India office property market overview 3Q 2012

663 views

Published on

Colliers International has released a market report “India Office Property Market Overview, October 2012”. The report gives an overall macroeconomic overview followed by latest real estate updates and trends in each city through supply and demand, rental and vacancy as well as market prognosis for 2012 onwards. Highlights include, cautious occupier demand and ample supply kept rental values stable across major office markets. Fewer transactions were recorded in markets like Chennai, Bangalore, Pune and Kolkata however; Mumbai and NCR witnessed increased activity in terms of leasing quarter on quarter. Looking ahead, rental values are predicted to remain stable in the near future.

Published in: Real Estate
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
663
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

India office property market overview 3Q 2012

  1. 1. OfficeProperty Market OverviewINDIAQUARTERLY UPDATE | OCTOBER | 2012Accelerating success.
  2. 2. 3Q 2012 | OFFICEResearch & forecast reportSYDNEY CENTRAL BUSINESS DISTRICTresearch & forecast ReportIndia office market MACRO ECONOMIC OVERVIEW ECONOMIC INDICATORS • India’s GDP growth has slowed to a 3 year low recorded at 5.3% in the April-June Gross Domestic Product at Factor Cost quarter of the current fiscal. The wholesale 10.0% 9.0% price index reached 7.81 per cent in 8.0% September, and 7.55 per cent in August 2012 7.0% 6.0% this year much above the RBI’s comfort level. 5.0% 4.0% 3.0% • As the inflation remained higher, the central 2.0% bank did not provide any repo rate cut this 1.0% 0.0% quarter. However, in September 2012, the Jan - Mar 09 Apr - Jun 09 Jul - Sep 09 Oct - Dec 09 Jan - Mar 10 Apr - Jun 10 Jul - Sep 10 Oct - Dec 10 Jan - Mar 11 Apr - Jun 11 Jul - Sep 11 Oct - Dec 11 Jan - Mar 12 Apr - Jun 12 ECONOMIC BAROMETER RBI did reduced the (CRR) Cash Reserve Ratio by 25 basis points to induce immediate Sep-11 Sep-12 liquidity in the market in its mid year policy FDI in Real Estate review. Earlier, in July 2012, the RBI also 16,000 REPO RATE 8.50% 8.00% reduced its SLR (Statutory Liquidity 14,000 Requirement) by 1%. 12,000 REVERSE REPO 7.00% 7.00% 10,000 RATE 8,000 INR Crore CRR 6.00% 4.50% • Foreign direct investment (FDI) in India was 6,000 around $1.76 billion in July 2012. Sectors 4,000 which received large FDI inflows were 2,000 INFLATION 9.78% 7.81% 0 services, pharmaceuticals, construction and 2005 - 06 2006 - 07 2007 - 08 2008 - 09 2009 - 10 2010 - 11 2011-12 April -Jun 12 PRIME LENDING Rate 10.00% - 10.75% 10.00% - 10.50% power. DEPOSIT RATE (<1 YEAR) 7.75% - 9.50% 8.00% - 9.25% • In 3Q 2012, the Indian Rupee remained under Foreign Ex- pressure and closed at 54.31 to 1.00 USD on 120 BSE Sensex & Realty Index change 47.55 54.31 15th Sep 2012. The INR further weekend 115 INR - USD against Euro and close at INR 71.30 to 1.00 110 105 Euro. 100 INR- Euro 65.60 71.30 95 • The new Finance Minister P Chidambaram 90 85 has taken a slew of reform measures such as 80Return on Alternative Investments diesel price hike, cap on the number of 2-Jul-12 14-Jul-12 27-Jul-12 9-Aug-12 22-Aug-12 4-Sep-12 17-Sep-12 subsidised cooking gas cylinders per family, Sep-11 Sep-12 YoY % liberalising foreign holding norms in aviation, * Rebase to 100 BSE Sensex Realty Index Change multi-brand retail, non-news broadcasting Gold 27,750 31,925 15.05% and power exchanges sectors, and divesting 120 Exchange Rates its stake in five companies. However, most of 115 SILVER 63,359 63,188 -0.27% these reform measures faced strong 110 opposition and implementation of these 105 EQUITY (BSE 100 measures is still uncertain. 95 SENSEX) 16,876 18,542 9.87% 90 REALTY INDEX 1,799 1,734 -3.61% 85 80 1-Jul-12 14-Jul-12 27-Jul-12 9-Aug-12 22-Aug-12 4-Sep-12 17-Sep-12 Note : As on 15th of September, 2011 and September, 2012 USD Euro * Rebase to 100 Source: Colliers International India Researchwww.colliers.com
  3. 3. INDIA | 3Q 2012 | OFFICE MUMBAI AVAILABLE Supply in Prime Areas • Approximately 9.4 million sq ft of commercial Grade ‘A’ office space was available for fit- Goregoan / JVLR Kalina Worli / Prabhadevi 8% 1% Powai 1% out in 3Q 2012. More than 65% of this total 4% Malad available space was concentrated in Andheri 5% Thane / LBS 22% East, Thane/LBS Marg and Lower Parel. Navi Mumbai 6% CBD • Project launched this quarter includes “One 1% BKC” by Wadhwa Developers at Bandra- Kurla-Complex. This Project constitutes Lower Parel 19% approximately 1.2 million sq ft of Grade ‘A’ Andheri East 24% office space and expected to be completed by BKC 9% 2Q 2015. • In 3Q 2012, Grade ‘A’ new supply added upMUMBAI to approximately 1.2 million sq ft. Project or 3Q 2012 GRADE ‘A’ AND GRADE ’B’ part of project contributing to this new supply RENTAL VALUES was “The Capital” by Wadhwa Developers atCITY OFFICE BAROMETER Bandra-Kurla-Complex. 300 250 2Q 2012 3Q 2012 • Absorption in Mumbai remained upbeat 200 during the surveyed period and a few large 150 INR Per Sq ft Per Month VACANCY floor plates deals were concluded. Despite 100 increased absorption, average rents for grade ABSORPTION 50 ‘A’ office premises remained stable in almost 0 all of the micro-markets. 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 RENTAL VALUE • Looking ahead, rental values are expected Grade A Grade B to remain stable as substantial under construction supply in the pipeline is expected to enter the market in the near future. GRADE ‘A’ AVERAGE RENTAL VALUE • This quarter the LBS Marg flyover has prime office space rental trend become operational, which is a part of a 245 Forecast crucial Santacruz-Chembur Link Road. The 420 210 565 meter long and 17 meter wide flyover is 370 320 175 expected to decongest the overall traffic by 270 helping more than 50,000 commuters daily. 220INR per Sq ft per Month 140 INR per Sq ft per Month 170 105 120 70 70 20 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 3Q2012 2Q2012 35 0 CBD Andheri East Malad BKC 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012F 4Q2012F 1Q2013F 2Q2013F 3Q2013F Lower Parel Navi Mumbai Powai Worli / Prabhadevi Goregaon Kalina Thane / LBS / JVLR MARKET TRANSaCTIONS CLIENT building name AREA LOCATION TRANSACTION (Sq. Ft.) TYPE Ceva Logistics The Qube 18,540 Andheri (E) Lease Cipla Peninsula Business Park 250,000 Lower Parel Lease Delta Corp. FCH House 55,000 Lower Parel Lease Rediffusion Indiabulls Finance Centre 30,000 Lower Parel Lease Tata AIG Peninsula Business Park 32,000 Lower Parel Lease Technip KTI Boomerang 56,000 Andheri (E) Lease Source: Colliers International India Research Colliers International | p. 3

×