RBI looking for at least 50,000 sq ft office space in BKC, South Mumbai

The Reserve Bank of India (RBI) is planning to take on lease at least 50,000 square feet of office space in Bandra Kurla Complex (BKC) and South Mumbai.

According to an Expression of Interest (EoI) floated by the RBI, the acquisition of office premises is proposed on a long-term lease basis for a minimum 40,000 square feet carpet area located in and around BKC within a radius of 5 km from its BKC office.

In another EoI, the RBI said the acquisition of office premises is proposed on long-term lease basis for at least 10,000 square feet carpet area located in and around South Mumbai within a radius of 5 km from its Fort office.

Both the buildings should project a professional and aesthetically pleasing appearance and should be approved for office use, the central bank added.

Cushman & Wakefield India Pvt Ltd is the appointed realty consultant agency for handling the work related to taking on lease commercial office premises in Mumbai, the RBI said.

Gagan Randev, Executive Director, India Sotheby's International Realty, said BKC has emerged as the financial capital's most sought after office destination for global banks, financial institutions and funds over the last 7-8 years and its high time RBI has its presence there.

The demand for office space in BKC, even at much higher rentals than South Mumbai, outstrips South Mumbai by a ratio of 5:1 as reflected by the data provided by CRE Matrix, a data analytics platform for residential and commercial real estate.

"This is because of the quality of buildings, quality of infrastructure and the go-to financial hub which has now been created. The attractiveness of BKC will continue to be robust with the recent flyovers opened and the opening of Maker Maxity Mall as well," Randev added.

According to Colliers India, average rental in Grade A office space of BKC is about 30 per cent higher than similar office space in South Mumbai. While per square feet monthly rental of Grade A office space in BKC is Rs 276.8, it is Rs 212.2 in South Mumbai.

Karan Singh Sodi, Regional Managing Director (Mumbai and Ahmedabad), JLL India, said South Mumbai traditionally has been a micro-market with limited overall supply cumulating to approximately 7 million square feet of Grade A and B buildings, with the majority being more than 30 years old, as there is scarce availability of land for development unlike any other front office micro-markets of Mumbai.

"Further, the majority of the buildings are strata owned thereby limiting the availability of single owned Grade A office premises with requirement size as published by the Reserve Bank of India," Singh said.

Singh further said BKC has been at the centre stage as far as front office demand is concerned in Mumbai.

BKC and surrounding micro-markets recorded approximately 1.4 million square feet of leasing volume in 2021 (including renewals) and the first quarter of 2022 witnessed approximately 440,000 sq ft of leasing volumes (highest amongst front office micro-markets).

The Reserve Bank of India was established on April 1, 1935. The central office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated.

Currently, the RBI has 27 regional offices, most of them in state capitals, and four sub-offices.