City Report   Mumbai Office Market   Q4 2010
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    City Report   Mumbai Office Market   Q4 2010 City Report Mumbai Office Market Q4 2010 Document Transcript

    • CITY REPORTMUMBAI OFFICE MARKET Q4 2010
    • BNP Paribas Real Estate - INDIA All the building blocks BNP Paribas Real Estate - SAS au capital de 329 196 608 € - 692 012 180 RCS Paris - Code NAF 4110B - Siège social : 13, boulevard du Fort de Vaux - 75017 Paris www.realestate.bnpparibas.co.inIn India our specialists bring you our expertise in Transaction Advisory, Consulting and Land and Building Valuations.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. BNP Paribas Real Estate and Infrastructure Advisory Services Pvt. Ltd Your contacts in India: Mumbai (Head Office) : +91 22 6138 8088 - Delhi : +91 11 4959 8800 - Bangalore : +91 80 4030 0334 info.india@bnpparibas.com
    • CONTENTSSummary p. 4Macroeconomic Context p. 5Mumbai Map p. 6Central Business District (CBD) p. 7Extended Central Business District (Extended CBD) p. 8Alternate Central Business District (Alternate CBD) p. 9Secondary Business District (SBD) p. 10Periphery Business District (PBD) p. 11Rental Values & Capital Values p. 12Key Transactions p. 13Key Projects p. 14Glossary p. 15 CITY REPORT MUMBAI OFFICE MARKET - Q4 2010
    • SUMMARYGood market response due to correction in rentalsThe office market has responded favorably to corrections in rental In recent past, a few developers have launched projects with smallvalues across the various markets in Mumbai city. The city office configurations and these projects have witnessed excellentwitnessed some notable transactions from Extended CBD to PBD demand. In other cases, some property owners have diluted partialmicro markets between Q3 2010 to Q4 2010. Significant absorption stock at very comparative rentals, in hope of averaging prices aslevels were witnessed across fresh stocks being launched in the markets improve in future. Innovative ideas like these, will help themarket. However, at the same time a significant amount of market sustain these times.secondary supply is being created on account of this movement innewer premises. Therefore, the supply continues to outstrip Industries whose businesses are very sensitive to high real estatedemand. As a development strategy it would be prudent to acquire costs like retail, have been actively looking at expansion as rentalquality tenants and right through these times of price corrections, and capital values are reasonably affordable.where excessive supply is chasing limited demand. CITY REPORT MUMBAI OFFICE MARKET - Q4 2010 I4I
    • CRR & SLR MACROECONOMIC CONTEXT 35 GDP growth moderates on account of unanticipated 30 factors 25Percent 20 The Indian economy, continued on the high growth path in 2010-11 despite an uncertain global environment. Though the overall global outlook 15 suggested some moderation in growth in both advanced and emerging 10 economies in 2011, downside risks to Indias growth momentum have 5 receded considerably. However, the GDP grew moderately at 8.2 % during the quarter as compared to 8.8% during the previous two quarters. Significant 0 slowdown in the industrial sector along with marginal downward Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 movement in the services sector were primary factors that led to moderation in the GDP growth, despite of sharp increase in agricultural SLR CRR growth. Modest softening of manufactured products price and pressures aided by Repo & Reverse Repo Rate past monetary tightening by RBI, led to moderation in Wholesale Price Index (WPI) during August-November 2010 relative to double digit levels of 11% 7 experienced during March-July 2010. However, inflationary pressures 6 revived in December 2010 with WPI inflation increasing to 8.4 percent from 5 7.5 per cent in November 2010. These were attributed to unanticipatedPercent 4 factors such as unseasonal showers and supply chain factors affecting the 3 prices of essential commodities such as vegetables. New drivers such as 2 Fuel and non-fuel international commodity prices and demand-supply 1 imbalances in some food items emerged as factors impacting the inflation rates. 0 23-Jul-09 23-Aug-09 23-Sep-09 24-Oct-09 24-Nov-09 25-Dec-09 25-Jan-10 25-Feb-10 19-Mar-10 20-Apr-10 20-May-10 20-Jun-10 2-Jul-10 27-Jul-10 20-Aug-10 16-Sep-10 2-Nov-10 Liquidity conditions remained tight during the third quarter of 2010-11, prompting liquidity easing measures being adopted by the Reserve Bank. Repo Under the Liquidity Adjustment Facility (LAF), the RBI increased the repo rate Reverse Repo by 25 basis points from 6.0% to 6.25% and hiked the reverse repo rate by 25 basis points from 5.0% to 5.25%. Conditions for enhancing the efficiency of monetary policy however, improved during the quarter with the tightness in Gross Domestic Product (GDP) liquidity leading to competition among banks, resulting in higher deposit 10.00 8.80% and lending rates. 9.00 8.60% 8.80% 7.90% 8.00 7.60% 8.80% 8.20% Supported by a stable economy, India continued to be high on Global 7.90% 7.00 Investment radar. According to The World Prospectus Survey by the United 5.80% Nations Conference on Trade and Development (UNCTAD), in spite of a dip inPercent 6.00 6.10% 6% 5.00 5.30% the FDI Inflows, India continues to be the second best attractive destination 4.00 for FDI after China. India witnessed a total FDI inflow of USD 16,039 million 3.00 dollars (as on Dec 2010) followed by Singapore and USA at third and fourth 2.00 places. 1.00 Overall, robust and broad – based growth is expected to co-exist with 0.00 elevated inflation in the near term. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 Major Real Estate Sales (In INR / In million) Profits (In INR / In million) Companies in Q on Q Q on Q India Q4 2010 Q3 2010 Q4 2010 Q3 2010 Change % Change % Wholesale Price Index (WPI) DLF Limited 24,799 23,690 5% 4,657 4,184 11% 18.00 Unitech 6,598 6,445 2% 1,113 1,740 -36% 16.00 India Bulls 5,962 5,414 10% 2,025 1,727 17% 14.00 Sobha Developers 3,629 4,257 -15% 490 589 -17% 12.00 Peninsula Land 1,178 1,226 -4% 621 638 -3%Percent 10.00 Parsvnath 2,198 1,955 12% 314 498 -37% 8.00 Developers 6.00 Pheonix 451 443 2% 238 221 7% 4.00 Omaxe Limited 3,480 3,544 -2% 226 367 -39% 2.00 Mahindra 1,558 890 75% 334 247 36% 0.00 Lifespace Mar-09 Jun-09 Sept-09 Dec-09 Mar-07 Jun-07 Sept-07 Dec-07 Mar-10 Jun-10 Sept-10 Dec-10 Sept-06 Dec-06 Mar-08 Jun-08 Sept-08 Dec-08 Anantraj 2 1.329 -100% 502 480 5% Ackruti City 2,123 1,624 31% 678 557 31% Source: Confederation of Indian Industries Ansal Properties 3,378 3,197 6% 324 199 63% CITY REPORT MUMBAI OFFICE MARKET - Q4 2010 I5I
    • MUMBAI MAP N ad ab ed m 4 Ah Sanjay Gandhi National Park 12 7 Tulsi 16 Lake 6 3 14 10 17 9 Vihar Lake 1 10 3 Powai 13 1 Lake 25 19 4 S e a PU 11 Sahar Airport 24 NE (International Airport) 9 ay w igh 20 Domestic sH Airport es 8 A r a b i a n pr 23 Ex 4 15 er n st Ea 15 13 16 2 3 5 1 6 2 k 22 lin ndra Worli Sea 11 14 8 12 2 Ba 26 7 7 18 9 21 3 4 5 5 Butcher 1 8 Island 6 Elephanta 2 Island 1 7 8 2 Chatrapati Shivaji Terminus (CST) 6 3 9 Periphery Business 5 District 4 1. Airoli 2. Belapur 3. Dombivali Central Business 4. Ghansoli District Extended Central Secondary Business 5. Jui Nagar Business District District 6. Kalwa1. Breach Candy 7. Kalyan2. Chatrapati Shivaji Alternate Central 1. Girgaon 1. Andheri 10. Jogeshwari 19. Powai 8. Kharghar Terminus (CST) 2. Grant Road Business District 2. Bandra West 11. Juhu 20. Santacruz 9. Koper Khairne3. Churchgate 3. Lower Parel 3. Bhandup 12. Kandivali 21. Sewri 10. Mumbra4. Colaba 1. Bandra 4. Mahalakshmi 4. Borivali 13. Kanjurmarg 22. Sion 11. Nerul5. Cuffe Parade 5. Mumbai Central 2. Bandra East 12. Panvel 5. Byculla 14. Kings Circle 23. Vidya Vihar6. Fort 6. Pedder Road 3. Bandra Kurla 6. Chembur 15. Kurla 24. Vikhroli 13. Sanpada7. Malabar Hill 7. Prabhadevi Complex 7. Dadar 16. Malad 25. Vile Parle 14. Thane8. Marine Line 8. Tardeo 4. Santacruz East 8. Ghatkopar 17. Mulund 26. Wadala 15. Turbhe9. Nariman Point 9. Worli (Kalina) 9. Goregaon 18. Parel 16. Vashi CITY REPORT MUMBAI OFFICE MARKET - Q4 2010 I6I
    • CENTRAL BUSINESS DISTRICT (CBD) Movement continues to other business districts CBD continues to see movement of large occupiers to alternate locations which offer better infrastructure and amenities at attractive rental and capital values.Rental Values (INR / sq.ft / month) 350 300 250 The average headline rentals & capital values for the last 6 quarters 200 are as follows:- 150 100 AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH) Q3 Q4 Q1 Q2 Q3 Q4 50 2009 2009 2010 2010 2010 2010 0 Ballard Estate 250 250 250 250 220 220 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2010 2010 2010 2010 Cuffe Parade 200 200 200 200 200 200 Fort 150 150 150 150 150 150 Nariman Point Ballard Estate Nariman Point 325 325 325 300 290 290 Cuffe Parade Fort Source: BNP Paribas Real Estate - Research, India 45,000Capital Values (INR / sq.ft) 40,000 35,000 30,000 25,000 20,000 15,000 AVERAGE CAPITAL VALUES (INR / SQ.FT) 10,000 Q3 Q4 Q1 Q2 Q3 Q4 5,000 2009 2009 2010 2010 2010 2010 — Ballard Estate 35,000 35,000 35,000 35,000 35,000 35,000 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2010 2010 2010 2010 Cuffe Parade 30,000 30,000 30,000 30,000 30,000 30,000 Fort 22,500 22,500 22,500 22,500 22,500 22,500 Nariman Point Ballard Estate Nariman Point 40,000 40,000 40,000 40,000 40,000 40,000 Cuffe Parade Fort Source: BNP Paribas Real Estate - Research, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2010 I7I
    • EXTENDED CENTRAL BUSINESS DISTRICT (ECBD) Pressure on rental values Landmark developments by quality developers like, Penninsula land, Indiabulls Real Estate and Lodha Developers have attracted many high quality occupiers. This is primarily on account of the value propositions that these projects offer vis a vis old stock existing in CBD of Mumbai. 350 Extended CBD continues to witness excessive supply (both primaryRental Values (INR / sq.ft / month) and secondary), which will continue to exert pressure on rental and 300 capital values. 250 200 The average headline rentals & capital values for the last 6 quarters are as follows:- 150 100 AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH) Q3 Q4 Q1 Q2 Q3 Q4 50 2009 2009 2010 2010 2010 2010 Lower Parel 180 180 180 180 170 170 0 Q3 Q4 Q1 Q2 Q3 Q4 Mahalaxmi 150 150 150 150 150 150 2009 2009 2010 2010 2010 2010 Prabhadevi 250 250 225 225 220 220 Worli Prabhadevi Worli 300 300 275 275 250 250 Lower Parel Mahalaxmi Source: BNP Paribas Real Estate - Research, India 35,000Capital Values (INR / sq.ft) 30,000 25,000 20,000 15,000 10,000 AVERAGE CAPITAL VALUES (INR / SQ.FT) Q3 Q4 Q1 Q2 Q3 Q4 5,000 2009 2009 2010 2010 2010 2010 — Lower Parel 18,000 18,000 18,000 18,000 20,000 20,000 Q3 Q4 Q1 Q2 Q3 Q4 Mahalaxmi 15,000 15,000 15,000 15,000 15,000 15,000 2009 2009 2010 2010 2010 2010 Prabhadevi 25,000 25,000 25,000 25,000 25,000 25,000 Worli Prabhadevi Worli 30,000 30,000 30,000 30,000 30,000 30,000 Lower Parel Mahalaxmi Source: BNP Paribas Real Estate - Research, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2010 I8I
    • ALTERNATE CENTRAL BUSINESS DISTRICT (ALTERNATE CBD) Good demand from corporate occupiers Although the market has substantial supply available, most of the options are in the form of small space options in the range of 5,000 400 sq.ft - 50,000 sq.ft. Tenants looking at larger contiguous floor platesRental Values (INR / sq.ft / month) would have to wait till Q2 2011, wherein the market is likely to be 350 infused with fresh supplies from buildings such as The Capital, TCG (FIFC). 300 Rental and Capital values are likely to remain under pressure, in the 250 micro market, however prime projects like Maker Maxity will continue to command higher rental and capital values. 200 The average headline rentals & capital values for the last 6 quarters 150 are as follows:- 100 AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH) 50 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2010 2010 2010 2010 0 Q3 Q4 Q1 Q2 Q3 Q4 Bandra - Kurla 2009 2009 2010 2010 2010 2010 250 250 300 325 350 350 Complex Bandra - Kurla Complex Bandra East 175 175 175 175 175 175 Kalina Kalina 200 200 200 200 190 190 Bandra East Source: BNP Paribas Real Estate - Research, India 35,000 30,000Capital Values (INR / sq.ft) 25,000 20,000 15,000 10,000 AVERAGE CAPITAL VALUES (INR / SQ.FT) 5,000 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2010 2010 2010 2010 — Bandra - Kurla Q3 Q4 Q1 Q2 Q3 Q4 25,000 25,000 30,000 30,000 32,000 32,000 Complex 2009 2009 2010 2010 2010 2010 Bandra East 17,500 17,500 20,000 20,000 20,000 20,000 Bandra - Kurla Complex Kalina Kalina 20,000 20,000 22,500 22,500 22,500 22,500 Bandra East Source: BNP Paribas Real Estate - Research, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2010 I9I
    • SECONDARY BUSINESS DISTRICT (SBD) Pressure on rental and capital values SBD continues to witness downward pressure on achievable values. This area is already witnessing excessive supply (primary and secondary) coupled with ongoing construction activities such as metro rail resulting in heavy traffic congestion, which is acting as a 160 major deterrent.Rental Values (INR / sq.ft / month) 140 SBD will continue to face challenges for next few quarters till the infrastructure improves. Quality projects within SBD especially 120 those along with the Western Express highway will still command a premium as compared to other projects. 100 80 The average headline rentals & capital values for the last 6 quarters 60 are as follows:- 40 AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH) Q3 Q4 Q1 Q2 Q3 Q4 20 2009 2009 2010 2010 2010 2010 0 Andheri E 120 120 120 110 100 90 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2010 2010 2010 2010 Andheri W 110 110 110 100 90 90 Borivali 50 50 60 60 60 60 Vile Parle Malad Kurla 65 70 70 80 90 90 Andheri East Vikhroli Malad 90 90 80 80 80 80 Andheri West Kurla Powai 90 90 90 90 90 90 Powai Borivali Vikhroli 65 65 75 75 70 70 Vile Parle 120 120 120 140 130 130 Source: BNP Paribas Real Estate - Research, India 16,000 14,000Capital Values (INR / sq.ft) 12,000 10,000 AVERAGE CAPITAL VALUES (INR / SQ.FT) 8,000 Q3 Q4 Q1 Q2 Q3 Q4 6,000 2009 2009 2010 2010 2010 2010 4,000 Andheri E 12,000 12,000 12,000 12,000 13,000 12,500 Andheri W 11,000 11,000 11,000 11,000 12,000 12,000 2,000 Borivali 5,000 5,000 6,500 6,500 8,000 8,000 — Kurla 8,500 8,000 8,000 8,000 9,500 9,500 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2010 2010 2010 2010 Malad 9,000 9,000 9,000 9,000 9,000 9,000 Powai 9,000 9,000 9,000 9,000 9,500 9,500 Vile Parle Malad Vikhroli 6,500 6,500 7,500 7,500 8,000 8,000 Andheri East Kurla Andheri West Vikhroli Vile Parle 12,000 12,000 12,000 13,000 13,500 13,500 Powai Borivali Source: BNP Paribas Real Estate - Research, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2010 I10I
    • PERIPHERY BUSINESS DISTRICT (PBD) Good demand for SEZ space The PBD market witnessed maximum transactions in the SEZ developments. Large IT parks in Thane, Navi Mumbai witnessed a few transactions as compared to the SEZ space. IT office market has witnessed corrections in rental values in the last few quarters and are likely to remain under pressure. The market also witnessed a few retail and hospitality transactions, 80 with Navi Mumbai re-enforcing its status as a self sustained market.Rental Values (INR / sq.ft / month) 70 60 50 The average headline rentals & capital values for the last 6 quarters 40 are as follows:- 30 AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH) 20 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2010 2010 2010 2010 10 Airoli 35 35 40 40 38 35 0 Q3 Q4 Q1 Q2 Q3 Q4 Thane 40 40 40 40 42 40 2009 2009 2010 2010 2010 2010 Vashi 60 60 60 60 70 70 Vashi Thane Airoli Source: BNP Paribas Real Estate - Research, India 8,000Capital Values (INR / sq.ft) 7,000 6,000 5,000 4,000 3,000 AVERAGE CAPITAL VALUES (INR / SQ.FT) 2,000 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2010 2010 2010 2010 1,000 — Airoli 3,500 3,500 4,000 4,000 4,500 4,500 Q3 Q4 Q1 Q2 Q3 Q4 Thane 4,000 4,000 4,500 4,500 5,000 4,700 2009 2009 2010 2010 2010 2010 Vashi 6,000 6,000 6,000 6,000 7,500 7,500 Vashi Thane Airoli Source: BNP Paribas Real Estate - Research, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2010 I11I
    • RENTAL VALUES FOR Q4 2010 CAPITAL VALUES FOR Q4 2010 CBD CBD Rent Q on Q Q on QRegion Region INR / sq.ft INR/ sq.ft/ month Change ChangeBallard Estate 220 0% Ballard Estate 35,000 0%Cuffe Parade 200 0% Cuffe Parade 30,000 0%Fort 150 0% Fort 22,500 0%Nariman Point 290 0% Nariman Point 40,000 0% Extended CBD Extended CBD Rent Q on Q Q on QRegion Region INR / sq.ft INR/ sq.ft/ month Change ChangeLower Parel 170 0% Lower Parel 20,000 0%Mahalaxmi 150 0% Mahalaxmi 15,000 0%Prabhadevi 220 0% Prabhadevi 25,000 0%Worli 250 0% Worli 30,000 0% Alternate CBD Alternate CBD Rent Q on Q Q on QRegion Region INR / sq.ft INR/ sq.ft/ month Change ChangeBandra - Kurla Bandra - Kurla 350 0% 32,000 0%Complex ComplexBandra East 175 0% Bandra East 20,000 0%Kalina 190 0% Kalina 22,500 0% SBD SBD Rent Q on Q Q on QRegion Region INR / sq.ft INR/ sq.ft/ month Change ChangeAndheri E 90 -10% Andheri E 12,500 -4%Andheri W 90 0% Andheri W 12,000 0%Borivali 60 0% Borivali 8,000 0%Kurla 90 0% Kurla 9,500 0%Malad 80 0% Malad 9,000 0%Powai 90 0% Powai 9,500 0%Vikhroli 70 0% Vikhroli 8,000 0%Vile Parle 130 0% Vile Parle 13,500 0% PBD PBD Rent Q on Q Q on QRegion Region INR / sq.ft INR/ sq.ft/ month Change ChangeAiroli 35 -8% Airoli 4,500 0%Thane 40 -5% Thane 4,700 -6%Vashi 70 0% Vashi 7,500 0%Source: BNP Paribas Real Estate - Research, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2010 I12I
    • KEY TRANSACTIONS Q4 2010 Space MicroBuilding Occupiers Location (in sq.ft) MarketCumbatta Building Warner Brothers 6,000 CBD ChurchgateParagon Centre BBDO 8,000 Extended CBD WorliParagon Centre OMD 6,500 Extended CBD WorliOne Indiabulls Centre Bloomberg 25,000 Extended CBD Lower ParelWindsor House Ciena Communications 4,500 Alternate CBD KalinaMaker Maxity Mcquarie Capital 28,000 Alternate CBD Bandra Kurla ComplexING Vysya Religare 28,000 Alternate CBD Bandra Kurla ComplexNaman Corporate Link Cholamandlam Insurance 10,000 Alternate CBD Bandra Kurla ComplexIL & FS IBM 62,000 Alternate CBD Bandra Kurla ComplexGrande Palladium DBM Giotech 15,000 Alternate CBD KalinaNomura - Hiranandani Teradata 30,000 SBD PowaiWindfall ATC Shipping 6,000 SBD Andheri (East)Nirlon Citi Bank 77,000 SBD GoregaonEquinox Business Park Vion Networks 18,000 SBD KurlaAkruti Center point Diversey 21,000 SBD MIDC, AndheriGodrej Collosium Powerica 9,000 SBD Sion - WadalaNomura Religare 23,000 SBD PowaiMinspace Cognizant 160,000 PBD AiroliMinspace Globe Op 60,000 PBD AiroliSource: BNP Paribas Real Estate - Research, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2010 I13I
    • KEY PROJECTS New Supply – Year 2010 Space (in Completion DateBuilding Location Micro Market sq.ft) (expected)Cynergy Prabhadevi Extended CBD 400,000 Q4 2010Peninsula Business Park Lower Parel Extended CBD 1,300,000 Q4 2010Wadia Plaza Worli Extended CBD 400,000 Q4 2010TCG Financial Centre Bandra Kurla Complex Alternate CBD 182,000 Q2 2011Cresenzo Bandra Kurla Complex Alternate CBD 577,000 Q4 2010Pooja Constructions Bandra Kurla Complex Alternate CBD 160,000 ReadySilver Uthopia Andheri East SBD 400,000 Q1 2011Rustomjee Aspire Sion SBD 124,000 ReadyIT Park, Ajmera Andheri East SBD 1,100,000 Q4 2010Supreme Chambers Andheri West SBD 240,000 ReadyAckruti Star Andheri East (MIDC) SBD 400,000 ReadyBoomerang Chandivali SBD 1,000,000 ReadyWestern Edge Borivali SBD 400,000 ReadyTimes Square Andheri Kurla Road SBD 589,000 Q1 2011Arena JVLR SBD 170,000 Q2 2011Ruby Dadar SBD 1,000,000 Q1 2011Viva Andheri SBD 160,000 Q1 2012Wealth Space Vidya Vihar/Ghatkopar (W) SBD 150,000 Q4 2011Futurex by Marathon Parel SBD 800,000 Q2 2011 (Phase I)Reliable Tech Park Airoli PBD 1,000,000 Q1 2011Mindspace SEZ Airoli PBD 600,000 ReadyNitco Business Park Thane PBD 170,000 Ready Source: BNP Paribas Real Estate - Research, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2010 I14I
    • GLOSSARYQ4: Quarter 4 of the financial year (October - November - December) CRR: Cash Reserve RatioAbsorption: Occupied Stock (n) – Occupied Stock (n-1); Where “n” is the specified Major Refurbishment: Building which has undergone structural alteration less than 5period (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 planningbox, 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 ofSuper 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 topassages, 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 analysisCompleted 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 theEPIP: 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. Prior15,000 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 afterwherever 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 theHard 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 upPre-lease: Space committed for lease before completion of construction area - carpet area ratio). Further it does not include attached premises such as parkingSpeculative 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 theCampus 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 andVacancy: 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 primey-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 forIT: Information Technology vacant for more than 5 years.ITES: Information Technology Enabled Services (includes various services ranging from Very good condition: High-performance premises of high quality.call centres, claims processing, medical transcription, e-CRM, SCM to back-office Existing state of repair: Low-performance premises that can be rented as they are.operations such as accounting, data processing, and data mining) To be renovated: Low performance premises that need renovation.Repo Rate: Rate that an eligible depository institution (such as a bank) is charged to Supply available within 1 year: All premises and buildings available within 1 yearborrow short term funds directly from the central bank through the discount window including the supply available immediately, new supply that has not been pre-let andReverse Repo Rate: Interest rate that a bank earns for lending money to the Reserve second hand supply that will be vacated definitively (notable terminated leases).Bank of India in exchange for government securities Take-up: Rental or sale of a property asset, finalised by the signature of a lease or a billSEC A, B, C & D Socio: Economic Classification; SEC A represents the highest propensity of sale including turnkey transactions and owner-occupier. The transaction is onlyto spend and SEC D represents the lowest propensity to spend. taken into account once any existing conditional clauses have been lifted.Sq.ft: Square Feet Vacancy rate: Ratio measuring the relationship between the supply immediately available and the existing stock.Sq.mt: Square MeterMn: Million Disclaimer: This report is released by BNP Paribas Real Estate & Infrastructure AdvisoryStamp Duty: Form of tax charged on instruments (written documents) requiring a Services and the information in it is dedicated to the exclusive use of its clients. Thephysical stamp (for government legality) to be attached to or impressed. report and the information contained in it should not be copied or reproduced withoutNew: Building built within the last 5 years. 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 its release but cannotRecent: Building less than 10 years old. be guaranteed. Please note the findings, projections, conclusions andSEZ: Special Economic Zone having special tax exemptions / incentives to corporate recommendations are based on information gathered in good faith from both primaryoccupiers and secondary sources, whose accuracy we are not always in a position to guarantee. BNP Paribas Real Estate & Infrastructure Advisory Services cannot be held responsibleBFSI: Banking & Financial Services Industry if, despite its best efforts, the information contained in the present report turns out toSLR: Statutory Liquidity Ratio be inaccurate or incomplete.FSI: Floor Space IndexMMRDA: Mumbai Metropolitan Region Development Authority CITY REPORT MUMBAI OFFICE MARKET - Q4 2010 I15I
    • . BNP Paribas Real Estate: Simplified joint stock company with capital of € 329,196,608 € - 692 012 180 RCS Nanterre - Code NAF 4110B - CE identification number FR 666 920 121 80 ABU DHABI HUNGARY SPAIN GREECE* SLOVAKIA* Al Bateen Area Alkotas u. 53. María de Molina, 54 Danos & Associates Modesta (Dr. Max Huber & Plot No. 144, W-11 H-1123 Budapest, 28006 Madrid 1, Eratosthenous Str. Partner Group) New Al Bateen Municipality Hungary Tel: +34-91-454 96 00 11635 Athens Heydukova 12-14INDIA Published by : Raja Kaushal - Managing Director, BNP Paribas Real Estate & Infrastructure Advisory Services Pvt. Ltd. Photo courtesy : Skyline - March 2011 Street 32 Tel.: +36 1 487 5501 Fax: +34-91-454 97 65 Tel: +30-210 7 567 567 811 08 BratislavaBNP PARIBAS REAL ESTATE P.O. Box 2742 Fax: +36 1 487 5542 Fax: +30-210 7 567 267 Tel.: +421-2-3240 8888& INFRASTRUCTURE ADVISORY Abu Dhabi, UAE UNITED KINGDOM Fax: +421-2-3214 4777SERVICES PVT. LTD. Tel.: +971-44 248 271 IRELAND 5 Aldermanbury Square JAPAN* Headquarters: 167, Quai de la Bataille de Stalingrad - 92867 Issy Les Moulineaux Cedex, Non contractual document - Research department Fax: +971-44 257 817 40 Fitzwilliam Place London EC2V 8HR RISA Partners SWITZERLAND* Dublin 2 Tel.: +44-20-7338 4000 5F Akasaka Intercity 1-11-44MUMBAI (HEAD OFFICE) Naef BELGIUM Tel: +353-1-66 11 233 Fax: +44-20-7430 2628 Akasaka, Minato-ku704, Level 7, MMTC House, C-22, Avenue Eugène-Pittard 14-16 Boulevard Louis Fax: +353-1-67 89 981 107-0052 TokyoBandra Kurla Complex, Bandra (E), Case Postale 30 Schmidtlaan 2 B3 ALBANIA* Tel: +81-3-5573 8011Mumbai - 400 051 1040 Brussels ITALY Danos & Associates Fax: +81-3-5573 8012 1211 Geneva 17Tel: +91 22 6138 8088 Tel: +32 2 646 49 49 Corsa Italia, 15/A Blvd. Deshmoret e Kombit Tel.: +41-22 839 39 39Fax: +91 22 6138 8089 Fax: +32 2 646 46 50 20122 Milan Twin Towers - Building 2 NETHERLANDS* Fax: +41-22 839 38 38 Tel: +39-02-58 33 141 11th Floor Holland Realty PartnersDELHI CZECH REPUBLIC Fax: +39-02-58 33 14 39 Tirana J.J. Viottastraat 33, UKRAINE*Upper ground floor, Unit No 7, Pobøežni 3 Tel.: +355-4-2280488 1071 JP AsteraMercantile House, 15 KG Marg, 186 00 Praha 8 JERSEY Fax: +355-4-2280192 Amsterdam, 2a Konstantinovskaya StreetNew Delhi 110001 Czech Republic Dialogue House Tel: +31-20-305 97 20 04071, KievTel: +91 11 4959 8800 Tel.: +420 224 835 000 PO Box 158 AUSTRIA* Fax: +31-20-305 97 21 Tel: +38-044-501 50 10Fax: +91 11 4959 8818 Fax: +420 222 323 723 Anley Street Dr. Max Huber & Partner Fax: +38-044-501 50 11 St Helier Dr. Karl-Lueger-Platz 5 NORTHERN IRELAND*BANGALORE DUBAI Jersey JE4 8RD 1010 Vienna Whelan Commercial Limited USA*Level 15, Concorde Block, Emaar Square Tel.: +44 (0)1 534 815 300 Tel: +43-1-513 29 39 0 Arthur House Cresa PartnersUB City, Vittal Mallya Road, Building No. 1, 7th Floor Fax: +44 (0)1 534 629 011 Fax: +43-1-513 29 39 14 41 Arthur Street 200 State StreetBangalore – 560001 P.O. Box 7233 Belfast BT1 4GB 13th FloorTel: +91 80 4030 0334 Dubai, UAE LUXEMBOURG BULGARIA* Tel.: +44-28-9044 1000 Boston, Massachusetts 02109Fax: +91 80 4030 0400 Tel: +971-44 248 271 Axento Building Danos & Associates Fax: +44-28-9033 2266 Tel.: +1-617-758 6000 Fax: +971-44 257 817 Avenue J.F. Kennedy 44 28, Hristo Botev Boulevard Fax: +1-617-742 0643 1855 Luxembourg Sofia RUSSIA* FRANCE Tel.: +352-34 94 84 Tel: +359-2-9532314 Astera Falcon Real EstateFor Queries / Comments 167, quai de la Bataille Fax: +352-34 94 73 Fax: +359-2-9532399 10, b.2 Nikolskaya Str. 570 Lexington Avenue de Stalingrad Moscow, 109012email at: 92867 Issy-les-Moulineaux POLAND CANADA* Tel/Fax: +7-495-925 00 05 32nd Floor Tel: +33-1-55 65 20 04 ul. Gorczewska 124 Cresa Partners New York, NY 10022info.india@bnpparibas.com Fax: +33-1-55 65 20 00 01-460 Warszawa Tel.: +1-617-758 6000 SERBIA* Tel.: +1-212 271-5445 Poland Fax: +1-617-742 0643 Danos & associates Fax: +1-212 271-5588 GERMANY Tel.: +48 22 533 40 03 6, Vladimira Popovica Street Goetheplatz 4 Fax: +48 22 533 40 04 CYPRUS* Office B31 *Alliances 60311 Frankfurt Danos & Associates 11000 Belgrade Tel.: +49-69-2 98 99 0 ROMANIA 35, I. Hatziosif Ave Tel.: +381-11-2600 603 Fax: +49-69-2 92 91 4 Union International Center 2027, Nicosia Fax: +381-11-2601 571 11 Ion Campineanu Street Tel.: +357-22 31 70 31 Sector 1 Fax: +357-22 31 70 11 Bucharest 010031 Tel: +40-21-312 7000 Fax: +40-21-312 7001