City Report - Delhi Office Market Q3 2010

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• 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

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City Report - Delhi Office Market Q3 2010

  1. 1. CITY REPORT DELHI OFFICE MARKET Q3 2010
  2. 2. BNP Paribas Real Estate All the buildings blocks In India our specialists bring you our expertise in Transaction Advisory, Valuation, Consulting. With our international scope and on-the-ground presence, you’ll find the perfect partner that can ensure the success of your real estate project. With BNP Paribas Real Estate, all the pieces come together. Your contact in India: Bangalore: +91 80 4030 0334 - Mumbai: +91 22 6138 8088 - Delhi: +91 11 4959 8800 info.india@bnpparibas.com www.realestate.bnpparibas.com BNPParibasImmobilier–13boulevardduFortdeVaux,75017Paris–FranceSASaucapitalde225205616€-RCSParis692012180–CodeNAF4110B BNP Paribas Real Estate and Infrastructure Advisory Services Pvt. Ltd
  3. 3. Summary p. 4 Macroeconomic Context p. 5 Delhi Map p. 6 Central Business District (CBD) p. 7 Alternate Central Business District (Alternate CBD) p. 8 Secondary Business District (SBD) p. 9 Periphery Business District (PBD) p. 10 Rental Values p. 11 Glossary p. 13Key Transactions p. 14Key Projects p. 15 CONTENTS Capital Values p. 12 CITY REPORT DELHI OFFICE MARKET - Q3 2010
  4. 4. 4I I SUMMARY The Q3 of 2010 has shown increase in absorption for both commercial and IT real estate space in the NCR region of Delhi. The overall demand for commercial office space has also improved and will show improvement in the Q4 2010 as many corporate plan to finalize the space before the end of the year. The CBD area has a vacancy level of 5% compared to 12% of Q1 2010 for Grade A projects. This has been mainly due to absorption from Banking and Financial services. There is a demand from large business group to move from CBD to Alternate CBD of Jasola and Nehru Place. Similarly, there is a renewed interest from investors to invest in these areas as well. The PBD of Gurgaon and Noida witnessed increased level of activity both in terms of sale and leasing. Both these districts have shown availability of high quality projects at affordable rentals. Even though the absorption has improved in Gurgaon and Noida, the rental values will remain stable in the near future , due to excessive supply. While the existing stock is unevenly distributed between the two markets, the future scenario shows a more even distribution of stock. Prospective tenants will have more than 6 million sq ft of future SEZ office space in Gurgaon and Noida combined - 3.3 million sq ft in Gurgaon and 2.7 million sq ft in Noida. Increase in absorption of commercial / IT space CITY REPORT DELHI OFFICE MARKET - Q3 2010
  5. 5. 5I I CITY REPORT DELHI OFFICE MARKET - Q3 2010 Repo Reverse Repo Repo & Reverse Repo Rate 7 6 3 Percent 1 SLR CRR CRR & SLR 30 20 10 5 Percent 0 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Mar-08 Nov-09 Jan-10 Mar-10 Gross Domestic Product (GDP) Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 9.30% 8.80% 8.80% 7.90% 7.60% 5.30% 5.80% 6.10% Q3 2007 Q4 2007 Q3 2009 7.90% Q4 2009 6.00% Wholesale Price Index (WPI) 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Source: Confederation of Indian Industries Q1 2010 8.60% Apr-10 May-10 Jul-10 22-May-09 22-Jun-09 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 Sep-10 15 25 20-May-10 20-Jun-10 27-Jul-10 20-Aug-10 16-Sep-10 2 4 5 0 Jul-10 Q2 2010 8.80% 2-Jul-10 DLF Limited 20,285 17% 4,110 2% Major Real Estate Companies in India Sales (In INR / In million) Profits (In INR / In million) Q3 2010 Q2 2010 Q on Q Change % Q3 2010 Q2 2010 Q on Q Change % Unitech 8,286 -22% 1,800 -3% India Bulls 4,337 25% 1,336 31% Sobha Developers 3,156 35% 343 72% Peninsula Land 1,483 -17% 500 28% Parsvnath Developers 2,528 -23% 318 82% Pheonix 404 10% 183 21% Omaxe Limited 2,529 40% 217 69% Mahindra Lifespace 679 31% 145 70% Anantraj 1,034 28% 459 5% Ackruti City 1,765 -8% 421 31% Ansal Properties 2,508 27% 369 -38% 5,414 1,745 4,257 589 1,226 638 443 890 247 1,624 550 3,197 228 221 23,690 4,186 3,544 368 MACROECONOMIC CONTEXT The Central Bank takes a more sophisticated approach: maintains status quo on CRR & SLR 1.329 480 6,445 1,740 1,955 579 The Reserve Bank's Review of Monetary Policy on July 27, 2010 expressed concerns over the global outlook. Indicators of economic activity in advanced economies continue to suggest that the recovery is slowing and that the second half of 2010 will post slower growth than the first, although expectations have generally not been revised downwards since end-July. Under the Liquidity Adjustment Facility (LAF), the RBI has increased the repo rate by 25 basis points from 5.75% to 6.0% and also hiked the reverse repo rate by 50 basis points from 4.5% to 5.0% with immediate effect. This will help maintain financial conditions conducive to sustaining growth, according to the RBI. India’s GDP during the quarter starting July 2010, rose to 8.8%. Although some of this is attributable to a favourable base effect, the growth rate indicates that the recovery is consolidating and the economy is rapidly converging to its trend rate of growth. Inflation remains the dominant concern in macroeconomic management. The main priority of the Reserve Bank is to curb the ongoing inflation, which peaked at 11% in the month of August. Interest rates have been increased by the banks to contain the inflation, but it could slow down the growth of the Indian economy in the coming months. But even though there has been a rise in the interest rates, there hasn't been much change in the distribution of loans, the Indian customer is hardly affected with the hiked interest rates. Overall, even as the global environment continues to be a cause for caution, the big picture has not worsened significantly since July. India has replaced the US as the second most important Foreign Directive Investment (FDI) destination for transnational corporations during 2010- 2012, according to a survey conducted UNCTAD. In its latest 'World Investment Prospects Survey 2010-2012', the United Nations Conference on Trade and Development said transnational corporations remain buoyant about investment prospects in China, India and Brazil. According to the survey, India is the most important FDI destination next only to China.
  6. 6. DELHI MAP 6I I GrandTrunkRd Swarna Jayanthi Park BadliRd NH-10 NH-10 Ring Rd Raja Garden DDA Park Nihal Vihar Vishnu Garden OuterRingRd Rajouri Garden Shivaji Marg Pursa Forest Patel Rd Jail Rd Cariappa Marg Palam Rd M all Rd 205 Delhi Rd Shivaji Marg Mehrauli Najafgarh Rd MehrauliNajafgarhRd Palam Vihar Rd RailwayRd GURGAON Basai Rd Pataudi Rd DelhiRd Mehrauli Rd Old JaipurRd Gurgaon Rd M ehrauli Najafgarh Rd GurgaonRd Rajokri Mehrauli Gurgaon Rd DLF Golf Course Leisure Valley Dera dRrupratahhCniaM Rajpur Khurd graMtarvunA Hauz Khas Deer Park AfricaAve Old Jaipur Rd Palam Indira Gandhi International Airport gra M itnayaJ anraw S Army Golf Course Lodhi Rd Delhi Golf Course Central Ridge Reserved Forest Gol Market Jahanpanah City Forest MathuraRd Road No. 13A Mehrauli Badarpur Rd Badarpur Yamuna River MathuraRd OldSherShahRd graMilapar mA GreaterNoida Dodri Rd JainRd NOIDA DadriRd NoidaLinkRd Hapur BypassNH-24 gra MVikas Shahibabad dRrupizahG Shahdara Raj Bagh Rajendra Nagar Grand Trunk Rd k RdinL Ghaziabad Hindan Airbase Chandni Chowk MahatmaGandhiMarg Karnal Rd dRgniRretu O Dr. K. B. Hegdewar Marg GrandTrunkRd St.NagarMarg Grand Trun dk R Grand Trunk Rd NH-24 NH-58 RaniJhansiMarg NH-91 Najafgarh Rd dRnoagruG BaghpatRd SharanpurRd Vivekanand Marg LoniR d RingRd Yamuna River daoRgniRreppU Chandigarh Jaipur Agra Aligarh Agra Rohtak Domestic Airport Indraprasth 2 3 6 1 2 3 4 8 9 10 11 12 1 2 3 4 M eerut Madan Mohan Malviya Marg Faridabad Greater Noida NH -8 7 6 7 MaAnandamayeeMar g 5 4 5 1 4 5 7 8 5 Qutub Minar 6 1(a) 1(b) Dwarka North Delhi Ridge Forest 6 DELHI Manesar 1 1(c) 1(d) 1(e) 1(f) 2 3 3(a) 3(b) 3(c)3(d) 3(e) Major Roads Railway Line Water Bodies Green AreaMetro Central Business District Alternate Business District Central 1. Barakhamba Road 2. Connaught Place 3. ITO 4. Janpath 5. Kasturba Gandhi Marg 6. Khan Market 7. Parliament Street 8. Tolstoy Marg Secondary Business District Periphery Business District 1. Bikajicama Place 2. Jasola Vihar 3. Munirka 4. Nehru Place 5. Qutub Institutional Area 6. Saket 7. Vasant Kunj 1. 2. Jhandewalan 3. Karkar Duma 4. Karol bagh 5. Okhla Industrial Estate 6. Okhla Industrial Area-I 7. Okhla Industrial Area-II 8. Pitam Pura 9. Rajendra nagar new 10. Rohini 11. Shahdara 12. Wazirpur Industrial Area Janakpuri 1. Gurgaon 1 (a). DLF Cyber City 1 (b). Golf Course Road 1 (c). Institutional Sectors / Sushant Lok 1 (d). MG Road 1 (e). Udyog Vihar / Nh8 1 (f). Sohna Road 2. Manesar NAirport CITY REPORT DELHI OFFICE MARKET - Q3 2010 3. Noida 3 (a). Expressway 3 (b). Sector 58 3 (c). Sector 62 3 (d). Sector 63 3 (e). Sector 64 4. Faridabad 5. Ghaziabad
  7. 7. 7I I CENTRAL BUSINESS DISTRICT (CBD) There has been good absorption of from the Banking and Financial services sector. This has led to very low vacancy in the . The rentals in Grade B buildings have also appreciated by 10 – 15% but overall the average rentals have not seen any major increase. Further, the property owner have now started to quote 5-10% higher than the rates of Q2 of 2010. commercial office space in CBD of Delhi especially Grade A buildings in this district Low Vacancy levels in Central Business District Source: BNP Paribas Real Estate, India CBD 300 Q2 2009 RENTAL VALUES ( INR / SQ.FT / MONTH) Q3 2009 Q4 2009 250 250 Q2 2010 Q1 2010 250 Source: BNP Paribas Real Estate, India Q2 2009 CBD 30,000 CAPITAL VALUES (INR / SQ.FT) Q3 2009 Q4 2009 30,000 30,000 Q2 2010 Q1 2010 30,000 Q2 2009 Q3 2009 CBD CapitalValues(INR/sq.ft) Q4 2009 Q1 2010 Q2 2010 29,000 32,000 34,000 RentalValues(INR/sq.ft/month) 220 230 240 250 260 270 280 290 300 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 27,000 31,000 33,000 The average headline rentals & capital values for the last 6 quarters are as follows:- 275 30,000 CBD 28,000 35,000 CITY REPORT DELHI OFFICE MARKET - Q3 2010 Q3 2010 Q3 2010 Q3 2010 Q3 2010 290 35,000 310 30,000 36,000
  8. 8. 8I I ALTERNATE CENTRAL BUSINESS DISTRICT (ALTERNATE CBD) The demand for large office spaces is picking up in this district. There is movement of tenants from the CBD to ACBD. However, this has not impacted the prices yet. There are 2-3 enquiries for large office space in Jasola and Nehru Place. These absorptions are likely to happen by end of year 2010 and therefore it is expected that there can be upward revision in both rental and capital values in this district. Demand is slowly picking up Source: BNP Paribas Real Estate, India Bikaji Cama Place 12,000 Jasola Vihar 15,000 Munirka 15,000 Q2 2009 CAPITAL VALUES (INR / SQ.FT) Q3 2009 Q4 2009 12,000 12,000 15,000 12,000 12,000 15,000 Q2 2010 Q1 2010 12,000 12,000 15,000 Nehru Place 18,000 18,000 20,000 20,000 Qutab Institutional Area 12,000 12,000 12,000 12,000 Saket 20,000 18,000 18,000 20,000 Vasant Kunj 20,000 18,000 18,000 20,000 Nehru Place Vasant Kunj Saket RentalValues(INR/sq.ft/month) Munirka Bikaji Cama Place Jasola Vihar Qutub Institutional Area CapitalValues(INR/sq.ft) Q2 2009 Q3 2009 — 5,000 20,000 25,000 10,000 15,000 Q4 2009 Q1 2010 Q2 2010 Nehru Place Vasant Kunj Saket Munirka Jasola Vihar Bikaji Cama Place Qutub Institutional Area 12,000 13,500 15,000 20,000 12,000 20,000 20,000 0 50 100 150 200 250 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 CITY REPORT DELHI OFFICE MARKET - Q3 2010 Q3 2010 Q3 2010 Q3 2010 Source: BNP Paribas Real Estate, India Q2 2009 Bikaji Cama Place 135 Jasola Vihar 110 Munirka 150 RENTAL VALUES ( INR / SQ.FT / MONTH) Q3 2009 Q4 2009 130 100 150 130 100 150 Q2 2010 Q1 2010 130 100 150 Nehru Place 200 180 175 175 Qutub Institutional Area 120 100 100 100 Saket 175 160 150 150 Vasant Kunj 175 150 150 150 The average headline rentals & capital values for the last 6 quarters are as follows:- 130 110 150 180 105 150 150 Q3 2010 130 110 150 180 105 150 150 12,000 13,500 15,000 20,000 12,000 20,000 20,000
  9. 9. 9I I SECONDARY BUSINESS DISTRICT (SBD) There is no major activity being reported in this district except certain expansion enquiries by existing tenants. Due to this, there is no change in rental and capital values. Expansion by existing corporates Source: BNP Paribas Real Estate, India Shahdara 6,000 Mathura Industrial Area 7,000 Janak Puri 8,000 Okhla 6,000 Pitampura 6,000 Q2 2009 CAPITAL VALUES (INR / SQ.FT) Q3 2009 Q4 2009 5,500 6,500 7,500 6,000 5,500 5,500 6,000 7,500 6,000 5,500 Q1 2010 Q2 2010 7,500 6,000 6,000 5,500 5,500 RentalValues(INR/sq.ft/month) Q2 2009 Q3 2009 44 Janak Puri Mathura Industrial Area Okhla Pitampura Shahdara Q4 2009 Q1 2010 Q2 2010 CapitalValues(INR/sq.ft) — 5,000 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 54 Janak Puri Mathura Industrial Area Okhla Pitampura Shahdara 7,500 6,000 6,000 5,500 5,500 46 48 50 52 56 58 60 1,000 2,000 3,000 4,000 6,000 7,000 8,000 9,000 CITY REPORT DELHI OFFICE MARKET - Q3 2010 Q3 2010 Q3 2010 Q3 2010 Source: BNP Paribas Real Estate, India Q2 2009 Shahdara 50 Mathura Industrial Area 60 Janak Puri 60 Okhla 55 Pitampura 60 RENTAL VALUES ( INR / SQ.FT / MONTH) Q3 2009 Q4 2009 50 60 60 60 55 50 50 50 60 50 Q2 2010 Q1 2010 50 50 60 50 50 The average headline rentals & capital values for the last 6 quarters are as follows:- 50 50 60 50 50 Q3 2010 50 50 60 50 50 7,500 6,000 6,000 5,500 5,500 62
  10. 10. 10I I 9,000 8,500 8,500 8,500 12,500 12,000 12,000 12,000 8,500 8,000 8,000 8,000 15,000 12,000 12,000 12,000 8,000 7,500 7,500 7,500 8,500 8,500 7,000 7,000 5,000 4,500 4,500 4,500 8,000 7,700 7,300 7,300 4,900 4,700 4,300 4,300 5,300 5,300 4,700 4,700 4,600 4,400 4,000 4,000 4,600 4,400 4,000 4,000 DLF Cyber City CAPITAL VALUES (INR / SQ.FT) Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Golf Course Rd Institutional Sectors / Sushant Lok MG Road NH8 / Udyog Vihar Sohna Rd Manesar Expressway Sector 58 Sector 62 Sector 63 Sector 64 Gurgaon Manesar Noida PERIPHERY BUSINESS DISTRICT (PBD) There is a surge in leasing and purchase activity for commercial real estate in Gurgaon and Noida. There is estimated demand of approximately 4 mn. sq.ft which is likely to be absorbed in the next 6-9 months. There is good demand for SEZ space from Multi National Corporations. This will push the lease rentals upward in the SEZ space both in Noida and Gurgaon. The investors are keen to invest in new commercial developments especially on Golf Course Extension road and on projects abutting the highway. Office space demand picking up Source: BNP Paribas Real Estate, India Q2 2009 Q3 2009 0 10 20 30 40 RentalValues(INR/sq.ft/month) Q4 2009 Q1 2010 Q2 2010 50 60 70 80 Source: BNP Paribas Real Estate, India Q2 2009 Q3 2009 — 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 CapitalValues(INR/sq.ft) Q4 2009 Q1 2010 Q2 2010 The average headline rentals & capital values for the last 6 quarters are as follows:- M G Road - Gurgaon Golf Course Rd - Gurgaon DLF Cyber City Institutional Sectors / Sushant Lok - Gurgaon Sohna Road - Gurgaon NH 8 / Udyog Vihar - Gurgaon Sector 62, Noida Manesar - Gurgaon Expressway - Noida Sector 58, Noida Sector 63, Noida DLF Cyber City 75 RENTAL VALUES ( INR / SQ.FT / MONTH) 60 60 60 Q2 2009 Q3 2009 Q4 2009 Q2 2010 Q1 2010 Golf Course Rd 70 70 85 85 Institutional Sectors / Sushant Lok 65 60 50 50 MG Road 90 90 90 90 NH8 / Udyog Vihar 60 50 40 40 Sohna Rd 60 60 45 45 Manesar 35 35 35 35 Expressway 60 58 55 55 Sector 58 37 35 32 32 Sector 62 40 40 35 35 Sector 63 35 33 30 30 Sector 64 35 33 30 30 Gurgaon Manesar Noida 60 85 50 90 40 45 35 55 32 35 30 30 8,500 12,000 8,000 12,000 7,500 7,000 4,500 7,300 4,300 4,700 4,000 4,000 Sector 64, Noida M G Road - Gurgaon Golf Course Rd - Gurgaon DLF Cyber City Institutional Sectors / Sushant Lok - Gurgaon Sohna Road - Gurgaon NH 8 / Udyog Vihar - Gurgaon Sector 62, Noida Manesar - Gurgaon Expressway - Noida Sector 58, Noida Sector 63, Noida Sector 64, Noida CITY REPORT DELHI OFFICE MARKET - Q3 2010 Q3 2010 Q3 2010 Q3 2010 60 85 50 90 40 45 35 55 32 35 30 30 8,500 12,000 8,000 12,000 7,500 7,000 4,500 7,300 4,300 4,700 4,000 4,000 Q2 2010 90 100
  11. 11. 11I I RENTAL VALUES Source: BNP Paribas Real Estate, India Central Business District (CBD) Alternate Central Business District (Alternate CBD) Secondary Business District (SBD) Periphery Business District (PBD) Rent INR / sq.ft CBD Region Q on Q Change Q3 2010 290 5% Mathura Industrial Area Janak Puri Region Shahdara Pitampura Rent INR / sq.ft Q on Q Change Q3 2010 50 50 50 50 0% 0% 0% 0% Okhla 60 0% Vasant Kunj 150 0% Bikaji Cama Place Jasola Vihar Munirka Region Rent INR / sq.ft Q on Q Change Q3 2010 130 110 150 0% 0% 0% Nehru Place Qutab Institutional Area Saket 180 105 150 0% 0% 0% Golf Course Rd DLF Cyber City Institutional Sectors / Sushant Lok Region Rent INR / sq.ft Q on Q Change Q3 2010 85 60 50 0% 0% 0% Manesar 35 0% MG Road 90 0% NH8 / Udyog vihar 40 0% Expressway 55 Sohna Rd 45 0% Gurgaon Manesar Noida Sector 58 32 Sector 62 35 Sector 63 30 Sector 64 30 0% 0% 0% 0% 0% CITY REPORT DELHI OFFICE MARKET - Q3 2010
  12. 12. 12I I CAPITAL VALUES Central Business District (CBD) Alternate Central Business District (Alternate CBD) Secondary Business District (SBD) Periphery Business District (PBD) INR / sq.ft CBD Region Q on Q Change Q3 2010 35,000 17% 20,000 12,000 13,500 15,000 20,000 12,000 20,000 Vasant Kunj 0% Bikaji Cama Place Jasola Vihar Munirka Region INR / sq.ft Q on Q Change Q3 2010 0% 0% 0% Nehru Place Qutab Institutional Area Saket 0% 0% 0% Mathura Industrial Area Janak Puri Region Shahdara Pitampura INR / sq.ft Q on Q Change Q3 2010 0% 0% 0% 0% Okhla 0% 6,000 7,500 5,500 5,500 6,000 Golf Course Rd DLF Cyber City Institutional Sectors / Sushant Lok Region INR / sq.ft Q on Q Change Q3 2010 12,000 8,500 8,000 0% 0% 0% Manesar 4,500 0% MG Road 12,000 0% NH8 / Udyog vihar 7,500 0% Expressway 7,300 0% Sohna Rd 7,000 0% Gurgaon Manesar Noida Sector 58 4,300 0% Sector 62 4,700 0% Sector 63 4,000 0% Sector 64 4,000 0% Source: BNP Paribas Real Estate, India CITY REPORT DELHI OFFICE MARKET - Q3 2010
  13. 13. 13I I KEY TRANSACTIONS Source: BNP Paribas Real Estate, India CITY REPORT DELHI OFFICE MARKET - Q3 2010 Q3 2010 Property Occupiers Space (sq.ft) Micro Market Location Mercantile House, KG Marg Sarasin Alpen India 2,500 CBD Connaught Place Baani Suites Ingersoll Rand 2,400 Alternate CBD Jasola Salcon Aurum Savita Oil 3,800 Alternate CBD Jasola ITT Building Louis Vuitton 5,500 Alternate CBD Nehru Place Vatika Buisness Park Stryker 105,000 PBD Golf course road Unitech SEZ - Infospace NIIT 12,000 PBD Dundahera Unitech SEZ - N2 IBM Daksh 75,000 PBD Expressway Unitech SEZ - N2 Genpact 5,00,000 PBD Expressway DLF SEZ - Silokhera IBM Daksh 78,000 PBD Silokhera DLF SEZ - Silokhera Max 250,000 PBD Silokhera A 110 Etisalat 5,200 PBD Sector 4 Windsor IT Park Asia Hotel 16,000 PBD Sector 125 Advant Navis Vaishnavi Advisory 9,000 PBD Sector 142 Advant Navis Indiamart.com 63,000 PBD Sector 142 Times Tower Godrej Property 3,000 PBD MG road Times Tower Laxmi Nivas Bank 8,500 PBD MG road Times Tower Harvest Gold 1,500 PBD MG road Plot 582, Phase 5 Anton Paar India 7,500 PBD Udyog Vihar Unitech Cyber Park Hewitt 25,000 PBD Sector 39
  14. 14. 14I I KEY PROJECTS New Supply - Year 2010 Building Location Micro Market Space in sq.ft Completion date (expected) MGF Metropolis MG Road PBD 1,50,000 Q3 2010 Salcon Platina MG Road PBD 1,70,000 Q4 2010 Suncity Business Tower Golf Course Road PBD 2,70,000 Q3 2010 DLF South Point Mall Golf Course Road PBD 2,70,000 Q3 2010 Realtech Veritas Golf Course Road PBD 1,10,000 Q4 2010 Emaar MGF Palm Square Golf Course Extension PBD 3,50,000 Q4 2010 Raheja Mall Sohna Road PBD 3,00,000 Q3 2010 ILD Trade Centre Sohna Road PBD 3,50,000 Q3 2010 Spazedge Sohna Road PBD 3,50,000 Q3 2010 Omaxe City Centre Sohna Road PBD 1,50,000 Q3 2010 Vipul Trade Centre Sohna Road PBD 3,20,000 Q3 2010 Orchid Business Park Sohna Road PBD 3,50,000 Q3 2010 DLF Star Mall NH-8 PBD 2,20,000 Q3 2010 MVL I Park NH-8 PBD 1,40,000 Q4 2010 Unitech Info Space (Block-4) Sector-62 PBD 2,75,000 Q3 2010 Unitech Info Space (Block-2) Sector-62 PBD 2,00,000 Q4 2010 Logix Business Park (Tower-C&D) Sector-62 PBD 6,00,000 Q3 2010 Unitech SEZ (Tower-3) Expressway PBD 2,50,000 Q3 2010 Unitech SEZ (Tower-4) Expressway PBD 2,50,000 Q4 2010 Oxygen SEZ (Tower-C) Expressway PBD 2,50,000 Q4 2010 Technova Business Park (Tower-A) Expressway PBD 4,80,000 Q3 2010 Technova Business Park (Tower-B) Expressway PBD 4,20,000 Q4 2010 Source: BNP Paribas Real Estate, India CITY REPORT DELHI OFFICE MARKET - Q3 2010
  15. 15. GLOSSARY Q3: Super Built-up Area (SBUA): Carpet Area: Sq.mt: Mn: New: Recent: NCR: SEZ: BFSI: SLR: FSI: Quarter 3 of the financial year (July - August - September) Built-up area + common area including lifts area, common passages, utilities, terrace etc. & varies from building to building. Actual usable area, and does not include any common areas, area occupied by walls etc. Square Meter Million Building built within the last 5 years. Building less than 10 years old. National Capital Region (Includes urban agglomeration of Delhi, Gurgaon, Faridabad, Noida, Gaziabad etc) Special Economic Zone having special tax exemptions / incentives to corporate occupiers Banking & Financial Services Industry Statutory Liquidity Ratio Floor Space Index Absorption: Bare Shell: BPO: BUA: Completed Stock: DU: EPIP: FAR: Grade A Space: Ground Coverage: Hard Option: INR: Pre-lease: Speculative Stock: Stock: Supply: Transaction Volumes: Vacancy: Warm Shell: Q on Q: y-o-y: IT: ITES: Repo Rate: Reverse Repo Rate: SEC A, B, C & D Socio: Sq.ft: Stamp Duty: Occupied Stock (n) – Occupied Stock (n-1); Where “n” is the specified period (quarter, year etc.) Premises consisting of basic structure with lifts, power supply to junction box, water supply line, toilets Business Process Outsourcing Built up area Either the building has received occupancy certificate or the client has moved in and occupied space and started working in a particular premises Dwelling Unit Export Promotion Industrial Park Floor Area Ratio (BUA/ Plot Area) Office Space with efficiency in excess of 75%, floor plate in excess of 15,000 sq. ft., Car Parking ratio of atleast 1 per 1000 sq. ft., Floor-to-ceiling height in excess of 3.75 m, Power provision of 1.25KVA per 100 sq. ft. with 100% power-backup wherever applicable and professionally managed facilities It is the total covered area on ground by the built component and is expressed as a percentage of the plot area Real estate space reserved by the lessee for future occupation within a particular time frame and at a pre-decided rental Indian National Rupees Space committed for lease before completion of construction The stock which can be leased and excludes Built-to-Suit (BTS) and Campus facilities. Cumulative Supply New construction in a particular specified period Total number of transaction in a particular specified period Total vacant space in the completed stock Premises consisting of power backup, high side A.C., common area fit outs and fitted out toilets Quarter on Quarter year-on-year (All growth figures in this report are y-o-y unless otherwise mentioned Information Technology Information Technology Enabled Services (includes various services ranging from call centres, claims processing, medical transcription, e-CRM, SCM to back-office operations such as accounting, data processing, and data mining) Rate that an eligible depository institution (such as a bank) is charged to borrow short term funds directly from the central bank through the discount window Interest rate that a bank earns for lending money to the Reserve Bank of India in exchange for government securities Economic Classification; SEC A represents the highest propensity to spend and SEC D represents the lowest propensity to spend. Square Feet Form of tax charged on instruments (written documents) requiring a physical stamp (for government legality) to be attached to or impressed. 15I I CITY REPORT DELHI OFFICE MARKET - Q3 2010 CRR: Headline rent: Average headline rent: Disclaimer: Cash Reserve Ratio Monthly rent per square feet, charged on super built-up area basis, featured on the lease, and expressed excluding fitouts, taxes, deposits, advances, maintenance charges and does not take into account building efficiency (super built up area - carpet area ratio). Further it does not include attached premises such as parking areas, archives, staff canteens, etc. If the rental is progressive, the value applied is the average for the first 3 years or the fixed term of the lease. Weighted average of rented area. The average featured is a moving average over the quarter, to smooth out the changes, exclusive of all taxes, deposits, advances & maintenance charges. Major Refurbishment: Renovated: Modern: Old: CCI (Cost of construction index): Demand: For the occupier: New Supply: Completed new supply: Under construction: Planning permission granted: Planning permission submitted: Pre-letting: Underlying rent: Prime rents: Top rent: Second hand premises: Renovated: Very good condition: Existing state of repair: To be renovated: Supply available within 1 year: Take-up: Vacancy rate: Building which has undergone structural alteration less than 5 years ago, subject to planning permission. . Building which has undergone renovation work not requiring for planning permission less than 5 years ago. High-performance building over 10 years old. Low-performance building over 10 years old. Index that makes quarterly measurements of construction prices for new house building. It is the price after VAT paid by the owner to construction companies. It excludes land-related prices and costs (site development, special foundations, etc.), fees and financial costs. A search for premises expressed to BNP Paribas Real Estate. The analysis pertains only to the flow of new demand expressed. Operation undertaken by an occupier for its own purposes. Any new building and/or heavily refurbished building that adds to the existing stocks. These are analysed according to progress. Buildings on which construction work is finished. Buildings on which construction has effectively begun. Prior demolition work is not taken into account. Authorisation to build obtained, generally booked after settlement of third party claims. Planning permission requested, being processed. Transaction by an occupier more than 6 months before the delivery of the building. Annual rent per square meter expressed free of tax and charges and excluding advantages agreed by the owners (rent incentive building works, etc). Represents the top headline rent (excluding non significant transactions) for an office unit:- of standard size, of the highest quality and specification, in the best location in each market. Represents the top headline rent for an office unit. It is not necessarily a prime rent. Premises that have been previously occupied by an occupier for vacant for more than 5 years. Premises that have been renovated for the new occupier. High-performance premises of high quality. Low-performance premises that can be rented as they are. Low performance premises that need renovation. All premises and buildings available within 1 year including the supply available immediately, new supply that has not been pre-let and second hand supply that will be vacated definitively (notable terminated leases). Rental or sale of a property asset, finalised by the signature of a lease or a bill of sale including turnkey transactions and owner-occupier. The transaction is only taken into account once any existing conditional clauses have been lifted. Ratio measuring the relationship between the supply immediately available and the existing stock. This report is released by BNP Paribas Real Estate & Infrastructure Advisory Services and the information in it is dedicated to the exclusive use of its clients. The report and the information contained in it should not be copied or reproduced without prior permission from BNP Paribas Real Estate and Infrastructure Advisory Services. The facts of these reports are believed to be correct at the time of it's release but cannot be guaranteed. Please note the findings, projections, conclusions and recommendations are based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. BNP Paribas Real Estate & Infrastructure Advisory Services cannot be held responsible if, despite it's best efforts, the information contained in the present report turns out to be inaccurate or incomplete.
  16. 16. www.realestate.bnpparibas.com . ALBANIA* Danos & Associates Blvd. Deshmoret e Kombit Twin Towers - Building 2 11th Floor Tirana Tel.: +355-4-2280488 Fax: +355-4-2280192 AUSTRIA* Dr. Max Huber & Partner Dr. Karl-Lueger-Platz 5 1010 Vienna Tel: +43-1-513 29 39 0 Fax: +43-1-513 29 39 14 BULGARIA* 28, Hristo Botev Boulevard Sofia Tel: +359-2-9532314 Fax: +359-2-9532399 CANADA* Cresa Partners Tel.: +1-617-758 6000 Fax: +1-617-742 0643 CYPRUS* Danos & Associates 35, I. Hatziosif Ave 2027, Nicosia Tel.: +357-22 31 70 31 Fax: +357-22 31 70 11 Danos & Associates GREECE* Danos & Associates 1, Eratosthenous Str. 11635 Athens Tel: +30-210 7 567 567 Fax: +30-210 7 567 267 JAPAN* RISA Partners 5F Akasaka Intercity 1-11-44 Akasaka, Minato-ku 107-0052 Tokyo Tel: +81-3-5573 8011 Fax: +81-3-5573 8012 RUSSIA* Astera 10, b.2 Nikolskaya Str. Moscow, 109012 Tel/Fax: +7-495-925 00 05 NETHERLANDS* Holland Realty Partners J.J. Viottastraat 33, 1071 JP Amsterdam, Tel: +31-20-305 97 20 Fax: +31-20-305 97 21 NORTHERN IRELAND* Whelan Property Consultants 44 Upper Arthur Street Belfast Bt1 4GJ Tel: +44-28-9044 1000 Fax: +44-28-9033 2266 POLAND* Brittain Hadley Europa Warsaw Financial Centre 13th floor Emilii Plater 53 00-113 Warsaw Tel.: +48-22-586 31 00 Fax: +48-22-586 31 16 SERBIA* 6, Vladimira Popovica Street Office B31 11000 Belgrade Tel.: +381-11-2600 603 Fax: +381-11-2601 571 SLOVAKIA* Modesta (Dr. Max Huber & Partner Group) Heydukova 12-14 811 08 Bratislava Tel.: +421-2-3240 8888 Fax: +421-2-3214 4777 SWITZERLAND* Naef Avenue Eugène-Pittard 14-16 Case Postale 30 1211 Geneva 17 Tel.: +41-22 839 39 39 Fax: +41-22 839 38 38 UKRAINE* Astera 2a Konstantinovskaya Street 04071, Kiev Tel: +38-044-501 50 10 Fax: +38-044-501 50 11 USA* Cresa Partners 200 State Street 13th Floor Boston, Massachusetts 02109 Tel.: +1-617-758 6000 Fax: +1-617-742 0643 Falcon Real Estate 570 Lexington Avenue 32nd Floor New York, NY 10022 Tel.: +1-212 271-5445 Fax: +1-212 271-5588 ABU DHABI Al Bateen Area Plot No. 144, W-11 New Al Bateen Municipality Street 32 P.O. Box 2742 Abu Dhabi, UAE Tel.: +971-505 573 055 Fax: +971-44 257 817 BELGIUM Blue Tower Avenue Louise 326 B14 Louizalaan 1050 Brussels Tel: +32-2-646 49 49 Fax: +32-2-646 46 50 DUBAI Emmar Square Building No. 1, 7th Floor P.O. Box 7233 Dubai, UAE Tel: +971-505 573 055 Fax: +971-44 257 817 FRANCE 13 boulevard du Fort de Vaux 75017 Paris Tel: +33-1-55 65 20 04 Fax: +33-1-55 65 20 00 GERMANY Goetheplatz 4 60311 Frankfurt Tel.: +49-69-2 98 99 0 Fax: +49-69-2 92 91 4 IRELAND 40 Fitzwilliam Place Dublin 2 Tel: +353-1-66 11 233 Fax: +353-1-67 89 981 JERSEY 4th Floor, Conway House Conway Street St Helier Jersey Je2 3NT Tel: +44-15 34-62 90 01 Fax: +44-15 34-62 90 11 ITALY Corsa Italia, 15/A 20122 Milan Tel: +39-02-58 33 141 Fax: +39-02-58 33 14 39 LUXEMBOURG Axento Building Avenue J.F. Kennedy 44 1855 Luxembourg Tel.: +352-34 94 84 Fax: +352-34 94 73 ROMANIA Union International Center 11 Ion Campineanu Street Sector 1 Bucharest 010031 Tel: +40-21-312 7000 Fax: +40-21-312 7001 SPAIN María de Molina, 54 28006 Madrid Tel: +34-91-454 96 00 Fax: +34-91-454 97 65 UNITED KINGDOM 90 Chancery Lane London WC2A 1EU Tel: +44-20-7338 4000 Fax: +44-20-7430 2628 *Alliances Bangalore (Regd. Office) Level 15, Concorde Block, UB City, Vittal Mallya Road, Bangalore – 560001 Tel: +91 80 4030 0334 Fax: +91 80 4030 0400 Delhi Upper ground floor, Unit No 7, Mercantile House, 15 KG Marg, New Delhi 110001 Tel: +91 11 4959 8800 Fax: +91 11 4959 8818 INDIA For Queries / Comments: Tasneem Gandhi at +91 9930141009 or email at tasneem.gandhi@bnpparibas.com BNP PARIBAS REAL ESTATE & INFRASTRUCTURE ADVISORY SERVICES PVT. LTD. Mumbai (Head Office) 704, Level 7, MMTC House, C-22, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051 Tel: +91 22 6138 8088 Fax: +91 22 6138 8089 Noncontractualdocument-Researchdepartment-Publishedby:RajaKaushal-ManagingDirector,BNPParibasRealEstate&InfrastructureAdvisoryServicesPvt.Ltd. Photocourtesy:UnitechGroup-November2010-BNPPARIBASREALESTATE:HeadquartersofParentCompany:13,boulevardduFortdeVaux-75017Paris-692012180RCSParis

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