The leave and licence agreement was registered in August 2026. The property is located in Kapol CHS Ltd. in Juhu, one of Mumbai’s most sought-after luxury residential neighbourhoods.

The agreement provides for a starting monthly rent of ₹16 lakh, with the rent increasing by 5% every year.

₹16 lakh monthly rent in the first year

According to the registration documents, the bungalow has a built-up area of 724.90 sq m, equivalent to approximately 7,803 sq ft.

The monthly rent has been fixed at ₹16 lakh for the first year.

With a 5% annual escalation, the monthly rent is expected to rise to approximately ₹19.45 lakh by the fifth year.

Based on the agreed escalation, the total rental value over the 60-month lease period is estimated at approximately ₹10.61 crore.

₹48 lakh security deposit

The agreement also provides for a ₹48 lakh security deposit.

The transaction attracted stamp duty of approximately ₹2.71 lakh, while the registration charges were ₹1,000.

The five-year tenure means that the property will remain under the leave and licence arrangement for 60 months, subject to the terms and conditions of the registered agreement.

Nearly 7,800 sq ft bungalow in Juhu

The property has a built-up area of 724.90 sq m, or approximately 7,803 sq ft.

The bungalow is situated within Kapol CHS Ltd. in Juhu.

The size and location of the property help explain the substantial rental value. At ₹16 lakh a month in the first year, the annual rent works out to ₹1.92 crore.

On the stated built-up area, the initial monthly rent translates to roughly ₹205 per sq ft per month, although rental comparisons should be made carefully because the agreement refers to built-up area and factors such as land value, bungalow configuration, amenities, parking and location can significantly affect rents.

Juhu continues to command a premium

Juhu remains one of Mumbai’s most established luxury residential markets.

The western Mumbai neighbourhood is known for premium residences, celebrity homes, high-end restaurants, hotels, retail and entertainment infrastructure. Its coastal location, established social infrastructure and connectivity to important parts of Mumbai have helped it maintain strong demand for high-value residential properties.

Unlike apartment markets where developers can add significant new supply, premium standalone bungalows in established neighbourhoods are relatively limited.

This scarcity can support both capital values and rental values, particularly for large properties with prime locations and established infrastructure.

What does the deal mean for Mumbai’s luxury rental market?

The transaction highlights the rental potential of ultra-premium residential assets in Mumbai.

A monthly rent of ₹16 lakh places the property firmly within the city’s high-end rental segment. More importantly, the 5% annual escalation ensures that the rental income rises progressively during the five-year lease.

For landlords, long-term leases with predetermined annual escalation can provide greater visibility on rental cash flows.

For tenants, however, the annual escalation means that the cost of occupying the property increases significantly over time. The monthly rent rises from ₹16 lakh in the first year to approximately ₹19.45 lakh in the fifth year.

Over five years, therefore, the tenant’s total rental outgo is more than five times the first-year annual rent because of the annual escalation.

Why celebrity-owned properties attract attention

Transactions involving celebrity-owned real estate often attract attention because they provide a window into the economics of Mumbai’s luxury property market.

In this case, the significance of the transaction is not simply the identity of the landlords. The agreement demonstrates the rental value that a large residential property in an established Mumbai micro-market can command.

The transaction also highlights the growing importance of rental income as an investment strategy for owners of high-value residential properties.

Rather than selling a premium property, owners can potentially generate substantial recurring income by leasing it over a longer period.

A ₹10.61 crore rental stream over five years

The most significant number emerging from the agreement is the estimated ₹10.61 crore cumulative rental value.

The income is spread over five years rather than being received upfront. The first year’s rental income is approximately ₹1.92 crore, increasing every year because of the 5% escalation.

By the fifth year, the annualised rent reaches approximately ₹2.33 crore.

This structure provides the landlords with a steadily increasing rental income stream while giving the tenant contractual visibility over the property for the five-year period.

Who are the landlords?

Ajay Devgn is one of the prominent actors in Hindi cinema and has also worked as a filmmaker and producer. He made his acting debut with Phool Aur Kaante in 1991 and subsequently appeared in films including Dilwale, Zakhm, Company, The Legend of Bhagat Singh, Omkara, Singham and Drishyam.

He has also received multiple honours during his career, including National Film Awards for Best Actor.

Veena Devgan, Ajay Devgn’s mother, is associated with Hindi film production and has maintained a relatively private profile. She was associated with the production of the 1999 film Dil Kya Kare, which featured Ajay Devgn, Kajol and Mahima Chaudhry.

What does this mean for homebuyers and investors?

Although the property is a luxury bungalow and the transaction is far removed from Mumbai’s mainstream housing market, it offers some insights for property investors.

First, location remains one of the biggest drivers of rental value. Juhu’s established ecosystem and limited availability of premium standalone properties allow well-located assets to command substantial rents.

Second, rental escalation can materially increase returns over a longer holding period. A property generating ₹16 lakh a month initially can generate considerably more by the end of a five-year lease when annual escalation is built into the agreement.

Third, investors should distinguish between headline rental income and actual investment returns. Property taxes, maintenance, repairs, society charges, insurance, vacancy risk and other ownership costs can affect the net income generated by a property.

For ordinary homebuyers, the transaction is therefore less a benchmark for Mumbai’s broader residential market and more an indicator of the premium commanded by scarce, high-value properties in established luxury neighbourhoods.

The bigger picture

Mumbai’s luxury residential rental market continues to be supported by a combination of limited premium housing supply, strong demand from high-income households and the city’s concentration of business, entertainment and professional activity.

The Ajay Devgn-Veena Devgan transaction adds another high-value rental deal to this segment.

With a starting rent of ₹16 lakh a month, a 5% annual escalation and a five-year tenure, the bungalow is estimated to generate ₹10.61 crore in cumulative rent.

The transaction therefore underscores an important feature of Mumbai’s luxury property market: for owners of scarce, well-located assets, rental income can itself become a substantial source of long-term wealth creation.

Source: Property registration documents reviewed by Square Yards on the Maharashtra Inspector General of Registration (IGR) website.

Also Read: Ajay Devgan to get 7.25 lac Rent per month 

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