Mumbai Real Estate: Amitabh Bachchan pays a yearly fee of Rs 2.07 crore for commercial premises

 Mumbai Real Estate: Amitabh Bachchan pays a yearly fee of Rs 2.07 crore for commercial premises

Mumbai Real Estate: Amitabh Bachchan pays a yearly fee of Rs 2.07 crore for commercial premises

Mumbai office market: Beginning in the fourth year of the rental agreement, the rent for the four apartments, each spanning around 10,000 square feet, would rise to Rs 2.38 crore yearly.

Mumbai Real Estate Update: Experts claim that the yearly rental return of commercial real estate, which is larger than that of residential real estate, is the primary driver of the trend of Bollywood stars investing in commercial real estate.

Bollywood star Amitabh Bachchan has leased four 10,000 square foot commercial properties in the Oshiwara neighborhood of Mumbai for an annual rent of Rs. 2.07 crore, plus a security deposit of Rs. 1.03 crore. Warner Music India Limited is the tenant of the commercial area, with a five-year term. Propstack.com was able to collect paperwork indicating that starting in the fourth year, the yearly rent would rise to Rs 2.38 crore.

August 2023 saw Bachchan acquire the four Oshiwara office premises mentioned above. For Rs 7.18 crore, Bachchan purchased the four apartments.

In addition to Bachchan, Sara Ali Khan, Kartik Aryan, Manoj Bajpayee, and Sara Ali Khan have also purchased office space in Mumbai, validating the trend of several Bollywood celebrities choosing to invest in commercial rather than residential real estate in order to get higher rental returns.

contract

Bachchan has leased 12 parking spots and four apartments with a three-year lock-in term. The records state that on November 30, 2023, a stamp duty payment of Rs 2.88 lakh was made for the transaction. The deal will begin on March 20, 2024.

We've given Warner Music India Limited an email inquiry. Awaiting their response. Bachchan could not be contacted for comment, however.

The yearly rental income of commercial real estate is higher than that of residential real estate, which is the main driver of Bollywood stars' trend of real estate investment. Experts claim that rental returns on commercial buildings are greater than those on residential ones. The real estate consulting company CBRE India states that the usual gross yields in metro areas for commercial buildings such as retail stores, offices, and warehouses are between 6 and 10 percent.

What is the yield on rental property?

The amount of money a property owner makes each year by renting out their asset is known as their rental yield. For instance, the rental yield for a property owner in Mumbai who purchases a home for Rs 1 crore and receives an annual rent payment of Rs 8 lakh is 8%.

Salman Khan, a Bollywood star, has leased 27,650 square feet of premises in Mumbai across four floors to TNSI Retail Pvt Ltd, a Future Retail Ltd affiliate, for around Rs 89.6 lakh a month. 2022.

Under the name Dharma Productions, filmmaker Karan Johar leased two commercial buildings in 2021 for a monthly fee of Rs 17.56 lakh and Rs 6.15 lakh.