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8/8/2019 Bangalore - 1Q 2010
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2002 2003 2004 2005 2006 2007 2008 1Q2010
2009
Source: Central Statistical Organization, Consensus Economics
ECONOMIC INDICATORS
Latest Release AverageFY 2008 FY 2009
Real GDP Growth Oct - Dec 09 6.0% 9.0% 6.7%
Industrial Production Jan-10 16.7% 8.3% 2.4%
Prices (CPI) Feb-10 14.9% 6.2% 9.1%
Prime Lending Rate Apr-10 11.0%-12.0% 12.5% 11.5%-12.5%
Surging Absorption
Vacancy Rates
Stabilised Rentals
Outlook
Total projected supply for the year is 12.42 million sq.ft; more than thedouble of the supply delivered in 2009 and the first quarter of 2010accounted for approximately 1.23 million sq.ft. of it. Outer Ring Road(Sarjapur – Hebbal) micro market continues to witness significantquantum of supply and has contributed for the entire supply during thequarter. Whitefield is another key micro market likely to witnessapproximately 6.3 million sq.ft supply in the coming quarters.
Demand* was recorded at approximately 2.54 million sq.ft, comprising of pre-commitments of 546,000 sq.ft during 1Q 2010. One of the
noteworthy trends in the first quarter has been high levels of freshabsorption of approximately 1.99 million sq.ft. Absorption has increasedby 11% as against the absorption in the first quarter of 2009. Theabsorption has been the highest in the peripheral micro markets of Outer Ring Road, Whitefield, Electronics city etc., accounting for nearly57% of the total absorption. Nearly 60% of the total number of transactions registered in the first quarter were in excess of 20,000 sq.ft.and the market has also witnessed a few deals above 100,000 sq.ft.
*Demand = Fresh pre commitments + Fresh absorption for the quarter
The city's overall vacancy level continued at 15% in the first quarter of 2010. With minimal addition to supply and marginal increase in secondgeneration supply, the vacancy levels have remained constant. Increasingsupply in the last couple of years and marginal absorption has resulted inhigh vacancy of 21% in peripheral location as compared to other micromarkets. CBD/ Off CBD micro market witnessed a marginal decrease invacancy to 13% this quarter and the suburban vacancy levels haveremained constant at 5%.
There hasn't been significant change in rentals across most micromarkets in the first quarter of 2010. CBD/Off CBD micro market withmarginal decrease in vacancy, coupled with increased absorption andinflux of grade A developments has seen a minor increase in rentals.
With absorption trends likely to gain pace in the coming quarters, rentalsacross select micro markets are likely to witness an upward trend.
MARKETBEAT
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
BANGALORE OFFICE REPORT
1Q 2010
This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it isaccurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty orrepresentation, express or implied, is made to the accuracy or completeness of the information contained herein, and same issubmitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any speciallisting conditions imposed by our principals.
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©2010 Cushman & Wakefield. All rights reserved .
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GRADE A RENTS AS OF 1Q 2010
Location Average Achievable Rent* % Change from 6 mthNet on GFA) (Local Currency) Outlook
INR € US$ 3 1/sq.ft. /sq.m /sq.ft. mth yr /mth /yr /yr ago ago
(
CBD/Off CBD 73 155 19 3%
Suburban 48 102 13 2% è
Peripheral - ITPL 48 102 13 0% 0% è
Peripheral - 1 25 53 7 0% è
Peripheral - 2 42 89 11 0% è
-12%
-17%
-11%
-7%
è
Legend
Market RisingìMarket StableèMarket Fallingî
Suburban: CV Raman Nagar, Koramangala, Indiranagar etcPeripheral – 1: Whitefield and Electronics CityPeripheral – 2: Outer Ring Road (Sarjapur-Hebbal)* Warm Shell includes core facility, high side air conditioning and 100% power back up
SIGNIFICANT NEW LEASE TRANSACTIONS
Building Tenant Sq. Ft. Location
Pritech Park Cap Gemini 150,000 Outer Ring Road
Prestige Dynasty Citrix 120,000 Ulsoor
ITPB Societe General 100,000 Whitefield
SVR Fortuna Flextronics 90,000 Electronics City
SIGNIFICANT PROJECTS UNDER CONSTRUCTION
Building Location Office GFA Completion(Sq. Ft.) Date
Prestige Shanthineketan Whitefield 3,100,000 2Q 10
Vrindavan Tech Village ORR 900,000 2Q 10(Sarjapur-Hebbal)
Bearys Global Whitefield-Hoskote 600,000 3Q 10Research Triangle Road
SUPPLY, ABSORPTION AND RENT TRENDS
Million sq.ft. INR/sq.ft/month
Supply Absorption CBD Rents
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