The National Payments Corporation of India (NPCI) has picked up an office space spread over more than 1.15 lakh sq ft spanning two floors in a commercial project in Mumbai’s western suburb Goregaon through a long-term lease of five years.
As per the agreement, NPCI will pay a monthly rental of Rs 2.15 crore. The lease includes a clause to escalate rentals by 15%, which will take effect after three years, taking the total rental payout to over Rs 136 crore over the entire tenure of the lease.
In addition to the rent, NPCI has paid a security deposit equivalent to nine months’ rent at the time of registration of the deal that took place in November, showed documents accessed through realty data analytics platform Propstack.
National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India.
The transaction highlights the ongoing demand for Grade A commercial real estate in Mumbai, driven by leading institutions and multinational corporations.
ET’s email query to NPCI remained unanswered until the time of going to press.
India’s commercial real estate market remains resilient, with large global and domestic companies securing long-term office spaces to support their operations and expansion plans amid favorable market conditions.
Ratings agency ICRA estimates that the net absorption of commercial office leasing across the top six cities including Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region (MMR) and Pune is likely to increase by 10-11% to 59-60 million sq ft in the current financial year 2024-25 and witness a further growth of 3-4% in 2025-26 on a high base.
