RBI on a lookout for up to 50,000 sq. ft. office space in BKC

As per the Expression of Interest (EoI) floated by the RBI, it is proposes to acquire an office space on a long-term lease basis for a minimum 40,000 sq. ft. carpet area located in and around BKC within a radius of 5 km from its existing BKC office.

The Reserve Bank of India (RBI) is planning to take up an office space of up to 50,000 square feet on lease in Bandra Kurla Complex (BKC) and South Mumbai.

The RBI said the acquirement of office premises is projected on long-term lease basis with at least 10,000 square feet carpet area located in and around South Mumbai within a radius of 5 km from its other office.

The building should project a professional and aesthetically pleasing appearance and should be approved for office use, the central bank added.

Cushman & Wakefield India Pvt Ltd has been appointed as the realty consultant agency for handling the lease work related to the commercial office premises in Mumbai, the RBI said.

Gagan Randev, Executive Director, India Sotheby’s International Realty mentioned BKC to financial capital- Mumbai’s most wanted office destination sought after by major global banks and other financial institutions over the last 7-8 years and its high time RBI has its presence there.

The demand for office space in BKC, even though it has much higher rentals than South Mumbai, outstrips it by a ratio of 5:1 as echoed by the data provided by CRE Matrix, a data analytics platform for residential and commercial real estate.

“This is because of the quality of buildings, quality of infrastructure and the go-to financial hub which has now been created. The attractiveness of BKC will continue to be robust with the recent flyovers opened and the opening of Maker Maxity Mall as well,” Randev added.

According to Colliers India, average rental in Grade A office space of BKC is about 30 per cent higher than similar office space in South Mumbai. While per square feet monthly rental of Grade A office space in BKC is Rs 276.8, it is Rs 212.2 in South Mumbai.

Karan Singh Sodi, Regional Managing Director (Mumbai and Ahmedabad), JLL India, said South Mumbai traditionally has been a micro-market with limited overall supply cumulating to approximately 7 million square feet of Grade A and B buildings, with the majority being more than 30 years old, as there is scarce availability of land for development unlike any other front office micro-markets of Mumbai.

“Further, the majority of the buildings are strata owned thereby limiting the availability of single owned Grade A office premises with requirement size as published by the Reserve Bank of India,” Singh said. Singh further said BKC has been at the centre stage as far as front office demand is concerned in Mumbai.