office property market overview jan 2012

Office PrOPerty Market Overview iNDia

QUarterLy UPDate | JaNUary | 2012

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MACRO ECONOMIC OVERVIEW

As per the latest Reserve Bank of India (RBI) •projections GDP growth rate was 6.9% for 4Q 2011. The estimates by various agencies project the growth rate within a range of 7.0 to 8.0% for 2011-2012, suggesting a moderation in the economic growth.

Provisional Wholesale Price Index as reported •by Ministry of Finance was 9.34% for December 2011. This quarter there was a slight decrease in primary inflation due to the decrease in food inflation which stood at -3.36%.

In 4Q 2011, RBI refrained from increasing •repo rates. It further stated that there will likely not be any increase to the policy rates, provided inflation moderates as is expected. The repo rate is currently 8.5%.

The Department of Industrial Policy and •Promotion (DIPP) recorded FDI inflow for the period April to October, 2011 in Housing & Real Estate at INR 2,130 crores; which is 2/3rd in volume as compared to years 2008-09 and 2009-10. The Housing and Construction contribution to the total FDI has also reduced to 2.31% compared to 7% in the previous financial year.

In 4Q 2011, Indian Rupee (INR) depriciated •further by approximately 10% against the US Dollar to close at INRs 54.40 to 1.00 USD on 29th December 2011. The INR also weakened against the Euro dropping by approximately 5% to close the quarter at INRs INR 70.99 to 1.00 Euro.

Qualified Foreign Investor (QFIs) can now •directly invest in the Indian Equity Market. The investment limit has been aggregated to 5 and 10% for individual and QFIs of their paid up capital of the Indian company that they establish in India.

ECONOMIC BAROMETER

RETuRN ON AlTERNATIVE INVEsTMENTs

RESEARCH & FORECAST REPORTsYDNEY CENTRAl BusINEss DIsTRICT

INDIA OFFICE MARkETREsEARCh & fORECAsT REpORT

Dec-10 Dec-11

REPO RATE 6.25% 8.50%

REVERSE REPO RATE 5.25% 7.50%

CRR 6.00% 6.00%

INFLATION 9.47% 9.34%

TREASURy BOND RATE 7.19% 8.39%

FIxED DEPOSIT (= 1yEAR) 8.50% 9.25%

FOREIGN ExCHANGE

INR - USD 45.02 54.96

INR- EURO 59.12 71.52

Dec-10 Dec-11 YoY %

Change

GOLD 20,496 28,041 36.81%

SILVER 45,346 51,168 12.84%

EQUITy (BSE

SENSEx) 20,389 15,836 -22.33%

REALTy INDEx 2,856 1,497 -47.57%

Source: Colliers International India Research

ECONOMIC INDICATORs

70

80

90

90

95

105

85

100

110

115

100

110

120

130

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

INR

Cror

e

2005

- 0

6

1-Au

g-11

7-Au

g-11

13-A

ug-1

119

-Aug

-11

25-A

ug-1

131

-Aug

-11

6-Se

p-11

12-S

ep-1

118

-Sep

-11

24-S

ep-1

130

-Sep

-11

6-O

ct-1

112

-Oct

-11

18-O

ct-1

124

-Oct

-11

30-O

ct-1

15-

Nov-

1111

-Nov

-11

17-N

ov-1

123

-Nov

-11

29-N

ov-1

15-

Dec-

1111

-Dec

-11

17-D

ec-1

123

-Dec

-11

29-D

ec-1

1

1-Au

g-11

7-Au

g-11

13-A

ug-1

119

-Aug

-11

25-A

ug-1

1

12-S

ep-1

118

-Sep

-11

24-S

ep-1

130

-Sep

-11

6-O

ct-1

112

-Oct

-11

18-O

ct-1

124

-Oct

-11

30-O

ct-1

15-

Nov-

1111

-Nov

-11

17-N

ov-1

123

-Nov

-11

29-N

ov-1

15-

Dec-

1111

-Dec

-11

17-D

ec-1

123

-Dec

-11

29-D

ec-1

1

2006

- 0

7

2007

- 0

8

2008

- 0

9

2009

- 1

0

2010

- 1

1

April

- O

ct 2

011

Jan

- M

ar 0

9

Apr

- Ju

n 09

Jul -

Sep

09

Oct

- D

ec 0

9

Jan

- M

ar 1

0

Apr

- Ju

n 10

Jul -

Sep

10

Oct

- D

ec 1

0

Jul -

Sep

11

Apr

- Ju

n 11

Jan

- M

ar 1

1

Gross Domestic product at factor cost

fDI in Real Estate

BsE sensex & Realty Index

Exchange Rates

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0.00%

1.00%

2.00%

3.00%

BSE Sensex

US$

Note: As of 1st August 2011

Note: As of 1st August 2011

Realty Index

Euro

6-Se

p-11

4Q 2011 | THE KNOWLEDGE

* Rebase to 100

* Rebase to 100

4Q 2011 GRADE ‘A’ AND GRADE’B’ RENTAl VAluEs

pRIME OffICE spACE RENTAl TREND

CBD

Andh

eri E

ast

BkC

Low

er P

arel

Mal

ad

Navi

Mum

bai

Pow

ai

Wor

li/Pr

abhd

evi

Gore

gaon

/ J

VLR

kalin

a

Than

e /

LBS

Andh

eri E

ast (

IT)

Low

er P

arel

(IT)

Mal

ad (I

T)

Navi

Mum

bai (

IT)

Pow

ai (I

T)

Gore

gaon

/ J

VLR

(IT)

Than

e /

LBS

(IT)

INR

Per

Sq ft

Per

Mon

th

0

50

100

150

200

250

300

2Q20

08

1Q20

08

INR

per

Sq ft

per

Mon

th

INR

per

Sq ft

per

Mon

th

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

4Q20

10

4Q20

11

3Q20

11

2Q20

11

1Q20

11

3Q20

10

70

20

120

170

220

270

320

370

420

CBD

Lower Parel Navi Mumbai

kalinaGoregaon/ JVLR

Andheri East Malad

Powai

BkC

Worli /Prabhadevi

Thane / LBS2Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

11

2Q20

12

4Q20

12

3Q20

12

1Q20

12

4Q20

09

1Q20

08

1Q20

10

2Q20

10

3Q20

10

Grade A Grade B

COllIERs INTERNATIONAl | p. 3

MARKET TRANsACTIONsCLIENT BUILDING NAME AREA

(SQ. FT.)LOCATION TRANSACTION TyPE

Dow Chemical Godrej IT Park 55,000 Vikhroli Lease

E Clinical Works Boomerang 75,000 Andheri Lease

Franklin Templeton India Bulls Financial Centre 40,000 Lower Parel Lease

L’Oreal India Mighty Majestic 80,000 Chembur Lease

Vodafone One India Bull 50,000 Lower Parel Lease

MuMBAI

During 4Q 2011, more than 10.5 million sq ft of •grade “A” office space was available for Most of this available stock was concentrated in Andheri, Lower Parel and Thane in the form of IT / ITeS office space.

No major new projects / phases of projects •were completed this quarter in Mumbai. Increased cost of construction due to high inflation and interest rates has delayed the delivery of many under construction projects by a few quarters. No new projects were launched during 4Q 2011.

Demand for commercial properties was •restrained as occupiers were cautious about committing to occupy real estate space, due to the uncertainty in the economic scenario. Transaction volumes thus decreased.

In a recent transaction, HDIL was reported to •have sold a 15.5-acre land parcel located at Turbhe.

Rental values for grade ‘A’ office space •remained stable in almost all the SBD locations. However, CBD and few peripheral markets such as Navi Mumbai, Thane and Goregaon observed marginal downward pressures on rentals in the range of 2 to 5%.

Going forward rental values are expected to •remain under pressure due to prevailing economic sentiment and lesser demand.

The State Government has hiked the ready •reckoner rates by 5 to 25% in various areas with effect from 1 Jan 2012.

AVAIlABlE supplY IN pRIME AREAs

Andheri East 24%

CBD 1%

Thane / LBS 21%

Navi Mumbai 7%Goregoan / JVLR 8%

Powai 5%

Worli / Prabhadevi 1%

Malad 5%

Lower Parel 22%

BkC 5%

CITY OffICE BAROMETER

3Q 2011 4Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 4Q 2011 | Office | MUMbai

GRADE ‘A’ AVERAGE RENTAl VAluE

MUMBAI

0

35

70

140

105

210

245

175


Forecast

kalina 1%

Grade A Grade B

Nehru Place Saket

Netaji Subhash

Jasola Cannaughtplace

p. 4 | COllIERs INTERNATIONAl






Birla Sun Life Aggarwal Tower 10,000 Rajendra Place Lease

HRD Vijaya Building 24,000 Connaught Place Lease

L&T DCM Building 19,000 Connaught Place Lease

Red Hat Copia 8,000 Jasola Lease

Wipro Mohan Cooperative 60,000 Mohan Cooperative Lease

DElhI

In 4Q 2011 approximately 1.2 million sq. ft. •of grade ‘A’ office space was available for sale/lease. Most of this available stock was concentrated in suburban business districts such as Jasola and Saket.

A mixed use project in CBD, “Capitol Point” •developed by DLF Ltd was completed this quarter, adding about 0.07 million sq ft of grade ‘A’ office space to Delhi’s total inventory.

In this quarter the National Buildings •Construction Corporation Ltd (NBCC) launched a commercial project “NBCC Plaza” at Okhla, and Parsavnath Group started construction of a commercial grade ‘A’ project in Connaught Place along kasturba Gandhi Marg.

Amid global and domestic economic •uncertainties, moderate demand was observed in all of the micro-markets. A minor correction in the range of 1 to 2% was observed in rental values of grade ‘A’ office space across all of the micro-markets.

Looking forward, demand is likely to witness •moderate growth, however, owing to limited grade ‘A’ supply the rentals are expected to remain largely stable across all the micro markets.

The Delhi cabinet has hiked the circle rates •for the second time this year. The rates has been revised from 100 to 250% in areas falling under various categories. Earlier this year in February 2011, the circle rates were increased upto 100%. The increase in circle rates resulted in very limited activity in resale commercial markets as the margins went down significantly due to higher capital gain tax and stamp duty.


Connaught Place 2%Nehru Place 10%

Saket 29%

Jasola 59%


3Q 2011 4Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 4Q 2011 | Office | DeLhi


2Q20

08

3Q20

08

0

50

100

150

200

250

300

350

400

Conn

augh

t Pl

ace

Nehr

u Pl

ace

Jaso

la

INR

per

Sq F

t per

Mon

th

Sake

t

Neta

ji Su

bhas

h

0

50

100

150

200

250

300

350

400

450

1Q20

10

INR

per

Sq ft

per

Mon

th

0

35

70

105

140

175

210

245

280

INR

per

Sq ft

per

Mon

th

DELHI

2Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

11

3Q20

12

4Q20

12

2Q20

12

1Q20

12

4Q20

09

1Q20

10

2Q20

10

3Q20

10 1Q20

08

4Q20

08

2Q20

09

3Q20

09

2Q20

10

1Q20

09

4Q20

09

3Q20

10

4Q20

11

3Q20

11

2Q20

11

4Q20

10

Forecast


MG

Road

Golf

Cour

se R

oad

/Ext

/So

hna

Road

NH8/

Udy

og V

ihar

Man

esar

Inst

itutio

nal S

ecto

rs /

Sush

ant L

ok

Sohn

a Ro

ad

DLF

Cybe

r Ci

ty

NH8/

Udy

og V

ihar

Man

esar

0

20

40

60

80

100

120

140

Grade A Grade B

MG RoadGolf Course Road/Ext /Sohna Road

NH8/Udyog Vihar (IT)Institutional Sectors /Sushant Lok

NH8/Udyog Vihar

DLF Cyber City (IT)Golf Course Road/Ext /Sohna Road (IT)Manesar

Manesar (IT)





Aircel Spazeedge 75,000 Sohna Road Lease

John keel DLF Building 14B 25,000 Cyber City Lease

Mckinsey Vatika Business park 180,000 Sohna Road Lease

Panasonic ABW Tower 13,000 MG Road Lease

William E Connor Vipul Square 39,000 Sohna Road Lease

GuRGAON

Over 9.5 million sq ft of grade ‘A’ office stock •was available for lease this quarter in Gurgaon. More than 60% of this stock was IT / ITeS office space, located at Golf Course Road, Golf Course Road Extension, Sohna Road, National Highway-8, Udyog Vihar, Cyber City and Manesar.

Projects / phases of projects which saw •completion this quarter were “Veritas” developed by Realtech Group on Golf Course Road, “Platina” developed by Salcon Group on M.G. Road, and “Professional Point” by Vatika Group on Golf Course Road Extension. All of these projects contributed approximately 0.4 million sq ft of grade ‘A’ office space to the city’s inventory.

A number of new commercial projects •were launched during the quarter including, “Commercial Centre” by Unitech Ltd. at Sector-71, “Time Arcade” by Dhoot Group at Sector 37-C and “VSR” a project by VSR Group in Sector-114 on Dwarka Expressway. These projects are expected to be completed by the end of 2014 and will together contribute about 0.6 million sq ft of grade ‘A’ office space.

Gurgaon continued to remain as the preferred •location for corporate and IT/ITeS companies to set up their office but absorption was restrained in 4Q 2011 compared to previous two quarters due to overall cautious sentiments prevailed in the market.

Grade A office space rental values observed a •correction in the range of 2 to 6% across all micro-markets, except in a few locations such as DLF Cyber City, M.G. Road, NH8 / Udhyog Vihar and Manesar.

In order to improve connectivity between •Delhi and Gurgaon a new metro corridor from Dwarka Sector-21 to IFFCO Chowk was proposed, which is expected to be operational by 2016.


Institutional Sectors /Sushant Lok

10%

DLF Cyber City 6%

MG Road 4%

Manesar 24%

Golf Course Road/Ext /Sohna Road

25%

NH8/ UdyogVihar 31%


3Q 2011 4Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 4Q 2011 | Office | GUrGaON

GRADE ‘A’ AVERAGE RENTAl VAluE pRIME OffICE spACE RENTAl TREND

INR

per

sq ft

per

mon

thIN

R pe

r sq

ft p

er m

onth

180

20

40

60

80

100

120

140

160

2Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

3Q20

10

4Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

11

1Q20

12

2Q20

12

3Q20

12

4Q20

12

INR

per

Sq ft

per

Mon

th

0

20

30

10

40

50

70

90

110

60

80

120

100

GURGAON

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

4Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

11

3Q20

10

2Q20

08

3Q20

08

Forecast

Grade A Grade B






Galaxy Stellar 16,000 Sector 62 Lease

kPMG Advant IT Park 90,000 NOIDA Expressway Lease

Vcustomer Advant IT Park 60,000 NOIDA Expressway Lease

Wipro A-3 90,000 Sector 3 Lease

NOIDA

In 4Q 2011, approximately 5.3 million sq ft •of grade ‘A’ and grade ‘B’office space was available for sale or lease. About 65% of this available supply was IT / ITeS office space located in Institutional Sectors like 16A, 62, 125 - 142, etc.

More than 1 million sq ft of grade ‘A’ office •supply was added in NOIDA this quarter. Projects / phases of projects constituting this supply were, “Technotouch” developed by Touchmind Infra in Sector-125 and “Technova” developed by Logix Group in Sector-142.

In this quarter new project launches were, •“Supernova” by Supertech in Sector-94, “Timetech Park” by Dhoot Group and “Splendor IT Park” by Splendor Group both at located at Sector-142. All of these projects were expected to be completed by the end of 2014, and will add approximately 2 million sq ft of grade ‘A’ office space to the city’s total stock.

Following the trend of the previous quarter, •overall demand for grade ‘A’ office space remained subdued and only a few transactions were observed in locations such as NOIDA Expressway and Institutional Sectors.

Rental values for grade ‘A’ IT/ITeS office space •remained stable in almost all of the micro-markets in NOIDA, however, rental values for commercial properties witnessed an increase in the range of 2 to 5% due to very limited supply of grade ‘A’ commercial space.

Going forward the rentals for IT/ITeS office •space are expected to remain stable however, rentals of commercial office space and special economic zones may witness marginal upward movements as most of the grade ‘A’ under construction commercial projects are expected to be completed only by end of year 2013.


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

49%

Commercial Sectors (sec 18) 1%

Commercial Sectors (Sec 18)

(Grade B)2%

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

48%


3Q 2010 4Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 4Q 2011 | Office | NOiDa

1Q20

09

INR

Per

SqFt

Per

Mon

th

0

20

40

60

80

100

120

140

0

10

20

30

40

60

70

50

80

100

90

2Q20

09

3Q20

09

4Q20

09

1Q20

10

Inst

itutio

nal S

ecto

rs(S

ec 1

6A,6

2 ,12

5-14

2) (I

T)

Indu

stria

l Sec

tors

(S

ec 1-

9,57

-60

,63

-65

)

Com

mer

cial

Sec

tors

(Sec

18)

INR

Per

SqFt

Per

Mon

th

Inst

itutio

nal

Sect

ors

(Sec

.16A,

62,

125-

142

)

2Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

11

4Q20

10

3Q20

10

Institutional Sectors (IT)

Institutional Sectors (Non IT)Commercial Sectors

Industrial Sector


1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

11

3Q20

12

4Q20

12

1Q20

12

2Q20

12

4Q20

10

3Q20

10

INR

per

Sq ft

per

Mon

th

0

10

20

40

30

50

80

60

70

NOIDA


Forecast

4Q 2011 GRADE ‘A’ IT AND NON IT RENTAl VAluEs

CBD

INR

per

sq ft

per

mon

th

Guin

dy (

SBD)

Amba

ttur

OM

R (IT

Cor

ridor

)

GST

road

0

10

20

30

40

50

60

70

80

IT NON IT




ABB Prestige Palladium 20,000 Greams Road Lease

ABB Jayanth Tech Park 48,000 Nandambakkam Lease

Apollo Hospitals Prestige Palladium 20,000 Greams Road Lease

Fidelity Investment Services HDFC 75,000 Sholinganallur Lease

Foster & Wheeler Ascendas 1,00,000 Taramani Lease

kalpathy Group Ran Tech Park 1,80,000 Sholinganallur Sale

ChENNAI

This quarter approximately 10.0 million sq ft •of grade ‘A’ office stock was available for sale or lease in Chennai. Out of this total available stock 90% was IT / ITeS office space primarily located at OMR and Ambattur.

In 4Q 2011, projects / phases of project that •saw completion were “Prestige Palladium” by Prestige Group at Greams Road, “Fagun Chambers” by Fagun Company Pvt. Ltd at Egmore and “Central Square 2” by Sri kausalya Construction Ltd SkCL at Guindy. All of these projects together contributed approximately 0.5 million sq ft to the city’s grade ‘A’ office inventory.

Absorption remained moderate and few large •floor-plate leases were concluded during the quarter; the demand was primarily in special economic zones driven by the IT / ITeS, automobile and service sectors. Overall vacancy levels decreased marginally, primarily due to significant drop in the vacancy levels in Special Economic Zones (SEZs).

Rental values remained largely unchanged •across all the micro-markets and a minor correction in the range of 1 to 2% was observed in OMR (IT Corridor) primarily due to the large available supply.

In the near future the overall rentals are •expected to remain stable, as most of the upcoming supply anticipated in near future is of Special Economic Zones (SEZs) for which demand is on rise.


CBD 15%

Guindy (SBD) 9%

Velachery 1%

GST Rd 3%

OMR (IT Corridor) 38%

Ambattur 33%


3Q 2011 4Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 4Q 2011 | Office | cheNNai


4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

4Q20

11

3Q20

11

2Q20

11

1Q20

11

4Q20

10

3Q20

10

2Q20

08

1Q20

08

INR

per

sq ft

per

mon

th

90

20

30

40

50

60

70

80

3Q20

08

Ambattur GST road

OMR (IT Corridor)

Guindy (SBD)CBD


2Q20

08

1Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

11

4Q20

12

3Q20

12

2Q20

12

1Q20

12

4Q20

10

3Q20

10

INR

per

Sq ft

per

Mon

th

0

5

15

25

10

20

30

35

45

55

40

60

50

CHENNAI


Forecast






Flipkart Essae Summit 40,000 koramangala Lease

Goodrich Aerospace Netra Tech Park 80,000 Whitefield Lease

IMS The Millenia 25,000 CBD Lease

Mercedez Whitefield Palm 200,975 Whitefield Lease

Novo Nordisk Prestige Featherlite 18,500 Whitefield Lease

Pega System Pritech SEZ 50,000 Outer Ring Road Lease

BENGAluRu

Approximately 11 million sq ft of grade ‘A’ office •space was available for fit-out in Bengaluru this quarter. More than 80% of this available stock was in the form of IT / ITeS office space concentrated in peripheral business districts such as the EPIP Zone, Whitefield, Electronic City, Bannerghatta Road and Outer Ring Road.

Projects / phases of projects launched in •Bengaluru this quarter include “Embassy Vogue” located in Vasanth Nagar by Embassy Developers, “Premia” in Outer Ring Road by Sattva Group, “The Hub” at Sarjapur Road and Spectrum in Bannerghatta Road by SJR Group. These projects together will add approximately 1.5 million sq ft of grade ‘A’ office space to the city’s inventory by the end of 2012.

This quarter no new supply was added to the •city’s grade ‘A’ inventory.

Absorption remained upbeat during the quarter •however, a large share of this absorption was in the form of preleased hard options primarily in special economic zones and IT parks located at peripheral and secondary micro markets.

Following the trend of the previous quarter, •rental values remained stable in most of the micro-markets barring Bannerghatta Road and Outer Ring Road. Rental values in this area witnessed an appreciation in the range of 4 to 5% QoQ, because of occupiers interest in the area and limited supply.

The much awaited Bengaluru Namma Metro •commenced operations this quarter. In a positive development, a few underpasses and fly-overs on the Outer Ring Road were open for commuters this quarter.


CBD 8%

Outer Ring Road 10%

Bannerghatta Road 2%

Electronic City 9%

EPIP Zone/ Whitefield 64% Hosur Rd 7%


3Q 2011 4Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 4Q 2011 | Office | beNGaLUrU

1Q20

08

2Q20

08INR

Per

SqFt

Per

Mon

th

0

10

20

30

40

50

60

70

80

90

100

3Q20

08

4Q20

08

1Q20

09

3Q20

09

1Q20

10

2Q20

09

4Q20

09

2Q20

10

3Q20

10

1Q20

11

2Q20

11

4Q20

11

3Q20

11

4Q20

10

0

10

20

30

40

50

60

70

80

90

Out

er R

ing

Road

Grade A Grade B

Elec

tron

ic C

ity(IT

)

Bann

ergh

atta

Roa

d

EPIP

Zon

e/

Whi

tefie

ld

Hos

ur R

oad

INR

Per

SqFt

Per

Mon

th

CBD

CBD

Electronic City

Outer Ring RoadEPIP Zone / Whitefield

Hosur Road

Bannerghatta Road


INR

per

Sq ft

per

Mon

th

15

20

25

30

50

40

45

35

BENGALURU

2Q20

08

1Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

11

3Q20

12

4Q20

12

2Q20

12

1Q20

12

4Q20

10

3Q20

10


Forecast



CBD

(Par

k St

, Cam

ac

St,A

JC B

ose

Rd)IN

R pe

r sq

ft p

er m

onth

Sect

or-5

(IT

)

Sect

or-5

PBD

(New

To

wn,

Raj

arha

t

Bally

gung

e -C

ircul

ar R

D

PBD

New

Tow

n,

Raja

rhat

(IT)

East

kol

kata

0

20

40

60

80

100

120

140

Grade A Grade B




Deltapower Netguru 7,500 Sector-V Lease

Glaxo Ambuja Ecospace 10,000 New Town, Rajarhat Lease

Sarda Group Netguru 7,900 Sector-V Lease

Sparsh BPO Shivshakti 25,000 Madhyamgram Lease

KOlKATA

In 4Q 2011, approximately 0.20 million sq ft •of grade ‘A’ office space was added to the total inventory. The projects / phases of projects which contributed to this new supply were “Diamond Prestige” by Diamond Group at AJC Bose Road and “Godrej Genesis” by Godrej Properties at Salt Lake.

Projects launched in this quarter were “Mani •Casadona” by Mani Group at New Town, “DN 13” by a local developer and “Infinity Magnacon” by Infinity Group at Sector-5. All of these projects will have more than 2 million sq ft of gross leasable area and are expected to be completed by the end of 2014.

An appreciation in the range of 4 to 8% •was observed in the PBD in locations such as Ballygunge Circular Road and Sector-5, However the CBD and East kolkata rental values remain stable.

In the near future the market is expected to •remain stable in terms of rental values.

In a major decision, the government has •cleared Infosys’ plans for setting up its second campus in the satellite township of Rajarhat. The government has also planned to set up a financial hub at Rajarhat and the first phase of the project, to be set up on 25 acres, will entail an investment of about INR 250 crores.

NEW supplY IN pRIME AREAs

CBD 50%Sector -5

50%


3Q 2011 4Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 4Q 2011 | Office | kOLkata

1Q20

08

1Q20

09

2Q20

08

2Q20

09

3Q20

08

3Q20

09

4Q20

08

4Q20

09

1Q20

10

2Q20

10

4Q20

10

3Q20

11

4Q20

11

2Q20

11

1Q20

11

3Q20

10

INR

per

sq ft

per

mon

th

20

40

60

80

100

120

140

160

Sector 5

East kolkatta

Ballygunge Circular Rd

PBD (New Town, Rajarhat

CBD (Park St,Camac St,AJC Bose Rd)


INR

per

Sq ft

per

Mon

th 40

50

70

90

60

80

0

10

20

30

kOLkATA

1Q20

08

2Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

2Q20

10

1Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

11

1Q20

12

2Q20

12

3Q20

12

4Q20

12

4Q20

10

3Q20

10


Forecast


4Q 2011 GRADE ‘A’ IT AND NON IT RENTAl VAluEs



Atlas Copco Affinity Express Bldg 30,000 Hinjiwadi Lease

Crest Premedia Cybercity 44,000 Hadapsar Lease

DB Zento Cybercity 44,000 Hadapsar Lease

Eclerx DLF 45,000 Hinjewadi Lease

System Plus Cyber City 44,000 Hadapsar Lease

puNE

In 4Q 2011 over 9.5 million sq ft of grade ‘A’ •office space was available for lease. Out of this total supply, most was concentrated on Nagar Road, Hinjewadi, Airport Road and the Hadpasar / Fursungi micro-markets in the form of IT / ITeS office space.

No fresh supply was added to the Pune •commercial market this quarter as many developers have slowed down construction due to moderate demand. Similarly no new launches were seen in this quarter. However, a mixed-use project was proposed by DSk builders in Fursungi.

Due to restrained demand and the anticipated •large upcoming supply, rental values remained stable across all micro-markets. Absorption was primarily from the BFSI, manufacturing and IT / ITeS sectors and more than 50% of the total absorption was in Special Economic Zones (SEZ).

Going forward rental values are expected to •remain stable.

The 500-metre-long Suman Nagar Flyover •became operational this quarter which will better facilitate connectivity between Pune and Mumbai’s peripheral micro-markets such as Vashi, Navi Mumbai and Thane.


Bavdhan 2%Senapati Bapat Rd 1%

Airport road 10%

Aundh 1%

Bund Garden 1%

kharadi 5%

Hadapsar/Fursungi 8%

Nagar Road 55%

Hinjewadi 13%

kalyani Nagar 5%


3Q 2011 4Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 4Q 2011 | Office | PUNe

1Q20

08

2Q20

08

INR

Per

SqFt

Per

Mon

th

20

30

40

50

60

70

80

90

100

110

120

130

3Q20

08

4Q20

08

1Q20

09

3Q20

09

1Q20

10

2Q20

09

4Q20

09

2Q20

10

4Q20

10

2Q20

11

4Q20

11

3Q20

11

1Q20

11

3Q20

10


0

10

20

30

40

50

60

70

90

80

khar

adi

kaly

ani N

agar

Naga

r Ro

ad

Bavd

han

Had

apsa

r/Fu

rsun

gi

Hin

jew

adi

Sena

pati

Bapa

t Roa

d

Aund

h

Airp

ort r

oad/

pune

sta

tion

Bund

Gar

denIN

R Pe

r Sq

Ft P

er M

onth

Bane

r

Bavdhan Airport road/pune station

Baner

khardiNagar Road

Hinjewadi / Hadapsar/Fursungikalyani Nagar

Bund Garden

Aundh

Senapati Bapat Rd


INR

per

Sq ft

per

Mon

th

0

10

30

20

40

70

60

50

PUNE

2Q20

08

1Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

11

1Q20

12

3Q20

12

2Q20

12

4Q20

12

4Q20

10

3Q20

10

IT Non IT


Forecast

MumbaiThe major business locations in Mumbai are the CBD (Nariman Point, Fort and Ballard Estate), Central Mumbai (Worli, Lower Parel and Parel), Bandra kurla Complex (BkC) and Andheri kurla stretch. Powai, Malad and Vashi are the preferred IT/ITES destinations, while Airoli at Navi Mumbai and Lal Bahadur Shastri Marg are emerging as new office and IT/ITES submarkets.

DelhiThe commercial areas in New Delhi metropolitan area can be broadly classified into the CBD (Connaught Place), SBD Nehru Place, Bhikaji Cama Place, Netaji Subhash Place, Jasola and Saket .

GurgaonThe prime business locations in Gurgaon are MG Road, Golf Course Road, Cyber City and Udyog Vihar. Manesar on the outskirts of Gurgaon is also emerging as the city’s new office destination.

NoidaNoida market is comprised of sectors broadly classified 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 office properties in Chennai are located in four 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.

BengaluruPrime office properties in Bangaluru can be divided into three principal sub-market— CBD, the SBD consisting of Banerghatta Road & Outer Ring Road (ORR) and PBD including Hosur Road, EPIP Zone, Electronic City and Whilefield.

PuneThe prime office sub-markets of Pune include Deccan Gymkhana, Senapati Bapat Road & Camp (SBD), while the PBD includes Aundh, Bund Garden, Airport Road and kalyani Nagar, among other locations. The eastern corridor, along with Nagar Road and kharadi, have emerged as a preferred location for financial and IT/ITES companies.

KolkataThe 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 of high-rises commercial buildings such as Chatterjee International Centre, Tata Centre, Everest House and Industry House among others.

OffICE suBMARKETs


THE KNOWLEDGE | 4Q 2011 | Office | sUbMarkets

CITY BAROMETER

Increasing as compared to previous quarter

Decreasing as compared to previous quarter

Remained stable from previous quarter


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 - Office Services, Facility Management, Project Management, Residential Services, Investment Services and Valuation & Advisory Services.

www.colliers.com/india

For national offices services related queries please contact:

George Mckay, South Asia Director Vikas kalia, National DirectorOffice & Integrated Services Office [email protected] [email protected]: 91 22 4050 4553 Tel: 91 124 456 7531

Mumbai : Prabhu Raghavendra, Office Director [email protected] 31/A, 3rd floor, Film Center, 68, Tardeo Road, Mumbai, India - 400 034. Tel : 91 22 4050 4500, fax : 91 22 2351 4272

Delhi NCR : Ajay Rakheja, Office Director [email protected]

New Delhi : Statesman House, 4th Floor, Barakhamba Road, Connaught Place, New Delhi, India - 110001 Tel : 91 11 4360 7500 - 23, fax : 91 11 2335 6624

Gurgaon : Technopolis Building, 1st floor, DLF Golf Course Main Road, Sector 54, Gurgaon, India - 122002 Tel : 91 124 437 5807, fax : 91 124 437 5806

Bengaluru : Goutam Chakraborthy, Office Director [email protected] Prestige Garnet, Level 2, Unit No.201/202, 36 Ulsoor Road, Bengaluru, India - 560 042 Tel : 91 80 4079 5500, fax : 91 80 4112 3131

Pune : Suresh Castellino, Office Director [email protected] Hotel Le Meridian, 101, R.B.M. Road, Pune, India - 411 001 Tel : 91 20 4120 6438, fax : 91 20 4120 6434

Chennai : kaushik Reddy, Office Director [email protected] Heavitree Complex, Unit 1C, 1st floor, 23,Spurtank Road, Chetpet, Chennai, India - 600 031 Tel : 91 44 2836 1064, fax: 91 44 2836 1377

Kolkata : Soumya Mukherjee , Office Director [email protected] Infinity Business Centre, Infinity 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 Extn : 206 , fax +91 33 2357 6502

Recent Reports :

This book is printed on 100% Recyclable paper

THE KNOWLEDGE | 4Q 2011


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 & Advisory Email: [email protected]

For general queries and feedback :[email protected] Tel: 91 124 456 7580

For Press enquiries:Poonam MahtaniNational Director, knowledge SystemEmail: [email protected]

This report and other research materials may be found on our website at www.colliers.com/India. Questions related to information herein should be directed to the Research Department at the number indicated above. This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.

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