Office property market overivew  3Q 2011-India
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Office property market overivew 3Q 2011-India

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We are pleased to inform that with effect from 3Q 2011, our market report – India Property Market Overview will be disseminated by market segment; namely, Office and Residential. This is to ...

We are pleased to inform that with effect from 3Q 2011, our market report – India Property Market Overview will be disseminated by market segment; namely, Office and Residential. This is to facilitate a more timely distribution of the reports and to allow our clients to keep abreast of the latest real estate trends.

The latest quarterly reports on the Office markets are now available for download. Please click on the picture or link below
India Office Property Market Overview 3Q 2011
Should your clients require a copy of our latest reports please request them to refer to our website. This will be a good opportunity for us to get them on our website to learn more about our company and the services we provide.

Any feedback or suggestions are most welcome!
Warm Regards
Surabhi Arora MRICS
Associate Director | Research
Dir +91 11 4360 7542 | Mob +91 98 7175 0808
Main +91 11 4360 7500 | Fax +91 11 2335 6624
surabhi.arora@colliers.com

Colliers International
204/205, Kanchenjunga, 18, Barakhamba Road
New Delhi 110 001 | New Delhi | India
www.colliers.com

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Office property market overivew  3Q 2011-India Office property market overivew 3Q 2011-India Document Transcript

  • OfficePrOPerty Market OverviewiNDiaQUarterLy UPDate | OctOBer | 2011Accelerating success.
  • 3Q 2011 | THE KNOWLEDGEREsEARCh & fORECAsT REpORTsYDNEY CENTRAl BusINEss DIsTRICTRESEARCH & foRECAST REPoRTINDIA offICE MARkET MACRO ECONOMIC OVERVIEW ECONOMIC INDICATORs • The Reserve Bank of India further-reduced the GDP growth estimate for 3Q 2011 to 8.0 Gross Domestic product at factor cost percent as compared to previous quarter GDP 10.00% 9.00% of 8.3 percent. This was primarily due to 8.00% downgrade revision of GDP estimate for the 7.00% 6.00% agriculture and industry sectors from the 5.00% previous round of surveys. 4.00% 3.00% 2.00% • The Reserve Bank of India (RBI) has tightened 1.00% 0.000% monetary policy again this quarter and the Jan - Mar 09 Apr - Jun 09 Jul - Sep 09 oct - Dec 09 Jan - Mar 10 Apr - Jun 10 Jul - Sep 10 oct - Dec 10 Jan - Mar 11 Apr - Jun 11 ECONOMIC BAROMETER repo rate increased from 7.25 percent to 8 percent by July 2011. sep-10 sep-11 • Inflation was recorded at 8.40 percent this 16000 fDI in Real Estate REPo RATE 6.0% 8.50% quarter as compared to 9.44 percent during 14000 2Q 2011. However, the Prime Minister 12000 REvERSE REPo RATE 5.25% 7.00% 10000 Economic Advisory Council estimate that 8000 headline WPI will remain elevated till Nov’ 11 INR Crore CRR 6.00% 6.0% 6000 at 9 percent or even higher and will soften 4000 INfLATIoN 9.8% 8.40% only from Dec’ 11 onwards. 2000 0 2005 - 06 2006 - 07 2007 - 08 2008 - 09 2009 - 10 2010 - 11 April 2011 TREASuRy BoND RATE 7.8% 8.31% • The overall market momentum slowed down as compared to the previous quarter. SluggishfIxED DEPoSIT (< 1yEAR) 7.25% 9.25% economic conditions worldwide and increased foREIGN ExCHANGE cost of inputs and debt are attributed as the 130 BsE sensex & Realty Index INR - uSD main reason. 120 46.37 47.80 110 INR- EuRo 59.63 65.11 • The higher cost of debt compelled over- 100 leveraged developers to look for options to 90 liquidate their land banks and existing 80RETuRN ON AlTERNATIVE INVEsTMENTs projects. 70 1-Jul-11 7-Jul-11 13-Jul-11 19-Jul-11 25-Jul-11 31-Jul-11 6-Aug-11 12-Aug-11 18-Aug-11 24-Aug-11 30-Aug-11 5-Sep-11 11-Sep-11 17-Sep-11 23-Sep-11 29-Sep-11 sep-10 sep-11 YoY % • In major development for the real estate Change sector, draft land acquisition policy was *Rebase to 100 BSE Sensex Realty Index finalised by the law commission this quarter. GoLD 19,087 27,856 45.94% This policy is an amendment to the Land Exchange Rates 115 32,592 64,550 98.05% Acquisition Act, 1894, which will ensure SILvER 110 owner friendly acquisition of land and will EQuITy (BSE enable the government to frame a land 105 SENSEx) acquisition policy from time to time. 100 19,208 16,467 -14.27% 95 REALTy INDEx 3,627 1,721 -52.53% • This quarter, the Real Estate regulation bill 90 has been sent to union law ministry for its 85 1-Jul-11 8-Jul-11 15-Jul-11 22-Jul-11 29-Jul-11 5-Aug-11 12-Aug-11 19-Aug-11 26-Aug-11 2-Sep-11 9-Sep-11 16-Sep-11 23-Sep-11 30-Sep-11 comments and clearance. The new bill excludes the subjects of land and colonisation, *Rebase to 100 uS$ Euro as they are both state subjects. The bill is expected to be introduced in the winter season Source: Colliers International India Research of parliament.www.colliers.com
  • THE KNOWLEDGE REPORT | 3Q 2011 | Office | MUMBai MuMBAI supplY IN pRIME AREAs • In Mumbai, approx 11.0 million sq ft of grade ‘A’ office space was ready for fit-out in 3Q CBD 0.5% 2011. out of this total available stock around LBS / Thane 21% Andheri East 21% 65 percent was IT/ITES office space primarily concentrated in kalina and Lower Parel. BkC 5% kalina 1% • 0.3 million sq ft of new supply was added Goregaon / JvLR 8% to the city’s grade ‘A’ inventory in the SBD this quarter. The project/part of the project Worli/Prabhdevi 1% Lower Parel 23% contributed this new supply was “Equinox Powai 6% Business Park – Tower 3” developed by Navi Mumbai 9 % Malad 5% Equinox Realty & Infrastructure Private Limited.MuMBAI • This quarter oberoi Realty launched a commercial project named “Prisma” 3Q 2011 GRADE ‘A’ AND GRADE’B’ RENTAl VAluEs admeasuring approximately 0.7 million sqCITY OffICE BAROMETER ft located at Jogeshwari - vikhroli Link 300 Road (JvLR). The project is expected to be 250 2Q 2011 3Q 2011 completed by 3Q 2013. Another commercial 200 project “kalpataru Synergy-2” was launched 150 INR Per Sq ft Per Month VACANCY by kalpataru Developers in kalina. The project 100 will add about 0.2 million sq ft to the city’s 50 ABsORpTION grade ‘A’ office space by 4Q 2012. 0 Goregaon / JvLR CBD Andheri East BkC Lower Parel Malad Navi Mumbai Powai Worli/Prabhdevi kalina Thane / LBS Andheri East (IT) Lower Parel (IT) Malad (IT) Navi Mumbai (IT) Powai (IT) Thane / LBS (IT) Goregaon / JvLR (IT) CONsTRuCTION • Rentals for grade ‘A’ office space remained RENTAl VAluE stable during the quarter in almost all the micro markets across Mumbai. Downward Grade A Grade B 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 GRADE ‘A’ AVERAGE RENTAl VAluE pRIME OffICE spACE RENTAl TREND operations are looking for discounted deals. Availability of a large vacant stock provide an 520 265 forecast opportunity to the companies to negotiate on 470 rentals. 420 215 370 320 270 165 • Due to the increasing cost of debt, some 220INR per Sq ft per Month INR per Sq ft per Month few over-leveraged developers have started 170 120 115 looking for options to raise funds by liquidify 70 20 liquidate their land banks and selling stakes 2Q2008 4Q2008 2Q2009 4Q2009 3Q2008 3Q2009 65 2Q2010 4Q2010 1Q2008 1Q2009 3Q2010 1Q2010 2Q2011 3Q2011 1Q2011 in existing projects; HDIL has put nearly 5 CBD Andheri East Malad BkC 15 million sq ft of land on sale at virar. Similarly, 2Q2008 4Q2008 2Q2009 4Q2009 3Q2008 3Q2009 Lower Parel Navi Mumbai Powai Worli / 2Q2010 4Q2010 1Q2008 1Q2009 2Q2012 3Q2010 3Q2012 1Q2010 2Q2011 1Q2012 4Q2011 3Q2011 1Q2011 Prabhadevi DLf was also reportedly looking for a buyer Goregaon / JvLR kalina Thane / LBS for its 17-acre Mumbai textile mill at Lower Parel this quarter. MARKET TRANsACTIONs CLIENT BuILDING NAME AREA LoCATIoN TRANSACTIoN TyPE (SQ. fT.) 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 Source: Colliers International India Research COllIERs INTERNATIONAl | p. 3
  • THE KNOWLEDGE REPORT | 3Q 2011 | Office | DeLhi DElhI supplY IN pRIME AREAs • Approximately 1 million sq ft of grade ‘A’ office space was available for lease in Delhi Nehru Place 10% in 3Q 2011. Most of this available supply was Connaught Place 2% concentrated in Jasola and Saket. Saket 29% • 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 Jasola 59% 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,DELHI however rental values have seen marginal 3Q 2011 GRADE ‘A’ AND GRADE’B’ corrections in Nehru Place and Jasola. RENTAl VAluEsCITY OffICE BAROMETER • A number of small area leases have taken place 400 in Delhi this quarter. A trend of setting a small 350 2Q 2011 3Q 2011 corporate office in Delhi and consolidation of 300 250 all other activities in peripheral locations is INR per Sq ft per Month 200 VACANCY getting popular among large corporate. This 150 shift in trend was primarily attributed to the 100 ABsORpTION fact that peripheral business district such 50 CONsTRuCTION as Gurgaon and Noida offer state-of-an-art 0 Jasola Nehru Place Connaught Place Netaji Subhash place Saket buildings at much lower rentals than Delhi RENTAl VAluE due to plenty of available stock. Grade A Grade B • In its effort to improve the infrastructure, of the Delhi Government’s Public Works Department has plans to construct two more bridges GRADE ‘A’ AVERAGE RENTAl VAluE across the yamuna in North-East Delhi and pRIME OffICE spACE RENTAl TREND from Shalimar Bagh to Azadpur in North- 280 West Delhi. Moreover, PWD will construct 500 260 forecast three flyovers — at Aurobindo Marg, Mehrauli- 450 240 Mahipalpur Road and Mehrauli-Badarpur Road 400 350 to further decongest the traffic at south DelhiINR per Sq ft per Month 220 300 INR per Sq ft per Month 200 locations. 250 180 200 150 160 100 140 50 120 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 1Q2012 3Q2012 2Q2008 Nehru Place Jasola Cannaught Saket place Netaji Subhash MARKET TRANsACTIONs CLIENT BuILDING NAME AREA LoCATIoN TRANSACTIoN TyPE (SQ. fT.) 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 Source: Colliers International India Researchp. 4 | COllIERs INTERNATIONAl
  • THE KNOWLEDGE REPORT | 3Q 2011 | Office | GUrGaON GuRGAON supplY IN pRIME AREAs • Close to 10 million sq ft of grade ‘A’ office space was available for fit out in 3Q 2011. NH8/udhyog vihar 18% Most of this available supply was concentrated in Golf Course Road and its extension, udyog vihar and NH8 up to Manesar. Manesar 15% • Several projects were launched in Gurgaon DLf Cyber City 42% this quarter; v Square launched its commercial project “114 Avenue” in sector 114 with an Institutional Sectors / area of 0.4 million sq ft, orris Infrastructure Sushant Lok 4% Golf Course Road/ launched “Business Square” in sector 82A MG Road 3% Ext /Sohna Road 18% measuring 0.3 million sq.ft and Imperia Structures launched “ByRoN” in sector 62 on Golf Course Extension Road. All of theseGuRGAoN projects are expected to complete by the 3Q 2011 GRADE ‘A’ AND GRADE’B’ second half of 2014. RENTAl VAluEsCITY OffICE BAROMETER • Projects/parts of the projects completed this 140 quarter include “Megapolis” developed by 120 100 2Q 2011 3Q 2011 JMD group in Sohna Road, “Baani Corporate 80 Park” developed by Baani group situated 60 INR per sq ft per month VACANCY at Golf Course Road and Suncity Trade 40 20 Tower developed by Suncity group at old ABsORpTION 0 Gurgaon Road. All of these projects together NH8/udhyog vihar Manesar MG Road Golf Course Road /Ext /Sohna Road Institutional Sectors / Sushant Lok Sohna Road (IT) DLf Cyber City (IT) NH8/udhyog vihar (IT) Manesar (IT) CONsTRuCTION contributed around 1.2 million sq ft of grade ‘A’ office space to the city’s total inventory. RENTAl VAluE Grade A Grade B • 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 GRADE ‘A’ AVERAGE RENTAl VAluE of the micro markets remained stable in 3Q pRIME OffICE spACE RENTAl TREND 2011. 120 180 forecast • This quarter DLf sold a 10.8 acre plot in 160 100 Gurgaon for a consideration of INR 280 crore 140 80 as part of its plan to ease its debt burden 120 100INR per Sq ft per Month INR per sq ft per month 60 through asset sales. It has also put its 27.4- 80 40 acre plot of land on sale in Gurgaon for around 60 INR 400 crore. 40 20 20 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 0 MG Road DLf Cyber City (IT) 2Q2008 4Q2008 2Q2009 4Q2009 3Q2008 3Q2009 2Q2010 4Q2010 1Q2009 2Q2012 3Q2010 3Q2012 1Q2010 2Q2011 1Q2012 4Q2011 3Q2011 Golf Course Road/Ext /Sohna Road 1Q2011 Golf Course Road/ Ext /Sohna Road (IT) Institutional Sectors /Sushant Lok Manesar NH8/udhyog vihar (IT) NH8/udhyog vihar Manesar (IT) MARKET TRANsACTIONs CLIENT BuILDING NAME AREA LoCATIoN TRANSACTIoN TyPE (SQ. fT.) 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 Source: Colliers International India Research COllIERs INTERNATIONAl | p. 5
  • THE KNOWLEDGE REPORT | 3Q 2011 | Office | NOiDa NOIDA supplY IN pRIME AREAs • 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 Institutional Sectors (Sec.16A, 62, 125-142) 86% 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. Industrial Sectors (Industrial usage bt While IT/ITeS office space available in IT also allowed) (Sec. 1-9, 57-60, 63-65) 13% Industrial sectors was primarily grade ‘B’ Commercial Sectors (sec 18) 1% office space. • This quarter construction activities remained slowed due to the monsoon season and no project was either completed or launched inNoIDA NoIDA. 3Q 2011 GRADE ‘A’ AND GRADE’B’ RENTAl VAluEs • on the leasing front as well not many activitiesCITY OffICE BAROMETER were recorded in NoIDA and rentals values for 120 both grade ‘A’ and grade ‘B’ office space have 100 2Q 2010 3Q 2011 not shown any change from previous quarter. 80 Capital values were also remained unchanged 60 INR Per Sqft Per Month VACANCY quarter on quarter. 40 ABsORpTION 20 • DLf has put its 70 percent stake in DLf IT 0 Park in NoIDA on sale. The IT Park has a total Industrial Sector Sector Institutional Sectors (Non IT) Institutional Sector (IT) Commercial CONsTRuCTION built up area of approximately 1.3 million sq RENTAl VAluE ft. Grade A Grade B GRADE ‘A’ AVERAGE RENTAl VAluE pRIME OffICE spACE RENTAl TREND 80 140 forecast 70 120 60 100 50 80 INR Per Sqft Per MonthINR per Sq ft per Month 40 60 30 40 20 20 10 0 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 0 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 Institutional Sectors Industrial Sector (IT) Commercial Sectors Institutional Sectors (Non IT) MARKET TRANsACTIONs CLIENT BuILDING NAME AREA LoCATIoN TRANSACTIoN TyPE (SQ. fT.) 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 Source: Colliers International India Researchp. 6 | COllIERs INTERNATIONAl
  • THE KNOWLEDGE REPORT | 3Q 2011 | Office | cheNNai ChENNAI supplY IN pRIME AREAs • 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 oMR (IT Corridor) 56% space primarily located at oMR and Ambattur. Non IT office space was mostly available in GST Rd 3% the CBD, oMR, velechery and vadapalini. velachery 2% vadapalini 1% • No new grade ‘A’ commercial projects were CBD 9% completed this quarter in Chennai. A majority Guindy (SBD) 2% of the projects that were expected to be ready for fit out this quarter deferred untill the next Ambattur 27% quarter. • A few small commercial projects were launched in Chennai in 3Q 2011 includingCHENNAI 3Q 2011 GRADE ‘A’ IT AND NON IT “Central Square 2” and “Design Square” in Guindy by SkCL developers admeasuring RENTAl VAluEsCITY OffICE BAROMETER 75,000 and 30,000 sq ft respectively and 80 “Ramaniyam” by Ramaniyam developers in 70 2Q 2011 3Q 2011 Pallavaram measuring approximately 60,000 60 sq ft. 50 INR per sq ft per month 40 VACANCY • Rental values the previous quarter trend, 30 20 ABsORpTION rentals of grade ‘A’ properties in CBD 10 registered an increase in the range of 3 to 4 0 CONsTRuCTION percent quarter on quarter; limited availability GST road Ambattur oMR CBD Guindy (SBD) of grade ‘A’ office space in the CBD was the RENTAl VAluE primary reason behind this increase in values. IT NoN IT Rentals in all other micro markets remained stable on account of large available stock. • Leasing for IT/ITeS office space remained GRADE ‘A’ AVERAGE RENTAl VAluE strong during the quarter; office spaces pRIME OffICE spACE RENTAl TREND located closer to the city near toll plaza were 60 getting quickly absorbed. Demand in the next 90 50 forecast quarter may impact a bit as companies are 80 becoming cautious due to prevailing economic 70 40 uncertainties.INR per Sq ft per Month 60 INR per sq ft per month 30 50 20 • In an initiative to attract more investors to 40 Special Economic Zones (especially IT SEZ), 30 10 the State Government conducts road-shows 20 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 1Q2011 2Q2011 3Q2011 0 across the state during the quarter. The state 2Q2008 4Q2008 2Q2009 4Q2009 3Q2008 3Q2009 2Q2010 4Q2010 1Q2008 1Q2009 2Q2012 3Q2010 3Q2012 1Q2010 2Q2011 1Q2012 4Q2011 3Q2011 1Q2011 is also planning to come up with a new IT Ambattur GST road CBD Guindy (SBD) oMR (IT Corridor) policy which may relax usage norms for IT and ITES buildings. MARKET TRANsACTIONs CLIENT BuILDING NAME AREA LoCATIoN TRANSACTIoN TyPE (SQ. fT.) 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 Source: Colliers International India Research COllIERs INTERNATIONAl | p. 7
  • THE KNOWLEDGE REPORT | 3Q 2011 | Office | BeNGaLUrU BENGAluRu supplY IN pRIME AREAs • 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/ Bannerghatta Road 13% outer Ring Road 31% Whitefield and Bannerghatta Road summed up for about 67 per cent of this total available supply. Electronic City 10% CBD 11% • New supply in Bengaluru commercial grade ‘A’ office space for 3Q 2011 accounts for approximately 0.75 million sq ft. Projects/ Hosur Rd 12% EPIP Zone/ Whitefield 23% parts of the projects contributing to this new supply were “SJR Ciber” developed by SJR Group, “Salrpura Sapphire” by Sattva Developers, “Triumph” renovated by TriumphBENGALuRu Estates and “Manyata Business Embassy 3Q 2011 GRADE ‘A’ AND GRADE’B’ Park” Block N1 by Embassy Group. RENTAl VAluEsCITY OffICE BAROMETER • During 3Q 2011, Prestige group launched a new 90 commercial project at Raj Bhavan Road with 80 70 2Q 2011 3Q 2011 an area of about 0.16 million sq ft. In addition 60 Confident Group has launched two commercial 50 INR Per Sqft Per Month VACANCY projects both located in koramangala with a 40 30 total area of about 0.04 million sq ft. All of 20 ABsORpTION the above mentioned projects are expected to 10 0 complete by end of 2012. CBD Hosur Road EPIP Zone/ Whitefield Electronic City(IT) Bannerghatta Road outer Ring Road CONsTRuCTION RENTAl VAluE • Absorption in PBD areas like Whitefield and Grade A Grade B 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 GRADE ‘A’ AVERAGE RENTAl VAluE remained upbeat in the northern part of the pRIME OffICE spACE RENTAl TREND city due to its proximity to the airport. 50 100 45 forecast • Average rentals for grade ‘A’ properties 90 80 40 35 remained stable during the quarter except 70 for Bannerghatta Road and outer Ring Road, 60INR per Sq ft per Month 30 50 INR Per Sqft Per Month 25 where a marginal increase of 1 to 2 percent 40 30 20 was observed quarter on quarter. 20 15 10 10 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 5 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 CBD Bannerghatta Road Hosur Road Electronic City EPIP Zone / Whitefield outer Ring Road MARKET TRANsACTIONs CLIENT BuILDING NAME AREA LoCATIoN TRANSACTIoN TyPE (SQ. fT.) 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 Source: Colliers International India Researchp. 8 | COllIERs INTERNATIONAl
  • THE KNOWLEDGE REPORT | 3Q 2011 | Office | kOLkata KOlKATA NEW supplY IN pRIME AREAs • In 3Q 2011, 1.5 million sq ft has been added to the grade ‘A’ office supply. Major concentration East kolkata - 5% 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 PBD (New Town,Rajarhat) recently. Another project “Shrachi Ekdin” by 95% Bengal Shrachi has been launched in New Town with an area of 0.13 million sq.ft.koLkATA • Rentals in 3Q 2011 remained stable across 3Q 2011 GRADE ‘A’ AND GRADE’B’ all the major micro markets except for the RENTAl VAluEs CBD where marginal price correction in theCITY OffICE BAROMETER range of .5 to 1 percent has been observed. 120 following the previous quarter trends capital 100 2Q 2011 3Q 2011 values were also stable in all of the micro 80 markets. INR per sq ft per month 60 VACANCY 40 • Since 2Q 2011 rentals in the CBD area are ABsORpTION 20 showing a downward trend, whereas rentals in PBD areas such as new town and Rajarhat 0 CONsTRuCTION Sector-5 ISector-5 (IT) sector Ballygunge -Circular RD Commercial CBD East kolkata New Town, Rajarhat (IT) remained stable; this could be attributed to RENTAl VAluE the fact that not much grade ‘A’ office space Grade A Grade B 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. GRADE ‘A’ AVERAGE RENTAl VAluE pRIME OffICE spACE RENTAl TREND • The State Government of West Bengal has 80 proposed to build a ‘half-ring road’ from 140 70 forecast Diamond Harbour Road, near the Ekbalpore 120 60 crossing, to Barasat. This road will cover a 100 50 distance of over 40 km and is expected to 80INR per Sq ft per Month INR per sq ft per month 40 facilitate uninterrupted, congestion-free flow 60 40 30 of traffic from Diamond Harbour Road to 20 20 Barasat. 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 10 3Q2011 0 East kolkatta CBD (Park St,Camac St, 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 AJC Bose Rd) Sector 5 Ballygunge Circular Rd Ballygunge Circular Rd MARKET TRANsACTIONs CLIENT BuILDING NAME AREA LoCATIoN TRANSACTIoN TyPE (SQ. fT.) 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 Source: Colliers International India Research COllIERs INTERNATIONAl | p. 9
  • THE KNOWLEDGE REPORT | 3Q 2011 | Office | PUNe puNE supplY IN pRIME AREAs • More than 9.0 million sq ft of grade ‘A’ office space was available for fit out in Pune during Hinjewadi 13% kharadi 5% 3Q 2011. Most of this supply was located Hadapsar/fursungi 8% in micro markets such as Nagar Road, Bund Garden 1% Hinjewadi,kharadi and Airport Road. Airport road 10% • No major new supply has been added to city’s Aundh 1% Senapati Bapat Rd 1% Bavdhan 2% grade ‘A’ office space this quarter. kalyani Nagar 5% • During 3Q 2011 kapil Group has launched Nagar Road 55% “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 0.08PuNE million sq ft. Both the projects are expected to 3Q 2011 GRADE ‘A’ IT AND NON IT be completed by 3Q 2014. RENTAl VAluEsCITY OffICE BAROMETER • Absorption in Pune remained upbeat and 90 most of the large floor plate leases were 80 70 2Q 2011 3Q 2011 observed in areas such as yerwada, kharadi 60 and Hadapsar. 50 INR Per Sqft Per Month VACANCY 40 30 • Rentals and capital values remained stable in 20 ABsORpTION 3Q 2011 in all the micro markets except Baner 10 0 which has seen an appreciation in the range Bund Garden Baner Aundh Bavdhan Nagar Road Hinjewadi kalyani Nagar Airport road/ pune station Hadapsar/fursungi Senapati Bapat Road kharadi CONsTRuCTION of 10 - 14 per cent. This Q-o-Q increase in RENTAl VAluE rentals was primarily due to the fact that all IT Non IT 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. GRADE ‘A’ AVERAGE RENTAl VAluE pRIME OffICE spACE RENTAl TREND • This quarter the Pune Municipal Corporation 70 approved the proposal to grant five percent 130 60 forecast concession in the property tax to women 120 110 property owners. This will be implemented 100 50 90 from the next financial year i.e. – 2012-13.INR per Sq ft per Month 80 40 INR Per Sqft Per Month 70 60 30 50 40 20 30 20 10 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 Bavdhan Aundh Airport road/pune station Bund Garden Nagar Road Baner kalyani Nagar Senapati Bapat Rd khardi Hinjewadi / Hadapsar/fursungi MARKET TRANsACTIONs CLIENT BuILDING NAME AREA LoCATIoN TRANSACTIoN TyPE (SQ. fT.) 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 Source: Colliers International India Researchp. 10 | COllIERs INTERNATIONAl
  • THE KNOWLEDGE REPORT | 3Q 2011 | Office | sUBMarketsOffICE suBMARKETsMumbaiThe major business locations in Mumbai are the CBD (Nariman Point, fort and Ballard Estate), Central Mumbai (Worli, Lower Parel and Parel), Bandrakurla Complex (BkC) and Andheri kurla stretch. Powai, Malad and vashi are the preferred IT/ITES destinations, while Airoli at Navi Mumbai and LalBahadur 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 CamaPlace, 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 alsoemerging 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, 62and 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 comprisesGuindy, Manapakkam, velachery and other areas. The PBD primarily includes Ambattur and GST Road, while the IT Corridor is the old MahaballipuramRoad (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 RingRoad (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 preferredlocation 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 kolkataand PBD (New Town & Rajarhat). The area around Park Street, Camac Street and AJC Bose road houses number of high-rises commercial buildingssuch as Chatterjee International Centre, Tata Centre, Everest House and Industry House among others. CITY BAROMETER Increasing as compared to previous quarter Decreasing as compared to previous quarter Remained stable from previous quarter COllIERs INTERNATIONAl | p. 11
  • THE KNOWLEDGE REPORT | 3Q 2011Colliers International (India) provides property services to property Investors and occupiers. Wedeliver customised service solutions utilising local and global knowledge in partnership with our 512 offices in 61 countries on 6 continentsclients via our property Investment and occupier service lines. These service lines include - officeServices, facility Management, Land Sales, Project Management, Residential Services, Retail united States: 135Services, Investment Services and valuation & Advisory Services. Canada: 39 Latin America: 17for more information please visit www.colliers.com/india Asia Pacific: 194 EMEA: 95 $1.55 billion in annual revenueMumbai : George Mckay, South Asia Director George.mckay@colliers.com 979 million square feet under management Poonam Mahtani, office Director over 12,500 professionals Poonam.mahtani@colliers.com 31/A, 3rd floor, film Center, 68, Tardeo Road, Mumbai - 400 034 Tel : 91 22 4050 4500 fax: 91 22 2351 4272 AUTHORSNew Delhi : vikas kalia, National Director vikas.kalia@colliers.com Amit Oberoi MRICS National Director, valuation & Advisory; Research Ajay Rakheja, office Director Email: Amit.oberoi@colliers.com Ajay.rakheja@colliers.com 2204/205, 2nd floor, kanchenjunga Building, 18, Barakhamba Road, New Delhi- 110001 Surabhi Arora MRICS Associate Director, Research Tel:91 11 4360 7500 - 23 fax: 91 11 2335 6624 Email: Surabhi.Arora@colliers.comBengaluru : Joe verghese, Managing Director Sachin Sharma Joe.verghese@colliers.com Assistant Manager, Research Goutam Chakraborthy, office Director Email: Sachin.Sharma@colliers.com Goutam.chakraborthy@colliers.com Prestige Garnet, Level 2, unit No.201/202, 36 ulsoor Road, Bengaluru - 560 042. for general queries and feedback : Tel: 91 80 4079 5500 fax:91 80 4112 3131 India.Research@colliers.com Tel: 91 11 4360 7542Pune : Suresh Castellino, office Director for Press enquiries: Suresh.castellino@colliers.com Poonam Mahtani vatika Business Center, Level-5,C Wing, Panchsheel Tech Park-1, yerwada National Director, knowledge System Pune- 411 006. Tel : 91 20 4011 1356 Email: India.marketing@colliers.comGurgaon : Saccketh Chawla, office Director Saccketh.chawla@colliers.com This report and other research materials may be found on Technopolis Building, 1st floor, DLf Golf Course Main Road, our website at www.colliers.com/India. Questions related Sector 54, Gurgaon - 122002. Tel : 91 124 437 5807 fax : 91 124 437 5806 to information herein should be directed to the Research Department at the number indicated above. This document has been prepared by Colliers International for advertisingChennai : kaushik Reddy, office Director and general information only. Colliers International makes kaushik.reddy@colliers.com no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, Heavitree Complex, unit 1C, 1st floor, 23,Spurtank Road, Chetpet, but not limited to, warranties of content, accuracy and Chennai - 600 031. Tel : 91 44 2836 1064 fax: 91 44 2836 1377 reliability. Any interested party should undertake their own inquiries as to the accuracy of the information.Kolkata : Ajay Rakheja, office Director Accelerating succe Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out Ajay.rakheja@colliers.com of this document and excludes all liability for loss and damages arising there from. 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 © Copyright 2011 - 2012 All Rights Reserved. Tel : +91 33 2357 6501 Extn : 206 , fax +91 33 2357 6502Recent 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 Accelerating success. Accelerating success.