The knowledge report india office property market overview 1 q 2012

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Colliers research has come up with its latest knowledge report India Office Property Market Overview, April 2012. You might find it interesting to note that as per our research, office inventory is …

Colliers research has come up with its latest knowledge report India Office Property Market Overview, April 2012. You might find it interesting to note that as per our research, office inventory is forecasted to increase due to new developments that are expected to be completed in a span of 2-3 years. However, rental rates are forecasted to remain stable in the near future due to the equilibrated situation of office demand and supply in most of the markets.
For more detailed information kindly download the report. I am sure you will find the report an interesting and informative read.

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  • 1. OfficeProperty Market OverviewINDIAQUARTERLY UPDATE | APRIL | 2012Accelerating success.
  • 2. 1Q 2012 | THE KNOWLEDGEResearch & forecast reportSYDNEY CENTRAL BUSINESS DISTRICTresearch & forecast ReportIndia office market MACRO ECONOMIC OVERVIEW ECONOMIC INDICATORS • During 4Q 2011 GDP grew at 6.9 percent in real terms suggesting a moderation in growth Gross Domestic Product at factor cost in comparison to preceding two quarters. The 10.0% 9.0% finance minister presented India’s Union 8.0% Budget 2012 -13 this quarter projecting a GDP 7.0% 6.0% growth rate of 7.6% for 2012-13. 5.0% 4.0% 3.0% • The headline inflation figure moderated from 2.0% 8.3 percent in December 2011 to 6.6 and 1.0% 0.0% 6.95% in January and February 2012, 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 Jul - Sep 11 Jan - Dec 11 ECONOMIC BAROMETER respectively. Keeping in view the moderation in inflation rate the Reserve Bank of India Mar-11 Mar-12 (RBI) has softened monetary policy for the FDI in Real Estate first time since one and a half year . This has 16,000 REPO RATE 6.50% 8.50% been done by reducing CRR (Cash Reserve 14,000 Ratio) by 50 basis points in January and a 12,000REVERSE REPO RATE 5.50% 7.50% 10,000 further reduction of 75 basis point in March 8,000 CRR 6.00% 4.75% 2012. The current CRR rate is 4.75%. 6,000 4,000 INR Crore INFLATION 9.68% 6.89% • The Budget remained silent on most of the 2,000 0 major real estate related issues. It did however 2005 - 06 2006 - 07 2007 - 08 2008 - 09 2009 - 10 2010 - 11 April - Jan 2012 PRIME 8.25% - 9.50% 10.00% - 10.75% LENDING Rate mentioned that efforts are on to arrive at a DEPOSIT RATE political consensus on the issue of allowing 7.75% - 9.50% 8.50% - 9.25% (>1 YEAR) 51% Foreign Direct Investment (FDI) in multi-Foreign Exchange brand retailing. 160 BSE Sensex & Realty Index 45.02 50.39 150 INR - USD 140 • The Budget aims to provide impetus to 130 INR- Euro 59.12 65.89 affordable housing by providing various 120 110 incentives to both developers and end users. 100 For example the external Commercial 90Return on Alternative Investments Borrowings (ECB) is allowed for low cost 80 70 affordable housing projects which would help 2-Jan-12 11-Jan-12 20-Jan-12 29-Jan-12 7-Feb-12 16-Feb-12 25-Feb-12 5-Mar-12 14-Mar-12 23-Mar-12 1-Apr-12 Mar-11 Mar-12 YoY % developers to raise debt at lower cost. Change * Rebase to 100 BSE Sensex Realty Index Note: As of 1st August 2011 Gold 20,730 27,300 31.69% • From an end user perspective, the budget provides few incentives including, Service tax 110 Exchange Rates SILVER 52,450 56,014 6.80% exemption for construction service related to 105 EQUITY (BSE residential dwelling and low cost mass 100 housing up to an area of 60 sq mtr under the 95 SENSEX) 18167.64 17,675.85 -2.71% scheme of affordable housing. The existing 90 REALTY INDEX 2053.69 1821.35 -11.31% scheme of interest subvention of 1% for 85 housing loans up to INRs 15 lakh (where the 80 75 cost of the house does not exceed INR 25 2-Jan-12 11-Jan-12 20-Jan-12 29-Jan-12 7-Feb-12 16-Feb-12 25-Feb-12 5-Mar-12 14-Mar-12 23-Mar-12 1-Apr-12 lakhs), was extended by one more year. US$ Euro * Rebase to 100 Note: As of 1st August 2011 Source: Colliers International India Researchwww.colliers.com
  • 3. THE KNOWLEDGE | 1Q 2012 | OFFICE | Mumbai MUMBAI AVAILABLE Supply in Prime Areas • In Mumbai, approximately 10 million sq ft of grade ‘A’ office space was available for lease Goregoan / JVLR 8% Kalina 1% in 1Q 2012. Out of the total available supply Navi Mumbai 6% Powai 5% around 64% was IT/ITeS office space mostly Worli / Prabhadevi 1% Thane / LBS 21% concentrated in the Lower Parel and Thane Malad 5% micro-markets. CBD 1% • Project launched during this quarter was “Equinox Business Park-Tower IV” by Equinox Lower Parel 20% Realty & Infrastructure Private Limited. The Andheri East 24% project has a gross leasable area of BKC 8% approximately 0.5 million sq ft and is located off BKC. Another mixed use project “Island City Centre” was also launched by WadiaMUMBAI Group’s real estate venture Bombay Realty 1Q 2012 GRADE ‘A’ AND GRADE ’B’ spreading over 45 acres of land at Dadar. RENTAL VALUESCITY OFFICE BAROMETER • Following the previous quarter trend 300 construction activities remained slow, no new 250 4Q 2011 1Q 2012 grade ‘A’ office space was added to the city’s 200 total inventory this quarter. INR Per Sq ft Per Month 150 VACANCY • Occupier demand remained steady in almost 100 ABSORPTION all of the micro markets and few large space 50 commercial leases were signed during the 0 CBD Andheri East BKC Lower Parel Malad Navi Mumbai Powai Worli/Prabhdevi Goregaon / JVLR Kalina Thane / LBS Andheri East (IT) Lower Parel (IT) Malad (IT) Navi Mumbai (IT) Powai (IT) Goregaon / JVLR (IT) Thane / LBS (IT) CONSTRUCTION quarter. Rental values for grade ‘A’ office space remained stable across Mumbai baring RENTAL VALUE Nariman Point, the CBD of Mumbai, as Grade A Grade B occupiers are gradually shifting towards newly developed areas like Lower Parel, Bandra Kurla Complex (BKC) and Andheri due to better accessibility and state of an art GRADE ‘A’ AVERAGE RENTAL VALUE prime office space rental trend infrastructure. 245 Forecast • Looking ahead demand is likely to be remained 420 210 moderate, however due to limited supply 370 rentals are expected to remain stable. 320 175 270 INR per Sq ft per Month 220 140 • As part of the State Government’s plan to 170 105 120 make Wadala a business hub in lines of theINR per Sq ft per Month 70 70 BKC; MMRDA has invited consultants to 20 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 35 1Q2012 prepare a detailed development plan for approximately 110 hectares of land. 0 CBD Andheri East Malad BKC 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012F 3Q2012F 4Q2012F 1Q2013F Lower Parel Navi Mumbai Powai Worli / Prabhadevi Goregaon Kalina Thane / LBS / JVLR MARKET TRANSaCTIONS CLIENT building name AREA LOCATION TRANSACTION TYPE (Sq. Ft.) Altisource Vishwaroop IT Park 137,000 Vashi Lease ANZ Bank Boomerang 6,000 Andheri Lease Liberty Insurance Peninsula Business Park 30,000 Lower Parel Lease L’Oreal Marathon Futurex 71,000 Lower Parel Lease Naaptol.com Sigma IT Park 32,000 Navi Mumbai Lease Star Union Dai-ichi Life Insurance Vishwaroop IT Park 67,000 Vashi Lease Source: Colliers International India Research Colliers International | p. 3
  • 4. THE KNOWLEDGE | 1Q 2012 | OFFICE | delhi DELHI AVAILABLE Supply in Prime Areas • More than 1 million sq ft of grade ‘A’ office space was available for lease in Delhi in Connaught Place 2% 1Q 2012. Most of this available supply was Nehru Place 10% concentrated in Jasola and Saket. • No new supply was added to the city’s grade Saket 29% ‘A’ inventory. Similarly, no new grade ‘A’ office projects was launched during this quarter. Jasola 59% • Absorption remained relatively subdued as only a few small office spaces leases were signed in locations such as Connaught Place, Saket and Nehru Place. This can primarily be attributed to the shift in demand from the CBDdelhi and SBD to areas in as Gurgaon and NOIDA 1Q 2012 GRADE ‘A’ AND GRADE ’B’ on account of better quality office and lower RENTAL VALUES real estate cost.CITY OFFICE BAROMETER 400 • Rental values witnessed marginal pressure 350 300 4Q 2011 1Q 2012 across the micro markets and a decrease in 250 the range of 1 to 4% was observed for grade 200 VACANCY ‘A’ office space. INR per Sq Ft per Month 150 100 ABSORPTION • In mid term rentals are expected to remained 50 CONSTRUCTION under pressure on account of lesser demand. 0 Nehru Place Jasola Saket Netaji Subhash Place Connaught RENTAL VALUE • To encourage development of non polluting small and medium scale industries in the Grade A Grade B city Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) is planning to set up a multi level manufacturing GRADE ‘A’ AVERAGE RENTAL VALUE hub in Rani Khera in north west Delhi with an prime office space rental trend estimated cost of INR 3100 crore. The work on another knowledge based industrial park 280 Forecast in Baprola has already started. 450 400 245 350 210 • In an another infrastructure related intiative 300 175 the Delhi Development Authority(DDA) has 250 140 planned to develop three Urban Extension 200 INR per Sq ft per Month 105 Roads (UERs). These link roads will facilitate 150INR per Sq ft per Month 70 smooth travelling between two States — 100 35 Delhi and Haryana — Dwarka-Palam Vihar, 50 0 Najafgarh-Dhansa and Nelson Mandela Road- 2Q2008 3Q2008 4Q2008 1Q2008 2Q2009 3Q2009 4Q2009 1Q2009 2Q2010 3Q2010 4Q2010 1Q2010 2Q2011 3Q2011 4Q2011 1Q2012 0 MG Road. 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012F 3Q2012F 4Q2012F 1Q2013F Nehru Place Jasola Cannaught Saket place Netaji Subhash MARKET TRANSaCTIONS CLIENT building name AREA LOCATION TRANSACTION TYPE (Sq. Ft.) Hitachi Eros Corporate Tower 3,000 Nehru Place Lease Mizuho Bank DLF Capitol Point 16,000 C.P. Lease Pragati Equity Advisors Southern Park 1,500 Saket Lease Snap Deal Southern Park 22,000 Okhla-III Lease Source: Colliers International India Researchp. 4 | Colliers International
  • 5. THE KNOWLEDGE | 1Q 2012 | Office | Gurgaon GURGAON AVAILABLE Supply in Prime Areas • ore than 7 million sq ft of grade `A’ office M space supply was available for fit-out in 1Q 2012. Most of this available supply was Manesar 35% concentrated in Udyog Vihar and along National Highway 8 up to Manesar. • Several projects were launched during 1Q NH8/ Udyog Vihar 36% 2012 including “One Horizon Centre” by Hines India at Golf Course Road and “Athena” Institutional Sectors / Sushant Lok 16% by Brahma-Bestech at NH-8. Both of these MG Road 5% project are expected to be completed by the DLF Cyber City 8% first half of 2015 and will add around 1.2 million sq ft of grade `A’ office space to the city’s total inventory.gurgaon 1Q 2012 GRADE ‘A’ AND GRADE ’B’ • No major grade `A’ project/phase of the RENTAL VALUES project was completed in this quarter.CITY OFFICE BAROMETER 140 • Absorption remained optimistic and a number 120 100 4Q 2011 1Q 2012 of large format leases were signed during 80 the quarter including a few pre-commitment INR per sq ft per month 60 VACANCY leases in under- construction buildings. The 40 investor market also remained active during 20 ABSORPTION the quarter and a few deals were concluded 0 NH8/Udyog Vihar Manesar DLF Cyber City NH8/Udyog Vihar Manesar MG Road Golf Course Road /Ext /Sohna Road Institutional Sectors / Sushant Lok Sohna Road CONSTRUCTION such as the BPTP buyout of 49% of the Merrill Lynch stake in the grade `A’ office project RENTAL VALUE `C“Crest”. M3M bought a 28-acre land parcel Grade A Grade B from DLF located at sector 70A. • Rental values for grade `A’ properties increased in the range of 2 to 6% in almost GRADE ‘A’ AVERAGE RENTAL VALUE all the major micro-markets barring Udyog prime office space rental trend Vihar / NH-8 and DLF Cyber City where rental 120 values remained stable. 180 Forecast 110 160 100 90 • In near future rentals are expected to remain 140 120 80 stable for both IT/ITES and commercial office 100 70 INR per sq ft per month 60 space. 80 50 60INR per Sq ft per Month 40 40 30 • In 1Q 2012 the state government approved 20 infrastructure projects valued at INR1,394 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 20 1Q2012 10 0 crore for strengthening of roads, water supply MG Road DLF Cyber City (IT) and sewage systems in newly developing Golf Course Road/Ext /Sohna Road Golf Course Road/ 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012F 3Q2012F 4Q2012F 1Q2013F Ext /Sohna Road (IT) Institutional Sectors /Sushant Lok Manesar sectors 77 to 114. NH8/Udyog Vihar (IT) NH8/Udyog Vihar Manesar (IT) MARKET TRANSaCTIONS CLIENT building name AREA LOCATION TRANSACTION TYPE (Sq. Ft.) Bausch & Lomb First India Place 16,000 M.G. Road Lease DHR Holdings Plot 121 20,700 Udyog Vihar Lease Expedia DLF Building No 5C 50,000 DLF Cyber City Lease Google Signature Tower-II 175,000 Sector 15 Lease Ingersoll Rand DLF Building No 5A 49,000 DLF Cyber City Lease Rio Tinto DLF Building No 5A 40,600 DLF Cyber City Lease Source: Colliers International India Research Colliers International | p. 5
  • 6. THE KNOWLEDGE | 1Q 2012 | office | Noida NOIDA AVAILABLE Supply in Prime Areas • More than 5 million sq ft of office space supply was available for fit out in NOIDA this quarter. More than 85% of this available office space was in the form of IT/ITeS. Grade ‘A’ IT/ITeS office space was concentrated in sector 16A, Commercial Sectors 62 and sectors 125 to 143 along the NOIDA (Sec 18) 2% Express-way, while IT/ITeS office space available in industrial sectors was primarily Institutional Sectors Industrial Sectors (Sec. grade ‘B’ office space. (Sec.16A, 62, 125-142) 86% 1-9, 57-60, 63-65) (Grade B) 12% • Projects launched during this quarter were “Jaypee Chambers” by Jaypee Group in Sector 129, “Wave City Centre” by Wave Group and “Logix City Centre” by Logix Group bothnoida located at sector 32. All of these projects 1Q 2012 GRADE ‘A’ AND GRADE ’B’ together are expected to contribute around RENTAL VALUES 2.1 million sq ft of grade ‘A’ office space to theCITY OFFICE BAROMETER city’s total inventory by the end of 2015. 100 90 80 4Q 2011 1Q 2012 • In 1Q 2012 construction activities slowed 70 60 down due to state elections, thus no projects/ 50 INR Per SqFt Per Month VACANCY phases of the project were completed during 40 30 the quarter. 20 ABSORPTION 10 0 • A few large office space leases were Commercial Sectors (Sec 18) Institutional Sectors (Sec.16A,62, 125-142 ) Institutional Sectors (Sec 16A,62 ,125- 142) (IT) Industrial Sectors (Sec 1-9,57 -60, 63 -65) CONSTRUCTION concluded during the quarter. Demand was RENTAL VALUE largely driven by the IT/ITeS sector. Grade A Grade B • In one of the private equity exit, Kotak Realty Fund has sold its stake back to promoters in 3C company’s information technology park GRADE ‘A’ AVERAGE RENTAL VALUE project in NOIDA. prime office space rental trend 80 • The rental values for non IT office space 140 70 Forecast remained stable because of limited supply 120 60 however, rental values for IT/ITeS office space 100 50 witnessed marginal pressure on account of 80 large available supply. Similar rental trends INR Per SqFt Per Month 60 40 can be anticipated in near future. 40INR per Sq ft per Month 30 20 20 0 10 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 0 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012F 3Q2012F 4Q2012F 1Q2013F Industrial Sector Institutional Sectors (IT) Commercial Sectors Institutional Sectors (Non IT) MARKET TRANSaCTIONS CLIENT building name AREA LOCATION TRANSACTION TYPE (Sq. Ft.) Barclays shared services Individual Building 25,000 Sector 62 Lease Halcrow B-1D 52,000 Sector 10 Lease Hewitt 3C’s Building Tower-A 100,000 Sector 127 Lease Oracle 3C’s Building Tower-B 170,000 Sector 127 Lease Source: Colliers International India Researchp. 6 | Colliers International
  • 7. THE KNOWLEDGE | 1Q 2012 | office | chennai CHENNAI AVAILABLE Supply in Prime Areas • Over 13 million sq ft of grade ‘A’ office space supply was available for lease in 1Q 2012. More than 90% of this stock was IT/ITeS office OMR (IT Corridor) 51% space primarily located at OMR and Ambattur while non IT office space was mostly available GST Rd 3% in the CBD area, Vadapalani and Velachery. Velachery 1% Vadapalini 1% • No new grade “A” commercial projects were CBD completed this quarter in Chennai. 14% Ambattur 24% Guindy (SBD) 5% • Project launched during this quarter included “ASV Chandilya” admeasuring approximately 0.04 million sq ft by ASV Constructions. The project is located at Thoraipakkam andchennai estimates to be completed by 2Q 2013. 1Q 2012 GRADE ‘A’ IT AND NON IT Rental values • Demand was primarily concentrated in Guindy,CITY OFFICE BAROMETER Ambattur and OMR as companies were 80 preferring these micro markets for relocation 70 4Q 2011 1Q 2012 and expansion considering accessibility and 60 50 state-of-an-art facilities. The market seems INR per sq ft per month 40 VACANCY to be well segmented such as KPO’s and 30 BPO’s preferring looking spaces at cheaper 20 ABSORPTION rentals and ready to go at the far away end of 10 CONSTRUCTION OMR while other corporate were ready to pay 0 Ambattur Guindy (SBD) OMR (IT Corridor) GST road CBD higher rentals and preferring initial stretch of RENTAL value OMR, Guindy and Ambattur. IT NON IT • Rental values in 1Q 2012 remained stable across all micro markets. Absorption was comparatively lesser as the occupiers GRADE ‘A’ AVERAGE RENTAL VALUE remained cautious on the backdrop of the prime office space rental trend current economic scenario. In near future 60 rentals are likely to remain stable on account Forecast 90 55 of the limited supply scheduled for completion 50 80 45 in 2012. 70 40 35 60 INR per sq ft per month 30 • Under the “Mega City” programme the Chennai 50 25 Corporation has laid out 360 integrated roadsINR per Sq ft per Month 40 20 15 at an estimated cost of INR 800 crore, covering 30 10 an area of 176 km. The state government had 20 5 allotted INR 333 crore last year for the same. 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012F 3Q2012F 4Q2012F 1Q2013F Ambattur GST road CBD Guindy (SBD) OMR (IT Corridor) MARKET TRANSaCTIONS CLIENT building name AREA LOCATION TRANSACTION TYPE (Sq. Ft.) Bank of New York Mellon DLF IT Park 50,000 Manapakkam Lease Barclays DLF IT Park 63,000 Manapakkam Lease Cambridge Technologies Agnitio Park 60,000 Kandhanchavady Lease Emerson Ascendas 18,000 Taramani Lease Mindtree Ramanujam IT Park 100,000 Taramani Lease Shriram Value Servies Individual Building 18,000 Mylapore Sale Source: Colliers International India Research Colliers International | p. 7
  • 8. THE KNOWLEDGE | 1Q 2012 | office | Bengaluru BENGALURU (BANGALORE) AVAILABLE Supply in Prime Areas • pproximately 9 million sq ft of grade ‘A’ A supply was available for lease during 1Q Electronic City 4% 2012. Micro markets such as the EPIP Zone, Bannerghatta Road 3% Whitefield, Outer Ring Road and the CBD account for about 88% of this total available Outer Ring Road 15% supply. • New supply of commercial grade ‘A’ office CBD 8% space for 1Q 2012 accounts for approximately 0.60 million sq ft. Projects/ phases of the EPIP Zone/ Whitefield 65% Hosur Rd 5% projects contributing to this new supply were “Mantri Commercio” developed by Mantri Group at Outer Ring Road (ORR) and “Equinox Tech Park - North Block” by Essar Group atbengaluru Electronic City. 1Q 2012 GRADE ‘A’ AND GRADE ’B’ • uring 1Q 2012, a number of new projects D Rental valuesCITY OFFICE BAROMETER were launched in peripheral business area 90 in Bengaluru, including “Prestige Tech Park 80 III” by Prestige Group in Outer Ring Road 70 4Q 2011 1Q 2012 (ORR), “RMZ Galleria” and “RMZ Latitude” 60 50 VACANCY by RMZ Corp at Yelahankha and Bellary Road, INR Per SqFt Per Month 40 respectively, “Golden Supreme Tech Park” 30 ABSORPTION and “Maruthi Concord” by local developers in 20 10 Electronic City. Further, Bagmane Group also 0 CONSTRUCTION launched a new tower in its Special Economic CBD Hosur Road Electronic City(IT) Bannerghatta Road Outer Ring Road EPIP Zone/ Whitefield zone (SEZ) “World Trade Centre 4” located at RENTAL value ORR. All these Projects altogether will add Grade A Grade B approximately 2.5 million sq ft of grade ‘A’ office space to the city’s total inventory by the end of 2013. GRADE ‘A’ AVERAGE RENTAL VALUE • Occupier demand was relatively less during prime office space rental trend the quarter as compared to previous 2-3 50 Forecast quarters, primarily due to cautious occupier’s 100 90 45 sentiments. In terms of absorption micro 80 markets such as CBD, Whitefield and EPIP 70 60 zone remained active due to lesser availability 40 50 INR Per SqFt Per Month 35 of grade ‘A’ office space in other preferred 40 30 30 areas such as Outer Ring Road. 20INR per Sq ft per Month 10 25 0 • Average rental values for grade ‘A’ office space 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 20 remain stable quarter on quarter across all of 15 the micro markets. CBD Bannerghatta Road 1Q2008 4Q2012F 1Q2013F 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 3Q2012F 2Q2012F Hosur Road Electronic City EPIP Zone / Whitefield Outer Ring Road • Due to limited supply in the market, rentals are expected to increase marginally in mid term. MARKET TRANSaCTIONS CLIENT building name AREA LOCATION TRANSACTION TYPE (Sq. Ft.) Atos Origin India Gopalan Millennium Tower 125,000 Whitefield Lease Ericsson Umyia Business Bay 22,500 Outer Ring Road Lease Intersil RMZ Centinnial 17,000 Whitefield Lease Just dial Embassy Star 10,962 Vasanth Nagar Lease Meru Networks Salarpuria Adonis 35,133 Old Madras Road Lease Tejas Networks JP IT Park 90,000 Electronic City Lease Source: Colliers International India Researchp. 8 | Colliers International
  • 9. THE KNOWLEDGE | 1Q 2012 | office | Kolkata KOLKATA NEW SUPPLY IN PRIME AREAS • In 1Q 2012, approximately 0.08 million sq ft has been added to grade ‘A’ office space supply in the PBD area. The project / phases of the project which contributed to this new supply was “Rishi Tech Park” developed by Nathvar Tracon Pvt. Ltd. located at New Town. • A number of commercial projects were launched during the quarter including “Ideal PBD (New Town, Unique Centre” by Ideal Group at EM Bypass, Rajarhat) 100% “Woodburn Central” by Belani Projects at Elgin Road, “DN 21” by Midwest Holding Private Ltd (Chatterjee Group) and “Pentagon” by Team Tarus both at Sector 5. All of these projectskolkata will together contribute approximately 2 1Q 2012 GRADE ‘A’ AND GRADE ’B’ million sq ft of grade A office space to the Rental values city’s inventory by the end of 2014.CITY OFFICE BAROMETER 140 120 • Absorption remained subdued during the 100 4Q 2011 1Q 2012 quarter and only few small commercial leases 80 were signed during the quarter. Rental values INR per sq ft per month 60 VACANCY for grade ‘A’ office space in 1Q 2012 remained 40 stable across all of the major micro markets 20 ABSORPTION due to ample stock availability in major 0 Ballygunge -Circular RD PBD (New Town, Rajarhat East Kolkata CBD (Park St, Camac St,AJC Bose Rd) Sector-5 Sector-5 (IT) PBD New Town, Rajarhat (IT) CONSTRUCTION commercial hubs such as Rajarhat, New Town and Sector 5. RENTAL value Grade A Grade B • Going forward rentals are expected to be under pressure due to prevailing uncertainties in land policies and lesser demand. GRADE ‘A’ AVERAGE RENTAL VALUE • In a major decision the state government of prime office space rental trend West Bengal has ruled out SEZ status for Infosys. The decision was taken to protect 160 90 Forecast the rights of farmers and farm land by not 140 80 70 relaxing the urban ceiling laws for Special 120 60 Economic Zones (SEZs). 100 INR per sq ft per month 80 50 • The Airports Authority of India (AAI) is 60 40INR per Sq ft per Month planning to develop commercial space in the 30 40 20 20 vicinity of Kolkata airport. The authority has 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 10 0 identified approximately 45 acres of land for CBD (Park St,Camac St, East Kolkatta commercial development. The project would 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012F 3Q2012F 4Q2012F 1Q2013F AJC Bose Rd) Ballygunge Circular Rd Sector 5 be developed by floating a public tender and PBD (New Town, Rajarhat funded through public-private partnership. MARKET TRANSaCTIONS CLIENT building name AREA LOCATION TRANSACTION TYPE (Sq. Ft.) Bajaj Allianz Mani Square 9,000 Sector 5 Lease Dhanalaxmi Bank Chitrakut building 2,000 AJC Bose Road Lease Magma Finance Eco Space 17,000 New Town Lease Rax Omega Infinity Think Tank 4,500 Sector 5 Lease Recon Infinity Benchmark 30,000 Sector 5 Lease Sardha Group Crystal Globsyn 33,000 Sector 5 Lease Source: Colliers International India Research Colliers International | p. 9
  • 10. THE KNOWLEDGE | 1Q 2012 | OFFICE | Pune PUNE Supply in Prime Areas • n 1Q 2012 more than 9.7 million sq ft of I grade ‘A’ office space was available for fit- Kharadi 23% out in Pune. Most of this supply was located Hadapsar/Fursungi 12% in Hinjewadi, Kharadi, Hadapsar, Fursungi and Nagar Road. Baner 5% Bund Garden 2% Airport road/ • Approximately 1 million of SEZ space was pune station 6% added in the existing SEZ projects in Pune. Aundh 3% Senapati Bapat Road 1% more than 60% of this space was swiftly Bavdhan 4% absorbed as spaces were pre-committed Hinjewadi 28% Kalyani Nagar 4% by the existing tenants. In addition to Pune Nagar Road 12% commercial grade ‘A’ office space witnessed an infusion of approximately 0.12 million sq ft new supply during the quarter. Project/pune phases of project contributing to this new 1Q 2012 GRADE ‘A’ IT AND NON IT supply was “Blue Chip” developed by K Raheja Rental values at Hinjewadi.CITY OFFICE BAROMETER 90 • Rental values for grade ‘A’ office space 80 70 4Q 2011 1Q 2012 increased in the range of 2 to 5% specifically 60 in SEZs in almost all of the micro markets. 50 INR Per SqFt Per Month VACANCY A few markets such as Viman Nagar and 40 30 Kharadi also witnessed demand for outright 20 ABSORPTION purchases. 10 0 Baner Kalyani Nagar Bund Garden Airport road/ pune station Aundh Senapati Bapat Road Bavdhan Nagar Road Hinjewadi Hadapsar/Fursungi Kharadi CONSTRUCTION • Going forward rentals are expected to remain RENTAL value stable on account of large available supply, IT Non IT baring eastern corridor where the rental may witnessed an increase of 7 to 10% in next 2-3 quarters. GRADE ‘A’ AVERAGE RENTAL VALUE • This quarter the ready reckoner rate has been prime office space rental trend increased in the range of 10 to 30% across Pune. This will help in the improvement of 130 70 Forecast transparency in real estate transaction in the 120 110 60 long term. 100 90 50 80 INR Per SqFt Per Month 70 40 • An overhead bridge connecting Wakdewadi 60 30 (central Corridor) to Nagar Road/Yerwada 50INR per Sq ft per Month 40 20 (Eastern corridor), road connecting Chakan, 30 20 Bhosari and Dighii another road connecting 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 10 1Q2012 0 between Baner Road and Pimple Nilkah to Bavdhan Aundh Airport road/pune station 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012F 3Q2012F 4Q2012F 1Q2013F Pimple Saudagar became operational. This Bund Garden Nagar Road Baner Kalyani Nagar Senapati Bapat Rd Khardi will give an impetus to the real estate activities Hinjewadi / Hadapsar/Fursungi in the nearby areas. MARKET TRANSaCTIONS CLIENT building name AREA LOCATION TRANSACTION TYPE (Sq. Ft.) Amdocs Magarpatta SEZ 88,000 Hadapsar Lease Bekaert Amar Paradigm 40,000 Baner Lease CCRT Pride Kumar Senate 1,700 S B Road Lease DVS Tara Icon 1,700 Wakdewadi Lease Exl Magapatta SEZ 88,000 Hadapsar Lease HCL Maragatta SEZ 44,000 Hadapsar Lease Source: Colliers International India Researchp. 10 | Colliers International
  • 11. THE KNOWLEDGE | 1Q 2012 | OFFICEubmarketsOFFICE 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 Udyog 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.Bengaluru (Bangalore)Prime office properties in Bengaluru 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, Chowranghee Rd), SBD (AJC Bose Rd, Ballygunge circular Rd, EastKolkata), East Kolkata and PBD (New Town & Rajarhat). The area around Park Street, Camac Street and AJC Bose road houses number of high-risescommercial buildings such 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
  • 12. THE KNOWLEDGE | 1Q 2012Colliers International (India) provides property services to property Investors and Occupiers. Wedeliver customised service solutions utilising local and global knowledge in partnership with our 522 offices in 62 countries on 6 continentsclients via our property Investment and Occupier service lines. These service lines include - OfficeServices, Facility Management, Project Management, Residential Services, Investment Services United States: 147 Canada: 37 and Valuation & Advisory Services. 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Block EP & GP, alt Lake Sector V, Kolkata - 700 091 West Bengal, India S Tel : +91 33 2357 6501 Extn : 206 , fax +91 33 2357 6502 © Copyright 2012 - 2013 All Rights Reserved.Recent Reports : SECOND HALF 2011 | INDUSTRIAL SECOND HALF 2011 | OFFICE Q1 2012 | RESEARCH GLOBAL INDUSTRIAL GLOBAL OFFICE A SNEAK PREVIEW HIGHLIGHTS HIGHLIGHTS UNION BUDGET 2012 -13 Global Warehouse Demand Shows Global Office Demand Growth Budget Highlights | Real Estate Consistent Growth Slow and Steady MARKET REACTION TO BUDGET JAMES COOK Director of Research | USA Company Change (%) Finance Minister Pranab Mukherjee started his budget speech 2012-13 in the JAMES COOK Director of Research | USA we expect overall warehouse rents in the São BSE SENSEX -1.19 backdrop of challenging macroeconomic scenario. The finance minister projects Paulo region to rise by as much as four percent in Global Office Trend Forecast Global office vacancies will continue their decline, due to steady demand and low levels of new construction in North Realty Index -1.26 the economy to grow by 7.6% in the next fiscal up from 6.9% in 2011-12. He Global Industrial Trend Forecast the coming year. GLOBAL INDUSTRIAL America and Europe. Anant Raj Inds -6.04 CAPITALIZATION RATES Growing global trade will steady demand for mentioned that due to adverse global economic sentiments there has been a (Prime Yield/Percent) quality warehouse space in many regions. Mexico City saw a three percent decrease in its GLOBAL CAPITALIZATION RATES / The “flight to quality” trend will continue in many major markets, with occupiers trading up to higher-quality space or a D B Realty -2.02 industrial vacancy rate in the second half of 2011, better location as their leases expire. slowdown in the Indian Economy but the fact is India still remains among the Industrial vacancy rates will further drop in PRIME YIELDS: 10 LOWEST CITIES MARKET DEC DEC DLF 0.15 front runners in the economic growth in any cross country comparison. The (Select Markets) REGION 2011 2010 most markets. down to 4.8 percent. Mexico was more negatively The European sovereign debt crisis will likely push the Eurozone into a mild recession in early 2012. This contraction affected by the recession than most countries in CBD CAP RATE (%) will be felt most profoundly in a handful of commercial property markets within the most troubled nations. Godrej Properties -2.82 budget aims at faster, sustainable and more inclusive growth across sectors Hong Kong Asia Pacific �.�� �.�� Some markets, U.S. and Australia among them, MARKET North America, and its economic future is largely HDIL -5.21 Singapore Asia Pacific �.�� �.�� will experience a lack of new supply in the face tied to that of its key trading partner, the United (Ranked by DEC JUNE DEC Economic prospects in the Eurozone have slightly reduced overall positive global expectations for market performance in emphasizing on five focus areas including revival of domestic consumption, London (Heathrow) EMEA �.�� �.�� Dec 2011) 2011 2011 2010 2012. We expect continuing modest demand for office space, with most cities seeing a drop in vacancy rates. But global of growing demand. States. But with U.S. growth on the upswing, Hubtown Ltd. -4.13 rapid revival of high growth in private investment, removal of supply bottlenecks, Tokyo Asia Pacific �.�� �.�� Prime warehouse rents will climb in most Asia Taipei �.�� �.�� �.�� averages do not speak to the nuances of individual markets, and—while we expect positive absorption due to business Los Angeles – Mexico too is poised to grow at a modest rate and growth and expansion in the United States, China and Australia—some Eurozone countries may see negative absorption Indiabulls Real Estate -1.95 addressing malnutrition in 200 high burden districts and expedite improvement NA �.�� �.�� Pacific markets, remain stable in EMEA and we expect that vacancies could make further Hong Kong �.�� �.�� �.�� and increased vacancy as the region enters a mild recession. Inland Empire, CA Mahindra Lifespaces -0.72 in delivery system, governance and transparency. LATAM, and continue to strengthen in North drops in the country. �.�� �.�� �.�� Chicago, IL NA �.�� �.�� Vienna American markets. Latin America Boasts the Tightest Office Markets each has shown apparent decline in rents between June Orbit Corp. -3.37 Paris EMEA �.�� �.�� London – West End �.�� �.�� �.�� Citing deteriorating financial conditions and Some of the world’s lowest office vacancy rates are found and December of 2011, when quoted in U.S. dollars. From a real estate perspective, the budget remained silent on most of the major Munich EMEA �.�� �.�� Steady Demand in North America Parsvnath Developers -4.04 Zurich �.�� �.�� �.�� in Latin American cities. Santiago, Chile; Rio de Janeiro, Substantial declines, in fact: led by a $10.87 USD drop in Vancouver, BC NA �.�� �.�� dimming growth prospect, the International Since peaking in 2010, growth in the manufacturing Brazil; São Paulo, Brazil; and Lima, Peru all have vacancy Parisian Class A rents. Peninsula Land -3.18 issues including status of STPIs (Software Technology Parks of India), Real Marseilles EMEA �.�� �.�� Monetary Fund’s (IMF) revised its September 2011 and distribution industry has kept the U.S. vacancy Singapore �.�� �.�� �.�� Estate Regulatory Bill, Land Bill etc. however, it mentioned that efforts are on to rates below three percent, resulting in a market that New Jersey – Northern NA �.�� �.�� World Economic Outlook growth projections rate dropping in a mostly regular fashion. Vacancy �.�� �.�� �.�� But how significant are these figures? The change in Phoenix Mills -2.65 Geneva strongly favors landlords, prompts new construction and London and Paris rents is due to the strengthening dollar arrive at a political consensus on the issue of allowing 51% Foreign Direct Dallas-Ft. Worth, TX NA �.�� �.�� downward in January 2012. However, the IMF still dropped to 9.72 percent in Q4 2011. With might squeeze some tenants that desire to expand. For the Sobha Developers 3.04 Beijing �.�� �.�� �.�� relative to the euro and pound sterling. In local currency, Investment (FDI) in multi-brand retail. Shanghai Asia Pacific �.�� �.�� forecasts that global trade volume will rise by 3.8 construction proceeding at low levels, we expect most part, we expect the strength of these markets to Seoul Asia Pacific �.�� �.�� Paris �.�� �.�� �.�� prime rents in these markets are holding ground. Although Sunteck Realty -1.13 percent in 2012 and 5.4 percent in 2013; as global vacancies to continue to drop at a measured rate persist. While decreases in European demand for its Madrid EMEA �.�� �.�� �.�� �.�� �.�� commodities will likely hurt Latin America, this will be smaller, the decline in Hong Kong of $7.56 USD ($5.10 HKD) Unitech -1.68 THE KEY HIGHLIGHTS OF THE BUDGET WHICH MAY IMPACT REAL ESTATE trade rises, so too will demand for warehouse into 2013. Munich per square foot may be a more important indicator of things Residential Property Sydney Asia Pacific �.�� �.�� tempered by continued demand from China. In São Paolo, SECTOR ARE AS FOLLOWS:OFFICE space. Tokyo �.�� �.�� �.�� to come, as demand from the banking and financial sector Source: www.bseindia.com | Mar 16, 2012 Mexico City LATAM �.�� �.�� heightened demand has spurred the highest rates of new Toronto, Canada’s biggest industrial market, saw continue to weaken. - External Commercial Borrowings (ECB) for low cost affordable housing Prague EMEA �.�� �.�� development in the region, which will eventually put While warehouse rents have stabilized in most 13.7 million square feet of industrial space Athens EMEA �.�� �.�� downward pressure on asking rents. EMEA and Asia Pacific Lead Global Construction projects. Impact: Real estate companies developing large affordable housing EMEA and Latin American markets, prime absorbed in 2011, and the city’s prime warehouse Bucharest EMEA ��.�� ��.�� GLOBAL OFFICE OCCUPANCY COSTS: A significant percentage of the office space under warehouse rents quoted in local currencies rents grew by 7.1 percent in the second half of TOP 10 CITIES Select Asia Pacific Markets See Big Vacancy Drops projects with large fund requirements will benefit the most from the easing of increased in the majority of Asia Pacific and North The global trend in dropping vacancy rates should be evi- construction is in Europe, the Middle East and Africa Market Overview 2011. external commercial borrowing (ECB) norms as interest rate charged is lower inPROPERTY MARKET OVERVIEW dent in Asia and continue through 2012. Markets that saw (EMEA), and much of that is occurring in Moscow and ASIA PACIFIC GLOBAL TOP TEN INDUSTRIAL American markets in 2011 over the previous year. CLASS A / NET RENT (USD/SQ FT) WAREHOUSE RENTS We expect this trend to continue, with prime a drop in vacancy in the second half of 2011 outnumbered Dubai. While both of these markets should expect strong case of external borrowings in comparison to rates charged by domestic Dropping Vacancies in Most Asian Markets MARKET by a two-to-one margin those where vacancy increased. economic growth in 2012, the fact that Dubai—with a RENT warehouse rents climbing in most Asia Pacific and Asia Pacific saw dropping vacancies in nearly (Ranked by DEC JUNE DEC vacancy rate of 50 percent—is constructing at such a pace institutions. North American markets in the next year. every market. Prime warehouse rents grew in 2011 2011 2010 Of the world’s most populous markets, those with the most leads us to expect that supply will continue to outpace INDUSTRIAL MARKET OVERVIEW (USD/ 6-MONTH Dec 2011) MARKET REGION PSF/Year) CHANGE* more than half of the markets, and observers in significant declines in six-month vacancy rates were nearly demand in that market. Tokyo Asia Pacific ��.�� -�.�% Latin American Rents Poised to Stabilize more than half of those markets expect that Hong Kong ���.�� ���.�� ���.�� all in the Asia Pacific region. Chengdu, propelled by its - Increase in provision under Rural Housing Fund to INR 4,000 crore from theINDIA INDIA London (Heathrow) Hong Kong EMEA Asia Pacific ��.�� ��.�� �.�% �.�% In Latin America, prime warehouse rental rates took a fall. In 71.4 percent of the markets we track, warehouse rents will continue to climb over the London – West End ���.�� ��.�� ���.�� ���.�� ���.�� ��.�� strong manufacturing sector, saw its vacancy rate drop by The other two top markets for office construction are in the 7.8 percent in the period, and Shanghai saw a 3.2 percent Asia Pacific region. Guangzhou—China’s leading existing INR 3,000 crore.Impact: It will provide housing finance to targeted next six months. Paris commercial port city—and Tokyo have 19.6 and 15.6 million groups in rural areas at competitive rates. drop in vacancy. Singapore Asia Pacific ��.�� �.�% year-end rents decreased in 2011 from a year Rio de Janeiro ��.�� ��.�� ��.�� square feet under construction respectively. Asian economic Zurich EMEA ��.�� �.�% earlier. However, we expect warehouse rents in Australian industrial has been especially strong in Two other large Asian markets saw vacancy rates drop by growth rates will remain strong in the coming months, withQUARTERLY UPDATE | JANUARY | 2012 QUARTERLY UPDATE | FEBRUARY | 2012 December 2011 Oslo EMEA ��.�� �.�% Latin America to stabilize in the coming year. most major markets. Retail purchases, made more Moscow ��.�� ��.�� ��.�� 1.5 percent or more: Jakarta, which has also seen China and India leading the pack. Rents are on the rise in - Extension of the existing scheme of interest subvention of 1% on housing Moscow EMEA ��.�� �.�% London – City ��.�� ��.�� ��.�� sustained growth in CBD rental rates and renewed global most cities in the region. However, dropping rents in Seoul Geneva EMEA ��.�� -�.�% attractive by the relatively strong Australian dollar, investor interest; and Singapore, where occupancies are and Hong Kong are a potential indicator of global economic loans up to INR 15 lakh where the cost of the house does not exceed INR 25 São Paulo saw a 12.4 percent drop in warehouse have pushed up demand for large warehouse Perth ��.�� ��.�� ��.�� São Paulo LATAM ��.�� -��.�% rents in local currency, due to increased supply. space in several port markets. While there is expected to stabilize. uncertainty. In Tokyo, where new supply has been increasing lakh for another year. Impact: This will boost the affordable housing segment Helsinki EMEA ��.�� �.�% Singapore ��.�� ��.�� ��.�� for the past three years, we expect construction to peak and However, with absorption set to outpace supply, growing demand for large modern warehouse Marquee Markets See Rent Decline by providing cheaper loan to the end users. Marseilles EMEA ��.�� �.�% Geneva ��.�� ��.�� ��.�� begin to decline in the coming year. Paris EMEA ��.�� �.�% Continued on page 8 While Hong Kong, London’s West End and Paris commandAccelerating success. Accelerating success. São Paulo ��.�� ��.�� ��.�� the top three highest asking rents for Class A office space, Accelerating success. *Local currency P. 1 | COLLIERS INTERNATIONAL WWW.COLLIERS.COM WWW.COLLIERS.COM www.colliers.com/india This book is printed on 100% Recyclable paper Accelerating success. Accelerating success.