India Office Property Market Overview April 2015

Office Property Market Overview
INDIA
April - 2015

2 Research & Forecast Report | April 2015 | Colliers International
Contents
Marco Economic Overview 3
Mumbai Office Market Overview 4
Delhi Office Market Overview 6
Gurgaon Office Market Overview 8
NOIDA Office Market Overview 10
Chennai Office Market Overview 12
Bengaluru Office Market Overview 14
Kolkata Office Market Overview 16
Pune Office Market Overview 18

Office demand set
to improve
The Indian economy continued to see positive trends, with
Business Confidence Index marginally up by 20 basis points
in January 2015. India’s GDP recorded a 7.5% growth in the
October - December 2014; and the forecast is for the GDP
to expand by 7.8% in January to March 2015 quarter. In
addition, the WPI (Wholesale Price Index) inflation reached
its 10-year low at -2.06% in February 2015.
Both the economy and the office market turned the corner
in 2014 and are poised for further improvement in 2015.
For the commercial real estate sector, 2015 witnessed a
good start, with first quarter office absorption of 8.5 million
sq ft in the eight major metro cities in India, headed by
Bengaluru (3.82 million sq ft, including 1.74 million sq ft
pre-committed), NCR-Delhi, Gurgaon and NOIDA (1.48
million sq ft), Mumbai (1.33 million sq ft), Pune (0.89
million sq ft), Chennai (0.81 million sq ft) and Kolkata (0.22
million sq ft).
Office space absorption increased by 2.8% from last
quarter. Tenants from IT / ITeS and BFSI were the primary
sectors driving this demand. Within IT / ITeS, E-commerce
companies took up 52% of the total space absorbed. Select
micro markets in cities like Bengaluru, Mumbai and Noida
witnessed marginal increase in rental values in the range of
1% – 3% QoQ.
Colliers View
With an expanding economy, improving business sentiment
and increasing job creations, the momentum in demand for
office real estate is expected to stay. In response to tenant
demand, the strongest markets (namely Bengaluru and
Gurgaon) will witness development of new stock. However,
developer sentiment towards speculative construction of
office buildings is expected to remain cautious, and this in
turn will limit the risk of further overbuilding.
Return on Alternative Investments
Economic Barometer
Note:
 Estimates as per International Monetary Fund
 Wholesale Price Index (WPI)
 SBI interest rate < INR 1 crore Term Deposits for ≤ 1 Year
Research &
Forecast Report
India | Office
April 2015
Indicators 4Q 2014 1Q 2015
Gross Domestic
Product
7.50% 7.80%
1
Business
Confidence Index
56.20% 56.40%
Repo Rate 8.00% 7.50%
Reverse Repo Rate 7.00% 6.50%
Cash Reserve Ratio 4.00% 4.00%
Inﬂation (WPI)
2
0.11% -2.06%
Prime Lending Rate 10.00% - 10.30% 10.00% - 10.25%
Deposit Rate
3
8.00% - 9.05% 8.00% - 8.75%
Exchange Rates 4Q 2014 1Q 2015
INR - USD 63.33 62.36
INR - EURO 77.00 66.48
Parameters 4Q 2014 1Q 2015
QoQ
CHANGE
Gold 26,507 26,232 -1.04%
Silver 35,999 36,983 2.73%
Equity
(BSE Sensex)
27,499 27,957 1.67%
Realty Index 1,555 1,692 8.77%

Increasing demand
trend led by IT/
ITeS occupiers
Office absorption in Mumbai increased by 9% QoQ, from
1.22 million sq ft in 4Q 2014 to 1.33 million sq ft in 1Q 2015.
The IT/ITeS sector dominated the city’s office absorption
with over 57% (0.75 million sq ft) of the total absorption,
followed by BFSI with 0.38 million sq ft (28%) and pharma
with 0.07 million sq ft (5%). The maximum number of office
transactions were concluded in the western suburbs (0.54
million sq ft) including BKC, Andheri, Malad and Goregaon,
followed byNavi Mumbai (0.39 million sq ft), and the central
suburbs (0.25 million sq ft) including Vikhroli, Powai and
Kanjurmarg. This rise in demand is largely attributed to an
increase in the confidence of occupiers regarding overall
business growth in India and abroad.
In major office transactions during the quarter, E-clerx
took about 0.2 million sq ft in Mindspace SEZ by K Raheja
Corp located in Navi Mumbai. “Other major deals included,
Housing.com and Edelweiss, took up 0.13 and 0.10 million
sq.ft. at Nomura by Hiranandani at Powai and Kohinoor City
by Kohinoor Group at Kurla, respectively.”
1Q 2015 witnessed new supply of 0.6 million sq ft. The
projects accounting for this new supply were 0.2 million sq
ft of Lodha Supremus (located in I-Think Campus) by Lodha
Group; and 0.4 million sq ft of Century Greenspan (located
in Worli) developed by Century, an Aditya Birla Group
company. No new project was launched during the quarter
as developers were focusing to complete their existing
ventures, about 7.7 million sq ft of Grade A office supply is
available for fitout in Mumbai, among which majority of the
supply is located in the western suburbs (47%) including
BKC, Andheri (E), Malad and Goregaon/JVLR, followed by
Central Mumbai (16%) including Worli, Prabhadevi and
Lower Parel.
Rental Values
*Indicative Grade A rents in INR per SF per month
**Nariman Point, Ballard Estate & Fort
Research &
Forecast Report
Mumbai | Office
April 2015
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ YoY
CBD** 200 - 230 5% -7%
Worli/Prabhadevi 185 - 225 0% 2%
Lower Parel 145 - 190 0% 4%
BKC 225 - 320 0% 0%
Kalina 150 - 200 0% -9%
Goregaon / JVLR 100 - 110 0% 10%
Andheri East 80 - 130 0% -3%
Malad 80 - 100 0% 5%
Powai 120 - 130 4% 13%
Navi Mumbai 60 - 100 0% 22%
Thane / LBS 60 - 110 0% 13%
City Office Barometer
INDICATORS 1Q 2015 2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value

Despite a rise in demand, rental values remained
unchanged in most of the micro markets, except in CBD
and Powai where rents rose by 4% to 5% QoQ. Capital values
remained stable in all of the micro markets.
The New Development Plan of Mumbai 2014-34 was
unveiled by the MCGM (The Municipal Corporation of
Greater Mumbai). Development Plan 2034, which will
remain in place for 20 years, has suggested taking an area-
wise view on FSI, which may range from a minimum 2.5
to as much as 8 for areas closer to transport hubs (railway,
metro stations, etc.) or business districts.
Colliers View
For the last 4 consecutive quarters, there has been an
increase in the absorption of office real estate. This is likely
to continue on the back of an improving economy and
demand from IT/ITeS and BFSI sectors. The markets are
also witnessing a clear price segmentation with tenants
being less price sensitive in prime markets like CBD and
BKC. Developers are however averse to adding new stock
on speculative basis. These factors in the long run will result
in an upward pressure on rentals due to diminishing gap
between supply and demand.
Notes:
1. Office Market: The major business locations in Mumbai are the CBD (Nariman Point, Fort and Ballard Estate), Central Mumbai (Worli, Lower Parel and Parel), Bandra Kurla
Complex (BKC) and Andheri Kurla stretch. Powai, Malad and Vashi are the preferred IT/ ITES destinations, while Airoli at Navi Mumbai and Lal Bahadur Shastri Marg are
emerging as new office and IT/ITES submakets.
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.
Top 5 Transactions of the Quarter
Key Under Construction Projects
CLIENT BUILDING NAME AREA (SF) LOCATION LEASE / SALE
E-clerx Mindspace SEZ 200,000 Navi Mumbai Lease
Housing.com Nomura 130,000 Powai Lease
Edelweiss Kohinoor City 100,000 Kurla Sale
L&T infotech Mindspace SEZ 90,000 Navi Mumbai Lease
Capegemini Gigaplex 85,000 Navi Mumbai Lease
BUILDING NAME DEVELOPER AREA (SF) LOCATION POSSESSION
Seawood Grand Central Tower
I & II
L & T Infrastructure 1,350,000 Navi Mumbai 2015
Godrej BKC Godrej Group 1,200,000 BKC 2015
Kohinoor Square Kohinoor Group 800,000 Dadar 2015
Quarter Wise Absorption
Average Rental And Capital Value Trend
300
250
30,000
25,000
20,000
15,000
10,000
5,000
0
200
150
100
50
0
2.50
2.00
1.50
1.00
0.50
0.00
1Q2013
2Q2013
3Q2013
4Q2013
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
MillionSq.ftRentalValuesINRPerSFPerMonth
CaptialValuesINRPerSF
Forecast
1Q2008
1Q2009
1Q2010
1Q2011
1Q2012
1Q2013
1Q2014
1Q2015
1Q2016F
1Q2017F

Absorption
declined due
to shrink in
transaction size
Delhi grade A office leasing market in 1Q 2015 saw an
absorption of only 0.11 million sq. ft. Manufacturing sector
companies took about 34% (0.03 million sq ft) of this total
absorption followed by BFSI 19% and IT/ITeS 18%. Majority
of the transactions were concluded in CBD (Connaught
Place) (0.03 million sq ft) followed by Saket (0.02 million sq
ft) and Jasola (0.01 million sq ft).
There was also demand from Government and media sector
for small office space primarily in Central Delhi micro
markets. Major transactions during the quarter include the
lease of 14,000 sq ft office space by Anchor in TDI Tower at
Jasola, 13,000 sq ft by SMCC Construction in Salcon Rasvilas
at Saket and the lease of 10,000 sq. ft. by Motilal Oswal in
Tolstoy House located at Connaught Place.
The average transactions size in 1Q 2015 was around 6,000
sq ft which is lesser than the previous quarter average of
over 35,000 sq ft. This is the primary reason for overall lower
absorption numbers.
During the quarter approximately 0.14 million sq. ft. of
office space was added to the office market in Delhi. Key
projects contributing to this supply were commercial tower
on plot 2B by HT Group and commercial tower on plot 32B
by an Individual developer both located on Pusa Road and
Business Tower by Nagpal Builders located at Okhla Phase
II.
Rental Values
**Connaught Place
***Netaji Subhash Place
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ YoY
CBD** 185 - 450 0% 2%
Nehru Place 180 - 225 1% 1%
Saket 140 - 190 0% -6%
Jasola 95 - 130 0% 0%
NSP*** 65 - 75 0% 0%
Research &
Forecast Report
Delhi | Office
April 2015
Vacancy
Absorption
Construction
Rental Value
Capital Value

No new commercial grade A office space were launched
this quarter. Rents in Delhi remain stable in 1Q 2015 across
all the micro markets. There was a marginal increase of 1%
QoQ in Nehru Place. Similarly capital values were remained
stable across all the micro markets.
Colliers View
As the economy expands, we expect improvement in overall
leasing in coming quarters. However, the demand will
primarily come from the companies looking to locate near
Government offices. Less supply addition due to limited
land availability will keep the overall rents stable however
select premium building will continue to command
premium above market rates.
Anchor TDI Tower 14,000 Jasola Lease
SMCC Construction Salcon Rasvilas 12,500 Saket Lease
Motilal Oswal Tolstoy House 10,000 Connaught Place Lease
JDSU Infotech Park 9,348 Dundahera Lease
Reliance Corporate IT Park Gopal Das Building 8,250 Connaught Place Lease
RPS Infinia RPS Developer 1,000,000 Mathura Road 2015
NBCC Plaza NBCC Ltd. 350,000 Okhla 2015
Caddie Commercial Tower Caddie Hotel 100,000 Aerocity 2015
250
300
30,000
35,000
40,000
25,000
20,000
15,000
10,000
5,000
0
200
150
100
50
0
0.10
0.20
0.30
0.80
0.50
0.60
0.70
0.40
0.00
1Q2013
2Q2013
3Q2013
4Q2013
1Q2014
2Q2014
3Q2014
4Q2015
1Q2015
Notes:
1. Office Market: The commercial areas in New Delhi can be broadly classified into the CBD (Connaught Place), SBD Nehru Place, Bhikaji Cama Place, Netaji Subhash Place, Jasola
and Saket .
Forecast
1Q2008
1Q2009
1Q2010
1Q2011
1Q2012
1Q2013
1Q2014
1Q2015
1Q2016F
1Q2017F

Absorption dips
marginally by 6%
QoQ but solid
pipeline for 2Q
Gurgaon commercial real estate market remained active
in the first quarter of 2015. The city’s office absorption
was recorded at approximately 1.12 million sq ft, which is
about 6% lower than that of the previous quarter. IT/ITeS
and BFSI with 47% and 25% share, respectively were the
prime contributors to this demand. Apart from this, media
and entertainment, manufacturing, pharma, FMCG and
engineering sectors also leased large office spaces during
the quarter. A few notable transactions this quarter were the
0.12 million sq ft office lease by Ernst & Young in Unitech
Cyber Park located at Sector 39, 0.10 million sq ft by Arvato
in JMD Megapolis located at Sector 48 and 0.08 million sq ft
by Boston Consulting in Bestech Business Park located on
Sohna Road.
At the end of the quarter, the total available office supply
stood at 16 million sq ft. Areas with the highest available
supply were Golf Course Road Ext / Sohna Road (30%),
Manesar (25%), National Highway 8 (15%), Udyog Vihar
and Industrial Sectors (14%) and Golf Course Road (9%).
The city witnessed the completion of three small projects
this quarter, namely, Spaze Palazo (0.25 million sq ft) by
Spaze Group at Sector 69, JMD Empire (0.18 million sq ft)
by JMD Group at Golf Course Extension Road and Legends
Heights (0.25 million sq ft) by ILD at National Highway
8. Given the large vacant stock, developers continued to
refrain from adding speculative supply. Only Earth Group in
collaboration with AMB Group launched Earth SKY GATE at
Sector 88. It is a mixed-use development project of about 1.5
million sq ft, which will have retail, commercial, bank space
and restaurant components.
Research &
Forecast Report
Gurgaon | Office
April 2015
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ YoY
MG Road 100 - 145 0% 7%
DLF Cyber City (IT) 90 - 100 0% 20%
Golf Course Road 55 - 80 0% 17%
Institutional Sectors
(Sec 44, 32, 18)
55 - 95 0% 20%
Golf Course Road
Ext./Sohna Road
55 - 80 0% 17%
National Highway 8 50 - 150 0% 14%
Udyog Vihar &
Industrial Sectors
30 - 45 0% -12%
Manesar 40 - 45 0% 4%
Vacancy
Absorption
Construction
Rental Value
Capital Value

Rents and capital values in Gurgaon remained stable in 1Q
2015 across all the micro markets due to the large available
supply and low absorption witnessed during the quarter.
On the infrastructure front, the new state Government has
scrapped the decision to terminate the Kundli-Manesar-
Palwal (KMP) Expressway project, and instead has injected
fresh funds to the tune of INR 1,200 crores for completion
of the project. This project will be taken over by the Ministry
of Transport from Haryana Industrial and Infrastructure
Development Corporation (HSIIDC).
Colliers View
With the number of RFPs floating in the market, we
anticipate an increase in office absorption in the near future.
The Udyog Vihar and Institutional sectors will continue to
remain the most preferred office locations due to location
advantages and competitive rents. Rents are expected to
remain on the same levels due to the high vacancy levels
and robust under-construction developments in the
pipeline, especially in micro markets, such as the Southern
Peripheral Road and Golf Course Extension Road, in the
coming quarters.
Ernst & Young Unitech Cyber Park 125,000 Sector 39 Lease
Boston Consulting Bestech Business Park 80,000 Sohna Road Lease
Nagarro Tower of Arc 70,000 Udyog Vihar Lease
HSBC Plot No. 80 67,000 Udyog Vihar Lease
TCS Vatika Business Park 62,000 Sohna Road Lease
100
140
120
8,000
10,000
14,000
12,000
6,000
4,000
2,000
0
80
60
40
20
0
0.40
0.80
1.20
1.60
2.00
0.00
1Q2013
2Q2013
3Q2013
4Q2013
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
Business Club AIPL 700,000
Golf Course Extension
Road
2015
Parsvnath IT Park Technicia Parsvnath Developers 695,000 Sohna Road 2015
Unitech Infospace, Gurgaon
Phase 2 Building 7
Unitech 450,000 NH-8 2015
Notes:
1. Office Market: The prime business locations in Gurgaon are MG Road, Golf Course Road, Cyber City and Udyog Vihar. Manesar on the outskirts of Gurgaon is also emerging as
the city’s new office destination.
Forecast
1Q2008
1Q2009
1Q2010
1Q2011
1Q2012
1Q2013
1Q2014
1Q2015
1Q2016F
1Q2017F

Absorption
declined in 1Q
2015, despite few
large transactions
The NOIDA office market witnessed a major downturn
this quarter, in terms of absorption. The office market
witnessed about 0.5 million sq ft of office absorption, which
is almost half of 4Q 2014’s absorption figure of 1 million
sq ft. Expansion and relocation were the primary demand
drivers this quarter. IT / ITeS continued to be the dominant
sector leasing office space in NOIDA. There was also some
demand from manufacturing companies who leased smaller
office spaces in locations like Sector 62 and 59. The most
significant leasing transaction for 1Q 2015 took place in
Institutional Sector 62, with Kronos leasing 70,000 sq ft in
Okaya Blue. Jubilant Industries signed a 67,000-sq ft lease
at Logix Technopark and Lava Mobile took 60,000 sq ft in a
stand-alone building in Sector 58.
The construction scenario showed signs of improvement,
and the city witnessed the completion of over 1.3 million sq
ft of prime office space. The projects that were completed
this quarter include World Trade Tower by Sapphire Group
measuring over 1 million sq ft and located in Sector 16 and
Stellar Business Park (0.24 million sq ft) by Stellar Group
located in Sector 135 (Expressway).
At present, approximately, 13 million sq ft of Grade A office
space is available for lease or sale in the NOIDA office
market. Approximately 51% of this vacant stock is located
in Institutional Sectors, including locations like Sector 16A,
Sector 62 and Sectors 125 to 142. About 48% is available in
the Commercial Sector (Sector 18). Overall rise in vacancy
Research &
Forecast Report
NOIDA | Office
April 2015
Rental Values
**Sector 18
***Sector 16A, 62, 125-142
****Sector 124, 57-60, 63-75
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ YoY
Commercial
Sectors**
90 - 110 -2% 3%
Institutional
Sectors (Non IT)***
55 - 110 3% 18%
Institutional
Sectors (IT)***
45 - 65 5% 5%
Industrial Sector
(IT)****
35 - 55 5% 15%
Vacancy
Absorption
Construction
Rental Value
Capital Value

levels was noticed during the quarter due to less absorption
and addition of new supply.
In a major office sale transaction, Kotak Mahindra Group
and private equity fund New Vernon Capital Llc. have jointly
bought Green Boulevard, an information technology (IT)
park at Noida in the National Capital Region for Rs 270
crore from 3C Company. The property is about 700,000 sq ft
located in Sector 62.
Colliers View
We anticipate an increase in absorption in the coming
quarters in sectors along NOIDA expressway and Sectors 62
to 65. In the Institutional Sectors, demand will be primarily
from midscale IT / ITeS companies, whereas NOIDA
expressway will see demand from large corporations. An
upward pressure on rents is expected in the Institutional
Sectors due to limited supply addition. Meanwhile, other
markets will remain stable.
Kronos Okaya Blue 70,000 Sector 62 Lease
Jubilant Industries Logix Techno Park 67,000 Expressway Lease
Lava Mobile Individual Building 60,000 Sector 58 Lease
Genpact Stellar 135 60,000 Expressway Lease
Oxford Stellar IT Park 20,000 Sector 62 Lease
Delhi One The 3C Company 2,000,000 DND Flyway 2015
Mist Avenue Bhasin Group 1,000,000 Sector 143 2015
Assotech Business Cresterra Assotech 500,000 Sector 135 2015
70
90
80
8,000
10,000
14,000
12,000
6,000
4,000
2,000
0
60
50
40
30
10
20
0
0.40
0.20
0.60
0.80
1.00
1.20
0.00
1Q2013
2Q2013
3Q2013
4Q2013
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
MillionSq.ft.RentalValuesINRPerSFPerMonth
Notes:
1. Office Market: NOIDA market is comprised of sectors broadly classified as institutional, industrial and commercial sectors. Institutional sectors include sec 16A, 62 and125-142,
industrial sectors include Sec 1-9, 57-60 and 63- 65 while sector 18 is the most developed commercial sector.
Forecast
1Q2009
1Q2010
1Q2011
1Q2012
1Q2013
1Q2014
1Q2015
1Q2016F
1Q2017F

IT/ITeS remains
the prime driver
with 53% of total
absorption
Chennai 1Q 2015 absorption stood at 0.8 million sq ft as
compared to the previous quarter’s 1.33 million sq ft. The
IT/ITES sector accounted for 53% of the total absorption
followed by manufacturing at 17% and pharma at 16%.
The BFSI, engineering, FMCG, media & entertainment and
logistics sectors were also represented in the deals closed
during the period. Approximately 50% of total absorption
was in the CBD followed by OMR (16%) and Ambattur
(11%). Notable transactions include the Income Tax
Department taking the entire BSNL Building of 0.19 million
sq ft located in the CBD. Apart from this, Ford took 0.06
million sq ft in SP Infocity at OMR and Bank Bazaar took
0.05 million sq ft in India Bulls located at Ambattur.
Cautious market sentiments restricted the new supply to
only 0.40 million sq ft. Projects contributing this supply
were Lalah Tower (0.28 million sq ft) by Ramaniyam on
Nelson Manickam Road; Sri Balaji Complex (0.06 million
sq ft) by Shanthi Builders at Royapettah; and AGR Platina
(0.05 million sq ft) by an independent developer at
Ekkaduthangal. The total available supply for lease / fit-
out stood at 10.7 million sq ft. By micro-market, OMR (IT
corridor) accounted for 34% of this total available supply,
followed by Ambattur 28% and the CBD 27%. No new
projects / parts of projects were launched in Chennai during
the quarter. Lack of new completed supply has led to a
decline in vacancy rates especially on the OMR stretch.
Weak absorption continued to keep pressure on rents and
capital values in 1Q 2015, resulting in a marginal decline by
1% in OMR I (Madhya Kailash - Perungudi - Toll Gate I). All
Research &
Forecast Report
Chennai | Office
April 2015
Rental Values
**OMR I (Madhya Kailash – Perungudi- Toll gate I)
***OMR II (Thoraipakkam – Sholinganallur) & OMR III (Semmencherry – Siruseri)
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ YoY
CBD 60 - 80 0% 0%
Guindy 50 - 60 0% 4%
Ambattur 20 - 30 0% 0%
OMR I** 45 - 60 -1% 1%
OMR II & III*** 25 - 45 0% 0%
GST Road 35 - 40 0% 0%
Vacancy
Absorption
Construction
Rental Value
Capital Value

other micro-markets remained stable; this is also attributed
to the huge vacant stock, especially on the OMR stretch.
During this quarter, the Chennai Government has
allocated INR500 and INR750 crore for the Chennai Mega
City Development Mission and the Integrated Urban
Development Mission, respectively for 2015 - 2016. Apart
from this, the sum of INR420 crore has been allocated for the
Tamil Nadu Urban Road Infrastructure Fund. Civic bodies
are targeting the overall infrastructure development of the
city through these funds.
Colliers View
The demand for office space is expected to gain further
momentum in line with the revival in economic growth
projected for the medium term. However, the high
vacancy level, coupled with upcoming supply is likely to
restrain the rent growth particularly in micro-markets
like Thoraipakkam, Sholinganallur and Semmenchery to
Siruseri over the next few quarters.
Income Tax Department BSNL Buidling 197,000 CBD Lease
Ford SP Infocity 69,000
Old Mahabalipuram
Road
Lease
Bank Bazaar India Bulls 50,000 Ambattur Lease
Citi Bank TRIL 44,000
Old Mahabalipuram
Road
Lease
Vasan Eye care Hospital Harini Towers 40,000 CBD Lease
SP InfoCity, OMR Phase 2 Shapoorji Pallonji Group 1,200,000
Old Mahabalipuram
Road
2015
Chennai One (BPO Park) Phase 2 ETL Developers 1,100,000
Old Mahabalipuram
Road
2015
Estancia Block B2 L&T & Arun Excello 469,000 GST Road 2015
Notes:
1. Office Market: Prime office properties in Chennai are located in four principal sub-markets: the CBD, SBD (Guindy, Manpakkam,Velachery) and the PBD (Old Mahaballipuram
Road (OMR).
105
9,000
10,500
7,500
6,000
4,500
3,000
1,500
0
90
75
60
45
15
30
0
0.4
0.8
1.2
1.6
2.0
2.4
0
1Q2013
2Q2013
3Q2013
4Q2013
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
MillionSq.ftRentalValuesINRPerSqFtPerMonth
CapitalValuesINRPerSq.ft
1Q2008
1Q2009
1Q2010
1Q2011
1Q2012
1Q2013
1Q2014
1Q2015
1Q2016F
1Q2017F
Forecast

Momentum
continues with
over 2.3 million
sq ft of office
absorption
It was another solid performance for the Bengaluru office
market in 1Q 2015, with office absorption totalling 2.31
million sq ft. Apart from this, about 1.74 million sq ft of
office space was pre-committed for build to suit by MNCs
like Amazon, Wells Fargo, Arista Networks and WSP
Consultants. IT / ITeS commanded the absorption with
about 69% (1.6 million sq ft), followed by BFSI sector 14%
and Retail 6%. SBD locations, such as Bannerghatta Road,
Koramangala, Malleswaram, Yamalur, J P Nagar and Outer
Ring Road - Marathahalli to KR Puram, saw maximum
traction with about 1.4 million sq ft office absorption, trailed
by PBD locations like Whitefield, Hosur Road and Outer
Ring Road - KR Puram to Hebbal, where more than 0.45
million sq ft was leased during the quarter.
Bengaluru recorded new supply of over 2.1 million sq ft
in 1Q 2015, 23% higher than that of the previous quarter.
Projects constituting this supply were Purva Gainz by
Purvankara Projects and Prestige Trinity Center by Prestige
Group both located at Hosur Road, Divyasree Technopolis
- Block by Divyasree at Yamalur, Global Village – SEZ by
Tanglin Group at Mysore Road and Pritech - Block 14 by
Primal Group at ORR – Marathahalli – Sarjapur Road.
The total available stock for fit-outs was approximately 11
million sq ft. EPIP Zone / Whitefield accounted for 39%
of the total stock, followed by Outer Ring Road (24%) and
Electronic City (18%).
Research &
Forecast Report
Bengaluru | Office
April 2015
Rental Values
**Northern part of ORR - KR Puram till Hebbal
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ YoY
CBD 90 - 130 0% 16%
Outer Ring Road
(Marathalli -
Sarjapur)
55 - 63 0% 7%
Outer Ring Road
(North)**
53 - 60 0% 0%
Bannerghatta Road 50 - 60 0% 0%
EPIP Zone/
Whitefield
28 - 36 0% 0%
Hosur Road 25 - 40 0% 8%
Electronic City 26 - 33 0% 7%
Vacancy
Absorption
Construction
Rental Value
Capital Value

The quarter witnessed many new project launches during
the quarter, such as Embassy Tech Village, HVP Crest,
Mantri Agara Project, Vaishnavi Project and Primal Park
(RGA Tech Park) – Blocks 3 and 4. All these projects are
expected to add more than 4 million sq ft of Grade A office
space between 2016–17 in the city’s inventory.
Rental values were remained stable across Bengaluru,
however capital values posted an average rise of 2% QoQ
across the city, except CBD, Hosur Road and Bannerghatta
Road where capital values were remained stable.
In one of the major real estate transactions, Brigade Group
and GIC Singapore jointly bought Hindustan Unilever
Ltd. (HUL)’s prime 26 acres of land located in Whitefield
to develop an IT Special Economic Zone. The property is
located in a prime location with connectivity to two IT hubs,
namely, Whitefield and Outer Ring Road.
Colliers View
Overall, the Bengaluru office market is in the “sweet
spot” in terms of supply-and-demand fundamentals.
About 2 million sq ft of office space is expected to witness
completion next quarter, out of which about 0.2 million sq ft
is already committed. This steady increase in development
activity and greater domestic and foreign investor interest
in office market should result in additional occupancy and
rent growth. Select micro markets located along Outer Ring
Road (Marthalli - Sarjapur) and EPIP Zone / Whitefield
will continue to remain preferred micro markets among
occupiers due to their strategic locations.
Amazon
Constellation Business
Park
500,000 Outer Ring Road Lease
Misys World Technology Centre 150,000 Outer Ring Road Lease
Nokia Karle Town Centre 131,640 Outer Ring Road Lease
Epsilon Karle Town Centre 131,640 Outer Ring Road Lease
GCC Services India Pvt Ltd World Technology Centre 131,211 Outer Ring Road Lease
Maple Tree - 1 Phase Adamas Builder 900,000 Outer Ring Road 2015
Bagmane Constellation Business
Park - Virgo Block
Bagmane Developers 800,000 Outer Ring Road 2015
RGA Tech Park Primal Realty 800,000 Sarjapur Road 2015
8,000
10,000
12,000
6,000
4,000
2,000
0
70
60
50
40
30
10
20
0
2
1
3
4
5
6
7
0
1Q2013
2Q2013
3Q2013
4Q2013
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
CapitalValuesINRPerSq.ft
Notes:
1. Office Market: Prime office properties in Bengaluru can be divided into three principal sub-market— CBD/Oﬀ CBD (MG Road, Millers Road, Vittal Mallya Road etc.) the SBD
(Banerghatta Road & Outer Ring Road (ORR)) and PBD (Hosur Road, EPIP Zone, Electronic City and Whitefield).
Forecast
1Q2008
1Q2009
1Q2010
1Q2011
1Q2012
1Q2013
1Q2014
1Q2015
1Q2016F
1Q2017F

Transaction
volumes picks up
in 1Q 2015
During 1Q 2015, Kolkata office market showed signs of
improvement with over 0.22 million sq ft of absorption
compared to the previous quarter’s absorption of only 0.15
million sq ft. IT / ITeS occupiers topped the chart with over
36% of the total, followed by manufacturing 29% and BFSI
13%. Major transactions during the quarter included the
lease of 0.05 million sq ft office space by Siemens VAI in
Godrej Water Side and the lease of 0.02 million sq ft by NIIT
in Eco Space. Sector V / New Town remained the preferred
micro market among occupiers, with 79% share in the total
absorption. A few small deals were also concluded in the
CBD and SBD micro markets. Developers continued to
remain watchful in launching new projects because many
of the large office spaces are currently struggling with leases
/ sales due to the limited new entrants and the absence of
expansion plans of existing occupiers.
Similarly, the city did not witness any major completion
during the quarter due to cautious approach from
developers and low absorption levels seen in the past few
quarters. Meanwhile, PS Group completed its Non-IT
building, PS-Arcadia (0.1 million sq ft), located in Camac
Street area, which is part of CBD.
Rents across Kolkata remained stable during the quarter,
with a marginal decline recorded in Sector V / New Town
micro market due to large availability of supply and limited
demand pipeline. Similarly, capital values declined in Sector
V / New Town and PBD micro markets in the range of 2–3%
QoQ. The rest of the micro markets remained stable.
Research &
Forecast Report
Kolkata | Office
April 2015
Rental Values
**Park Street, Camac Street, Chowranghee Road, AJC Bose Road
***EM Bypass, Topsia, Ruby
****Salt Lake, New Town, Rajarhat
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ YoY
CBD** 85 - 115 0% -7%
SBD*** 65 - 75 0% -7%
Sector V 40 - 45 -8% -11%
PBD**** 34 - 35 0% -3%
Vacancy
Absorption
Construction
Rental Value
Capital Value

Colliers View
The overall market sentiment improved in the first quarter.
However, developers are not very optimistic about the
continuation of this absorption trend. The city is expected
to see very limited supply in the form of small- to medium-
sized projects as developers are focusing on finishing
projects with small- to medium-sized floor plates, which
are relatively easy to lease. Rentals are expected to remain
stable primarily because of existing vacancy and low
absorption base.
Siemens VAI Godrej Water Side 46,769 Sector V Lease
NIIT Eco Space 18,000 New Town Lease
PWC South City Pinacle 13,777 Sector V Lease
Religare PS Arcadia Central 10,000 Camac Street Lease
Honda Motors Eco Space 9,167 New Town Lease
Mani Twin Mani Group 1,800,000 Rajarhat 2015
Technopolis 2 Forum Projects 1,200,000 Bantala 2015
Magnacon Infinity Group 740,000 Salt Lake 2015
Notes:
1. Office Market: The major business locations in Kolkata are CBD (Park Street, Camac Street, Chowranghee Rd, AJC Bose Rd), East Kolkata (EM Bypass, Topsia, Ruby), Salt Lake/
Sector V and New Town / Rajarhat.
8,000
10,000
12,000
6,000
4,000
2,000
0
120
100
80
60
20
40
0
0.50
0.40
0.30
0.20
0.10
0.60
0.70
0.80
0.90
1.00
0.00
1Q2013
2Q2013
3Q2013
4Q2013
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
CapitalValuesINRPerSq.ft.
1Q2008
Forecast
1Q2009
1Q2010
1Q2011
1Q2012
1Q2013
1Q2014
1Q2015
1Q2016F
1Q2017F

IT / ITeS driving
the city office real
estate
Renewals and expansions by IT / ITeS companies continued
to drive the Pune office market in 1Q 2015. However, the
city’s office absorption was recorded at approximately
0.89 million sq ft, which is 40% lower than the previous
quarter’s absorption. Nagar Road and Airport Road /
Pune Station continued to remain as the most preferred
locations by major occupants, each with about 24% of the
total absorption, followed by Hinjewadi and Hadapsar /
Fursungi, each with about 16%.
Occupiers from the IT / ITeS sector were the primary
contributors to this demand, taking up more than 90% of
the total absorption. This was followed by other sectors like
Logistics, Pharma and Manufacturing, accounting for over
7% of the total absorption. A number of large-floor plate
deals were concluded this quarter, like the 0.13 million sq
ft lease by Vodafone India in Business @ Mantri located
on Nagar Road. In addition, Amdocs took 0.08 million sq
ft in Magarpatta Cybercity Tower 3, and more than 0.05
million sq ft each was taken by Rockwell Automation and
Access Health Services in Embassy - Mississippi located at
Hinjewadi.
About 4 million sq ft was available for lease in Pune market,
of which 24% was located on the Airport Road / Pune
Station, 18% Nagar Road and 16% in Hinjewadi. The city
witnessed limited new supply, and only about 0.64 million
sq ft of Grade A supply was added to the city’s Grade A
inventory. Projects that contributed to this new supply were
Marvel Alaina and Marvel Edge, both by Marvel Group, at
Koregaon Park and Viman Nagar, respectively.
Despite low absorption, developers like Vascon launched
Research &
Forecast Report
Pune | Office
April 2015
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ YoY
Baner 45 - 55 0% 0%
Bund Garden 50 - 65 0% 0%
Airport road/pune
station
45 - 75 0% 7%
Aundh 45 - 60 0% 0%
Senapati Bapat
Road
55 - 85 0% 0%
Bavdhan 35 - 45 0% 0%
Kalyani Nagar 45 - 60 0% 0%
Nagar Road 40 - 60 0% 0%
Hinjewadi 34 - 45 3% 3%
Hadapsar/Fursungi 38 - 65 0% 7%
Kharadi 34 - 65 2% 2%
Vacancy
Absorption
Construction
Rental Value
Capital Value

Platinum Square (0.04 million sq ft) at Viman Nagar, Nyati
launched Nyati Emporius (0.03 million sq ft) at Baner
and MSR Group launched a 0.07 million sq ft project
at Sangamwadi. These projects are currently under
construction and are expected to be completed in 2016.
The rents for prime office property remained stable across
all major micro markets, except in Hinjewadi and Kharadi,
where rents rose by 2–3% QoQ. Capital values remained
on the same level compared to that of the previous quarter
across Pune.
Colliers View
The office market of Pune will continue to remain upbeat
due to strong fundamentals. IT/ITeS will remain as the
key occupier in the coming quarters of 2015. Vacancy is
expected to decline due to lesser amount of new supply and
increase in absorption. Rents are expected to inch up in
medium term.
Vodafone India Business @ Mantri 133,379 Nagar Road Lease
Amdocs
Magarpatta Cybercity
Tower-3
88,000 Hadapsar Lease
Rockwell Automation Embassy - Mississippi 51,516 Hinjewadi Lease
Access Health Services Embassy - Mississippi 51,116 Hinjewadi Lease
HCL Business Bay 46,000 Yerwada Lease
SP Infocity Building 5 Shapoorji Pallonji Group 800,000 Phursungi 2015
Commerzone Building 8 K Raheja Corp 420,000 Yerwada 2015
Acendas Phase II Acendas 615,000 Hinjewadi 2015
Notes:
1. Office Market: The prime office sub-markets of Pune include CBD (Deccan Gymkhana, Bund Garden Road, Senapati Bapat Road & Camp), Oﬀ CBD (Aundh, Airport Road and
Kalyani Nagar) and the eastern corridor, along with Nagar Road and Kharadi, which have emerged as a preferred location for financial and IT/ITES companies.
6,000
7,000
8,000
5,000
4,000
3,000
2,000
1,000
0
80
70
60
50
20
10
40
30
0
0.30
0.60
0.90
1.20
1.50
1.80
0.00
1Q2013
2Q2013
3Q2013
4Q2013
1Q2014
2Q2014
4Q2014
1Q2015
3Q2014
CapitalValuesINRPerSq.ft.
1Q2008
1Q2009
1Q2010
1Q2011
1Q2012
1Q2013
1Q2014
1Q2015
1Q2016F
1Q2017F
Forecast

About Colliers International
colliers.com
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6 continents
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199
EMEA: 108
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billion in
annual revenue
1.7
billion square feet
under management
16,300
professionals
Primary Authors:
Surabhi Arora
Associate Director | Research
+91 124 456 7500
surabhi.arora@colliers.com
Sachin Sharma
Manager | Research
Amit Oberoi I National Director
Valuation & Advisory Services & Research
For Oﬃce Services:
Mumbai: George Mckay I South Asia Director
george.mckay@colliers.com
Delhi / NCR: Vikas Kalia | National Director
vikas.kalia@colliers.com
Bengaluru: Goutam Chakraborty I Director
goutam.chakraborty@colliers.com
Pune: Rishav Vij I Senior Associate Director
rishav.vij@colliers.com
Chennai: Kaushik Reddy I Director
kaushik.reddy@colliers.com
Kolkata: Swapan Dutta I Senior Associate Director
swapan.dutta@colliers.com
Colliers International
Technopolis Building, 1st Floor,
DLF Golf Course Road,
Sector 54, Gurgaon - 122 002
TEL +91 124 456 7500
502
2015

India Office Property Market Overview April 2015

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