University of York Leases Office Space in Mumbai's Powai: A Strategic Commercial Move

The UK-based University of York has made a strategic entry into Mumbai’s commercial real estate market by leasing 37,602 sq ft of office space at One Boulevard, Powai, from Kairos Properties Pvt Ltd, an affiliate of Brookfield Properties. The agreement, effective December 1, 2025, spans a five-year tenure, with the third and fourth floors included. The deal highlights the growing appeal of Powai as a commercial hub for global educational institutions, corporates, and flex-space providers.

The lease begins with a monthly rent of ₹75.2 lakh, escalating annually by 5%, reaching ₹91.41 lakh by the fifth year. The agreement includes a three-year lock-in period, ensuring tenancy stability for both the lessor and the lessee. Additionally, the first month’s rent is waived, a common practice in commercial leases to facilitate tenant onboarding.

The security deposit ranges from ₹4.51 crore for the initial three years to ₹5.18 crore for the final two years, reflecting a structured financial arrangement. The transaction also includes 27 designated parking slots, with additional parking available at ₹8,500 per car per month, catering to the needs of employees and visitors.

Powai has emerged as one of Mumbai’s key commercial micro-markets, attracting both multinational corporations and educational institutions. Its proximity to Andheri and Saki Naka, good connectivity to the Mumbai Airport, and modern office infrastructure make it a preferred location for long-term commercial leases.

One Boulevard, the building leased by the University of York, offers premium office amenities, flexible layouts, and robust infrastructure suitable for education-driven operations, research, and administrative offices. This aligns with a growing trend of foreign universities leasing office spaces in India for satellite campuses, research centres, and operational bases.

The lease agreement features a 5% annual rent escalation, a standard clause in Mumbai’s commercial real estate to account for inflation and market appreciation. The structured escalation ensures predictable financial outflows for tenants while providing landlords with sustainable rental growth.

With a starting monthly rent of ₹75.2 lakh, the University of York’s lease underscores Powai’s premium rental positioning. By the fifth year, the monthly rent increases to ₹91.41 lakh, reflecting both market growth and property value appreciation.

India’s office leasing market witnessed robust activity in 2025, crossing 83.3 million sq ft of gross leasing, a 7.8% increase over 2024. Cities like Bengaluru, Mumbai, Hyderabad, and Pune drove the growth, fueled by global firms, expanding IT services, and flex-space demand.

Bengaluru led the country with 24.1 million sq ft, up 9.8% year-on-year, reflecting strong IT sector growth and high-quality commercial infrastructure.

Mumbai recorded 11.6 million sq ft, a 13% growth, with Powai emerging as a key micro-market for premium office space.

Hyderabad achieved 11.7 million sq ft, driven by IT, pharmaceutical, and educational institutions leasing activity.

Pune recorded 8.1 million sq ft, an 18.2% jump, with new office developments and business parks attracting investors.

Contrastingly, Delhi-NCR recorded a minor decline of 1.6% to 17.4 million sq ft, while Kolkata contracted by 9.2% to 1.6 million sq ft, highlighting regional differences in office absorption trends.

The University of York lease reflects a growing trend of flexible and international office space demand in India. Global universities and educational institutions increasingly prefer leasing premium commercial properties over purchasing, allowing scalability, operational flexibility, and access to prime locations without long-term capital expenditure.

Flex spaces, coworking facilities, and plug-and-play offices have also contributed significantly to absorption in 2025. This includes both technology-driven firms and education-based operations, which benefit from shared infrastructure, modern amenities, and connectivity.

Powai’s commercial market has shown sustained growth due to proximity to Mumbai’s financial hubs, Hiranandani Knowledge Park, and tech parks. The University of York’s leasing deal demonstrates confidence in the micro-market and reinforces Powai as a viable option for international institutions.

Developers like Brookfield and its affiliates continue to benefit from high-demand, long-term lease agreements, enhancing asset valuation. The presence of premium tenants, structured rent escalations, and strategic lock-ins make Powai a stable commercial investment destination.

Comparing with other major leases in Mumbai:

JP Morgan Services India leased 2.71 lakh sq ft in Powai for ₹612 crore, highlighting the market’s capability to attract global financial institutions.

Other corporate tenants in Powai, including IT services, banking, and research firms, continue to secure large-scale leases, contributing to rising occupancy rates and rental growth.

The University of York deal, while smaller in scale than some corporate transactions, is significant for its educational and international tenant profile, showcasing diversification in Mumbai’s office leasing ecosystem.

The transaction also involved stamp duty of over ₹14 lakh and a registration fee of ₹1,000, adhering to local property regulations. The structured security deposit and annual escalation clause protect both parties and ensure regulatory compliance.

The first-month rent waiver and the parking allocation are typical in high-demand micro-markets like Powai, offering tenants added convenience and operational flexibility.

The Powai lease signals continued investor and tenant confidence in Mumbai’s office real estate. With global firms, educational institutions, and flex-space operators seeking premium office infrastructure, areas like Powai, Andheri East, Lower Parel, and Bandra-Kurla Complex are likely to see sustained absorption and rental growth in the coming years.

The University of York leased 37,602 sq ft at One Boulevard, Powai, Mumbai for nearly ₹50 crore over five years. The office spans the third and fourth floors, with annual rent increases of 5%, a three-year lock-in, 27 parking slots, and a first-month rent waiver. The security deposit ranges from ₹4.51–5.18 crore. Powai’s premium office market benefits from strong connectivity and infrastructure, contributing to Mumbai’s 83.3 million sq ft of commercial leasing in 2025, led by global firms, flex-space demand, and IT/education tenants.