ICICI Bank Leases 1.3 Lakh Sq Ft Office Space in Turbhe for ₹9 Crore Annually
ICICI Bank has secured a lease for a massive 1.29 lakh square feet of commercial office space in Turbhe, Navi Mumbai, at an annual rent of ₹9 crore. This premium office space is located in Arihant Aura, a commercial property developed by Arihant Superstructures, a leading listed real estate firm in Navi Mumbai.
Details About Arihant Aura
- Location: Strategically situated in Turbhe, Navi Mumbai.
- Design: A modern commercial tower with energy-efficient features, high-speed elevators, ample parking, and cutting-edge security systems.
- Corporate Tenants: Home to several prestigious companies across sectors.
Floors Leased by ICICI Bank
The lease includes four entire floors, Levels 13–16, with each floor offering seamless integration for corporate office setups. These floors provide a mix of open floor plans and private spaces, ensuring flexibility for various operations.
Lease Highlights
- Location: Arihant Aura, Turbhe, Navi Mumbai
- Total Area Leased: 1,29,136 sq ft
- Annual Rent: ₹9 crore
- Monthly Rent: ₹74.89 lakh
- Rate per Sq Ft: ₹58
- Lease Tenure: 9 years, commencing December 12, 2024
- Rental Escalation: 14% every three years
- Floors Leased: Levels 13–16 (Four floors under separate agreements)
This significant lease transaction highlights the growing appeal of Turbhe as a prime commercial hub in Navi Mumbai.
Why is Turbhe a High-Rent Locality?
Turbhe’s escalating rental value is attributed to its strategic location and proximity to key infrastructure developments. Situated in Navi Mumbai, it offers seamless connectivity to Mumbai’s eastern suburbs via Vashi. The locality has witnessed significant growth due to:
1. Proximity to Mumbai: Its connection to major business hubs through well-established transport networks.
2. Upcoming Infrastructure Projects:
- Navi Mumbai International Airport: Expected to boost regional connectivity and attract businesses.
- Atal Setu Bridge: A project to enhance Mumbai-Navi Mumbai connectivity, reducing travel times and increasing the area’s commercial viability.
These factors have cemented Turbhe’s status as a sought-after location for businesses, leading to premium rental rates.
India’s Commercial Leasing Market in 2024
The Turbhe lease is part of a broader trend in India’s thriving commercial real estate market. A report by Cushman & Wakefield provides key insights:
- Gross Leasing Volume (GLV): India recorded a remarkable 89 million sq ft of GLV across the top 8 cities in 2024, reflecting the sector’s strong recovery and growth.
- Net Absorption: Achieved a historic high of 50 million sq ft, showcasing robust demand.
Top Cities for Leasing Volumes in 2024:
1. Bengaluru: The IT-BPM Hub
- GLV Contribution: 29% (25.93 million sq ft).
- Why it Leads: Dominated by the IT-BPM sector, Bengaluru remains India’s top market for office leasing. Its global reputation as a tech hub attracts international and domestic companies alike.
2. Mumbai: Financial Powerhouse
- GLV Contribution: 20% (17.84 million sq ft).
- Sectoral Strength: Demand is driven by BFSI (banking, financial services, and insurance) and engineering sectors. Navi Mumbai’s emerging status as a commercial hub adds to this growth.
3. Delhi-NCR: Manufacturing and Flex Growth
- GLV Contribution: 15% (13.14 million sq ft).
- Key Drivers: Manufacturing and flex spaces are the primary contributors, attracting businesses looking for large spaces with modern facilities.
Sectoral Trends Driving Office Leasing Demand in India (Q4 2024)
India’s office leasing market saw significant activity in 2024, driven by various sectors adapting to evolving business needs and workforce dynamics. The following are key contributors to this trend:
1. IT-BPM Sector: The Largest Contributor (30%)
The Information Technology - Business Process Management (IT-BPM) sector remained the backbone of India’s office leasing market.
Key Drivers:
- Continued demand for tech-driven solutions in a post-pandemic world, such as cloud computing, AI, and cybersecurity.
- Expanding global delivery centers by multinational corporations in cities like Bengaluru, Hyderabad, and Pune.
- Hybrid work models requiring tech hubs with advanced IT infrastructure.
Preferred Locations:
- Bengaluru (India’s Silicon Valley), Hyderabad, and Pune.
- Tier-2 cities are also witnessing growth due to cost-effective options and government incentives.
2. Engineering and Manufacturing: A Significant Share (23%)
This sector demonstrated strong growth, especially in cities with robust industrial ecosystems.
Key Drivers:
- India’s push towards self-reliance through initiatives like Make in India and PLI (Production Linked Incentive) schemes.
- Increased investments in green manufacturing and renewable energy projects.
- Expansion of industrial corridors such as Delhi-Mumbai Industrial Corridor (DMIC).
Preferred Locations:
Mumbai (engineering firms), Chennai (auto manufacturing), and Delhi-NCR (manufacturing hubs).
3. BFSI: A Steady Contributor (16%)
The Banking, Financial Services, and Insurance (BFSI) sector accounted for a stable demand, underlining its critical role in the economy.
Key Drivers:
- Rapid adoption of fintech solutions and digital banking platforms.
- Expansion of regional and corporate banking offices to tier-2 and tier-3 cities.
- Strong investor confidence in India’s financial sector, driving growth.
Preferred Locations:
Mumbai (India’s financial capital), Navi Mumbai (emerging BFSI hub), and Hyderabad.
4. Flex Space: Emerging as a Key Player (14%)
Flexible workspaces continued to gain traction in 2024, reflecting changing workforce preferences.
Key Drivers:
- Hybrid work culture, where companies need dynamic and scalable office setups.
- Cost optimization strategies by businesses, especially startups and SMEs.
- Increased demand from gig economy workers and remote teams.
Preferred Locations:
Bengaluru, Gurgaon, and Hyderabad led the flex space growth due to tech-savvy ecosystems and availability of premium coworking spaces.
