Office property market overivew 3Q 2011-India

Office PrOPerty Market Overview iNDia

QUarterLy UPDate | OctOBer | 2011

Accelerating success.

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MACRO ECONOMIC OVERVIEW

•The Reserve Bank of India further-reduced the GDP growth estimate for 3Q 2011 to 8.0 percent as compared to previous quarter GDP of 8.3 percent. This was primarily due to downgrade revision of GDP estimate for the agriculture and industry sectors from the previous round of surveys.

The Reserve Bank of India (RBI) has tightened •monetary policy again this quarter and the repo rate increased from 7.25 percent to 8 percent by July 2011.

Inflation was recorded at 8.40 percent this •quarter as compared to 9.44 percent during 2Q 2011. However, the Prime Minister Economic Advisory Council estimate that headline WPI will remain elevated till Nov’ 11 at 9 percent or even higher and will soften only from Dec’ 11 onwards.

The overall market momentum slowed down •as compared to the previous quarter. Sluggish economic conditions worldwide and increased cost of inputs and debt are attributed as the main reason.

The higher cost of debt compelled over-•leveraged developers to look for options to liquidate their land banks and existing projects.

In major development for the real estate •sector, draft land acquisition policy was finalised by the law commission this quarter. This policy is an amendment to the Land Acquisition Act, 1894, which will ensure owner friendly acquisition of land and will enable the government to frame a land acquisition policy from time to time.

This quarter, the Real Estate regulation bill •has been sent to union law ministry for its comments and clearance. The new bill excludes the subjects of land and colonisation, as they are both state subjects. The bill is expected to be introduced in the winter season of parliament.

ECONOMIC BAROMETER

RETuRN ON AlTERNATIVE INVEsTMENTs

sep-10 sep-11

REPo RATE 6.0% 8.50%

REvERSE REPo RATE 5.25% 7.00%

CRR 6.00% 6.0%

INfLATIoN 9.8% 8.40%

TREASuRy BoND RATE 7.8% 8.31%

fIxED DEPoSIT (< 1yEAR) 7.25% 9.25%

foREIGN ExCHANGE

INR - uSD 46.37 47.80

INR- EuRo 59.63 65.11

sep-10 sep-11 YoY %

Change

GoLD 19,087 27,856 45.94%

SILvER 32,592 64,550 98.05%

EQuITy (BSE

SENSEx) 19,208 16,467 -14.27%

REALTy INDEx 3,627 1,721 -52.53%

RESEARCH & foRECAST REPoRTsYDNEY CENTRAl BusINEss DIsTRICT

INDIA offICE MARkETREsEARCh & fORECAsT REpORT

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-Ju

l-11

7-Ju

l-11

13-J

ul-1

1

19-J

ul-1

1

25-J

ul-1

1

31-J

ul-1

1

6-Au

g-11

12-A

ug-1

1

18-A

ug-1

1

24-A

ug-1

1

30-A

ug-1

1

5-Se

p-11

11-S

ep-1

1

17-S

ep-1

1

23-S

ep-1

1

29-S

ep-1

1

1-Ju

l-11

8-Ju

l-11

15-J

ul-1

1

22-J

ul-1

1

29-J

ul-1

1

12-A

ug-1

1

19-A

ug-1

1

26-A

ug-1

1

2-Se

p-11

9-Se

p-11

16-S

ep-1

1

23-S

ep-1

1

30-S

ep-1

1

2006

- 0

7

2007

- 0

8

2008

- 0

9

2009

- 1

0

2010

- 1

1

April

201

1

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

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

2000

4000

6000

8000

10000

12000

14000

16000

0.000%

1.00%

2.00%

3.00%

BSE Sensex

uS$

*Rebase to 100

*Rebase to 100

Realty Index

Euro

5-Au

g-11

3Q 2011 | THE KNOWLEDGE

3Q 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

08INR

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

3Q20

11

2Q20

11

1Q20

11

3Q20

10

70

20

120

170

220

270

320

370

420

470

520

Grade A Grade B

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

3Q20

12

1Q20

12

4Q20

09

1Q20

08

1Q20

10

2Q20

10

3Q20

10

COllIERs INTERNATIONAl | p. 3

MARKET TRANsACTIONsCLIENT BuILDING NAME AREA

(SQ. fT.)LoCATIoN TRANSACTIoN TyPE

Bajaj finServ Limited The Capital 74,000 BkC Sale

Dhanlaxmi Bank Chintamani Avenue 31,000 Goregoan Lease

firstRand Bank first India financial Center 35,000 BkC Lease

The Executive Centre The Capital 20,000 BkC Lease

MuMBAI

In Mumbai, approx 11.0 million sq ft of grade •‘A’ office space was ready for fit-out in 3Q 2011. out of this total available stock around 65 percent was IT/ITES office space primarily concentrated in kalina and Lower Parel.

0.3 million sq ft of new supply was added •to the city’s grade ‘A’ inventory in the SBD this quarter. The project/part of the project contributed this new supply was “Equinox Business Park – Tower 3” developed by Equinox Realty & Infrastructure Private Limited.

This quarter oberoi Realty launched a •commercial project named “Prisma” admeasuring approximately 0.7 million sq ft located at Jogeshwari - vikhroli Link Road (JvLR). The project is expected to be completed by 3Q 2013. Another commercial project “kalpataru Synergy-2” was launched by kalpataru Developers in kalina. The project will add about 0.2 million sq ft to the city’s grade ‘A’ office space by 4Q 2012.

Rentals for grade ‘A’ office space remained •stable during the quarter in almost all the micro markets across Mumbai. Downward pressure on rentals was witnessed in the SBD and PBD locations as demand for corporate leasing was impacted because of a slowdown in the economy. Companies consolidating their operations are looking for discounted deals. Availability of a large vacant stock provide an opportunity to the companies to negotiate on rentals.

Due to the increasing cost of debt, some •few over-leveraged developers have started looking for options to raise funds by liquidify liquidate their land banks and selling stakes in existing projects; HDIL has put nearly 5 million sq ft of land on sale at virar. Similarly, DLf was also reportedly looking for a buyer for its 17-acre Mumbai textile mill at Lower Parel this quarter.

supplY IN pRIME AREAs

Lower Parel 23%

BkC 5%

Andheri East 21%

CBD 0.5%

LBS / Thane 21%

kalina 1%

Goregaon / JvLR 8%

Worli/Prabhdevi 1%

Navi Mumbai 9 %

Powai 6%

Malad 5%

CITY OffICE BAROMETER

2Q 2011 3Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE REPORT | 3Q 2011 | Office | MUMBai

GRADE ‘A’ AVERAGE RENTAl VAluE

MuMBAI

15

65

115

165

215

265

forecast


Grade A Grade B

Nehru Place Saket

Netaji Subhash

Jasola Cannaughtplace

p. 4 | COllIERs INTERNATIONAl






Alcon India Southern Park 10,000 Saket Lease

Augusta Westland Statesman House 5,850 Barakhamba Road Lease

Bell Helicopters The Grand 10,000 New Delhi Lease

Safron Inner Circle 10,000 CP Lease

DElhI

Approximately 1 million sq ft of grade ‘A’ •office space was available for lease in Delhi in 3Q 2011. Most of this available supply was concentrated in Jasola and Saket.

This quarter no new supply was added in the •city’s grade ‘A’ inventory. A small commercial building measuring approximately 0.12 million sq. ft. developed by Ambience Group is expected to be ready by 1Q 2012.

Rental values for grade ‘A’ properties •increased in the range of 2 to 5 percent in location such as Connaught Place and Saket, however rental values have seen marginal corrections in Nehru Place and Jasola.

A number of small area leases have taken place •in Delhi this quarter. A trend of setting a small corporate office in Delhi and consolidation of all other activities in peripheral locations is getting popular among large corporate. This shift in trend was primarily attributed to the fact that peripheral business district such as Gurgaon and Noida offer state-of-an-art buildings at much lower rentals than Delhi due to plenty of available stock.

In its effort to improve the infrastructure, of the •Delhi Government’s Public Works Department has plans to construct two more bridges across the yamuna in North-East Delhi and from Shalimar Bagh to Azadpur in North-West Delhi. Moreover, PWD will construct three flyovers — at Aurobindo Marg, Mehrauli-Mahipalpur Road and Mehrauli-Badarpur Road to further decongest the traffic at south Delhi locations.


Connaught Place 2%

Nehru Place 10%

Saket 29%

Jasola 59%


2Q 2011 3Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE REPORT | 3Q 2011 | Office | DeLhi


1Q20

08

2Q20

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 pl

ace

0

50

100

150

200

250

300

350

400

450

500

3Q20

08

4Q20

10

INR

per

Sq ft

per

Mon

th

120

140

160

180

200

220

240

260

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

1Q20

12

1Q20

12

4Q20

09

1Q20

10

2Q20

10

3Q20

10

forecast

4Q20

08

1Q20

09

2Q20

09

1Q20

10

4Q20

09

3Q20

09

2Q20

10

3Q20

11

2Q20

11

1Q20

11

3Q20

10


MG

Road

INR

per

sq ft

per

mon

th

Golf

Cour

se R

oad

/Ext

/So

hna

Road

NH8/

udh

yog

viha

r

Man

esar

Inst

itutio

nal S

ecto

rs /

Sush

ant L

ok

Sohn

a Ro

ad (I

T)

DLf

Cybe

r Ci

ty (I

T)

NH8/

udh

yog

viha

r (IT

)

Man

esar

(IT)

0

20

40

60

80

100

120

140

Grade A Grade B

MG RoadGolf Course Road/Ext /Sohna Road

NH8/udhyog vihar (IT)Institutional Sectors /Sushant Lok

NH8/udhyog vihar

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

Manesar (IT)





AMR Construction DLf Bldg No. 5 10,000 DLf Cyber City Lease

Beam Global Spirits DLf 10C 18,000 DLf Cyber City Lease

CB&I DLf 10C 37,400 DLf Cyber City Lease

CISCo BPTP I Park 40,000 NH-8 Lease

P I Industries vipul Square 18,450 Golf Course Road Lease

Wood Works DLf Bldg No. 5 15,000 DLf Cyber City Lease

GuRGAON

Close to 10 million sq ft of grade ‘A’ office •space was available for fit out in 3Q 2011. Most of this available supply was concentrated in Golf Course Road and its extension, udyog vihar and NH8 up to Manesar.

Several projects were launched in Gurgaon •this quarter; v Square launched its commercial project “114 Avenue” in sector 114 with an area of 0.4 million sq ft, orris Infrastructure launched “Business Square” in sector 82A measuring 0.3 million sq.ft and Imperia Structures launched “ByRoN” in sector 62 on Golf Course Extension Road. All of these projects are expected to complete by the second half of 2014.

Projects/parts of the projects completed this •quarter include “Megapolis” developed by JMD group in Sohna Road, “Baani Corporate Park” developed by Baani group situated at Golf Course Road and Suncity Trade Tower developed by Suncity group at old Gurgaon Road. All of these projects together contributed around 1.2 million sq ft of grade ‘A’ office space to the city’s total inventory.

During the quarter absorption remained •upbeat and a number of deals were concluded in areas such as Cyber City and Golf Course Road and its extension. Rentals in almost all of the micro markets remained stable in 3Q 2011.

This quarter DLf sold a 10.8 acre plot in •Gurgaon for a consideration of INR 280 crore as part of its plan to ease its debt burden through asset sales. It has also put its 27.4-acre plot of land on sale in Gurgaon for around INR 400 crore.


Institutional Sectors /Sushant Lok

4%

DLf Cyber City 42%

MG Road 3%

Manesar 15%

Golf Course Road/Ext /Sohna Road

18%

NH8/udhyog vihar 18%


2Q 2011 3Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE REPORT | 3Q 2011 | Office | GUrGaON

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

INR

per

sq ft

per

mon

th

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

INR

per

Sq ft

per

Mon

th

0

20

40

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

3Q20

10

2Q20

08

3Q20

08

forecast

Grade A Grade B






BGR Energy NA 1,00,000 Sector 16 A Lease

Intel Logix Cyber Park 10,000 Sector 62 Lease

Johnson Controls Logix Park 6,500 Sector 16 Lease

Samsung Logix Cyber Park 30,000 Sector 62 Lease

NOIDA

Approximately 5.5 million sq ft of office space •was ready for fit out in NoIDA this quarter. More than 90 percent of this available office space was in the form of IT/ITES office space. Grade ‘A’ IT/ITES office space was concentrated at sector 16 A, 62 and sectors 125 to 143 along the NoIDA express highway. While IT/ITeS office space available in Industrial sectors was primarily grade ‘B’ office space.

This quarter construction activities remained •slowed due to the monsoon season and no project was either completed or launched in NoIDA.

on the leasing front as well not many activities •were recorded in NoIDA and rentals values for both grade ‘A’ and grade ‘B’ office space have not shown any change from previous quarter. Capital values were also remained unchanged quarter on quarter.

DLf has put its 70 percent stake in DLf IT •Park in NoIDA on sale. The IT Park has a total built up area of approximately 1.3 million sq ft.


Industrial Sectors (Industrial usage bt

IT also allowed) (Sec. 1-9, 57-60, 63-65)

13%Commercial Sectors

(sec 18) 1%

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

86%


2Q 2010 3Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE REPORT | 3Q 2011 | Office | NOiDa

1Q20

09

INR

Per

Sqft

Per

Mon

th

0

20

40

60

80

100

120

140

0

20

40

60

80

100

120

2Q20

09

3Q20

09

4Q20

09

1Q20

10

Indu

stria

l Sec

tor

Com

mer

cial

Se

ctor

Inst

itutio

nal

Sect

or (I

T)

INR

Per

Sqft

Per

Mon

th

Inst

itutio

nal

Sect

ors

(Non

IT)

2Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

10

3Q20

10

Institutional Sectors

Institutional Sectors (Non IT)Commercial Sectors

Industrial Sector (IT)


1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

11

3Q20

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


3Q 2011 GRADE ‘A’ IT AND NON IT RENTAl VAluEs

CBD

INR

per

sq ft

per

mon

th

Guin

dy (

SBD)

Amba

ttur

oM

R

GST

road

0

10

20

30

40

50

60

70

80

IT NoN IT




Ansaldo ASv Adarsh 37,000 Pathari Road Lease

Burndy Ascendas 13,000 Taramani Lease

Mckinsey Ascendas 69,000 Taramani Lease

Qualcomm TvH Agnito 70,000 Taramani Lease

SPI Technologies DLf SEZ 22,000 Manapakkam Lease

verizon India RMZ 80,000 oMR Lease

ChENNAI

over 12 million sq ft of grade ‘A’ office space •was available for lease/sale in 3Q 2011. Nearly 90 percent of this stock was IT/ITES office space primarily located at oMR and Ambattur. Non IT office space was mostly available in the CBD, oMR, velechery and vadapalini.

No new grade ‘A’ commercial projects were •completed this quarter in Chennai. A majority of the projects that were expected to be ready for fit out this quarter deferred untill the next quarter.

A few small commercial projects were •launched in Chennai in 3Q 2011 including “Central Square 2” and “Design Square” in Guindy by SkCL developers admeasuring 75,000 and 30,000 sq ft respectively and “Ramaniyam” by Ramaniyam developers in Pallavaram measuring approximately 60,000 sq ft.

Rental values the previous quarter trend, •rentals of grade ‘A’ properties in CBD registered an increase in the range of 3 to 4 percent quarter on quarter; limited availability of grade ‘A’ office space in the CBD was the primary reason behind this increase in values. Rentals in all other micro markets remained stable on account of large available stock.

Leasing for IT/ITeS office space remained •strong during the quarter; office spaces located closer to the city near toll plaza were getting quickly absorbed. Demand in the next quarter may impact a bit as companies are becoming cautious due to prevailing economic uncertainties.

In an initiative to attract more investors to •Special Economic Zones (especially IT SEZ), the State Government conducts road-shows across the state during the quarter. The state is also planning to come up with a new IT policy which may relax usage norms for IT and ITES buildings.


CBD 9%

vadapalini 1%

Guindy (SBD) 2%

velachery 2%

GST Rd 3%

oMR (IT Corridor) 56%

Ambattur 27%


2Q 2011 3Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE REPORT | 3Q 2011 | Office | cheNNai


4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

3Q20

11

2Q20

11

1Q20

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

3Q20

12

2Q20

12

1Q20

12

4Q20

10

3Q20

10

INR

per

Sq ft

per

Mon

th

0

10

20

30

40

60

50

CHENNAI

forecast







AMD ISPL 1,12,000 Whitefield Lease

Airbus Tata xylem 1,30,000 Whitefield Lease

E&y Brigade Summit 80,000 Whitefield Lease

Robert Bosch RMZ Ecospace 80,000 oRR Lease

verifone L&T Cyber Park 45,000 Electronic City Lease

volvo Brigade Summit 1,20,000 Whitefield Lease

BENGAluRu

Nearly 4 million sq ft of commercial grade ‘A’ •office space was available for fit outs in 3Q 2011. Areas like outer Ring Road, EPIP Zone/ Whitefield and Bannerghatta Road summed up for about 67 per cent of this total available supply.

New supply in Bengaluru commercial grade •‘A’ office space for 3Q 2011 accounts for approximately 0.75 million sq ft. Projects/parts of the projects contributing to this new supply were “SJR Ciber” developed by SJR Group, “Salrpura Sapphire” by Sattva Developers, “Triumph” renovated by Triumph Estates and “Manyata Business Embassy Park” Block N1 by Embassy Group.

During 3Q 2011, Prestige group launched a new •commercial project at Raj Bhavan Road with an area of about 0.16 million sq ft. In addition Confident Group has launched two commercial projects both located in koramangala with a total area of about 0.04 million sq ft. All of the above mentioned projects are expected to complete by end of 2012.

Absorption in PBD areas like Whitefield and •Electronic City increased and a number of leases admeasuring more than 0.1 million sq ft were recorded during the quarter. Demand for office space in special economic zones remained upbeat in the northern part of the city due to its proximity to the airport.

Average rentals for grade ‘A’ properties •remained stable during the quarter except for Bannerghatta Road and outer Ring Road, where a marginal increase of 1 to 2 percent was observed quarter on quarter.


CBD 11%

outer Ring Road 31%Bannerghatta Road 13%

Electronic City 10%

EPIP Zone/ Whitefield 23% Hosur Rd 12%


2Q 2011 3Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE REPORT | 3Q 2011 | Office | BeNGaLUrU

1Q20

08

2Q20

08

INR

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

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 pe

r Mon

th

0

5

15

10

20

30

25

50

45

40

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

2Q20

12

1Q20

12

4Q20

10

3Q20

10

forecast




CBD

INR

per

sq ft

per

mon

th

ISec

tor-

5 (IT

)

Sect

or-5

Com

mer

cial

se

ctor

Bally

gung

e -C

ircul

ar R

D

New

Tow

n,

Raja

rhat

(IT)

East

kol

kata

0

20

40

60

80

100

120

Grade A Grade B




Aditya Birla Money fMC fortuna 1,100 CBD Lease

CAMS 44, Park Street 8,000 CBD Lease

Spice Telecom DLf IT Park 2 13,000 New Town Lease

MS Techno Infinity Think Tank 4,500 Salt Lake Lease

KOlKATA

In 3Q 2011, 1.5 million sq ft has been added to •the grade ‘A’ office supply. Major concentration of this new supply was in PBD areas such as New Town and Rajarhat.

“Tiru Mala 22”, a commercial project was •launched in 3Q 2011 with an area of 0.1 million sq.ft. located in Topsia. which, is emerging as an upcoming location in kolkata where a number of commercial projects were launched recently. Another project “Shrachi Ekdin” by Bengal Shrachi has been launched in New Town with an area of 0.13 million sq.ft.

Rentals in 3Q 2011 remained stable across •all the major micro markets except for the CBD where marginal price correction in the range of .5 to 1 percent has been observed. following the previous quarter trends capital values were also stable in all of the micro markets.

Since 2Q 2011 rentals in the CBD area are •showing a downward trend, whereas rentals in PBD areas such as new town and Rajarhat remained stable; this could be attributed to the fact that not much grade ‘A’ office space is available in the CBD and corporate and multinational companies are preferring PBD locations due to lower rentals and better infrastructure as compared to the CBD.

The State Government of West Bengal has •proposed to build a ‘half-ring road’ from Diamond Harbour Road, near the Ekbalpore crossing, to Barasat. This road will cover a distance of over 40 km and is expected to facilitate uninterrupted, congestion-free flow of traffic from Diamond Harbour Road to Barasat.

NEW supplY IN pRIME AREAs

PBD (New Town,Rajarhat)

95%

East kolkata - 5%


2Q 2011 3Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE REPORT | 3Q 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

2Q20

11

1Q20

11

3Q20

10INR

per

sq ft

per

mon

th

0

20

40

60

80

100

120

140

Ballygunge Circular Rd

Ballygunge Circular Rd

East kolkatta

Sector 5

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


INR

per

Sq ft

per

Mon

th

0

10

40

30

20

70

80

50

60

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

10

3Q20

10

forecast



3Q 2011 GRADE ‘A’ IT AND NON IT RENTAl VAluEs



Emptoris Commerzone 50,000 yerwada Lease

SAS Magarpatta CyberCity 44,000 Magarpatta, Hadapsar Lease

Symantec Eon IT Park 1,70,000 kharadi Lease

TCS Cerebrum 54,000 kalyani Nagar Lease

TIBCo Binarius 1,00,000 yerwada Lease

Tomtom Binarius 60,000 yerwada Lease

puNE

More than 9.0 million sq ft of grade ‘A’ office •space was available for fit out in Pune during 3Q 2011. Most of this supply was located in micro markets such as Nagar Road, Hinjewadi,kharadi and Airport Road.

No major new supply has been added to city’s •grade ‘A’ office space this quarter.

During 3Q 2011 kapil Group has launched •“kapil Matrix” measuring .04 million sq ft at koregoan Park Annex. Another project by Clover Realty named “Bodh Tower” has been launched at Salisbury Park admeasuring 0.08 million sq ft. Both the projects are expected to be completed by 3Q 2014.

Absorption in Pune remained upbeat and •most of the large floor plate leases were observed in areas such as yerwada, kharadi and Hadapsar.

Rentals and capital values remained stable in •3Q 2011 in all the micro markets except Baner which has seen an appreciation in the range of 10 - 14 per cent. This Q-o-Q increase in rentals was primarily due to the fact that all the old stock in Baner was well absorbed and new buildings coming up this area were fetching higher rentals due to their state-of-an-art facilities and amenities.

This quarter the Pune Municipal Corporation •approved the proposal to grant five percent concession in the property tax to women property owners. This will be implemented from the next financial year i.e. – 2012-13.


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%


2Q 2011 3Q 2011

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE REPORT | 3Q 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

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

2Q20

12

3Q20

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 udhyog 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, AJC Bose Rd, Chowranghee Rd), Ballygunge circular Rd, 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 REPORT | 3Q 2011 | Office | sUBMarkets

CITY BAROMETER

Increasing as compared to previous quarter

Decreasing as compared to previous quarter

Remained stable from previous quarter



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Mumbai : George Mckay, South Asia Director [email protected] Poonam Mahtani, office Director [email protected] 31/A, 3rd floor, film Center, 68, Tardeo Road, Mumbai - 400 034 Tel : 91 22 4050 4500 fax: 91 22 2351 4272

New Delhi : vikas kalia, National Director [email protected]

Ajay Rakheja, office Director [email protected] 2204/205, 2nd floor, kanchenjunga Building, 18, Barakhamba Road, New Delhi- 110001 Tel:91 11 4360 7500 - 23 fax: 91 11 2335 6624

Bengaluru : Joe verghese, Managing Director [email protected]

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

Pune : Suresh Castellino, office Director [email protected] vatika Business Center, Level-5,C Wing, Panchsheel Tech Park-1, yerwada Pune- 411 006. Tel : 91 20 4011 1356

Gurgaon : Saccketh Chawla, office Director [email protected] Technopolis Building, 1st floor, DLf Golf Course Main Road, Sector 54, Gurgaon - 122002. Tel : 91 124 437 5807 fax : 91 124 437 5806

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

Kolkata : Ajay Rakheja, 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 :

- India Property Market overview - 2Q 2011- Asia Pac office Market overview - 2Q 2011- Global office Market Highlights - first Half 2011- Global Industrial Market Highlights - first Half 2011

This book is printed on 100% Recyclable paper

THE KNOWLEDGE REPORT | 3Q 2011


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.

© Copyright 2011 - 2012 All Rights Reserved.

AUTHORS

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

Surabhi Arora MRICSAssociate Director, ResearchEmail: [email protected]

Sachin SharmaAssistant Manager, ResearchEmail: [email protected]

for general queries and feedback :[email protected] Tel: 91 11 4360 7542

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

512 offices in 61 countries on 6 continents

united States: 135Canada: 39Latin America: 17Asia Pacific: 194EMEA: 95

$1.55 billion in annual revenue 979 million square feet under management

over 12,500 professionals

Office property market overivew 3Q 2011-India

Real Estate

office mumbai mumbaisupply

quarter oberoi realty

previous quarter gdp

itites office space

sq ft of grade

percent during140002q

downward grade

draft land acquisition