Sara Ali Khan Leases Andheri Bungalow to Montessori School for ₹4.14 Crore

Mumbai's celebrity real estate market rarely stays quiet for long. Just when the dust settles on one high-profile deal, another one surfaces from the property registrar's records. This time, it is actress Sara Ali Khan making headlines, and the deal has an unusually interesting twist. She has not sold a property or bought a new one. She has leased out her Andheri West bungalow to a Montessori school, turning a premium residential asset into a steady income-generating one over the next five years.

The bungalow in question is located in Belscot Co-operative Housing Society, tucked inside the well-known Old Lokhandwala Complex in Andheri West. This is one of Mumbai's most established residential pockets, sitting close to Versova, JVPD, and Link Road. The area has long attracted celebrities, affluent professionals, and now, increasingly, institutional tenants who need large-format spaces in well-connected western suburbs.

The property spans approximately 4,500 square feet. That is a generous footprint by any Mumbai standard and precisely the kind of space that a growing educational institution needs.

The lease has been executed in favour of Prodigy Montessori India Private Limited. According to registration documents accessed by CRE Matrix, the agreement was formally registered on March 27, 2026, with the leave-and-license period set to commence from May 1, 2026. The tenant intends to use the premises strictly for school-related activities, as clearly stated in the agreement.

A Montessori school occupying a bungalow in a residential society is not entirely unusual in Mumbai. But the scale of this deal, and the structured terms around it, make it stand out from a typical neighbourhood playschool arrangement.

The starting monthly rent is fixed at ₹6.5 lakh, which works out to ₹144.44 per square foot. For the first two years, this rent holds steady. From the third year onwards, a 5 percent annual escalation kicks in, pushing the rent to ₹6.82 lakh in year three, ₹7.16 lakh in year four, and ₹7.52 lakh in the fifth and final year.

When you add up all 60 months at their respective rent levels, the total rental outgo comes to approximately ₹4.14 crore. The tenant has also paid a security deposit of ₹20 lakh upfront. This kind of step-up rent structure is standard practice in long-duration Mumbai property leases because it protects the landlord against inflation while giving the tenant predictability in the early years.

The lease carries a 36-month lock-in clause. That means neither party can walk away from the deal before three years are up without facing consequences. For Sara Ali Khan, it guarantees uninterrupted rental income through at least May 2029.

But the agreement goes further than just rent terms. It lays out specific operational conditions, clearly acknowledging that a school running inside a cooperative housing society requires careful management. Cars, buses, and vans are not permitted inside the compound. All student pick-up and drop-off must happen outside the complex. The tenant is also bound to follow society bylaws and applicable municipal rules in full. These clauses reflect a practical attempt to keep the residential character of the neighbourhood intact.

The Andheri West property market has always attracted premium interest, but what is shifting now is the nature of demand. Institutional and activity-based leasing, where schools, clinics, and similar entities occupy residential or semi-residential properties, is gaining quiet momentum in this belt. Large bungalows and independent floors that once sat underutilised are finding new commercial purpose without going through a formal land-use conversion.

For property owners sitting on similar assets in Lokhandwala, Versova, or JVPD, this deal offers a useful reference point. A 4,500-square-foot bungalow in Andheri West can now command ₹144 per square foot per month on a long-term structured lease. That is a meaningful data point.

This is not Sara's first notable property transaction in the city. Back in October 2024, she and her mother Amrita Singh jointly acquired two commercial office spaces in Andheri West for ₹22.26 crore. Both units were on the ninth floor of the Signature Building off Veera Desai Road.

The pattern is becoming clear. She is not just a celebrity with inherited wealth sitting on passive assets. She is actively building and managing a real estate portfolio across residential and commercial categories, in the same micro-market she knows well.

Outright selling a property in a prime location like Old Lokhandwala Complex might yield a one-time gain, but leasing it on a five-year structured deal offers consistent returns with the asset remaining intact. For high-net-worth individuals, this model makes considerable financial sense, particularly in a city where property values are still climbing.

Other Bollywood names have made similar moves recently. Hrithik Roshan's parents leased a commercial property in Andheri to Fabindia at ₹14.5 lakh per month. Malaika Arora has leased her Bandra West apartment in a three-year deal worth ₹1.17 crore. The trend points to a growing sophistication in how celebrities treat their real estate holdings.

Sara Ali Khan's lease of her Andheri West bungalow to Prodigy Montessori India Private Limited for a total deal value of ₹4.14 crore is a well-structured Mumbai property lease that reflects both sound financial thinking and the growing appetite for large residential spaces in institutional leasing. The ₹6.5 lakh monthly starting rent at ₹144 per square foot, a 36-month lock-in, and a 5 percent annual escalation make this a textbook celebrity real estate transaction in Old Lokhandwala Complex, Andheri West, and a strong signal of where Mumbai's premium rental market is headed in 2026.