 2023’s peak leasing volume.
The report also highlights consistent growth in leasing volumes since 2022, driven by sectors such as IT-BPM, BFSI, engineering and manufacturing, and flexible office space operators.
The Mumbai real estate market, along with other major cities, continues to see robust leasing activity, signaling positive market dynamics heading into 2025.