In one of Mumbai’s largest commercial real estate deals, HDFC Bank has signed a long-term lease for over 4.5 lakh sq. ft of office space in Andheri East. The agreement, spanning over 10 years, is valued at more than ₹1,020 crore, including other charges. The lease covers seven commercial tower R Square floors and includes 227 exclusive parking spaces.

According to documents accessed via the real estate data platform CRE Matrix, HDFC Bank will pay an initial monthly rent of ₹6.45 crore for a 2.73 lakh sq. ft carpet area. The lease also includes a 15% rent escalation every three years. The agreement, finalized earlier this week, was registered on January 27, attracting a stamp duty of ₹116 crore. The lease officially commenced last week, with a 180-day fit-out period for interior setup before the bank begins operations in the space.

Strategic Expansion Amid Real Estate Restructuring

While it remains unclear whether the bank will use the new office to expand operations or relocate existing teams, this move is part of a broader real estate consolidation strategy following HDFC’s merger with HDFC Bank. As part of this process, the bank has begun selling several non-core properties in Mumbai and other major cities, aiming to streamline its property holdings and unlock liquidity.

Among the key assets on sale is HDFC House in Churchgate, South Mumbai, a prime commercial property acquired from Hindustan Unilever in 2014 for ₹300 crore. Additionally, the bank offloads residential apartments previously allocated to senior HDFC officials across cities like Mumbai, Kolkata, Bengaluru, Mysore, and Pune. Collectively, these sales are expected to generate over ₹3,000 crore.

Despite these divestments, HDFC Bank has chosen to retain Ramon House, the former headquarters of HDFC, signalling a selective approach to asset retention while optimizing its portfolio for operational efficiency.

India’s Office Market Sees Strong Growth

HDFC Bank’s massive office lease reflects the ongoing strength of India’s commercial real estate sector, driven by economic expansion and increasing demand from global and domestic corporations. The country’s growing startup ecosystem, multinational expansions, and role as a global outsourcing hub have significantly boosted office space demand, particularly in key business districts like Mumbai, Bengaluru, and Gurugram.

With businesses seeking premium, well-located office spaces, India’s commercial real estate market continues to be an attractive investment opportunity. HDFC Bank’s latest lease deal reinforces Mumbai’s position as a prime corporate hub, signalling continued confidence in the city’s office space market.