India Office Property Market Overview_jan 2013

7/29/2019 India Office Property Market Overview_jan 2013

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OfficePrOPerty Market OverviewiNDia

QUarterLy UPDate | JaNUary | 2013

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MACRO ECONOMIC OVERVIEW

GDP growth in the July - September quarter

o 2012 was 5.3%, contracting marginally

rom in the last quarter.

Headline ination based on the wholesale

price inde inched down to 7.24% or the

month o November 2012, as compared to

7.45% in October 2012. It was 9.46% during

the corresponding month o the previous

year.

The Reserve Bank o India reduced the CRR

(Cash Reserve Ratio) o scheduled banks by

25 basis points rom 4.50 to 4.25% with

eect rom 3 November 2012 to induce

immediate liquidity in the market. However,

the central bank did not provide any repo rate

cut this quarter.

Indias oreign direct investment (FDI) inow

was around USD1.94 billion in October 2012,

which was nearly 65% above the same month

last year.

This quarter, the commercial oce markets in

India have shown mied trends. Overall, rents

and capital values remained stagnant with a

downward bias. Notwithstanding the current

economic diculties, the leasing activity in

Mumbai, Delhi and Gurgaon Bangalore

remained steady; however, the Chennai,

Kolkata and NOIDA markets eperienced

relatively weak demand.

COLLIERS VIEW: Business confdence is up

based on the governments keen resolve to

introduce numerous fscal and economic

reorms. RBI has indicated that they would

positively review lowering the repo rate in 1Q

2013. This should increase liquidity in the

market; and the positive business environment

should lead to recovery in the countrys

economic growth and increase in demand or

commercial and residential real estate. In the

medium terms, cities with lower inventoryoverhang (such as Bangalore and Mumbai)

will witness strengthening in the rental and

capital values. However in the short term

rental values across board will be under

stress.

ECONOMIC BAROMETER

RETuRN ON AlTERNATIVE INVEsTMENTs

RESEARCH & FORECAST REPORTsYDNEY CENTRAl BusINEss DIsTRICT

INDIA OFFICE MARKETREsEARCh & fORECAsT REpORT

Dec-11 Dec-12

REPO RATE 8.50% 8.00%

REVERSE REPO

RATE 7.50% 7.00%

CRR 6.00% 4.25%

INFLATION 7.74% 7.24%

PRIME

LENDING RATE9.75% - 10.75% 10.00% - 10.75%

DEPOSIT RATE

(


3/12

Note: All the rentals shown above are indicative Grade A rentals in INR per sq t per month.

COllIERs INTERNATIONAl | p. 3

iNDia | 4Q 2012 | OFFICE

Source: Colliers International India Research

MuMBAI

More than 9.3 million sq t o commercial

Grade A oce space was available or ft-out

in 4Q 2012. About 24% o this total available

space was concentrated in Andheri East.

A number o projects / part o the projects

were completed this quarter resulting in

the addition o approimately 4 million sq

t o Grade A oce space to the citys total

inventory.

Leasing activity picked up in the Mumbai Grade

A oce market during 4Q 2012 and ew large

deals were concluded during the quarter. The

citys total absorption or 2012 totalled around

6.23 million sq t. Sectors which primarily

contributed to this absorption were Banking,

Finance Services and Insurance (BFSI) and

IT/ITes.

Average rental and capital values in Mumbai

remained stable in 4Q 2012 across all micro-

markets due to ample availability o stock and

new developments in the pipeline.

The Maharashtra State Road Development

Corporation (MSRDC) has opened a second

yover, named Patlipada, on the Thane-

Ghodbunder Road. A total o our yovers the

Patlipada, Waghbil, Kapurbawdi and Manpada

were planned on this road, o which Waghbil

and Patlipada yover are now operational;

work on the Manpada yover is in the fnalstages and is epected to be operational by

the end o January 2013.

COLLIERS VIEW: 4Q 2012 witnessed an

increase in absorption o oce space. The

demand showed a clear preerence or

premium quality oce space. We anticipate

that in short to medium term the rental values

or such properties will command a premium

due to limited supply. Though, overall market

rentals will witness stability on account o

demand/supply equilibrium.

Andheri East24%

CBD1%

Thane / LBS22%

Worli / Prabhadevi1%

Goregoan / JVLR8%

Powai4%

Malad5%

Navi Mumbai6%

Lower Parel20%

BKC8%

Kalina1%

AVAIlABlE supplY IN pRIME AREAs

CITY OffICE BAROMETER

Micro Market Renta

Vae

% Cange

QoQ YoY

CBD 225 - 275 0% -9%

Andheri East 90 - 125 0% 0%

BKC 225 - 315 0% 3%

Lower Parel 130 - 200 0% 0%

Malad 80 - 90 0% 0%

Navi Mumbai 55 - 75 0% 0%

Powai 100 - 120 0% 0%

Worli/ Prabhdevi 175 - 225 0% 0%

Goregaon/ JVLR 80 - 110 0% -5%

Kalina 175 - 210 0% 0%

Thane / LBS 50 - 100 0% 0%

3Q 2012 4Q 2012

Vacancy

Absorption

Construction

Rental Value

AndheriEast

BKC

LowerParel

Malad

NaviMumbai

Powai

Worli/

Prabhdevi

Goregaon/

JVLR

Kalina

Thane/LBS

CBD

0

5000

10000

15000

20000

25000

30000

35000

GRADE A CApITAl VAluEs

CapitalValues-INRPerSq.t.

1Q2008

4Q2008

4Q2009

4Q2010

4Q2012

4Q2013F

4Q2011

50 5000

0 0

100 10000

150 15000

200 20000

250 25000

300 30000

AVERAGE RENTAl AND CApITAl TREND

Forecast

RentalValues-INRPerSq.t.PerMonth


Note:

Available Supply:Total Grade A ofce space being marketed or sale or l ease in

surveyed quarter.

Grade A Rental/Capital Values: Indicative asking price or Grade A ofce space.

Prime Ofce Average Rental Trends:Average market rental values or Grade A

properties.

KEY uNDER CONsTRuCTION pROJECTs

BUILDING NAMEDEVELOPER AREA (SQ. FT.) LOCATION ExPECTED COMPLETION

Kohinoor Square Kohinoor Group 779,000 Central Mumbai 2013

Marathon Icon Marathon Group 175,500 Central Mumbai 2013

Mindspace IT SEZ Bldg. No.11 K Raheja Corp 400,500 Navi Mumbai 2013

KEY MARKET TRANsACTIONs

CLIENT BUILDING NAME AREA (SQ. FT.) LOCATION TRANSCATION TYPE

Covidien Boomerang 9,900 Andheri Lease

Lhoist Sahar Plaza (Windall) 6,630 Andheri Lease

QAD India Techniple 15,000 Goregaon Lease

Verte Group Sigma IT Park 22,490 Rabale Lease

Visa The Capital 20,000 BKC Lease

Woodfeld Systems (India) Ltd. NITCO Biz Park 10,000 Thane Sale

MUMBAI


4/12p. 4 | COllIERs INTERNATIONAl



DElhI

About 1.6 million sq t o Grade A oce space

was ready or ft-out in 4Q 2012. The majority

o this supply was located in SBD locations

such as Jasola and Saket.

No new supply was added during the surveyed

quarter to the Delhi commercial Grade A oce

stock.

Occupier demand remained steady during the

quarter. A number o small transactions were

concluded in the CBD while SBD locations

like Jasola and Saket recorded ew mid-size

transactions.

Amid steady occupier demand and limited

supply availability the rental values or Grade

A oces remained stable in almost all micro-

markets.

Capital values remained stable in almost all

micro-markets and no major activity was

witnessed in the sales market. However, the

state government has announced the new

circle rates with eect rom 5 December 2012

in the capital. As per the notifcation, the circle

rate in Category A colonies went up by 200%,

in Category B by 50% and the rest by 22%. At

present, there are eight categories o colonies

in Delhi (A through H). The circle rate is the

minimum rate or registration o properties.

COLLIERS VIEW: While the demand has come

down marginally as compared to previous

years, the rental values remained stable during

2012. Most o the developers are adopting a

wait and watch approach awaiting or new

announcement on city development plans. No

major supply is epected in near term ecept

in Aerocity which is an emerging location in

Delhi near International Airport. We anticipate

rental values to remain stable due to limited

supply and muted demand.

Jasola59%

Nehru Place10%

Saket29%

Connaught place2%



Micro Market Renta

Vae

% Cange

QoQ YoY

Nehru Place 180 - 192 1% 4%

Connaught Place 330 - 384 0% 2%

Netaji Subhash 65 - 75 0% 0%Jasola 112 - 130 -2% -5%

Saket 162 - 180 7% 1%

NehruPlace

ConnaughtPlace

Jasola

Saket

0

10000

20000

30000

40000

50000

60000



1Q2008

4Q2008

4Q2009

4Q2010

4Q2012

4Q2013F

4Q2011

50 5000

0 0

100 10000

150 15000

200 20000

250 25000

400

350

300 30000

35000

40000


Forecast



Note:

Available Supply:Total Grade A ofce space being marketed or sale or lease in

surveyed quarter.



properties.



Caddie Commercial Tower Caddie Hotel 100,000 Aerocity 2013

DLF Towers Okhla DLF Ltd. 420,000 Okhla 2013

Ambience Commercial Tower Ambience Group 150,000 Vasant Kunj 2013



Franklin Templeton Ashoka Estate 5,200 Barakhamba Road Lease

Oriame Corporate One 50,000 Jasola Lease

State Bank o India Jeevan Bharti 20,000 Connaught Place Lease

Thales Group Konnectus 18,450 Minto Road Lease

USG Corporation DLF Jasola 1,710 Jasola Lease

DELHI

3Q 2012 4Q 2012

Vacancy

Absorption

Construction

Rental Value



5/12COllIERs INTERNATIONAl | p. 5



MG Road5%

Institutional Sectors /Sushant Lok

2%

Manesar17%

DLF Cyber City4%

NH8/Udhyog Vihar21%

Gol Course Road/Et /Sohna Road

51%



GolCourse

Road/Ext

/SohnaRoad

NH8/UdhyogVihar

Institutional

Sectors/

SushantLok

GolCourse

Road/Ext/Sohna

Road(IT)

NH8/Udhyog

Vihar(IT)

Manesar(IT)

Manesar

MGRoad

0

5000

10000

15000

20000

25000


1Q2008

4Q2008

4Q2009

4Q2010

4Q2012

4Q2013F

4Q2011

20 2000

0 0

40 4000

60 6000

80 8000

100 10000

120 12000Forecast





Note:


surveyed quarter.



properties.



DLF Building 14 Tower D DLF Ltd. 731,800 NH-8 2013

Success Tower Suncity Projects 200,000 Gol Course Et Rd. 2013

Unitech Inospace, Gurgaon Phase 2 Building 7 Unitech Ltd. 432,000 NH-8 2013

KEY MARKET TRANsACTION


AB Scie India Plot No 121 22,000 Udyog Vihar Lease

ACS xero Park View Business Tower 40,000 Sohna Road Lease

Mudra Communications Ltd. Platinum Towers 30,000 Udyog Vihar Lease

Pepsico Ltd. Pioneer Urban 150,000 Gol Course Et Rd. Lease

SAP India Vatika Towers 9,500 Sector 54 Lease

GURGAON

3Q 2012 4Q 2012

Vacancy

Absorption

Construction

Rental Value

Micro Market Renta

Vae

% Cange

QoQ YoY

M. G. ROAD 110 - 120 -2% -1%

Gol Course Rd./Et /Sohna Rd.

55 - 110 1% -7%

NH8/UdhyogVihar

110 - 140 0% 10%

Manesar 45 - 62 0% 5%

InstitutionalSectors /Sushant Lok

60 - 117 5% 1%


GuRGAON

More than 14 million sq t o Grade A oce

space was available or ft-out in 4Q 2012.

Most o the available supply was concentrated

on Gol Course Road, Gol Course Road

Etension, Udyog Vihar, NH-8 up to Manesar.

During the surveyed quarter, construction

activities remained upbeat and several projects

/ parts o the projects contributing more than

0.5 million sq t o Grade A oce space were

added to the citys total inventory.

This quarter a number o projects / parts

o the projects were launched, admeasuring

about 1 million sq.t. Most o these projects are

epected to be completed by the end o 2015

and will add about 1 million sq t o Grade A

oce space to the citys total inventory.

Occupier demand remained strong and a

number o mid-size (20,000 to 25,000 sq t)

transactions were recorded during 4Q 2012.

The total absorption recorded during the year

was to the tune o 4 million sq t.

Rental values recorded a marginal increase in

the range o 1 to 2% in select micro-markets

such as Gol Course Road, Gol Course

Etension Road and Sohna Road. However,

rental values remained under pressure in the

CBD and declined by 2%. All other micro-markets witnessed steady rents QoQ.

COLLIERS VIEW: In view o the sustained trend

o cost-saving initiatives adopted by most o

the oce occupiers, Udhyog Vihar and Sohna

Road will remain the most preerred location

because o aordable rentals and location

advantages. The oce rental value growth

will be capped in medium term due to eisting

vacancy and the orthcoming new supply.





NOIDA

During 4Q 2012, about 8.8 million sq t o

Grade A and Grade B oce space was

available or ft-out. More than 90% o this

supply was IT/ITeS oce space located

primarily in Sectors 16A, 62 and Sectors 125to 143 along the NOIDA Epressway.

Following the previous quarter, construction

activities remained upbeat and about 1.5

million sq t o Grade A oce space was

added to the citys total inventory. Projects /

part o the projects contributing to this new

supply include Ansal Corporate Park by Ansal

API and Advant IT Park, Tower-B by Advant

Group, both located at Sector 143.

A new project, Ithum, was launched by Beaver

International in Sector 62 this quarter. The

project, measuring approimately 0.5 million

sq t, is epected to be completed by the end

o 2015.

Occupier demand remained bleak but ew large

oor plate deals were concluded during 4Q

2012. The total absorption in 2012 accounted

or more than 2 million sq t o Grade A oce

space.

Rental values declined to the tune o 2 to 3%

in the institutional and industrial sectors this

quarter however, rents in the commercial

sector remained stable QoQ.

COLLIERS VIEW: The market is acing sti

competition rom other preerred location like

Gurgaon. Occupier demand has come down

signifcantly in 2012 as compared to previous

years and market witnessed an overall

contraction o rental values by 5% YoY. In

view o large upcoming supply in the pipeline

and lower demand rom IT/ITeS companies,

rental values will continue to remain under

pressure in medium term.

Commercial Sectors (Sec18) (Grade B)

0.7%

Industrial Sectors(Sec. 1-9, 57-60, 63-65)

(Grade B)8.6%

Commercial Sectors(Sec 18)

0.2%

Institutional Sectors(Sec.16A, 62, 125-142

90.5%



Micro Market Renta

Vae

% Cange

QoQ YoY

InstitutionalSectors (Non IT)

61 - 72 -2% -11%

Institutional

Sectors (IT)45 - 50 -3% -5%

ComercialSectors

95 - 100 6% -7%

IndustrialSector

23 - 32 0% 4%

Institutional

Sectors(NonIT)

Institutional

Sectors(IT)

Commercial

Sectors

0

3000

6000

9000

12000

15000



1Q2009

4Q2009

4Q2010

4Q2011

4Q2012

4Q2013F

20 2000

0 0

40 4000

6000

60

8000

80

10000120

100


Forecast





Amigo Cyber Park Amigo Park Inc. 250,000 NOIDA Epressway 2013

Corporate Park Ansal API 186,240 NOIDA Epressway 2013

Oygen SEZ 3C Group 250,000 NOIDA Epressway 2013



Benare (Domestic BPO) Assotech One 12,500 Sector 62 Lease

Haskoning India Green Boulevard 11,000 Sector 62 Lease

Lumata Digital Green Boulevard 25,000 Sector 62 Lease

Powertec Energy Individual Building 25,000 Sector 63 Lease

Samsung Engineering Advant IT Park 100,000 Sector 142 Lease

Note:


surveyed quarter.



properties.

NOIDA

3Q 2012 4Q 2012

Vacancy

Absorption

Construction

Rental Value






ChENNAI

Approimately 14 million sq t o Grade A oce

space was available or ft-out this quarter.

The majority o this supply was located along

the OMR IT Corridor.

No major new supply was added to the citys

inventory during the quarter.

Occupiers demand remained sluggish but

leasing in Special Economic Zones remained

active and most o the supply in the SEZs was

absorbed as soon as it became available. The

citys annual absorption in 2012 was about 3

million sq t which was almost hal o 2011

absorption.

Demand was primarily concentrated in

Guindy, Ambattur and OMR as companies are

looking at these places or relocation, taking

into consideration accessibility, amenities and

ease o commuting or employees.

Rental values or Grade A oce space

remained stable during the survey period

despite moderation in demand due to supply /

demand equilibrium.

COLLIERS VIEW: Oce space demand

in Chennai is mostly limited to eisting

enterprises epanding or relocating which is

either a move or more compliant properties

or or lower rentals or to a location whereincompanies can attract the right human

resources. Demand is still primarily driven

by IT/ITeS. Due to ample supply in the city,

locations closer to the city are charging

nominal rentals and thus making properties

away rom the city less attractive.With limited

space in traditionally preerred micro-markets

such as Guindy, new micro-markets such

as Ambattur (or ITeS) and OMR (or IT) are

more sought ater. There will be downward

pressure on rental values.

CBD14%

Guindy (SBD)6%

Velachery1%Vadapalini

0%

GST Rd3%

OMR (IT Corridor)51%

Ambattur24%



Micro Market Renta

Vae

% Cange

QoQ YoY

CBD 65 - 85 0% -9%

Guindy (SBD) 50 - 60 0% 6%

Ambattur 25 - 30 0% 3%OMR (ITCorridor)

25 - 40 0% 0%

GST road 35 - 40 0% 0%

Guindy(SBD)

Ambattur

OMR(IT

Corridor)

CBD

0

2000

4000

6000

8000

10000


1Q2008

4Q2008

4Q2009

4Q2010

4Q2012

4Q2013F

4Q2011

20

0 0

40

2000

4000

60 6000

80 8000

100 10000Forecast





Purva Moneta Puravankara Projects 300,000 Guindy 2013

Ramanujan IT City Little Wood Tower Block D Tata Realty & Inrastructure 600,000 Taramani 2013

SP InoCity Shapoorji Pallonji Group 1,200,000 OMR 2013



Barclays DLF SEZ 69,000 Manapakkam Lease

Calsot Espee Tech Park 40,000 Ekkatuthangal Lease

EpiSource Prince Inocity2 35,000 IT Corridor Lease

Maveric Systems DLF SEZ 20,000 Manapakkam Lease

Tata Capital Centineal Square 13,000 Ashok Nagar Lease

Note:


surveyed quarter.



properties.



CHENNAI

3Q 2012 4Q 2012

Vacancy

Absorption

Construction

Rental Value






BENGAluRu (BANGAlORE)

More than 11.5 million sq t o Grade A oce

space was available or ft-out in Bangalore this

quarter. Most o this supply was concentrated

in areas such as the EPIP Zone, Whitefeld,

Electronic City and Outer Ring Road.

Approimately 1.75 million sq t o oce

space was added to the citys total inventory

this quarter.

Occupiers demand or Grade A oce space

remained steady and a ew large oor plate

deals were eecuted during 4Q 2012. The IT/

ITeS sector remained the major contributor o

this demand. The yearly absorption o Grade

A oce space was around 8 million sq t

during 2012 which was approimately 60% o

the total absorption o last year.

Outer Ring Road, Whitefeld and Electronic

City remained the more preerred oce

locations. In addition, an increased interest

is being observed in the North Bangalore

micromarket. The area is getting attention

with the development o the KIADB Industrial

area and a ew Special Economic Zones like

Hinduja and Karle SEZ.

Amid cautious market sentiments and more

prime oce supply in the pipeline, the average

rental values remained stable across all micro-

markets this quarter.

COLLIERS VIEW: Unlike in 2011 and 2012,

there are ewer 100,000+ sq.t. requirements

in the market. Most o the demand is

being generated by small and medium IT

enterprises. Demand is still primarily rom IT

companies; Due to uncertainty in the uture

perormance o IT companies developers are

reraining rom speculative developments.

There is ample proposed inventory pile up

in the city, we anticiapate a lot o it will be

deerred. Rental values will remain stable due

to the low rental base.

Hosur Road4%

CBD6%

Bannerghatta Road2%

Electronic City15%

EPIP Zone/ Whitefeld46%

Outer Ring Road27%



Micro Market Renta

Vae

% Cange

QoQ YoY

CBD 80 - 100 0% 6%

Hosur Rd. 20 - 40 0% 0%

EPIP Zone/Whitefeld 23 - 32 0% 3%

Electronic City 25 - 35 0% 0%

Bannerghatta Rd. 48 - 54 4% 4%

Outer Ring Rd. 47 - 58 0% 5%

-

HosurRoad

EPIPZone/

Whitefeld

Electronic

City

Bannerghatta

Road

OuterRing

Road

CBD

0

5000

10000

15000

20000


1Q2008

4Q2008

4Q2009

4Q2010

4Q2012

4Q2013F

4Q2011

20 2000

0 0

40 4000

600060

80 8000

100 10000Forecast





Bagmane Constellation - Pheoni Bagmane Developers 450,000 SBD 2013

Hiranandani Ashord Hiranandani Group 437,500 Electronic City 2013

Prestige tech park III Prestige Group 379,100 SBD 2013



Britannia Ltd. Prestige Shanthiniketan 70,000 Whitefeld Sale

Mindteck Prestige Atlanta 68,000 Koramangala Lease

Netmagic SVR Platinum 110,000 Electronic City Lease

Novel Group GNR Tech Park 145,510 Hosur Road Sale

Onmobile E City 100,000 Electronic City Lease

Verizon Prestige Tech Park 60,000 Outer ring road Lease



Note:


surveyed quarter.



properties.

BENGALURU

3Q 2012 4Q 2012

Vacancy

Absorption

Construction

Rental Value






KOlKATA

About 0.28 million sq.t. o new supply was

added to the Kolkata Grade A oce inventory

this quarter. Construction activities were

slow and the projects which were due or

completion this quarter were deerred to thenet quarter. Similarly, no new Grade A oce

projects were launched in the Kolkata market,

however, a ew projects launched previously

were re-launched this quarter.

The rental market remained slow and only a

ew deals were concluded during 4Q 2012.

Most o these leases were in the PBD micro-

markets such as Sector 5 and New Town

Rajarhat.

Average rents or Grade A remained stable

during the quarter, but in view o the overalldismal market sentiments, landlords have

started reducing asking rents.

COLLIERS VIEW: Rental values are stable

at the moment, but there will be signifcant

downward pressure due to low demand

rom IT/ITeS sector, the traditional demand

driver. Few companies are setting up oces

in Kolkata. We anticipate that most o the

demand in Kolkata in near term will be based

on consolidation requirements. East Kolkata

Rajarhat, Sector V, Topsiya and By-pass will

continue to be the preerred areas because obetter inrastructure, better grade buildings

and lower rentals.

Sector-531%

East Kolkata65%

Ballygunge Circular Road4%



Micro Market Renta

Vae

% Cange

QoQ YoY

CBD 110 - 130 0% 4%

BallygungeCircular Rd.

105 - 115 0% 0%

East Kolkata 75 - 85 0% 0%

Sector-5 45 - 55 0% 0%

PBD (New Town,Rajarhat)

34 - 39 0% 0%

CBD(Park

St,CamacSt,AJC

BoseRoad)

Ballygunge

Circular

Road

EastKolkata

Sector-5

PBD(New

Town,

Rajarhat)

0

5000

10000

15000

20000


1Q2008

4Q2008

4Q2009

4Q2010

4Q2012

4Q2013F

4Q2011

20 2000

0 0

40 4000

60 6000

80 8000

100 10000

120 12000Forecast





Ideal Unique Centre Ideal Group 700,000 EM Bypass 2013

IT Godrej Simocco Phase 2 Godrej Waterside 1,000,000 Sector 5, Saltlake 2013

Unitech Inospace, Kolkata Phase 3 B Unitech Ltd. 1,306,800 Rajarhat 2013



Burckhardt Compression Eco Space 14,000 New Town, Rajarhat Lease

CDE Asia Limited Eco Space 8,800 New Town, Rajarhat Lease

ICICI Bank Ltd. BIPL 6,000 Sector 5, Saltlake Lease

Indian Coast Guard Synthesis Business Park 45,600 New Town, Rajarhat Lease

Nomura Institue o Capital Market Research Globsyn 33,000 Sector 5, Saltlake Lease

Sunrise Spices Corporate Park 12,000 Sector 5, Saltlake Sale



Note:


surveyed quarter.



properties.

KOLKATA

3Q 2012 4Q 2012

Vacancy

Absorption

Construction

Rental Value






puNE

Approimately 4.5 million sq t o Grade A

oce space was available or ft-out in Pune

during 4Q 2012. Most o this supply was

concentrated in the micro-markets o Kharadi,

Hadapsar, Fursungi, Hinjewadi and NagarRoad.

No new major supply was added to the citys

total inventory this quarter. Similarly, no

major oce projects were launched ecept a

small 50,000 sq t project by Chordia Group

in Baner.

During this quarter, overall occupier demand

or oce space has contracted, however,

a ew large oor plate deals were signed

during 4Q 2012 and more than a million

sq t o Grade A oce space was leased inmicro-markets such as Hadapsar, Bavdhan,

Hinjewadi and Wakewadi. IT/ITeS and the

automobile sectors were the main occupiers

or commercial space.

Restricted supply in both IT and SEZ has led

to a marginal upward pressure in the rental

values or Grade A buildings in select micro-

markets resulting in an average increase o

around 5% in rents across micro-markets.

COLLIERS VIEW: Rents are epected to remain

stable in view o upcoming supply in easterncorridor locations such as Viman Nagar and

Kharadi. IT/ITES will continue to play a vital

role in Punes overall absorption. This could

be attributed to the projects that have already

seen pre-commitments or long-established

interest rom various IT/ITES companies.

Bavdhan4%

Kalyani Nagar7%

Senapati Bapat Road3%

Aundh3%

Baner6%

Bund Garden4%

Airport road/pune station

4%Hinjewadi26%

Nagar Road14%

Kharadi21%

Hadapsar/Fursungi8%



Micro Market Renta

Vae

% Cange

QoQ YoY

Baner 40 - 50 0% 0%

Bund Garden 55 - 65 0% 0%

Airport Rd. 47 - 58 0% 4%Aundh 40 - 45 0% 0%

Senapati Bapat 60 - 90 0% -3%

Bavdhan 35 - 40 0% 0%

Kalyani Nagar 45 - 60 0% 0%

Nagar Rd. 40 - 45 0% 5%

Hinjewadi 30 - 40 0% 8%

Hadapsar/Fursungi

35 - 50 0% 6%

Kharadi 40 - 50 0% 7%

BundGarden

Airportroad/

punestation

Aundh

Senapati

BapatRoad

Bavdhan

KalyaniNagar

NagarRoad

Hinjewadi

Hadapsar/

Fursungi

Kharadi

Baner

0

2000

4000

6000

8000

10000

12000


1Q2008

4Q2008

4Q2009

4Q2010

4Q2012

4Q2013F

4Q2011

20 2000

0 0

40 4000

60 6000

80 8000

100 10000Forecast





Commerzone Building 5 K Raheja Corp. 350,000 Jail Road 2013

DLF IT Park, Pune Phase 2 Building 6 DLF Ltd. 750,000 Hinjewadi 2013

SP InoCity, Fursungi Building 6 Shapoorji Pallonji Group 500,000 Fursungi 2013



Credit Suisse Wipro Campus 200,000 Hinjewadi Lease

iNauti Magarpatta Tower 8 150,000 Hadapsar Lease

Netscout Bajaj IT Park 52,000 Wakdewadi Lease

NVIDIA Commerzone 260,000 Yerwada Lease

Symantec EON IT Park 99,000 Kharadi Lease

Synechron Embassy 54,000 Hinjewadi Lease



Note:


surveyed quarter.



properties.

PUNE


3Q 2012 4Q 2012

Vacancy

Absorption

Construction

Rental Value


11/12

Mumbai

The major business locations in Mumbai are the CBD (Nariman Point, Fort and Ballard Estate), Central Mumbai (Worli, Lower Parel and Parel), Bandra

Kurla Comple (BKC) and Andheri Kurla stretch. Powai, Malad and Vashi are the preerred IT/ITES destinations, while Airoli at Navi Mumbai and Lal

Bahadur Shastri Marg are emerging as new oce and IT/ITES submarkets.

Delhi

The commercial areas in New Delhi metropolitan area can be broadly classifed into the CBD (Connaught Place), SBD Nehru Place, Bhikaji Cama Place,

Netaji Subhash Place, Jasola and Saket .

Gurgaon

The prime business locations in Gurgaon are MG Road, Gol Course Road, Cyber City and Udyog Vihar. Manesar on the outskirts o Gurgaon is also

emerging as the citys new oce destination.

NOIDA

NOIDA market is comprised o sectors broadly classifed as institutional, industrial and commercial sectors. Institutional sectors include sec 16A, 62 and

125-142, industrial sectors include sec 1-9, 57-60 and 63- 65 while sector 18 is the most developed commercial sector.

ChennaiPrime oce properties in Chennai are located in our principal sub-markets: the CBD, the IT Corridor, the SBD and the PBD. The SBD comprises Guindy,

Manapakkam, Velachery and other areas. The PBD primarily includes Ambattur and GST Road, while the IT Corridor is the Old Mahaballipuram Road

(OMR) in south Chennai.

Bengaluru (Bangalore)

Prime oce properties in Bengaluru can be divided into three principal sub-market CBD, the SBD consisting o Banerghatta Road & Outer Ring Road

(ORR) and PBD including Hosur Road, EPIP Zone, Electronic City and Whilefeld.

Pune

The prime oce sub-markets o Pune include Deccan Gymkhana, Bund Garden Road, Senapati Bapat Road & Camp (CBD), while the O CBD includes

Aundh, Airport Road and Kalyani Nagar, among other locations. The eastern corridor, along with Nagar Road and Kharadi, have emerged as a preerred

location or fnancial and IT/ITES companies.

Kolkata

The major business locations in Kolkata are CBD (Park Street, Camac Street, Chowranghee Rd), SBD (AJC Bose Rd, Ballygunge circular Rd, East

Kolkata), East Kolkata and PBD (New Town & Rajarhat). The area around Park Street, Camac Street and AJC Bose road houses number o high-rises

commercial buildings such as Chatterjee International Centre, Tata Centre, Everest House and Industry House among others.

OffICE suBMARKETs

COllIERs INTERNATIONAl | p. 11


CITY BAROMETER

Increasing as compared to previous quarter

Decreasing as compared to previous quarter

Remained stable rom previous quarter


12/12


Colliers International (India) provides property services to property Investors and Occupiers. We

deliver customised service solutions utilising local and global knowledge in partnership with our

clients via our property Investment and Occupier service lines. These service lines include - Oce

Services, Facility Management, Project Management, Residential Services, Investment Services

and Valuation & Advisory Services.

www.colliers.com/india

For national oces services related queries please contact:

George Mckay, South Asia Director Vikas Kalia, National Director

Oce & Integrated Services Oce Services

[email protected] [email protected]

Tel: +91 22 4050 4553 Tel: +91 124 456 7531

NDIA OFFICE INDIA RESIDENTIAL APAC OFFICE APAC INDUSTRIAL GLOBAL RETAIL INDIA BUDGET

Mumbai : Vaibhav Kumar, Oce Director

[email protected]

31/A, 3rd oor, Film Center, 68, Tardeo Road, Mumbai, India - 400 034.

Tel : +91 22 4050 4527, a : +91 22 2351 4272

Delhi NCR : Ajay Rakheja, Oce Director

[email protected]

New Delhi :Statesman House, 4th Floor, Barakhamba Road, Connaught Place,

New Delhi, India - 110001

Tel : +91 11 3044 6423, a : +91 11 3044 6500

Gurgaon : Technopolis Building, 1st oor, DLF Gol Course Main Road, Sector 54, Gurgaon,

India - 122002

Tel : +91 124 456 7500, a : +91 124 456 7502

Bengaluru : Goutam Chakraborthy, Oce Director

[email protected]

Prestige Garnet, Level 2, Unit No.201/202, 36 Ulsoor Road, Bengaluru,

India - 560 042

Tel : +91 80 4079 5500, a : +91 80 4112 3131

Pune : Suresh Castellino, Oce Director

[email protected]

Hotel Le Meridian, 101, R.B.M. Road, Pune, India - 411 001

Tel : +91 20 4120 6438, a : +91 20 4120 6434

Chennai : Kaushik Reddy, Oce Director

[email protected]

Heavitree Comple, Unit 1C, 1st oor, 23, Spurtank Road, Chetpet, Chennai,

India - 600 031

Tel : +91 44 2836 1064, a : +91 44 2836 1377

Kolkata : Soumya Mukherjee , Oce Director

[email protected]

Infnity Business Centre, Infnity Benchmark, Room No 13, Level 18, Plot G - 1,

Block EP & GP, Salt Lake Sector V, Kolkata - 700 091 West Bengal, India

Tel : +91 33 2357 6501, a : +91 33 2357 6502

Recent Reports :

This book is printed on 100% Recyclable paper



AUTHORS

Amit Oberoi MRICSNational Director, Valuation & Advisory; ResearchEmail: [email protected]

Surabhi Arora MRICSAssociate Director, ResearchEmail: [email protected]

Sachin SharmaAssistant Manager, ResearchEmail: [email protected]

Heliana ManoAssistant Manager,Valuation & AdvisoryEmail: [email protected]

For general queries and eedback :

[email protected]: +91 124 456 7580

This report and other research materials may be ound onour website at www.colliers.com/India. Questions relatedto inormation herein should be directed to the ResearchDepartment at the number indicated above. This documenthas been prepared by Colliers International or advertisingand general inormation only. Colliers International makesno guarantees, representations or warranties o any kind,epressed or implied, regarding the inormation including,but not limited to, warranties o content, accuracy andreliability. Any interested party should undertake theirown inquiries as to the accuracy o the inormation.

Colliers International ecludes unequivocally all inerredor implied terms, conditions and warranties arising outo this document and ecludes all liability or loss anddamages arising there rom.

Copyright 2012 - 2013 All Rights Reserved.

522 oces in 62 countries on 6 continents

United States: 147Canada: 37Latin America: 19Asia Pacifc: 201EMEA: 118

$1.8 billion in annual revenue2.55 billion square eet under management

Over 12,300 + proessionals


Residential PropertyMarket OverviewINDIA

QUARTERLY UPDATE | NOVEMBER | 2012

ASIA PACIFIC

OFFICE MARKET OVERVIEW

3Q 2012


ASIA PACIFIC

INDUSTRIAL MARKET OVERVIEW


May2012

STREET/PRECINCTRENT(USD)**

ANNUALCHANGE(%)

New York FifthAvenue , .

HongKong Queen'sRoadCentral,Central(tie)

, .

Hong Kong Canton Road (tie)

, .

London Old Bond St.*** , .

Paris Avenuedes***Champs-lyses

, a t

Hong Kong -CausewayBay

, .

NewYorkMadisonAvenue

.

Zu r i ch Ba h nh o f st r a ss e a t

Milan Via MonteNapoleone

(.)

Sydney PittStreetMall (.)

HIGHLIGHTSGLOBAL

www.colliers.com

MID-YEAR 2012 | RETAIL

ANNT.NATUNEWICZManager| Retail Research | USA

cColliers2012 GlobalRetailStreets surveyfound thatof 129 locations tracked,51 posted higheryear

overyearaveragerentalrates,49 wereat,and 24 weredown (5 lacked comparabledata).

cRetailers entering new marketsbothdeveloped and developingcontinuetohedgeriskbytargeting

thesameoneortwopremierlocations,generating heated competit ion and outsized rentalrategrowth

in a handfulof space-constrained corridors.

cCompanies withthemostambitious long-term expansion plans remain focused on emerging markets

withrapidlygrowing middle-class populations,butrecentlyinstitutionalcapitalhas pulled back

somewhattofavorcoremarkets and investments.

cWhileeconomic and polit icalturmoildid aectrentalrates in headline-generating markets (such

as Cairoand Athens),highstreets withstrong fundamentals remained remarkablyresilient,suggest-

ing,atleastfornow,someseparation between macroeconomic issues and underlying real

estatefundamentals.

cSinceweconducted oursurvey,however,weakening consumersentimentamong auentshoppers

has alreadybegun toimpactretailersrevenues and could hinderlandlordsnear-term abilityto

raiserents,suggesting attening growthrates forthecoming year.

This spring proved to be a tricky time to conduct global benchmarking, as market sentiment hasdeteriorated markedly since April. During the past year, virtually every entity making a forecastincluding Colliers in our2012 U.S.RetailOutlookincluded a caveatrelated tonot-yet-quantiableglobalfallout from Europes scal issues. As the past few months have illustrated, the time to face Eurozoneissues has nallyarrived,spawning a new waveof nancialuncertainty.

More than two years post-recession, though, results from our annual survey of High Street rentsillustratethattheworlds priciestretailcorridors continuetoattractthemostsought-aftertenants atloftyrentalrates.Eightof Collierstopten GlobalRetailStreets in 2011 madethelist again this year.Thebigstory,however,lies withtheexplosiveyearoveryearrentalgrowthachieved in a handfulof markets.Sixof ourTop10 grew atdouble-digit levels yearoveryearin localcurrencyunits,veof them bymorethan20%.

At a regional level, streets in areas that entered 2007-08 better-positioned economicallyAustralia,Canada, parts of Eastern Europehad a higherpercentage of this year's at-to-higherrents than thoseslowerto emerge from the recession. We will be watching these areas closely. Even as theyrepresentsome of the most attractive destinations forexpansion-minded companies and yield-seeking investors,theytooarevulnerabletosoftening consumerdemand and,forthosewithreliabledata,encroachmentofe-commerce.

This report contains two parts. The rst summarizes the results of ourannual Global Retail Streetssurvey,conducted in April2012.Thesecond incorporates contentfrom Colliers brokerageand researchteams worldwidewhocontributed marketoperationalmetrics,nuanced commentaryon retailconditions,

and forward-looking opinions on whatthenextyearwillhold forconsumers,landlords,and investors.

RecordRentsforTopRetailCorridors;Global

SlowdownImpactsMomentumElsewhere

TOP10GLOBALRETAILSTREETS*(USDPERSQUAREFOOTPER YEAR)

REGIONALRETAILRESEARCHCONTACTS

AMERICAS> Ann [email protected]

EUROPE/MIDDLEEAST/AFRICA> Zuzanna [email protected]

ASIA> Simon [email protected]

AUSTRALIA/NEWZEALAND> Nora [email protected]

Source: Colliers International* selected cities** exchange rate as of March 31, 2012*** Zone A rents

www.colliers.com/india

Budget Highlights |RealEstate

FinanceMinisterPran abMukherjeestarted his budgetspeech2012-13 in the

backdropof challenging macroeconomic scenario.Thenancemini sterprojects

theeconomyto grow by7.6% in thenextscal upfrom 6.9% in 2011-12.Hementioned thatduetoadver seglobalecono mic sentiments therehas been a

slowdown in theIndian Economybutthefacti s India stillremains among the

frontrunners in theeconomic growthin anycross countrycomparison. The

budgetaims atfaster,sustainableand moreinclusivegrowth across sectors

emphasizing on vefocus areas including revivalof domestic consumption,

rapid revivalof highgrowthin privateinvestment,removalof supplybottlenecks,

addressing malnutrition in 200 highburden districts and expediteimprovementin deliverysystem,governanceand transparency.

From a realestateperspective,thebudgetremained silenton mostof themajorissues including status of STPIs (SoftwareTechnologyParks of India),RealEstateRegulatoryBill, Land Billetc.however,itmentioned thateorts areon toarriveat a politicalconsensus on theissueof allowing 51% Foreign Direct

Investment(FDI)in multi-brand retail.

THE KEY HIGHLIGHTS OF THE BUDGET WHICH MAY IMPACT REAL ESTATE

SECTOR ARE AS FOLLOWS:

- ExternalCommercialBorrowings (ECB)forlow costaordablehousingprojects. Impact:Real estatecompanies developinglargeaordablehousing

projects with largefund requirements will benet the most from theeasingof

external commercial borrowing(ECB) norms as interest ratecharged is lower incaseofexternal borrowings in comparison to rates charged by domestic

institutions.

- Increasein provision underRural Housing Fund toINR4,000 crorefrom theexisting INR3,000 crore. Impact:It will providehousingnanceto targeted

groupsinruralareasatcompetitiverates.

- Extension of theexisting schemeof interestsubven tion of 1% on housing

loans uptoINR15lakhwhere thecostof thehousedoes notexceed INR25

lakhforanother year. Impact:This will boost the aordablehousingsegmentby providingcheaper loan to theend users.

MARKETREACTIONTO BUDGET

Q1 2012 | RESEARCH

Source: www.bseindia.com | Mar16, 2012

C o mp a ny C h an g e (% )

BSESENSEX -1.19

RealtyIndex -1.26

AnantRajInds -6.04

DBRealty -2.02

DLF 0.15

GodrejProperties -2.82

HDIL -5.21

HubtownLtd. -4.13

IndiabullsRealEstate -1.95

MahindraLifespaces -0.72

OrbitCorp. -3.37

ParsvnathDevelopers -4.04

PeninsulaLand -3.18

PhoenixMills -2.65

S o bh a De v el o pe r s 3 . 04

SunteckRealty -1.13

Unitech -1.68

UNIONBUDGET2012 -13

ASNEAK PREVIEW

P. 1 | COLLIERS INTERNATIONAL

OFFICE

PROPERTY MARKET OVERVIEWINDIA

QUARTERLY UPDATE | OCTOBER | 2012


Documents

India Office Property Market Overview_jan 2013