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City Report - Delhi Office Market   Q2 2010
 

City Report - Delhi Office Market Q2 2010

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 Delhi Office Market ...

 Delhi Office Market
o Major demand for IT/ITES space in SEZ\'s mainly due to expiry of the Software Technology Parks of India (STPI) scheme in March 2011
o Improved demand levels across NCR
o Office Space Rentals stabilize in Q2 2010, but no significant increase
o Noida at par with Gurgaon for office space leasing

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    City Report - Delhi Office Market   Q2 2010 City Report - Delhi Office Market Q2 2010 Document Transcript

    • CITY REPORT DELHI OFFICE MARKET Q2 2010
    • BNP Paribas Immobilier– 13 boulevard du Fort de Vaux, 75017 Paris – France SAS au capital de 225 205 616 € - RCS Paris 692 012 180 – Code NAF 4110B BNP Paribas Real Estate All the buildings blocks In India our specialists bring you our expertise in Transaction Advisory, Valuation, Consulting. With our international scope and on-the-ground presence, you’ll find the perfect partner that can ensure the success of your real estate project. With BNP Paribas Real Estate, all the pieces come together. Your contact in India: Bangalore: +91 80 4050 8888 - Mumbai: +91 22 6138 8088 - Delhi: +91 11 4959 8800 info.india@bnpparibas.com www.realestate.bnpparibas.com
    • CONTENTS Summary p. 4 Macroeconomic Context p. 5 Delhi Map p. 6 Central Business District (CBD) p. 7 Alternate Central Business District (Alternate CBD) p. 8 Secondary Business District (SBD) p. 9 Periphery Business District (PBD) p. 10 Rental Values p. 11 Capital Values p. 12 Key Transactions p. 13 Key Projects p. 14 Glossary p. 15 CITY REPORT DELHI OFFICE MARKET - Q2 2010
    • SUMMARY High Demand for SEZ space. Due to better tax exemptions and incentives, most of the IT / The investors are still cautioous of investing in the region as ITES Companies are moving to new SEZ developments in the the risk adjusted returns are below their expectations. With National Capital Region. Due to this movement, the demand the massive improvement in road and rail infrastructure, it is for commercial real estate has grown. Further, as per the expected that the region will attract investors attention in revised Direct Tax Code guidelines, all SEZ units set up after the next 6 months. The rental and capital values however, is March 2011, will not be eligible for tax benefits. This has likely to remain the same till the end of 2011. accelerated the absorption of real estate space in NCR. On the development side, most of the companies have announced projects in Gurgaon & Noida. However, there is no new commercial project announcement in Delhi. A number of Government agencies are gearing up to auction certain land parcels in Delhi, which is likely to generate good interest especially from owner-occupier group. CITY REPORT DELHI OFFICE MARKET - Q2 2010 I4I
    • CRR & SLR MACROECONOMIC CONTEXT 10 Rates hiked further. Well calibrated move to manage 8 growth and inflation Percent 6 The Reserve Bank of India (RBI), which is the central bank of India in its monetary policy has further raised the CRR, Repo Rate and the Reverse Repo 4 Rate by 25 basis point each. This action by the central bank is seen as a well calibrated move to balance growth, arrest rising inflation and manage 2 liquidity and currency. It is expected that due to rise in rates, the real estate 0 lenders will also increase their rates especially for construction lending. The banking sector also moved to a new “base rate” system of lending effective Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Mar-08 May-08 Jul-08 Sep-08 Nov-08 July 1, 2010, which is expected to enhance transparency in loan pricing, promote competition in the credit market and also improve the transmission SLR CRR of monetary policy. On the credit side, the base rates set by major public sector banks were in the narrow range of 7.25% -8% Further, the RBI also announced two real estate indices for residential and commercial rates. Repo & Reverse Repo Rate These indices are expected to be updated every quarter. However, it will take 10 some time for these indices to be active. 8 The economic recovery gained further momentum with the good progress of the monsoon which is expected to yield better agricultural output. The last 6 Percent 6 months has seen substantial rise in foreign cash flows and exports. However, the trade deficit is increasing as imports, especially the oil based imports 4 has risen significantly as well. The economic survey report released by the government of India just ahead of the union budget announced a GDP 2 between 8.25% - 8.75% for the year 2010-11. However, the various industry estimates pegs the GDP growth between 7% -8%. 20-Jan-09 20-Feb-09 20-Mar-09 20-Apr-09 20-May-09 20-Jun-09 20-Jul-09 20-Aug-09 20-Sep-09 20-Oct-09 20-Nov-09 20-Dec-09 20-Jan-10 20-Feb-10 20-Mar-10 20-Apr-10 20-Oct-08 20-Nov-08 20-Dec-08 On the SEZ space, the fate of approved Special Economic Zones, which are Repo Reverse Repo yet to become operational, hangs in balance with the proposed Direct Tax Code (DTC) denying tax exemptions to new units in the SEZs. According to the revised DTC draft, the tax exemptions for the SEZs have been provided only for the existing units. The new draft clearly mentions that the profit-linked Gross Domestic Product (GDP) deductions of units already operating in SEZs for the unexpired period (of 15 12.00% years) will be incorporated. This provision would mean end of new 10.00% 9.30% investment by promoters, who have received formal approvals from the 9.20% 8.80% 8.60% Commerce Ministry after acquiring land for their projects. The uncertainty 8.00% 8.80% 7.60% 7.90% will affect even the operational SEZs because not all of them have been 7.90% 5.80% occupied by units. At present, SEZ units get 100% income tax exemption on 6.00% 6.00% export income for the first five years, 50% for the next five years. They also 6.10% 5.30% get exemption on 50% of the ploughed back export profit for the next five 4.00% years after the first 10 years. The leading SEZ developers of India especially 2.00% in the IT/ITES space are currently lobbying with the government to reverse certain decisions with respect to exemption for the SEZ units and it will be 0.00% interesting to see the impact of these revisions of DTC on the decision making Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 process especially of the international corporate occupiers in the IT/ITES services sector. Major Real Estate Sales (In INR / In Million) Profits (In INR / In Million) Companies in Q on Q Q on Q Wholesale Price Index (WPI) India Q2 2010 Q1 2010 Change % Q2 2010 Q1 2010 Change % 18.00% DLF Limited 202,853 199,437 2% 41,103 42,638 -4% 16.00% 82,857 113,248 18,004 16,341 Unitech -27% 10% 14.00% India Bulls 43,371 49176 -12% 13,358 9,427 42% 12.00% Sobha Developers 31,560 39,950 -21% 3,430 5,570 -38% 10.00% Peninsula Land 14,831 22,474 -34% 4,996 9,627 -48% 8.00% Parsvnath 6.00% 25,279 35,489 -29% 3,182 3,472 -8% Developers 4.00% Pheonix 4,043 3,447 17% 1,826 1,570 16% 2.00% 25,293 37,820 2,172 4,511 Omaxe Limited -33% -52% 0.00% Mahindra 6,793 10,096 1,448 2,369 Jan-09 Apr-09 Jul-09 Oct-09 Jan-07 Apr-07 Jul-07 Oct-07 Jan-10 Apr-10 -33% -39% Jan-06 Apr-06 Jul-06 Oct-06 Jan-08 Apr-08 Jul-08 Oct-08 Lifespace Ananthraj 10,342 3,409 203% 4,585 3,095 48% Source: Confederation of Indian Industries Ackruti City 17,649 21,731 -19% 4,205 5,420 -22% Ansal Properties 25,077 21,571 16% 3,686 -633 -682% CITY REPORT DELHI OFFICE MARKET - Q2 2010 I5I
    • DELHI MAP Sharan nk Rd Rd h at St. Nagar Marg Major Roads digar Water Bodies d Tru hp pur Rd Bag Gran Metro Green Area Chan 10 Dr. K Gr . B. d Heg Railway Line an iR dew dT dl Swarna ar M Ba arg ru Jayanthi Park nk Rd Airport Rd ing N rR Hindan e ut O Airbase 8 Kar t nal ru Rd Yamuna Ghaziabad ee 12 River Vive kana M nd M NH-58 arg Rd Ran North Delhi Rajendra ng Lon NH-10 Ri Ridge Forest Nagar i Jhan Rohtak iR Raj Bagh d NH-10 Shahdara Grand Trunk Rd si Marg NH- Link Rd 24 Gra rg Pa t nd Tr 11 Ma DDA Park el unk Rd ya lvi Ma r Rd Nihal Vihar Rd Raja Chandni Ma Gr hatma G Garden 4 Chowk an Shahibabad an ipu Rd Vishnu oh d g Rd rh Garden 3 nM 4 Tr Ghaz da u fga nk Ma r Rin ja Rajouri Na 2 Rd and Garden Ring Oute NH-91 hi Marg g arg 9 2 ar Rd Gol aji M Market 3 Vikas M NH-24 Hapur Bypass Al Shiv 1 ig 10 9 g Road ar 1 Pursa Central Ridge arg Shivaji M h Forest Reserved Forest 5 11 8 Rin Jail 4 No Rd 7 er Indraprasth ida Upp 6 8 Lin Car iap kR pa Delhi Golf Ma Army Golf d rg Course Course NOIDA Mehra M arg 20 all M Lodhi Rd 5D Rd Da anti uli N elh dr iR Pala iR J ay d Rd m DELHI d rna ajafg Domestic wa Africa Ave Jai Airport nR S 1 arh R Dwarka Palam d aon Rd d Indira Gandhi Dodri Rd International arg li M Ma Airport Hauz Khas rg 3 Deer Park pa ra th Gu Gr Rd 4 2 Am ur ea ur aR te Mehra ip rN uli N Ja d ajafga 3A oi rh Rd ld 5 o. 1 da O dN d Roa nR 5 Ma ao M Qutub Jahanpanah Yamuna rg eh 6 An at Marg City Forest Gu ra 7 Minar River ul an iN 6 2 da aj af Greater ma ga Mehra Badarpur uv r Pal rh uli B yee M a m Rd Rajokri ad arpur Rd 7 Noida An Vih ar Rd ar Ag g 13 ra Rd d nR gao ur Mathura Rd Gur Rd ip 1 li Ja rau n Rajpur ao h d Me Ol Khurd rg Rail Gu rpur Rd way d 7 iR Rd lh De hhata d li R Leisure GURGAON h rau Valley Me 5 Main C Old Sh Basai Rd DLF Golf Faridabad Course di Rd tau er Shah Pa -8 3 Agra ur NH 12 Rd p Dera Jai 6 Central Business Alternate Central Secondary Business Periphery Business District Business District District District 1. Barakhamba Road 1. Bikajicama Place 1. Janakpuri 1. DLF Cyber City 8. Noida, Sector 58 2. Connaught Place 2. Jasola Vihar 2. Jhadewalan 2. Greater Noida 9. Noida, Sector 62 3. ITO 3. Munirka 3. Karkar Duma Expressway 10. Noida, Sector 63 4. Janpath 4. Nehru Place 4. Karol bagh 3. Faridabad 11. Noida, Sector 64 5. Kasturba Gandhi 5. Qutub Institutional 5. Okhla Industrial Estate 4. Ghaziabad 12. Sohna Road - Gurgaon Marg Area 6. Okhla Industrial Area-I 5. Golf Course Road 13. Udyog Vihar - Gurgaon 6. Khan Market 6. Saket 7. Okhla Industrial Area-II 6. Golf Course Extension 7. Parliament Street 7. Vasant Kunj 8. Pitam Pura Road 8. Tolstoy Marg 9. Rajendra nagar new 7. MG Road - Gurgaon 10. Rohini 11. Shahdara 12. Wazirpur Industrial Area CITY REPORT DELHI OFFICE MARKET - Q2 2010 I6I
    • CENTRAL BUSINESS DISTRICT (CBD) Revival in Central Business District The prices for Commercial Real Estate (CRE) increased in Q2 2010 primarily due to demand from Banking and Financial services. The vacancy levels dropped to 5- 6% compared to 15% in Q1 2010 for Grade A projects. The Grade A rentals saw a marginal increase, Rental Values (INR / sq.ft / month) 400 whereas other buildings saw an increase of 5% – 7%. 350 300 250 200 The average headline rentals & capital values for the last 6 quarters 150 are as follows:- 100 50 RENTAL VALUES ( INR / SQ.FT / MONTH) Q1 Q2 Q3 Q4 Q1 Q2 0 Q1 Q2 Q3 Q4 Q1 Q2 2009 2009 2009 2009 2010 2010 2009 2009 2009 2009 2010 2010 CBD 325 300 250 250 250 275 Source: BNP Paribas Real Estate, India CBD 36,000 35,000 Capital Values (INR / sq.ft) 34,000 33,000 CAPITAL VALUES (INR / SQ.FT) 32,000 Q1 Q2 Q3 Q4 Q1 Q2 31,000 2009 2009 2009 2009 2010 2010 30,000 CBD 35,000 30,000 30,000 30,000 30,000 30,000 29,000 Source: BNP Paribas Real Estate, India 28,000 27,000 Q1 Q2 Q3 Q4 Q1 Q2 2009 2009 2009 2009 2010 2010 CBD CITY REPORT DELHI OFFICE MARKET - Q2 2010 I7I
    • ALTERNATE CENTRAL BUSINESS DISTRICT (ALTERNATE CBD) Occupiers preferring Gurgaon & Noida over Saket and Vasant Kunj There was no significant transaction in the Alternate CBD areas of Vasant Kunj and Saket remained fairly low with vacancy levels at 20% - 25% and rental values also remaining stable. Jasola District Rental Values (INR / sq.ft / month) 250 centre witnessed absorption in the range of 20,000 -25,000 sq.ft in the second quarter. 200 150 100 50 The average headline rentals & capital values for the last 6 quarters are as follows:- 0 Q1 Q2 Q3 Q4 Q1 Q2 RENTAL VALUES ( INR / SQ.FT / MONTH) 2009 2009 2009 2009 2010 2010 Q1 Q2 Q3 Q4 Q1 Q2 Nehru Place Jasola Vihar 2009 2009 2009 2009 2010 2010 Vasant Kunj Bikaji Cama Place Bikaji Cama Place 135 135 130 130 130 130 Saket Qutub Institutional Jasola Vihar 120 110 100 100 100 110 Munirka Area Munirka 150 150 150 150 150 150 Nehru Place 210 200 180 175 175 180 Qutub Institutional 120 120 100 100 100 105 Area Saket 160 175 160 150 150 150 Vasant Kunj 200 175 150 150 150 150 Source: BNP Paribas Real Estate, India 25,000 Capital Values (INR / sq.ft) 20,000 CAPITAL VALUES (INR / SQ.FT) 15,000 Q1 Q2 Q3 Q4 Q1 Q2 10,000 2009 2009 2009 2009 2010 2010 Bikaji Cama Place 15,000 12,000 12,000 12,000 12,000 12,000 5,000 Jasola Vihar 15,000 15,000 12,000 12,000 12,000 13,500 Munirka 17,000 15,000 15,000 15,000 15,000 15,000 — Q1 Q2 Q3 Q4 Q1 Q2 Nehru Place 21,000 18,000 18,000 20,000 20,000 20,000 2009 2009 2009 2009 2010 2010 Qutab 12,000 12,000 12,000 12,000 12,000 12,000 Nehru Place Jasola Vihar Institutional Area Vasant Kunj Bikaji Cama Place Saket 20,000 20,000 18,000 18,000 20,000 20,000 Saket Qutub Institutional Vasant Kunj 20,000 20,000 18,000 18,000 20,000 20,000 Munirka Area Source: BNP Paribas Real Estate, India CITY REPORT DELHI OFFICE MARKET - Q2 2010 I8I
    • SECONDARY BUSINESS DISTRICT (SBD) Additional supply in Q3 & Q4 will keep prices stable Office leasing was fairly inactive in these areas but may see some activities in Q3 due to improved metro connectivity. The rentals and capital values were in line with the Q1 figures and may not see any additional increase in Q3 because of additional supply which is Rental Values (INR / sq.ft / month) 80 expected in Q3 and Q4. 70 60 50 The average headline rentals & capital values for the last 6 quarters 40 are as follows:- 30 RENTAL VALUES ( INR / SQ.FT / MONTH) 20 Q1 Q2 Q3 Q4 Q1 Q2 10 2009 2009 2009 2009 2010 2010 0 Janak Puri 75 60 60 50 50 50 Q1 Q2 Q3 Q4 Q1 Q2 2009 2009 2009 2009 2010 2010 Mathura Industrial 70 60 60 50 50 50 Janak Puri Pitampura Area Mathura Industrial Shahdara Okhla 55 55 60 60 60 60 Area Pitampura 60 60 55 50 50 50 Okhla Shahdara 50 50 50 50 50 50 Source: BNP Paribas Real Estate, India 9,000 8,000 Capital Values (INR / sq.ft) 7,000 6,000 5,000 CAPITAL VALUES (INR / SQ.FT) 4,000 Q1 Q2 Q3 Q4 Q1 Q2 3,000 2009 2009 2009 2009 2010 2010 2,000 Janak Puri 8,000 8,000 7,500 7,500 7,500 7,500 1,000 Mathura — Industrial 7,000 7,000 6,500 6,000 6,000 6,000 Q1 Q2 Q3 Q4 Q1 Q2 Area 2009 2009 2009 2009 2010 2010 Okhla 6,000 6,000 6,000 6,000 6,000 6,000 Janak Puri Pitampura Pitampura 6,000 6,000 5,500 5,500 5,500 5,500 Mathura Industrial Shahdara Shahdara 6,000 6,000 5,500 5,500 5,500 5,500 Area Source: BNP Paribas Real Estate, India Okhla CITY REPORT DELHI OFFICE MARKET - Q2 2010 I9I
    • PERIPHERY BUSINESS DISTRICT (PBD) Prices remains stable due to continuous supply Gurgaon market has witnessed increased level of transaction activity with approximately 0.2 mn sq.ft leased in IT parks and 0.25 mn sq.ft leased in SEZ's in the second quarter. The rental values remained stable in Gurgaon and will not see any major increase in Q3 as well mainly due to the supply . Noida market also observed increased number of queries and Rental Values (INR / sq.ft / month) 160 transactions in SEZ. The rentals in Noida also were stable and 140 showed no increase from Q1 2010. It is expected that the rental values in the SEZ space will increase in the next 6 months. 120 The average headline rentals & capital values for the last 6 quarters 100 are as follows:- 80 RENTAL VALUES ( INR / SQ.FT / MONTH) 60 Q1 Q2 Q3 Q4 Q1 Q2 40 2009 2009 2009 2009 2010 2010 Gurgaon 20 DLF Cyber City 75 75 60 60 60 60 0 Golf Course Rd Q1 Q2 Q3 Q4 Q1 Q2 110 70 70 85 85 85 2009 2009 2009 2009 2010 2010 Institutional Sectors 80 65 60 50 50 50 / Sushant Lok M G Road - Gurgaon NH 8 / Udyog Vihar - Gurgaon MG Road 135 90 90 90 90 90 Golf Course Rd - Gurgaon Sector 62, Noida NH8 / Udyog Vihar 60 60 50 40 40 40 DLF Cyber City Manesar - Gurgaon Sohna Rd 70 60 60 45 45 45 Institutional Sectors / Manesar Sushant Lok - Gurgaon Sector 58, Noida Manesar 40 35 35 35 35 35 Sohna Road - Sector 63, Noida Noida Gurgaon Sector 64, Noida Expressway 60 60 58 55 55 55 Expressway - Noida Sector 58 37 37 35 32 32 32 Sector 62 45 40 40 35 35 35 Sector 63 35 35 33 30 30 30 16,000 Sector 64 35 35 33 30 30 30 Capital Values (INR / sq.ft) 14,000 Source: BNP Paribas Real Estate, India 12,000 CAPITAL VALUES (INR / SQ.FT) 10,000 Q1 Q2 Q3 Q4 Q1 Q2 2009 2009 2009 2009 2010 2010 8,000 Gurgaon 6,000 DLF Cyber City 9,000 9,000 8,500 8,500 8,500 8,500 4,000 Golf Course Rd 12,500 12,500 12,000 12,000 12,000 12,000 2,000 Institutional Sectors 9,000 8,500 8,000 8,000 8,000 8,000 / Sushant Lok — Q1 Q2 Q3 Q4 Q1 Q2 MG Road 15,000 15,000 12,000 12,000 12,000 12,000 2009 2009 2009 2009 2010 2010 NH8 / Udyog Vihar 8,000 8,000 7,500 7,500 7,500 7,500 M G Road - Gurgaon NH 8 / Udyog Sohna Rd 8,500 8,500 8,500 7,000 7,000 7,000 Vihar - Gurgaon Golf Course Rd - Manesar Gurgaon Sector 62, Noida Manesar 5,000 5,000 4,500 4,500 4,500 4,500 DLF Cyber City Manesar - Gurgaon Noida Institutional Sectors / Expressway Sushant Lok - Gurgaon Sector 58, Noida 8,000 8,000 7,700 7,300 7,300 7,300 Sohna Road - Sector 63, Noida Sector 58 4,900 4,900 4,700 4,300 4,300 4,300 Gurgaon Sector 64, Noida Sector 62 6,000 5,300 5,300 4,700 4,700 4,700 Expressway - Noida Sector 63 4,600 4,600 4,400 4,000 4,000 4,000 Sector 64 4,600 4,600 4,400 4,000 4,000 4,000 Source: BNP Paribas Real Estate, India CITY REPORT DELHI OFFICE MARKET - Q2 2010 I10I
    • RENTAL VALUES Q2 2010 Rent Q on Q Region INR / sq.ft Change Central Business District (CBD) CBD 275 10% Q2 2010 Rent Q on Q Region INR / sq.ft Change Bikaji Cama Place 130 0% Jasola Vihar 110 10% Alternate Central Business Munirka 150 0% District (Alternate CBD) Nehru Place 180 3% Qutab Institutional Area 105 5% Saket 150 0% Vasant Kunj 150 0% Q2 2010 Rent Q on Q Region INR / sq.ft Change Janak Puri 50 0% Mathura Industrial Area 50 0% Secondary Business District (SBD) Okhla 60 0% Pitampura 50 0% Shahdara 50 0% Q2 2010 Rent Q on Q Region INR / sq.ft Change Gurgaon DLF Cyber City 60 0% Golf Course Rd 85 0% Institutional Sectors / 50 0% Sushant Lok MG Road 90 0% NH8 / Udyog vihar 40 0% Periphery Business District (PBD) Sohna Rd 45 0% Manesar Manesar 35 0% Noida Expressway 55 0% Sector 58 32 0% Sector 62 35 0% Sector 63 30 0% Sector 64 30 0% Source: BNP Paribas Real Estate, India CITY REPORT DELHI OFFICE MARKET - Q2 2010 I11I
    • CAPITAL VALUES Q2 2010 Q on Q Region INR / sq.ft Change Central Business District (CBD) CBD 30,000 0% Q2 2010 Q on Q Region INR / sq.ft Change Bikaji Cama Place 12,000 0% Jasola Vihar 13,500 13% Alternate Central Business Munirka 15,000 0% District (Alternate CBD) Nehru Place 20,000 0% Qutab Institutional Area 12,000 0% Saket 20,000 0% Vasant Kunj 20,000 0% Q2 2010 Q on Q Region INR / sq.ft Change Janak Puri 7,500 0% Mathura Industrial Area 6,000 0% Secondary Business District (SBD) Okhla 6,000 0% Pitampura 5,500 0% Shahdara 5,500 0% Q2 2010 Q on Q Region INR / sq.ft Change Gurgaon DLF Cyber City 8,500 0% Golf Course Rd 12,000 0% Institutional Sectors / 8,000 0% Sushant Lok MG Road 12,000 0% NH8 / Udyog vihar 7,500 0% Periphery Business District (PBD) Sohna Rd 7,000 0% Manesar Manesar 4,500 0% Noida Expressway 7,300 0% Sector 58 4,300 0% Sector 62 4,700 0% Sector 63 4,000 0% Sector 64 4,000 0% Source: BNP Paribas Real Estate, India CITY REPORT DELHI OFFICE MARKET - Q2 2010 I12I
    • KEY TRANSACTIONS Q2 2010 Space Micro Property Occupiers Location (sq.ft) Market Alchemist Technology Global Business Park 5,000 Gurgaon MG road United Copia Corporate Suites Weldexecel 5,500 Delhi Jasola Vatika Triangle AT&T 18,000 Gurgaon MG road Vatika Business Park Stryker 1,00,000 Gurgaon Sohna road Unitech Info Space SEZ RBS 3,00,000 Gurgaon Dundahera India Glycol ICICI Prudential 20,000 Noida Taj Expressway India Glycol E&Y 30,000 Noida Taj Expressway Knowledge Boulevard ACS 1,00,000 Noida Sector 62 Green Boulevard Qweft Telecom 32,000 Noida Sector 62 Iris Tech Park Unitech Wireless 76,000 Gurgaon Sohna road Gopaldas Bhavan SBER Bank 6,000 Delhi Connaught Place Vatika Towers Biogen 5,500 Gurgaon Golf Course road DLF Building 8C Accenture 31,000 Gurgaon DLF cyber city Splendour Forum Agilent Technologies 14,500 Delhi Jasola Unitech Info space SEZ IBM Daksh 33,000 Noida Taj expressway 3C's Oxygen SEZ Global Logic 1,50,000 Noida Taj Expressway Knowledge Boulevard Ericsson 36,000 Noida Sector 62 Welldone IT Park Unitech Wireless 76,000 Gurgaon Sohna road Unitech Info Space SEZ Bank of America 2,56,000 Gurgaon Dundahera DLF Building no. 6 B&C IYOGI 54,000 Gurgaon DLF cyber city Plot no. 77 Star TV 56,162 Gurgaon Sector 32 Source: BNP Paribas Real Estate, India CITY REPORT DELHI OFFICE MARKET - Q2 2010 I13I
    • KEY PROJECTS New Supply - Year 2010 Micro Space in Completion date Building Location Market sq.ft (expected) DLF Silokhera, Tower C Silokhera, NH 8, Gurgaon PBD 7,00,000 Q2 2011 DLF Silokhera, Tower D Silokhera, NH 8, Gurgaon PBD 7,50,000 Q2-Q3 2011 DLF Silokhera, Tower E Silokhera, NH 8, Gurgaon PBD 9,00,000 Q2-Q3 2011 Building no. 5, Tower B DLF Cyber City, Gurgaon PBD 6,50,000 Q1 2011 Building no. 5, Tower C DLF Cyber City, Gurgaon PBD 7,50,000 Q1 2011 Unitech Info Space, Phase 2 Dundahera, Gurgaon PBD 6,00,000 Q2 2011 (Building 6) Unitech Info Space, Phase 2 Dundahera, Gurgaon PBD 5,50,000 Q4 2011 (Building 7) Unitech Info Space, Phase 2 Dundahera, Gurgaon PBD 1,00,000 Q1 2012 (Building 8) Unitech Info Space (Building 1) Tikri, Gurgaon PBD 3,50,000 Q4 2011 Unitech infospace Sector 62, Noida PBD 2,00,000 Q2 2010 Tech Space Golf Course Extension, Gurgaon PBD 2,50,000 Q4 2010 3C's Oxygen, Phase 1 (Tower C) Sector 144, Noida PBD 3,00,000 Q3-Q4 2010 Emerald Plaza Golf Course Extension, Gurgaon PBD 3,50,000 Q4 2012 Digital Greens, Phase 1 Golf Course Extension, Gurgaon PBD 2,50,000 Q4 2010 The Palm Square Golf Course Extension, Gurgaon PBD 3,50,000 Q4 2010 The Palm Springs Plaza Golf Course Road, Gurgaon PBD 3,00,000 Q3 2011 Platina MG Road, Gurgaon PBD 2,50,000 Q1 2011 Source: BNP Paribas Real Estate, India +91 98113 33920 Available for LEASE only vineet.anand@asia.bnpparibas.com www.realestate.bnpparibas.com Ready to move in offices Ready to move in offices • Global Business Park, Gurgaon • Unitech Cyber Park, Gurgaon • 3,453 sq.ft / 4,817 sq.ft • 26,000 sq.ft. approximately (2 units, Semi furnished) CITY REPORT DELHI OFFICE MARKET - Q2 2010 I14I
    • GLOSSARY Q2: Quarter 2 of the financial year (April - May - June) CRR: Cash Reserve Ratio Absorption: Occupied Stock (n) – Occupied Stock (n-1); Where “n” is the specified Major Refurbishment: Building which has undergone structural alteration less than 5 period (quarter, year etc.) years ago, subject to planning permission. Bare Shell: Premises consisting of basic structure with lifts, power supply to junction Renovated: Building which has undergone renovation work not requiring for planning box, water supply line, toilets permission less than 5 years ago. BPO: Business Process Outsourcing Modern: High-performance building over 10 years old. BUA: Built up area Old: Low-performance building over 10 years old. CCI (Cost of construction index): Index that makes quarterly measurements of Super Built-up Area (SBUA): Built-up area + common area including lifts area, common construction prices for new house building. It is the price after VAT paid by the owner to passages, utilities, terrace etc. & varies from building to building. construction companies. It excludes land-related prices and costs (site development, Carpet Area: Actual usable area, and does not include any common areas, area special foundations, etc.), fees and financial costs. occupied by walls etc. Demand: A search for premises expressed to BNP Paribas Real Estate. The analysis Completed Stock: Either the building has received occupancy certificate or the client pertains only to the flow of new demand expressed. has moved in and occupied space and started working in a particular premises For the occupier: Operation undertaken by an occupier for its own purposes. DU: Dwelling Unit New Supply: Any new building and/or heavily refurbished building that adds to the EPIP: Export Promotion Industrial Park existing stocks. These are analysed according to progress. FAR: Floor Area Ratio (BUA/ Plot Area) Completed new supply: Buildings on which construction work is finished. Grade A Space: Office Space with efficiency in excess of 75%, floor plate in excess of Under construction: Buildings on which construction has effectively begun. Prior 15,000 sq. ft., Car Parking ratio of atleast 1 per 1000 sq. ft., Floor-to-ceiling height in demolition work is not taken into account. excess of 3.75 m, Power provision of 1.25KVA per 100 sq. ft. with 100% power-backup Planning permission granted: Authorisation to build obtained, generally booked after wherever applicable and professionally managed facilities settlement of third party claims. Ground Coverage: It is the total covered area on ground by the built component and is Planning permission submitted: Planning permission requested, being processed. expressed as a percentage of the plot area Pre-letting: Transaction by an occupier more than 6 months before the delivery of the Hard Option: Real estate space reserved by the lessee for future occupation within a building. particular time frame and at a pre-decided rental Headline rent: Monthly rent per square feet, charged on super built-up area basis, INR: Indian National Rupees featured on the lease, and expressed excluding fitouts, taxes, deposits, advances, maintenance charges and does not take into account building efficiency (super built up Pre-lease: Space committed for lease before completion of construction area - carpet area ratio). Further it does not include attached premises such as parking Speculative Stock: The stock which can be leased and excludes Built-to-Suit (BTS) and areas, archives, staff canteens, etc. If the rental is progressive, the value applied is the Campus facilities. average for the first 3 years or the fixed term of the lease. Stock: Cumulative Supply Average headline rent: Weighted average of rented area. The average featured is a moving average over the quarter, to smooth out the changes, exclusive of all taxes, Supply: New construction in a particular specified period deposits, advances & maintenance charges.. Transaction Volumes: Total number of transaction in a particular specified period Underlying rent: Annual rent per square meter expressed free of tax and charges and Vacancy: Total vacant space in the completed stock excluding advantages agreed by the owners (rent incentive building works, etc). Warm Shell: Premises consisting of power backup, high side A.C., common area fit outs Prime rents: Represents the top headline rent (excluding non significant transactions) and fitted out toilets for an office unit:- of standard size, of the highest quality and specification, in the best location in each market. Q on Q: Quarter on Quarter Top rent: Represents the top headline rent for an office unit. It is not necessarily a prime y-o-y: year-on-year (All growth figures in this report are y-o-y unless otherwise rent. mentioned Second hand premises: Premises that have been previously occupied by an occupier for IT: Information Technology vacant for more than 5 years. ITES: Information Technology Enabled Services (includes various services ranging from Renovated: Premises that have been renovated for the new occupier. call centres, claims processing, medical transcription, e-CRM, SCM to back-office Very good condition: High-performance premises of high quality. operations such as accounting, data processing, and data mining) Existing state of repair: Low-performance premises that can be rented as they are. Repo Rate: Rate that an eligible depository institution (such as a bank) is charged to To be renovated: Low performance premises that need renovation. borrow short term funds directly from the central bank through the discount window Supply available within 1 year: All premises and buildings available within 1 year Reverse Repo Rate: Interest rate that a bank earns for lending money to the Reserve including the supply available immediately, new supply that has not been pre-let and Bank of India in exchange for government securities second hand supply that will be vacated definitively (notable terminated leases). SEC A, B, C & D Socio: Economic Classification; SEC A represents the highest propensity Take-up: Rental or sale of a property asset, finalised by the signature of a lease or a bill to spend and SEC D represents the lowest propensity to spend. of sale including turnkey transactions and owner-occupier. The transaction is only Sq.ft: Square Feet taken into account once any existing conditional clauses have been lifted. Sq.mt: Square Meter Vacancy rate: Ratio measuring the relationship between the supply immediately available and the existing stock. Mn: Million Stamp Duty: Form of tax charged on instruments (written documents) requiring a Disclaimer: This report is released by BNP Paribas Real Estate & Infrastructure Advisory physical stamp (for government legality) to be attached to or impressed. Services and the information in it is dedicated to the exclusive use of its clients. The New: Building built within the last 5 years. report and the information contained in it should not be copied or reproduced without Recent: Building less than 10 years old. prior permission from BNP Paribas Real Estate and Infrastructure Advisory Services. The facts of these reports are believed to be correct at the time of it's release but cannot NCR: National Capital Region (Includes urban agglomeration of Delhi, Gurgaon, be guaranteed. Please note the findings, projections, conclusions and Faribad, Noida, Gaziabad etc) recommendations are based on information gathered in good faith from both primary SEZ: Special Economic Zone having special tax exemptions / incentives to corporate and secondary sources, whose accuracy we are not always in a position to guarantee. occupiers BNP Paribas Real Estate & Infrastructure Advisory Services cannot be held responsible if, despite it's best efforts, the information contained in the present report turns out to BFSI: Banking & Financial Services Industry be inaccurate or incomplete. SLR: Statutory Liquidity Ratio FSI: Floor Space Index CITY REPORT DELHI OFFICE MARKET - Q2 2010 I15I
    • . ABU DHABI ITALY ALBANIA* JAPAN* SERBIA* Al Bateen Area Corsa Italia, 15/A Danos & Associates RISA Partners 6, Vladimira Popovica Street Plot No. 144, W-11 20122 Milan Blvd. Deshmoret e Kombit 5F Akasaka Intercity 1-11-44 Office B31 New Al Bateen Municipality Tel: +39-02-58 33 141 Twin Towers - Building 2 Akasaka, Minato-ku 11000 Belgrade INDIA Street 32 Fax: +39-02-58 33 14 39 11th Floor 107-0052 Tokyo Tel.: +381-11-2600 603 BNP PARIBAS REAL ESTATE P.O. Box 2742 Tirana Tel: +81-3-5573 8011 Fax: +381-11-2601 571 & INFRASTRUCTURE ADVISORY Abu Dhabi, UAE JERSEY Tel.: +355-4-2280488 Fax: +81-3-5573 8012 SERVICES PVT. LTD. Tel.: +971-505 573 055 4th Floor, Conway House Fax: +355-4-2280192 SLOVAKIA* Fax: +971-44 257 817 Conway Street NETHERLANDS* Modesta (Dr. Max Huber & St Helier AUSTRIA* Holland Realty Partners Partner Group) BNP PARIBAS REAL ESTATE : Headquarters : 13, boulevard du Fort de Vaux - 75017 Paris - 692 012 180 RCS Paris Bangalore BELGIUM Jersey Je2 3NT 403, The Estate, Dr. Max Huber & Partner J.J. Viottastraat 33, Heydukova 12-14 Blue Tower Tel: +44-15 34-62 90 01 121, Dickenson Road, Dr. Karl-Lueger-Platz 5 1071 JP 811 08 Bratislava Avenue Louise 326 Fax: +44-15 34-62 90 11 Bangalore - 560 042 B14 Louizalaan 1010 Vienna Amsterdam, Tel.: +421-2-3240 8888 Tel: +91 80 4050 8888 1050 Brussels LUXEMBOURG Tel: +43-1-513 29 39 0 Tel: +31-20-305 97 20 Fax: +421-2-3214 4777 Fax: +91 80 4050 8899 Tel: +32-2-646 49 49 Axento Building Fax: +43-1-513 29 39 14 Fax: +31-20-305 97 21 Fax: +32-2-646 46 50 Avenue J.F. Kennedy 44 SWITZERLAND* Delhi 1855 Luxembourg BULGARIA* NORTHERN IRELAND* Naef Upper ground floor, Unit No 7, DUBAI Tel.: +352-34 94 84 Danos & Associates Whelan Property Consultants Avenue Eugène-Pittard 14-16 Mercantile House, 15 KG Marg, Emmar Square Fax: +352-34 94 73 28, Hristo Botev Boulevard 44 Upper Arthur Street Case Postale 30 New Delhi 110001 Building No. 1, 7th Floor Sofia Belfast Bt1 4GJ 1211 Geneva 17 Tel: +91 11 4959 8800 P.O. Box 7233 ROMANIA Tel: +359-2-9532314 Tel: +44-28-9044 1000 Tel.: +41-22 839 39 39 Fax: +91 11 4959 8818 Dubai, UAE Union International Center Fax: +359-2-9532399 Fax: +44-28-9033 2266 Fax: +41-22 839 38 38 Tel: +971-505 573 055 11 Ion Campineanu Street Mumbai Fax: +971-44 257 817 Sector 1 CANADA* POLAND* UKRAINE* 704, Level 7, MMTC House, C-22, Bucharest 010031 Cresa Partners Brittain Hadley Europa Astera Non contractual document - Research department - August 2010 Bandra Kurla Complex, Bandra (E), FRANCE Tel: +40-21-312 7000 Mumbai - 400 051 Tel.: +1-617-758 6000 Warsaw Financial Centre 2a Konstantinovskaya Street 13 boulevard du Fort de Vaux Fax: +40-21-312 7001 Fax: +1-617-742 0643 13th floor 04071, Kiev Tel: +91 22 6138 8088 75017 Paris Fax: +91 22 6138 8089 Emilii Plater 53 Tel: +38-044-501 50 10 Tel: +33-1-55 65 20 04 SPAIN CYPRUS* 00-113 Warsaw Fax: +38-044-501 50 11 Fax: +33-1-55 65 20 00 María de Molina, 54 Danos & Associates Tel.: +48-22-586 31 00 28006 Madrid 35, I. Hatziosif Ave Fax: +48-22-586 31 16 USA* GERMANY Tel: +34-91-454 96 00 For Queries / Comments: Goetheplatz 4 Fax: +34-91-454 97 65 2027, Nicosia Cresa Partners Tel.: +357-22 31 70 31 RUSSIA* 200 State Street Tasneem Gandhi at 60311 Frankfurt Tel.: +49-69-2 98 99 0 UNITED KINGDOM Fax: +357-22 31 70 11 Astera 13th Floor +91 9930141009 or email at Fax: +49-69-2 92 91 4 90 Chancery Lane 10, b.2 Nikolskaya Str. Boston, Massachusetts 02109 tasneem.gandhi@bnpparibas.com London WC2A 1EU GREECE* Moscow, 109012 Tel.: +1-617-758 6000 IRELAND Tel: +44-20-7338 4000 Danos & Associates Tel/Fax: +7-495-925 00 05 Fax: +1-617-742 0643 40 Fitzwilliam Place Fax: +44-20-7430 2628 1, Eratosthenous Str. Dublin 2 11635 Athens Falcon Real Estate Tel: +353-1-66 11 233 Tel: +30-210 7 567 567 570 Lexington Avenue Fax: +353-1-67 89 981 Fax: +30-210 7 567 267 32nd Floor New York, NY 10022 Tel.: +1-212 271-5445 Fax: +1-212 271-5588 *Alliances www.realestate.bnpparibas.com