Maker Maxity Rental Deal Renewal of Toronto Dominion Bank Confirms BKC as India's Costliest CBD

Bandra-Kurla Complex, Mumbai

Mumbai's office property market has reached a new pinnacle with the highest-ever lease rentals recorded in India. The Toronto-Dominion (TD) Bank has renewed its India headquarters lease at Maker Maxity in the prominent Bandra-Kurla Complex (BKC) at an unprecedented rate of Rs 604 per sq ft per month.

This rate surpasses the previous high of Rs 565 per sq ft, as confirmed by sources familiar with the matter. The Canadian multinational bank's lease follows other recent high-profile leases in BKC, including LinkedIn's renewal at Rs 565 per sq ft per month and the Bank of China leasing space at Rs 500 per sq ft a month.

The lease for TD Bank's office, spanning over 1,600 sq ft, reaffirms the status of BKC and Maker Maxity as the most expensive office locations in the country. This title was previously held by CeeJay House in Mumbai's affluent Worli area, which commanded monthly rentals of over Rs 450 per sq ft a decade ago.

The demand for office spaces, particularly Grade A buildings, in BKC has remained strong despite limited new supply in the last seven years, with no significant future developments expected in the next 2-3 years.

Headquartered in Toronto, TD Bank Group (TD) employs over 90,000 staff globally and offers a wide range of financial services to more than 27 million customers through its Canadian Retail, U.S. Retail, and Wholesale Banking divisions.

BKC's commercial office demand, including front offices, has continued to thrive, even against global economic fluctuations. Over the past year, there has been a notable rise in demand for Grade A commercial spaces in the area. This trend aligns with BKC's enduring appeal for corporate occupants and the continual rise in rentals.

Experts in the real estate industry attribute this sustained interest in BKC to its central location, improved infrastructure, proximity to airports, connectivity through the Bandra-Worli Sea Link, and Sion-BKC connector from the eastern expressway.

The recent launch of Jio World Plaza in BKC, a project led by Reliance Industries, has been a transformative development for the business district. This retail and commercial hub not only adds to the commercial offerings but also elevates the lifestyle and social infrastructure of the area. Furthermore, the anticipated terminus for the Mumbai-Ahmedabad bullet train is attracting business interest.

India's commercial real estate sector has shown remarkable resilience amidst global challenges, buoyed by a talented workforce and cost advantages. This trend is evident in the recent strong performance in net office space absorption across key markets, recording the highest levels in 18 months during the September quarter. The top seven office markets in the country saw office space leasing jump to a six-quarter high of 10.37 million sq ft in the three months ending September, marking an over 30% increase from the previous quarter.