Zomato parent Eternal leases large office space in Mumbai for Rs 1.34 crore monthly rental

The agreement has a clause of rent escalation by 15 percent after three years and the lease was registered on May 9.

Eternal, the parent entity of Zomato, has taken up office space spanning 84,157 square feet on lease in Mumbai for five years, for a monthly rent of Rs 1.34 crore, data analytic firm CRE Matrix has reported.

Eternal has leased the office space in Mumbai's Andheri (east) area from Histyle Retail, CRE Matrix said. The starting monthly rent has been agreed upon at Rs 160 per sq ft, CRE Matrix said citing registration documents reviewed by the company. Over a period of five years, the total rent outgo is expected to be Rs 95 crore, including maintenance charges.

The agreement has a clause of rent escalation by 15 percent after three years and the lease was registered on May 9. The lease includes 57 parking slots, CNBC-TV18 added in its report.

Shares of Eternal are higher by over a percent in early trade on May 16.

Late last year, rentals for offices in major markets started to see an increase, according to market sources, going past levels last seen in 2019, with Mumbai remaining as the most-expensive office rental market in India. According to a large developer in Mumbai, banks, insurers and brokers continue to seek landmark addresses for their headquarters or large offices and have even been prepared to buy buildings outright.

Real estate consultant Anarock had in January shared plans to double its office leasing team size to 100 professionals in 2025, to cater to the rising demand for premium workspaces from corporates.