There was a significant increase in leasing inquiries in Bangalore during Q4 2010, however the volume of office space transactions witnessed a sharp decline compared to the previous quarter. Approximately 0.8 million square feet of office space was leased during this quarter, compared to 3.7 million square feet in Q3 2010. Rental and capital values increased marginally in the Central Business District due to limited availability, while values faced pressure in suburban and peripheral areas due to high vacancy rates from new construction. Approximately 1.1 million square feet of new office space was added in suburban and peripheral areas during the quarter.
The Delhi office market showed stability in Q4 2010. Property prices marginally improved in the CBD areas like Connaught Place due to demand from banking and financial services. Vacancy rates in the NCR region stabilized around 30% due to availability of investment grade office space in Gurgaon and Noida. There was growing interest from financial institutions and private equity funds to invest in ready commercial properties in Gurgaon and Noida. It is expected that some large ticket purchase transactions may occur in the next 3-6 months.
The Bangalore real estate market saw transaction volumes of approximately 3.6 million square feet in Q2 2010, indicating positive recovery. For the first half of 2010, transaction volumes were 5.6 million square feet compared to 4.6 million square feet in 2009. Major transactions occurred in IT parks on the southeastern part of Outer Ring Road. Peripheral areas continue to report high vacancy due to excess supply, while vacancy levels in the CBD and SBD are expected to decline due to rising demand. The year is projected to see around 8 million square feet of transactions in Bangalore.
o Property occupiers continue their shift from Central Business District (CBD) to Alternative Business District (ACBD) and Extended Business Districts (ECBD).
o New Supply to be added this quarter which is expected to put downward pressure on rents and capital values.
o With increase in FSI on certain commercial buildings, the gap between demand and supply is increasing further.
Demand to pick up in the next quarter resulting in higher transaction volumes However, the leasing and the capital values to remain stable.
The Knowledge Report Beijing Office 2 Q2011serstad
The Beijing office property market continued its strong performance in 2Q11, with high leasing activity, tight supply of available space, and double-digit rental growth. Demand remained solid from multinational and domestic companies seeking new premises. The overall vacancy rate fell to a historic low of less than 5%. Looking ahead, the market is expected to remain resilient in 2H11, though supply from new projects entering the market may ease tight conditions. Rentals are forecast to continue rising due to limited vacancies, while some demand may shift to emerging submarkets with more affordable rents.
The document is a quarterly report on the Mumbai office market from Q4 2010. It provides the following key points:
- The office market has responded favorably to corrections in rental values across Mumbai, with notable transactions and absorption of new stock. However, supply continues to outstrip demand.
- Industries sensitive to real estate costs like retail have been actively looking to expand as rents and capital values have become more affordable.
- The Central Business District continues to see movement of large occupiers to alternate business districts offering better infrastructure and amenities at lower prices. Rental values in the CBD remained stable between 220-250 INR/sqft/month over the past 6 quarters.
The document provides a market research report on the Indian road industry. It summarizes that the Indian government has made major investments to develop the country's extensive road network through initiatives like the National Highway Development Programme. The report analyzes private equity investment, road construction projects and timelines, and estimates billions of dollars in future government spending on roads and bridges. It also outlines the roles of various government agencies and recent regulations governing the country's road transport sector. The 30-page report was published in March 2011 and offers statistical data, analysis of industry trends, and profiles of key public and private players involved in Indian road construction.
The document summarizes a research report on Malaysia's property market in 2010. Key points:
1) Property transaction values hit a record RM107.44 billion in 2010, surpassing RM100 billion for the first time, driven by an 11% rise in transactions to 376,583.
2) Residential prices increased 6.7%, the strongest pace in 13 years, while commercial property occupancy rates remained weak due to high supply.
3) The report maintains an overweight rating on the property sector, favoring developers over investment companies, expecting continued record transactions and accelerating price growth in 2011.
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
The Delhi office market showed stability in Q4 2010. Property prices marginally improved in the CBD areas like Connaught Place due to demand from banking and financial services. Vacancy rates in the NCR region stabilized around 30% due to availability of investment grade office space in Gurgaon and Noida. There was growing interest from financial institutions and private equity funds to invest in ready commercial properties in Gurgaon and Noida. It is expected that some large ticket purchase transactions may occur in the next 3-6 months.
The Bangalore real estate market saw transaction volumes of approximately 3.6 million square feet in Q2 2010, indicating positive recovery. For the first half of 2010, transaction volumes were 5.6 million square feet compared to 4.6 million square feet in 2009. Major transactions occurred in IT parks on the southeastern part of Outer Ring Road. Peripheral areas continue to report high vacancy due to excess supply, while vacancy levels in the CBD and SBD are expected to decline due to rising demand. The year is projected to see around 8 million square feet of transactions in Bangalore.
o Property occupiers continue their shift from Central Business District (CBD) to Alternative Business District (ACBD) and Extended Business Districts (ECBD).
o New Supply to be added this quarter which is expected to put downward pressure on rents and capital values.
o With increase in FSI on certain commercial buildings, the gap between demand and supply is increasing further.
Demand to pick up in the next quarter resulting in higher transaction volumes However, the leasing and the capital values to remain stable.
The Knowledge Report Beijing Office 2 Q2011serstad
The Beijing office property market continued its strong performance in 2Q11, with high leasing activity, tight supply of available space, and double-digit rental growth. Demand remained solid from multinational and domestic companies seeking new premises. The overall vacancy rate fell to a historic low of less than 5%. Looking ahead, the market is expected to remain resilient in 2H11, though supply from new projects entering the market may ease tight conditions. Rentals are forecast to continue rising due to limited vacancies, while some demand may shift to emerging submarkets with more affordable rents.
The document is a quarterly report on the Mumbai office market from Q4 2010. It provides the following key points:
- The office market has responded favorably to corrections in rental values across Mumbai, with notable transactions and absorption of new stock. However, supply continues to outstrip demand.
- Industries sensitive to real estate costs like retail have been actively looking to expand as rents and capital values have become more affordable.
- The Central Business District continues to see movement of large occupiers to alternate business districts offering better infrastructure and amenities at lower prices. Rental values in the CBD remained stable between 220-250 INR/sqft/month over the past 6 quarters.
The document provides a market research report on the Indian road industry. It summarizes that the Indian government has made major investments to develop the country's extensive road network through initiatives like the National Highway Development Programme. The report analyzes private equity investment, road construction projects and timelines, and estimates billions of dollars in future government spending on roads and bridges. It also outlines the roles of various government agencies and recent regulations governing the country's road transport sector. The 30-page report was published in March 2011 and offers statistical data, analysis of industry trends, and profiles of key public and private players involved in Indian road construction.
The document summarizes a research report on Malaysia's property market in 2010. Key points:
1) Property transaction values hit a record RM107.44 billion in 2010, surpassing RM100 billion for the first time, driven by an 11% rise in transactions to 376,583.
2) Residential prices increased 6.7%, the strongest pace in 13 years, while commercial property occupancy rates remained weak due to high supply.
3) The report maintains an overweight rating on the property sector, favoring developers over investment companies, expecting continued record transactions and accelerating price growth in 2011.
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
This document provides information about Savills' recoveries and receivership services. It discusses planning for properties in receivership, including maintaining commercial use or pursuing redevelopment. Savills offers joined-up property management, asset management, and development management services to maximize returns. They can help with issues around the property sale process such as refinancing or portfolio sales. Preparation and proper due diligence are important to realize the best value from distressed properties.
o Ascending corporate occupier demand
o Surge in demand for land in Mumbai
o Upcoming commercial projects to be mixed use development or residential development.
o Creation of Mumbai Development Fund (MDF) to finance mega infrastructure projects in the city.
A Guide to SlideShare Analytics - Excerpts from Hubspot's Step by Step Guide ...SlideShare
This document provides a summary of the analytics available through SlideShare for monitoring the performance of presentations. It outlines the key metrics that can be viewed such as total views, actions, and traffic sources over different time periods. The analytics help users identify topics and presentation styles that resonate best with audiences based on view and engagement numbers. They also allow users to calculate important metrics like view-to-contact conversion rates. Regular review of the analytics insights helps users improve future presentations and marketing strategies.
Each month, join us as we highlight and discuss hot topics ranging from the future of higher education to wearable technology, best productivity hacks and secrets to hiring top talent. Upload your SlideShares, and share your expertise with the world!
Not sure what to share on SlideShare?
SlideShares that inform, inspire and educate attract the most views. Beyond that, ideas for what you can upload are limitless. We’ve selected a few popular examples to get your creative juices flowing.
SlideShare is a global platform for sharing presentations, infographics, videos and documents. It has over 18 million pieces of professional content uploaded by experts like Eric Schmidt and Guy Kawasaki. The document provides tips for setting up an account on SlideShare, uploading content, optimizing it for searchability, and sharing it on social media to build an audience and reputation as a subject matter expert.
• Developers are upbeat because of increasing demand for Grade \'A\' office space from the IT/ITeS sector in the SBD and PBD
• Vacancy levels in PBD expected to rise due to increase in the stock by around 5 million.
• Vacancy in CBD and SBD expected to decrease due to lack of supply
The Kolkata office market remained subdued in 2014 with total absorption of around 1.66 million square feet, similar to 2013 levels. Demand was led by the BFSI, IT/ITES, and construction sectors. Limited supply addition of 1.14 million square feet and below-average absorption kept vacancy levels stable. Grade A office rents declined 7% year-over-year across micromarkets except one. Capital values decreased 16% year-over-year in peripheral locations but increased 3% in the CBD due to domestic investor demand. The market is expected to remain stagnant in 2015 until policy level issues are addressed.
Kolkata Office Market Overview Jan 2015Sachin Sharma
The Kolkata office market remained subdued in 2014 with total absorption of around 1.66 million square feet, similar to 2013 levels. Demand was led by the BFSI, IT/ITES, and construction sectors. Limited supply addition of 1.14 million square feet and below-average absorption kept vacancy levels stable. Grade A office rents declined 7% year-over-year across micromarkets except one. Capital values decreased 16% year-over-year in peripheral locations but increased 3% in the CBD due to domestic investor demand. The market is expected to remain stagnant in 2015 until policy level issues are addressed.
J Kumar Infraprojects is one of the leading construction companies in India with nearly three decades of experience. It has a current order backlog of Rs. 13 billion diversified across various segments like transportation, civil works, irrigation and piling. The company is well positioned to benefit from the large infrastructure projects underway in India. Kotak Securities initiates coverage on J Kumar with a "Buy" rating and a target price of Rs. 260 per share given its strong growth outlook and attractive valuations.
IRB Infrastructure Developers Ltd reported higher than expected Q2FY12 results. Revenues grew 50.1% to Rs. 735.88 crore due to increased construction revenues, though margins fell due to higher construction contribution. PAT grew 8.9% to Rs. 110.86 crore due to double-digit interest cost rise and higher taxes. The company maintained its 20% growth guidance for FY12 and expects to bag new projects worth Rs. 4,500 crore in FY12. Toll collections are rising across projects and the order backlog remains strong.
Delhi witnessed strong office leasing growth in 2014, with absorption nearly doubling compared to 2013. The IT/ITeS sector accounted for the majority of demand. Limited new supply was added in 2014, reducing overall vacancy slightly. Rents remained stable across most markets except for a 2% increase in Jasola and 1% decrease in Connaught Place. The outlook for 2015 is continued recovery in demand and stable rents, with new supply helping to maintain equilibrium, though quality buildings may command premium rates.
Delhi witnessed strong office leasing growth in 2014, with absorption nearly doubling compared to 2013. The IT/ITeS sector accounted for the majority of demand. Limited new supply was added in 2014, reducing overall vacancy slightly. Rents remained stable across most markets except for a 2% increase in Jasola and 1% decrease in Connaught Place. The outlook for 2015 is continued recovery in demand and stable rents, with new supply helping maintain equilibrium.
Mumbai Real Estate Analysis 2019-2020 by HomebookingindiaHome Booking India
Real estate is one of the major contributors to India’s GDP, and the market saw several progressive policy reforms in the last couple of years. While it’s true that most of these reforms were taken back in 2017-2018, the impacts were seen largely in 2019-2020
Bangalore has experienced rapid growth fueled by its position as a major tech hub. The city's population is projected to reach 14 million by 2021, up from the current 9.6 million, driven by the booming IT sector which adds over 100,000 jobs annually. Residential demand has grown significantly as the population expands. In 2011, over 20,600 residential units were absorbed in Bangalore with over 44,000 units launched, though the market may now be oversupplied. Major infrastructure projects like the metro rail aim to support continued growth by improving transportation.
Bangalore has experienced rapid growth fueled by its strong IT sector, becoming one of the fastest growing cities in India. It has a population of 9.6 million currently that is projected to reach 14 million by 2021. This growth has led to a strong residential real estate market with over 20,000 units absorbed in 2011. While the Outer Ring Road, Whitefield, and Bangalore North areas have been the most promising micro-markets, future growth is expected in Old Madras Road and Bangalore East. Upcoming infrastructure projects such as expansion of the metro rail system aim to support the city's continued development.
We expect tenant favourable conditions to attract
domestic companies and Information Technology
majors to expand operations mainly in the New
Town, Rajarhat and Sector V micromarkets. Rents
are likely to register a 3-5% dip in Sector V and
peripheral areas of New Town and Rajarhat as
property owners are likely to remain flexible on rents
to boost occupancy in their buildings.
The Bangkok office market report for Q2 2011 found that:
- Metrics for the office market remained stable compared to Q1 2011, with around 100,000 sqm of new office space entering the CBD market in H2 2011.
- Occupancy rates were largely unchanged from Q1 2011 as businesses awaited the election results and the economic situation in Europe.
- Rental rates remained stable across all grades of office buildings due to a lack of significant movement in the market.
- Future demand drivers include increasing investment in manufacturing and a potential rebound in tourism, but Q3 2011 will be pivotal as the election results are determined.
Why should you invest in VTP Blue WatersNitin Kumar
Township Codename Blue Waters is a premium residential project in Mahalunge, Pune. With a starting price of just over Rs 30 lakhs.
For more info :
https://www.squareyards.com/pune-residential-property/vtp-blue-waters/10459/project
https://www.squareyards.com/property-in-pune
Atlanta ended the fiscal year 2012 with an order book exceeding Rs. 24 billion, over 4 times expected revenues for fiscal year 2013. This positions the company for strong growth going forward. Three new road projects worth Rs. 27 billion were won in fiscal year 2012 and are key drivers of anticipated growth. Two operational build-operate-transfer road projects are also expected to contribute improved cash flows in fiscal years 2013 and 2014. The company remains attractively valued given its portfolio of road projects and other infrastructure and real estate developments.
• Increased absorption of commercial and IT real estate space
• The CBD of Delhi sees a significant drop in the vacancy rates
• Excessive supply leads to stabilized rental values
HDIL has successfully raised 250 million USD through a share issuance to part finance the second phase of an airport project and acquire new land. The equity dilution could pressure stock prices in the near term. However, faster execution of the airport project and winning new land redevelopment projects could boost share prices. While a planned increase in development limits could impact land prices, analysts believe HDIL is well positioned to execute successful new projects and see long term demand for real estate in Mumbai remaining strong. The analyst maintains an "Accumulate" rating on HDIL stock.
This document provides information about Savills' recoveries and receivership services. It discusses planning for properties in receivership, including maintaining commercial use or pursuing redevelopment. Savills offers joined-up property management, asset management, and development management services to maximize returns. They can help with issues around the property sale process such as refinancing or portfolio sales. Preparation and proper due diligence are important to realize the best value from distressed properties.
o Ascending corporate occupier demand
o Surge in demand for land in Mumbai
o Upcoming commercial projects to be mixed use development or residential development.
o Creation of Mumbai Development Fund (MDF) to finance mega infrastructure projects in the city.
A Guide to SlideShare Analytics - Excerpts from Hubspot's Step by Step Guide ...SlideShare
This document provides a summary of the analytics available through SlideShare for monitoring the performance of presentations. It outlines the key metrics that can be viewed such as total views, actions, and traffic sources over different time periods. The analytics help users identify topics and presentation styles that resonate best with audiences based on view and engagement numbers. They also allow users to calculate important metrics like view-to-contact conversion rates. Regular review of the analytics insights helps users improve future presentations and marketing strategies.
Each month, join us as we highlight and discuss hot topics ranging from the future of higher education to wearable technology, best productivity hacks and secrets to hiring top talent. Upload your SlideShares, and share your expertise with the world!
Not sure what to share on SlideShare?
SlideShares that inform, inspire and educate attract the most views. Beyond that, ideas for what you can upload are limitless. We’ve selected a few popular examples to get your creative juices flowing.
SlideShare is a global platform for sharing presentations, infographics, videos and documents. It has over 18 million pieces of professional content uploaded by experts like Eric Schmidt and Guy Kawasaki. The document provides tips for setting up an account on SlideShare, uploading content, optimizing it for searchability, and sharing it on social media to build an audience and reputation as a subject matter expert.
• Developers are upbeat because of increasing demand for Grade \'A\' office space from the IT/ITeS sector in the SBD and PBD
• Vacancy levels in PBD expected to rise due to increase in the stock by around 5 million.
• Vacancy in CBD and SBD expected to decrease due to lack of supply
The Kolkata office market remained subdued in 2014 with total absorption of around 1.66 million square feet, similar to 2013 levels. Demand was led by the BFSI, IT/ITES, and construction sectors. Limited supply addition of 1.14 million square feet and below-average absorption kept vacancy levels stable. Grade A office rents declined 7% year-over-year across micromarkets except one. Capital values decreased 16% year-over-year in peripheral locations but increased 3% in the CBD due to domestic investor demand. The market is expected to remain stagnant in 2015 until policy level issues are addressed.
Kolkata Office Market Overview Jan 2015Sachin Sharma
The Kolkata office market remained subdued in 2014 with total absorption of around 1.66 million square feet, similar to 2013 levels. Demand was led by the BFSI, IT/ITES, and construction sectors. Limited supply addition of 1.14 million square feet and below-average absorption kept vacancy levels stable. Grade A office rents declined 7% year-over-year across micromarkets except one. Capital values decreased 16% year-over-year in peripheral locations but increased 3% in the CBD due to domestic investor demand. The market is expected to remain stagnant in 2015 until policy level issues are addressed.
J Kumar Infraprojects is one of the leading construction companies in India with nearly three decades of experience. It has a current order backlog of Rs. 13 billion diversified across various segments like transportation, civil works, irrigation and piling. The company is well positioned to benefit from the large infrastructure projects underway in India. Kotak Securities initiates coverage on J Kumar with a "Buy" rating and a target price of Rs. 260 per share given its strong growth outlook and attractive valuations.
IRB Infrastructure Developers Ltd reported higher than expected Q2FY12 results. Revenues grew 50.1% to Rs. 735.88 crore due to increased construction revenues, though margins fell due to higher construction contribution. PAT grew 8.9% to Rs. 110.86 crore due to double-digit interest cost rise and higher taxes. The company maintained its 20% growth guidance for FY12 and expects to bag new projects worth Rs. 4,500 crore in FY12. Toll collections are rising across projects and the order backlog remains strong.
Delhi witnessed strong office leasing growth in 2014, with absorption nearly doubling compared to 2013. The IT/ITeS sector accounted for the majority of demand. Limited new supply was added in 2014, reducing overall vacancy slightly. Rents remained stable across most markets except for a 2% increase in Jasola and 1% decrease in Connaught Place. The outlook for 2015 is continued recovery in demand and stable rents, with new supply helping to maintain equilibrium, though quality buildings may command premium rates.
Delhi witnessed strong office leasing growth in 2014, with absorption nearly doubling compared to 2013. The IT/ITeS sector accounted for the majority of demand. Limited new supply was added in 2014, reducing overall vacancy slightly. Rents remained stable across most markets except for a 2% increase in Jasola and 1% decrease in Connaught Place. The outlook for 2015 is continued recovery in demand and stable rents, with new supply helping maintain equilibrium.
Mumbai Real Estate Analysis 2019-2020 by HomebookingindiaHome Booking India
Real estate is one of the major contributors to India’s GDP, and the market saw several progressive policy reforms in the last couple of years. While it’s true that most of these reforms were taken back in 2017-2018, the impacts were seen largely in 2019-2020
Bangalore has experienced rapid growth fueled by its position as a major tech hub. The city's population is projected to reach 14 million by 2021, up from the current 9.6 million, driven by the booming IT sector which adds over 100,000 jobs annually. Residential demand has grown significantly as the population expands. In 2011, over 20,600 residential units were absorbed in Bangalore with over 44,000 units launched, though the market may now be oversupplied. Major infrastructure projects like the metro rail aim to support continued growth by improving transportation.
Bangalore has experienced rapid growth fueled by its strong IT sector, becoming one of the fastest growing cities in India. It has a population of 9.6 million currently that is projected to reach 14 million by 2021. This growth has led to a strong residential real estate market with over 20,000 units absorbed in 2011. While the Outer Ring Road, Whitefield, and Bangalore North areas have been the most promising micro-markets, future growth is expected in Old Madras Road and Bangalore East. Upcoming infrastructure projects such as expansion of the metro rail system aim to support the city's continued development.
We expect tenant favourable conditions to attract
domestic companies and Information Technology
majors to expand operations mainly in the New
Town, Rajarhat and Sector V micromarkets. Rents
are likely to register a 3-5% dip in Sector V and
peripheral areas of New Town and Rajarhat as
property owners are likely to remain flexible on rents
to boost occupancy in their buildings.
The Bangkok office market report for Q2 2011 found that:
- Metrics for the office market remained stable compared to Q1 2011, with around 100,000 sqm of new office space entering the CBD market in H2 2011.
- Occupancy rates were largely unchanged from Q1 2011 as businesses awaited the election results and the economic situation in Europe.
- Rental rates remained stable across all grades of office buildings due to a lack of significant movement in the market.
- Future demand drivers include increasing investment in manufacturing and a potential rebound in tourism, but Q3 2011 will be pivotal as the election results are determined.
Why should you invest in VTP Blue WatersNitin Kumar
Township Codename Blue Waters is a premium residential project in Mahalunge, Pune. With a starting price of just over Rs 30 lakhs.
For more info :
https://www.squareyards.com/pune-residential-property/vtp-blue-waters/10459/project
https://www.squareyards.com/property-in-pune
Atlanta ended the fiscal year 2012 with an order book exceeding Rs. 24 billion, over 4 times expected revenues for fiscal year 2013. This positions the company for strong growth going forward. Three new road projects worth Rs. 27 billion were won in fiscal year 2012 and are key drivers of anticipated growth. Two operational build-operate-transfer road projects are also expected to contribute improved cash flows in fiscal years 2013 and 2014. The company remains attractively valued given its portfolio of road projects and other infrastructure and real estate developments.
• Increased absorption of commercial and IT real estate space
• The CBD of Delhi sees a significant drop in the vacancy rates
• Excessive supply leads to stabilized rental values
HDIL has successfully raised 250 million USD through a share issuance to part finance the second phase of an airport project and acquire new land. The equity dilution could pressure stock prices in the near term. However, faster execution of the airport project and winning new land redevelopment projects could boost share prices. While a planned increase in development limits could impact land prices, analysts believe HDIL is well positioned to execute successful new projects and see long term demand for real estate in Mumbai remaining strong. The analyst maintains an "Accumulate" rating on HDIL stock.
The occupiers’ demand remained cautious regarding expansion plans in almost all cities amid global economic crisis. The six major cities ie; Mumbai, NCR, Bengaluru, Chennai, Kolkata and Pune recorded an overall absorption of around 6.93 million sq ft which is approximately 15% less than 1Q 2013. Top ranking city for highest absorption rate continues to be Bangalore, Mumbai and NCR region with levels of 2.5 mln sq. ft., 1.41 mln sq. ft. and 1.45 mln sq. ft respectively.
In the first quarter of 2010:
- Occupancy rates fell slightly in the CBD and Outer CBD while rising in the Northern Fringe.
- Rental rates remained stable in the CBD but fell more in the Northern Fringe, likely a correction from rises in 2009.
- Limited new supply is expected until the end of 2010, with most in the CBD, which could maintain current rental and occupancy rates despite political tensions dampening demand.
- Demand is driven by industrial growth and exports, which have started to recover but European financial problems could impact future growth. Higher FDI in industry versus services also impacts office demand.
The document analyzes India's top business districts for real estate investment from 2013-2017. It identifies Mumbai, Delhi-NCR, Bengaluru, Chennai, Hyderabad, and Pune as the major office markets in India due to factors like a large talent pool, infrastructure, and business-friendly policies. Within these cities, Central Mumbai, SBD West in Mumbai, and certain districts in Hyderabad and Pune are expected to offer the highest annual investor returns of up to 19% during the forecast period due to strong demand and rental growth prospects in these areas. The report provides a ranking of 33 business districts across the six cities based on their expected rental growth, capital appreciation, and overall investor returns over the
Colliers International Research has just released the Asia Pac Office Market Overview 3Q 2012. The report provides real estate office market trends in Asia Pac region. The office sector in the Asia Pacific region continued to be challenging in 3Q 2012 with a slowing economic growth and the unresolved European debt crisis; market participants are holding positive views on market outlook but confidence is not as strong as the previous quarter. Looking ahead, the prospective trend of office rents in most cities will remain positive in the next 12 months, despite a substantial supply projected to enter the market in individual cities.
Similar to City Report Bangalore Office Market Q4 2010 (20)
2. 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.in
In 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
3. CONTENTS
Summary p. 3
Macroeconomic Context p. 4
Bangalore Map p. 5
Central Business District (CBD) p. 6
Secondary Business District (SBD) p. 7
Periphery Business District (PBD) p. 8
Rental Values & Capital Values p. 9
Key Projects p. 9
Key Transactions p. 10
Glossary p. 11
CITY REPORT
BANGALORE OFFICE MARKET - Q4 2010
4. SUMMARY
There has been significant increase in leasing enquiries in Q4 Bangalore is currently witnessing a significant number of
of 2010. However, inspite of a steady rise in number of infrastructure projects being implemented, and are under
enquiries, the volume of space transacted in the region various stages of development. The Government of
witnessed a sharp decline as compared to the previous Karnataka has undertaken the development of 7 flyovers on
quarter. During this quarter Bangalore witnessed a the Outer Ring Road to provide seamless connectivity to the
cumulative transaction of approx. 0.8 mn sq.ft as compared developing peripheral regions and ease traffic flow to the
to approx. 3.7 mn sq.ft. in Q3 2010. existing SBD regions. Once completed these projects are
likely to have a positive impact on the demand for real estate
The achievable values exhibited a mixed trend. While, as
within the region as a whole.
there was a marginal increase in rental and capital values
within the CBD, there was an increased pressure on the The Phase I of Metro is progressing as per schedule and trial
achievable values within the suburban and peripheral run is expected to commence in the last week of January
micro-markets. Restricted availability of space options 2011. Planning and land acquisition for the second phase is
across the CBD with a steady demand resulted in firming up currently underway and the construction is expected to
of rentals within the micro-market. On the other hand, the commence shortly. Similar to other cities the ongoing
ongoing construction activity within the SBD and PBD micro- construction activity is likely to have a negative impact on
markets with ready availability of large volume of office the demand for surrounding development during the short
space has led to increased vacancy levels in these micro- term. However in the long run, the projects in these regions
markets. are likely to benefit from the initiatives.
During this quarter, approx. 1.1 mn sq.ft of additional space During the past few quarters, Bangalore has witnessed an
was added to the existing inventory across the SBD and PBD increased demand for IT SEZ space with many blue-chip
areas. At the same time, a total stock of approx. 10 mn sq.ft of companies actively looking at SEZ space. However, currently
investment grade office space is currently under various there is a limited supply of ready to move SEZ space in the
stages of construction across the city and is likely to be region. This scenario is however likely to change with
added to the existing stock by the end of the next year i.e. Q4 significant volume of supply likely to be added in the SBD and
2011. The SBD alone is likely to witness additional supply of PBD areas of Bangalore by mid 2012.
approx. 5 mn sq.ft of Grade A office space during the coming
Looking forward, the rental and capital values are expected
year. Given the existing availability of ready stock with
to rise marginally in the CBD area. On the other hand the
stagnant demand, some of the developers have slowed down
achievable values are likely to be impacted in the SBD areas
the pace of construction in their on-going projects. However,
such as Bannerghatta Road, Jaya Nagar and JP road due to
most of these projects are expected to be completed by end
ongoing construction activity of metro rail during the short
of 2011.
term. Alternatively, based on the growing interest for
additional space from the Blue-chip companies, the rentals
in PBD are expected to remain stable over the next few
quarters.
CITY REPORT
BANGALORE OFFICE MARKET - Q4 2010 I3I
5. CRR & SLR MACROECONOMIC CONTEXT
35
GDP growth moderates on account of unanticipated
30
factors
25
Percent
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 India's 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 unanticipated
Percent
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 in
Percent
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
BANGALORE OFFICE MARKET - Q4 2010 I4I