Ajay Devgn Leases 2,500+ sq ft Office Space in Mumbai’s Andheri for ₹5.47 Lakh per Month

Bollywood actor Ajay Devgn has leased out office space in Mumbai's Andheri West area for ₹5.47 lakh per month. The transaction involves a five-year lease agreement with Bombay Design Centre Private Limited, starting from May 2025 and continuing until April 2030.

The office unit, located in the "Signature by Lotus" building on Veera Desai Road, covers a carpet area of 2,545 sq ft. According to property registration documents accessed by Square Yards, the lease includes a security deposit of ₹16.42 lakh, and the monthly rent is set to increase after three years, rising to ₹6.29 lakh per month. This agreement provides steady rental income for Devgn over the next five years, contributing significantly to his portfolio of commercial real estate.

The current deal is part of a larger property investment strategy by Ajay Devgn. In April 2023, the actor purchased three adjacent office units in the same building. Each unit measured approximately 2,545 sq ft, and the total purchase cost for these units was ₹30.35 crore. The individual unit price stood at ₹10.12 crore, reflecting the value of the property and the strategic location in one of Mumbai's prominent commercial hubs.

The current leasing arrangement stands out because of its relatively high rental yield. Based on the initial monthly rent of ₹5.47 lakh and the acquisition cost of ₹10.12 crore per unit, the rental yield for the first three years of the lease is around 6.5%. After the rent increase to ₹6.29 lakh in the fourth year, the yield is expected to rise to approximately 7.5%. This structure is typical of high-value real estate leases, where rents are set to increase at specific intervals to keep pace with inflation and market trends.

The office space leased by Devgn is part of a broader portfolio of five office units in the Signature building. The total area across these five units amounts to over 13,000 sq ft, with three units located on the 16th floor and two on the 17th floor. In addition to the office units, Devgn's leasehold includes 14 parking spaces, adding value to the property. The total value of these five units, based on the purchase price in 2023, is ₹45.9 crore.

This is not the first time that Ajay Devgn has leased out office space in Mumbai. In June 2024, he leased a commercial space of over 4,200 sq ft in the same Signature by Lotus building for ₹9 lakh per month, under a five-year lease agreement. Similarly, in September 2024, Devgn leased another office space spanning 3,455 sq ft for ₹7 lakh per month. These leasing transactions demonstrate Devgn's ongoing interest in commercial real estate investments, focusing particularly on office spaces in high-demand locations.

In addition to these leases, Devgn renewed a lease agreement in the same month for two commercial units, totaling 1,500 sq ft, located in the Andheri area. The renewal was for a period of five years, extending from December 2023 to December 2028. These units are leased to Saraswat Co-operative Bank Limited for a rent of ₹4.16 lakh per month. This pattern of consistent leasing, combined with long-term agreements, shows Ajay Devgn's commitment to maintaining a stable and profitable real estate portfolio.

Ajay Devgn's real estate strategy is indicative of a larger trend among high-profile individuals who prefer investing in commercial properties. These properties, especially in prime locations like Andheri West, offer attractive rental yields and long-term income potential. The decision to lease commercial properties rather than sell them outright ensures that the investor continues to generate returns over time, while also retaining ownership of the asset.

Signature by Lotus, where Devgn owns the office units, is located in one of Mumbai's sought-after commercial districts. The area is known for housing offices of several design studios, media companies, and other businesses related to the film industry, making it a prime location for individuals in the entertainment sector, including Devgn himself. This reinforces the growing trend of celebrity investment in commercial properties in areas known for their proximity to the entertainment and media industries.

The commercial leasing market in Mumbai has seen significant activity, with many actors, directors, and celebrities from the entertainment industry recognizing the value of investing in commercial real estate. Mumbai’s central business districts, especially in the Andheri and Bandra areas, offer high rental income potential due to their strategic location, well-established infrastructure, and connectivity.

In Ajay Devgn’s case, the leasing agreements reflect his understanding of the commercial property market, along with the stability that long-term lease agreements provide. His investment in office spaces is likely to continue generating returns as demand for commercial properties remains strong in Mumbai, particularly in areas like Andheri West, which continues to be a hub for businesses, including those in creative industries.

Ajay Devgn’s real estate investments also highlight the broader trend of celebrities and high-net-worth individuals (HNIs) diversifying their portfolios into real estate, as it provides a steady source of passive income and long-term capital appreciation. These investments also align with a growing interest in Mumbai’s commercial real estate market, which continues to be an attractive proposition for investors seeking high-yield opportunities.