Mumbai business owners facing the lease vs buy decision on office space in Bandra West are now staring at a concrete option: The Presidential by Webtech Realty, delivering July 2026, with commercial spaces from 800 sqft at ₹5.60 Crore to 4,000 sqft at ₹28 Crore. For a business that currently leases office space in Bandra West at ₹250–350/sqft/month and wants a 10-year outlook, the buy vs lease arithmetic is worth running in detail.
The Presidential — Quick Facts
- Developer: Webtech Realty LLP
- Location: Bandra West (Road Facing)
- Possession: July 2026 (9 weeks away)
- Configurations: 800 sqft (₹5.60 Cr), 2,000 sqft (₹14 Cr), 3,000 sqft (₹21 Cr), 4,000 sqft (₹28 Cr)
- PSF (all-in buy price): ₹70,000/sqft across all configurations
- Use case: Owner-occupied business office, investment letting
The Buy vs Lease Calculation: 800 Sqft Case Study
Scenario: A business owner currently renting 800 sqft of Bandra West office space at ₹280/sqft/month (₹2.24 Lacs/month). The Presidential offers to sell 800 sqft at ₹5.60 Cr. Should they buy?
Option A: Buy ₹5.60 Crore Office at The Presidential
| Cost Component | Amount |
|---|---|
| Purchase price | ₹5.60 Cr |
| Stamp duty (5% Maharashtra commercial) | ₹28 Lacs |
| Registration | ₹1 Lac |
| GST on under-construction commercial (18%) | ₹1.01 Cr |
| Fit-out (basic Grade A commercial: ₹2,500/sqft × 800) | ₹20 Lacs |
| Total all-in investment | ₹7.10 Cr |
Annual occupancy cost (own): Monthly EMI on ₹4.48 Cr loan (80% LTV, 9% rate, 15-year tenor) ≈ ₹4.55 Lacs/month. Plus maintenance: ₹20,000/month. Equals ₹4.75 Lacs/month vs the ₹2.24 Lacs/month lease. The EMI is 2.1× the current lease cost.
Annual property tax (commercial, Bandra West): Approximately ₹2–3 Lacs/year (based on BMC rateable value assessments in the locality). Add this to the ownership cost.
Option B: Continue Leasing at ₹280/sqft/month
| Component | Year 1 | Year 5 (8% pa escalation) | Year 10 |
|---|---|---|---|
| Monthly rent (800 sqft) | ₹2.24 L | ₹3.29 L | ₹4.84 L |
| Annual lease cost | ₹26.88 L | ₹39.48 L | ₹58.08 L |
| Cumulative lease paid over 10 years | ₹3.90 Cr+ |
Cumulative lease cost over 10 years at 8% annual escalation: approximately ₹3.90 Crore. The ₹7.10 Cr all-in cost of buying The Presidential looks expensive upfront — but over 10 years, you've saved ₹3.90 Cr in rent and own an asset that has historically appreciated 6–10% per year in Bandra West commercial. A ₹5.60 Cr Bandra West commercial property at 7% annual appreciation over 10 years = ₹11.01 Cr asset value at year 10. Net gain over 10 years vs leasing: substantial.
The Payback Window
The buy option crosses the lease option's cumulative cost at approximately Year 14–16 when factoring in equity build-up, appreciation, and eliminated escalation risk. For a business owner with a 15-year outlook, buying is financially dominant. For a business planning to be in the same Bandra West location for less than 7–8 years, leasing is more flexible and capital-efficient.
The Presidential — PSF Buy Price
₹70,000 / sqft
Consistent across all configurations: 800 sqft (₹5.60 Cr) through 4,000 sqft (₹28 Cr). July 2026 possession. Road facing, Bandra West.
The Investment Case: Buying to Let
If you are buying The Presidential not to occupy but to invest (lease to a business tenant), the economics look different. Current Grade A commercial leasing rates in Bandra West: ₹250–380/sqft/month depending on floor, specification, and fit-out. At ₹300/sqft/month on 800 sqft:
- Monthly rental income: ₹2.40 Lacs/month
- Annual rental income: ₹28.80 Lacs
- Gross yield on ₹5.60 Cr: 5.14%
- Gross yield including GST recovery from tenant: 5.14% (GST is passed through, not income)
- Net yield after property tax + maintenance: approximately 4.5–4.8%
A 4.5–5.0% net yield on commercial property in Bandra West is competitive vs residential — residential yields in Bandra West currently average 2.0–2.8%. Commercial yields being 1.5–2.0 percentage points higher is the classic commercial premium, compensating for lower liquidity (commercial properties take longer to sell or find tenants vs residential) and the business-cycle sensitivity of commercial demand.
What to Watch Before Committing
✓ Factors That Support Buying
- July 2026 delivery is 9 weeks away — minimal execution risk
- Bandra West commercial rents have risen 12–18% since 2022
- Road-facing commercial on a Bandra West arterial road has strong tenant demand
- 4.5–5% net yield is materially above Bandra West residential yields
- 15-year ownership makes financial sense over perpetual leasing
✗ Risks and Watch-Outs
- GST of 18% on under-construction commercial adds ₹1.01 Cr on ₹5.60 Cr purchase — significant upfront hit
- Commercial properties have lower resale liquidity than residential
- Webtech Realty is a mid-tier developer — verify RERA P51900XXXXXX and build history
- Business-cycle risk: commercial vacancy can run 6–12 months in a downturn
- Stamp duty for commercial in Maharashtra is 5% vs 6% for residential — slightly lower, but still significant
Comparison: The Presidential vs Leasing Equivalent Space in BKC
Some business owners considering The Presidential are also evaluating BKC as an alternative commercial address. BKC Grade A commercial leasing currently runs ₹350–450/sqft/month for comparable specifications. At 800 sqft in BKC:
- BKC lease (800 sqft × ₹400/sqft): ₹3.20 Lacs/month = ₹38.40 Lacs/year
- The Presidential ownership cost (EMI + maintenance): ₹4.75 Lacs/month
- Verdict: Owning in Bandra West costs less per month than leasing in BKC, with the additional benefit of building an asset rather than paying rent
For businesses that don't require a BKC postal address specifically — and many professional services firms, boutique financial advisors, and creative agencies genuinely don't — The Presidential in Bandra West is a materially cheaper occupancy solution than BKC Grade A leasing over a 5-year horizon.
Frequently Asked Questions
What is the rental yield on commercial office space in Bandra West?
Grade A commercial office space in Bandra West currently yields 4.5–5.2% gross rental yield — approximately 1.5–2 percentage points above Bandra West residential. At The Presidential's ₹70,000/sqft buy price, a market rent of ₹300–350/sqft/month implies 5.1–6.0% gross yield before taxes and vacancies.
How much GST do I pay when buying an under-construction commercial property in Mumbai?
18% GST on under-construction commercial property in Maharashtra (no input tax credit benefit for end-users). For a ₹5.60 Cr commercial purchase, that's ₹1.008 Cr in GST. Total stamp duty: 5% = ₹28 Lacs. Registration: ₹1 Lac. All-in government charges: ₹1.298 Cr on a ₹5.60 Cr purchase, pushing effective cost to ₹6.90 Cr before fit-out.
Is buying commercial office in Bandra West better than leasing in 2026?
For business owners with a 10–15 year horizon, buying is financially dominant: cumulative lease costs over 10 years approximate ₹3.90 Cr on 800 sqft at current rates with 8% annual escalation, while the asset appreciates. For businesses with shorter time horizons (under 7 years) or uncertain space requirements, leasing retains flexibility that buying cannot match.
Can I get a home loan for commercial office space at The Presidential?
No — home loan (housing loan) structures do not apply to commercial property. You need a commercial property loan (also called a mortgage loan against commercial property or loan against property). Commercial property loans in India typically offer 70–80% LTV, 9–10.5% interest rates, and 10–15 year tenors. The interest paid on commercial property loans used for business purposes is tax deductible as a business expense under Section 37 of the Income Tax Act — a significant advantage vs residential loans.
Related Reading
→ Bandra West Commercial Office Space: Complete Buyers Guide 2026 → Bandra West Complete Property Buying Guide 2026 → Bandra West Area GuideEvaluating The Presidential or other Bandra West commercial spaces?
Property Butler's advisors work with business owners on both owner-occupied and investment commercial purchases. Talk to us about the full financial analysis before committing.
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