CITY REPORT
MUMBAI OFFICE MARKET
                Q4 2009
SUMMARY
Summary                                               p. 3

Macroeconomic Context                                 ...
SUMMARY


More enquiries from corporate occupiers, though low conversion rate
The Q4 of 2009 saw an increase in          e...
MACROECONOMIC CONTEXT
                         Gross Domestic Product (GDP)
 12.00%
                                      ...
MUMBAI OFFICE MARKET
                                                                                                     ...
CENTRAL BUSINESS DISTRICT (CBD)
                                                                                          ...
EXTENDED CENTRAL BUSINESS DISTRICT
                                                                                       ...
ALTERNATE CENTRAL BUSINESS DISTRICT
                                        500                                           ...
SECONDARY BUSINESS DISTRICT (SBD)
                                                                                        ...
PERIPHERY BUSINESS DISTRICT (PBD)
                                                                                        ...
PRIME RENTS

                                Q4 2009
  Region                         Rent               Q on Q
          ...
CAPITAL VALUES

                                  Q4 2009
  Region                        INR / sq.ft         Q on Q
     ...
KEY TRANSACTIONS

                                                  Q4 2009
      Building                       Tenant   ...
KEY PROJECTS

                                            New Supply – Year 2010
       Building            Type of Locati...
GLOSSARY
Q4: Quarter 4 of the financial year                                                    New: Building built within...
LOCATIONS                                                   ALLIANCES
                                    BAHRAIN         ...
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City Report Mumbai Office Market Q4 2009

  1. 1. CITY REPORT MUMBAI OFFICE MARKET Q4 2009
  2. 2. SUMMARY Summary p. 3 Macroeconomic Context p. 4 Mumbai Office Market p. 5 Central Business District (CBD) p. 6 Extended Central Business District (ECBD) p. 7 Alternate Central Business District (Alternate CBD) p. 8 Secondary Business District (SBD) p. 9 Periphery Business District (PBD) p. 10 Prime Rents p. 11 Capital Values p. 12 Key Transactions p. 13 Key Projects p. 14 Glossary p. 15 CITY REPORT MUMBAI OFFICE MARKET - Q4 2009
  3. 3. SUMMARY More enquiries from corporate occupiers, though low conversion rate The Q4 of 2009 saw an increase in enquiries from corporate On a positive note, this is leading to better development practices occupiers in the Mumbai region. In fact, many corporates are also across the region. The “green concept” in new buildings is gaining evaluating buy verses lease scenarios which is good news for real grounds and is becoming a key “influencer” in the occupiers' decision estate developers and owners who are keen to sell to corporate end making process. As supply will overrun demand by an increasing users. It must be specifically noted that the conversion rates of these margin, the prices are expected to fall to 5% from the current levels, enquiries into sales remain low. The peripheral areas are showing by end of March 2010. signs of revival with strong leasing activity especially in the Powai area. However, many large ticket transactions, especially in excess of 100,000 sq. ft, which were anticipated to conclude in this quarter has been postponed to the next quarter. Overall, the lease rents and capital values are under pressure due to the increasing new supply for the commercial office space. As a result, competition to win occupiers is becoming more and more intense among property owners & developers. CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I3I
  4. 4. MACROECONOMIC CONTEXT Gross Domestic Product (GDP) 12.00% Rising inflation. Interest rates hike imminent 10.00% 9.70% 9.30% 9.30% With the rising inflation, there is a growing concern among the government 9.20% 8.80% 8.80% 8.00% authorities to arrest the escalating food prices across all segments. It is 8.00% 7.90% 7.90% 7.60% expected that by January 2010, the Reserve Bank of India will raise the Cash 6.10% 6.00% Reserve Ratio by 50 – 100 basis point. The industry leaders and experts are 5.80% 5.30% lobbying with the government to continue with the fiscal & monetary 4.00% reforms. At the same time, the Government is expecting GDP rate to touch 8% which probably will be the highest growth rate in the world. The FDI inflows 2.00% are at 50% higher than corresponding quarter of 2009 thus further boosting 0.00% industry confidence. The real estate industry is expecting a lot of fiscal Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 benefits and clarity especially on indirect taxes in the ensuing budget which 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 will be tabled in the last week of February 2010. Source: Confederation of Indian Industries Wholesale Price Index (WPI) 16.00% Real Estate 14.00% The developer community expects a revival for commercial real estate in 12.00% 10.00% 2010 However, a lot is dependent on the global occupier confidence 8.00% especially in the IT / ITES sector. Most of the development companies 6.00% showed healthy growth in sales. This is due to better consumer sentiment 4.00% especially on residential real estate market. It is expected that some of the 2.00% development companies will try to sell land in Q1 of 2010 (Jan - March) so 0.00% as to show better performance to its shareholders for the Indian financial May-09 Sept-09 Nov-09 Dec-09 Mar-09 Aug-09 Apr-09 Jun-09 Oct-09 Feb-09 Jan-09 Jul-09 year (April 2009 - March 2010). Source: Confederation of Indian Industries Major Real Estate Sales (In INR / In Million) Profits (In INR / In Million) Companies in Q4 2009 Q3 2009 Q on Q Q4 2009 Q3 2009 Q on Q India Change % Change % DLF Limited 202,577 175,09.4 16% 46,789 43,974 6% Sensex & Nifty Unitech 77,446 50,94.9 52% 13,953 17,601 -21% 25,000 India Bulls 33,013 29,65.9 11% 6,400 7,113 -10% Sobha Developers 30,700 22,360 37% 4,080 2,750 48% 20,000 Peninsula Land 25,176 16,87.2 49% 8,888 7,287 22% 15,000 Parsvnath 30,364 16,847 80% 2,491 6,143 -59% Developers 10,000 Pheonix 3,018 2,639 14% 1,019 1,754 -42% Omaxe Limited 28,020 22,392 25% 2,846 2,251 26% 5,000 Mahindra 10,891 6,352 71% 2,793 1,734 61% Lifespaces 0 Ananthraj 8,262 8,713 -5% 6,704 7,12.7 -6% 11-12-07 12-12-07 01-12-08 02-12-08 03-12-08 04-12-08 05-12-08 06-12-08 07-12-08 08-12-08 09-12-08 10-12-08 11-12-08 12-12-08 01-12-09 02-12-09 03-12-09 04-12-09 05-12-09 06-12-09 07-12-09 08-12-09 09-12-09 10-12-09 11-12-09 12-12-09 Ackruti City 21,928 7,829 180% 7,777 2,979 161% Ansal Properties 27,104 17,684 53% 2,644 3,160 -16% Sensex Nifty Source: Confederation of Indian Industries CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I4I
  5. 5. MUMBAI OFFICE MARKET 23 N 22 21 20 Western E Sanjay Gandhi National Park xpre 19 ss H ighw ay 8 7 Tulsi 17 Lake 2 6 1 4 18 3 5 24 16 Vihar Lake 9 15 25 10 Powai 26 14 Lake 13 27 11 S e a 12 Sahar Airport 28 (International Airport) 12 11 Domestic Airport 29 A r a b i a n 4 13 30 14 15 2 3 16 1 31 10 33 k 9 32 lin ndra Worli Sea 8 17 20 7 6 19 21 18 Ba 5 8 4 d) Secondary Business 3 District (SBD) 7 2 6 1. Byculla 2. Sewri 5 3. Parel 3 1 4. Dadar 4 9 9 5. Wadala 2 6. Kings Circle 1 7. Matunga East 8. Matunga Road 8 9. Mahim 7 6 10. Bandra West e) Periphery Business 4 5 11. Santacruz District (PBD) 12. Juhu 3 13. Vile Parle 1. Thane 14. Andheri 2. Kalwa 15. Jogeshwari 3. Dighe 2 16. Goregaon 4. Mumbra 1 17. Malad 5. Diva 18. Malad West 6. Dombivali 19. Kandivali 7. Thakurli 20. Borivali 8. Kalyan a) Central Business 21. Dahisar 9. Airoli District b) Extended Central 22. Mira Road 10. Rabale Business District 23. Bhayander 11. Ghansoli 1. Colaba 24. Mulund 12. Koper Khairne 2. Cuffe Parade c) Alternate Central 25. Bhandup 13. Turbhe 1. Girgaon 3. Nariman Point 2. Grant Road Business District 26. Kanjurmarg 14. Sanpada 4. Churchgate 3. Mumbai Central 27. Powai 15. Vashi 5. Fort 1. Bandra 28. Vikhroli 16. Jui Nagar 4. Tardeo 6. Chatrapati Shivaji 5. Mahalakshmi 2. Bandra East 29. Ghatkopar 17. Nerul Terminus (CST) 6. Lower Parel 3. Bandra Kurla 30. Kurla 18. Belapur 7. Marine Line 7. Worli Complex 31. Chembur 19. Kharghar 8. Malabar Hill 8. Prabhadevi 4. Santacruz East 32. Sion 20. Khandeshwar 9. Breach Candy 9. Pedder Road (Kalina) 33. Mankhurd 21. Panvel CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I5I
  6. 6. CENTRAL BUSINESS DISTRICT (CBD) The shift to lower cost occupancy continues The corporate occupiers continue to shift to lower occupancy cost building which also offer modern infrastructure and services. The 600 Rental Values (in Rs / sq.ft / month) landlords and building associations / condominiums are responding by bringing cosmetic changes to the old stock by revamping the lifts 500 and lobbies. However, a lot more needs to be done in terms of providing higher level of services to the corporate occupiers so as to 400 retain them in these old buildings. 300 200 100 RENTALS OVER THE PAST 6 QUARTERS Q3 Q4 Q1 Q2 Q3 Q4 0 Q3 Q4 Q1 Q2 Q3 Q4 2008 2008 2009 2009 2009 2009 2008 2008 2009 2009 2009 2009 Ballard Estate 400 300 275 250 250 250 Cuffe Parade 280 250 225 200 200 200 Nariman Point Ballard Estate Fort 250 170 150 150 150 150 Cuffe Parade Fort Nariman Point 450 375 350 325 325 325 Source: BNP Paribas Real Estate, India 70,000 Capital Values (in Rs / sq.ft) 60,000 50,000 40,000 30,000 20,000 10,000 CAPITAL VALUES OVER THE PAST 6 QUARTERS Q3 Q4 Q1 Q2 Q3 Q4 — 2008 2008 2009 2009 2009 2009 Q3 Q4 Q1 Q2 Q3 Q4 2008 2008 2009 2009 2009 2009 Ballard Estate 42,000 38,000 35,000 35,000 35,000 35,000 Cuffe Parade 32,000 32,000 30,000 30,000 30,000 30,000 Nariman Point Ballard Estate Fort 27,500 25,000 22,500 22,500 22,500 22,500 Cuffe Parade Fort Nariman Point 50,000 45,000 40,000 40,000 40,000 40,000 Source: BNP Paribas Real Estate, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I6I
  7. 7. EXTENDED CENTRAL BUSINESS DISTRICT (ECBD) The favourite micro market for large space occupier. Most of the large space occupiers are preferring to settle in Extended CBD as there is lot of new integrated commercial space available. There are new enquires in the region of 50,000 sq. mts and above and our estimate is that most of them will be absorbed in the coming quarter in this micro market. There is a lot of up coming supply in 600 Rental Values (in Rs / sq.ft / month) this region as well which will keep the leasing and capital values under pressure. 500 400 300 200 100 RENTALS OVER THE PAST 6 QUARTERS Q3 Q4 Q1 Q2 Q3 Q4 0 2008 2008 2009 2009 2009 2009 Q3 Q4 Q1 Q2 Q3 Q4 2008 2008 2009 2009 2009 2009 Lower Parel 280 250 180 180 180 180 Worli Prabhadevi Mahalaxmi 225 200 150 150 150 150 Lower Parel Mahalaxmi Prabhadevi 325 280 250 250 250 250 Worli 400 375 300 300 300 300 Source: BNP Paribas Real Estate, India 60,000 Capital Values (in Rs / sq.ft) 50,000 40,000 30,000 20,000 CAPITAL VALUES OVER THE PAST 6 QUARTERS 10,000 Q3 Q4 Q1 Q2 Q3 Q4 2008 2008 2009 2009 2009 2009 — Q3 Q4 Q1 Q2 Q3 Q4 Lower Parel 28,000 25,000 18,000 18,000 18,000 18,000 2008 2008 2009 2009 2009 2009 Mahalaxmi 22,500 20,000 15,000 15,000 15,000 15,000 Worli Prabhadevi Prabhadevi 32,500 28,000 25,000 25,000 25,000 25,000 Lower Parel Mahalaxmi Worli 40,000 37,500 30,000 30,000 30,000 30,000 Source: BNP Paribas Real Estate, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I7I
  8. 8. ALTERNATE CENTRAL BUSINESS DISTRICT 500 (ALTERNATE CBD) 450 Activity pick up in sales only Rental Values (in Rs / sq.ft / month) 400 The Q4 of 2009 saw lesser activity in this region in terms of leasing 350 but some sales have been reported between 2,000 - 5,000 sq.ft of 300 space. A number of new developments are expected to be completed and will add to new modern stock in the area. Overall, there will be a 250 lot of supply in this region and will put downward pressure on rents 200 and capital values.. 150 100 RENTALS OVER THE PAST 6 QUARTERS 50 Q3 Q4 Q1 Q2 Q3 Q4 0 2008 2008 2009 2009 2009 2009 Q3 Q4 Q1 Q2 Q3 Q4 2008 2008 2009 2009 2009 2009 Bandra - Kurla 350 350 250 250 250 250 Complex Bandra - Kurla Complex Bandra East 230 225 175 175 175 175 Kalina Kalina 275 250 200 200 200 200 Bandra East Source: BNP Paribas Real Estate, India 50,000 45,000 Capital Values (in Rs / sq.ft) 40,000 35,000 30,000 25,000 20,000 15,000 CAPITAL VALUES OVER THE PAST 6 QUARTERS 10,000 Q3 Q4 Q1 Q2 Q3 Q4 5,000 2008 2008 2009 2009 2009 2009 — Bandra - Kurla 35,000 35,000 25,000 25,000 25,000 25,000 Q3 Q4 Q1 Q2 Q3 Q4 Complex 2008 2008 2009 2009 2009 2009 Bandra East 23,000 22,500 17,500 17,500 17,500 17,500 Bandra - Kurla Complex Kalina Kalina 27,500 25,000 20,000 20,000 20,000 20,000 Source: BNP Paribas Real Estate, India Bandra East CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I8I
  9. 9. SECONDARY BUSINESS DISTRICT (SBD) Pressure on rents and capital values This region is witnessing increase in activity from corporate 250 occupiers. The leasing and capital values however are under Rental Values (in Rs / sq.ft / month) extreme pressure as more and more supply is being added. It is estimated that 60% of total new supply of the Mumbai Metropolitan 200 area will fall in this region. 150 100 RENTALS OVER THE PAST 6 QUARTERS 50 Q3 Q4 Q1 Q2 Q3 Q4 2008 2008 2009 2009 2009 2009 0 Q3 Q4 Q1 Q2 Q3 Q4 Andheri E 150 130 120 120 120 120 2008 2008 2009 2009 2009 2009 Andheri W 130 120 110 110 110 110 Vile Parle Malad Borivali 60 50 50 50 50 50 Andheri East Vikhroli Malad 110 100 90 90 90 90 Andheri West Borivali Powai 130 100 90 90 90 90 Powai Vikhroli 95 80 65 65 65 65 Vile Parle 160 160 120 120 120 120 Source: BNP Paribas Real Estate, India 25,000 Capital Values (in Rs / sq.ft) 20,000 15,000 10,000 CAPITAL VALUES OVER THE PAST 6 QUARTERS Q3 Q4 Q1 Q2 Q3 Q4 5,000 2008 2008 2009 2009 2009 2009 Andheri E 15,000 13,000 12,000 12,000 12,000 12,000 — Andheri W 13,000 12,000 11,000 11,000 11,000 11,000 Q3 Q4 Q1 Q2 Q3 Q4 Borivali 6,000 5,000 5,000 5,000 5,000 5,000 2008 2008 2009 2009 2009 2009 Malad 11,000 10,000 9,000 9,000 9,000 9,000 Vile Parle Malad Powai 13,000 10,000 9,000 9,000 9,000 9,000 Andheri East Vikhroli Vikhroli 9,500 8,000 6,500 6,500 6,500 6,500 Andheri West Borivali Vile Parle 16,000 16,000 12,000 12,000 12,000 12,000 Powai Source: BNP Paribas Real Estate, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I9I
  10. 10. PERIPHERY BUSINESS DISTRICT (PBD) Demand is increasing for large space occupier There as an increase in activity from corporate occupiers in this area Rental Values (in Rs / sq.ft / month) as the cost has become attractive. The activity is more pronounced 80 in Navi Mumbai than Thane as it is viewed as more organised and 70 planned area. However, there is still high level of vacancy in this 60 area. The new commercial developments will kick start only once a large built-to-suit tenant is signed. It is expected that a few built-to- 50 suit transactions (100,000 sq.ft.) will get signed in the next 6 40 months. 30 20 RENTALS OVER THE PAST 6 QUARTERS Q3 Q4 Q1 Q2 Q3 Q4 10 2008 2008 2009 2009 2009 2009 0 Q3 Q4 Q1 Q2 Q3 Q4 Airoli 40 35 35 35 35 35 2008 2008 2009 2009 2009 2009 Thane 45 40 40 40 40 40 Vashi Thane Airoli Vashi 75 70 65 60 60 60 Source: BNP Paribas Real Estate, India 8,000 Capital Values (in Rs / sq.ft) 7,000 6,000 5,000 4,000 3,000 CAPITAL VALUES OVER THE PAST 6 QUARTERS 2,000 Q3 Q4 Q1 Q2 Q3 Q4 1,000 2008 2008 2009 2009 2009 2009 — Airoli 4,000 3,500 3,500 3,500 3,500 3,500 Q3 Q4 Q1 Q2 Q3 Q4 2008 2008 2009 2009 2009 2009 Thane 4,500 4,000 4,000 4,000 4,000 4,000 Vashi 7,500 7,000 6,500 6,000 6,000 6,000 Vashi Thane Airoli Source: BNP Paribas Real Estate, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I10I
  11. 11. PRIME RENTS Q4 2009 Region Rent Q on Q INR/ sq.ft/ month Change Ballard Estate 250 0% Central Business District (CBD) Cuffe Parade 200 0% Fort 150 0% Nariman Point 325 0% Q4 2009 Region Rent Q on Q INR/ sq.ft/ month Change Lower Parel 180 0% Extended Central Business Mahalaxmi 150 0% District (Extended CBD) Prabhadevi 250 0% Worli 300 0% Q4 2009 Region Rent Q on Q INR/ sq.ft/ month Change Bandra - Kurla Alternate Central Business 250 0% District (Alternate CBD) Complex Bandra East 175 0% Kalina 200 0% Q4 2009 Region Rent Q on Q INR/ sq.ft/ month Change Andheri E 120 0% Andheri W 110 0% Borivali 50 0% Secondary Business District (SBD) Malad 90 0% Powai 90 0% Vikhroli 65 0% Vile Parle 120 0% Q4 2009 Region Rent Q on Q INR/ sq.ft/ month Change Airoli 35 0% Periphery Business District (PBD) Thane 40 0% Vashi 60 0% Source: BNP Paribas Real Estate, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I11I
  12. 12. CAPITAL VALUES Q4 2009 Region INR / sq.ft Q on Q Change Ballard Estate 35,000 0% Central Business District (CBD) Cuffe Parade 30,000 0% Fort 22,500 0% Nariman Point 40,000 0% Q4 2009 Region INR / sq.ft Q on Q Change Lower Parel 18,000 0% Extended Central Business Mahalaxmi 15,000 0% District (Extended CBD) Prabhadevi 25,000 0% Worli 30,000 0% Q4 2009 Region INR / sq.ft Q on Q Change Bandra - Kurla Alternate Central Business 25,000 0% District (Alternate CBD) Complex Bandra East 17,500 0% Kalina 20,000 0% Q4 2009 Region INR / sq.ft Q on Q Change Andheri E 12,000 0% Andheri W 11,000 0% Borivali 5,000 0% Secondary Business District (SBD) Malad 9,000 0% Powai 9,000 0% Vikhroli 6,500 0% Vile Parle 12,000 0% Q4 2009 Region INR / sq.ft Q on Q Change Airoli 3,500 0% Periphery Business District (PBD) Thane 4,000 0% Vashi 6,000 0% Source: BNP Paribas Real Estate, India CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I12I
  13. 13. KEY TRANSACTIONS Q4 2009 Building Tenant Space Type Location (in sq.ft) One Indiabulls Centre Marsh 25,000 Extended CBD Lower Parel One Indiabulls Centre Morgan Stanley 70,000 Extended CBD Lower Parel Hallmark Plaza Unitech Wireless 27,000 Alternate CBD Bandra East (Kalanagar) Hallmark Plaza Abbott Healthcare 17,000 Alternate CBD Bandra East (Kalanagar) Oberoi Towers Verizon 15,000 SBD Goregaon Ventura JP Morgan 2,17,000 SBD Powai Nirlon Knowledge ICICI Prudential AMC 20,000 SBD Goregaon Park Nirlon Knowledge Xerox 3,000 SBD Goregaon Park Crisil House Crisil 212,000 SBD Hiranandani Powai Knowledge Park Nokia Siemens 70,000 SBD Hiranandani, Powai Essar Tech Park ATL 108,880 SBD Kurla Kalpataru Square Indofill 35,000 SBD Andheri (East) G Corp Tech Park Birla Sun Life 150,000 PBD Thane CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I13I
  14. 14. KEY PROJECTS New Supply – Year 2010 Building Type of Location Location Space (in sq.ft.) Completion date ( expected ) Lodha Excelus Extended CBD Lower Parel 4,00,000 Ready One India Bulls Centre Extended CBD Lower Parel 7,00,000 Q1 2010 India Bulls Financial Extended CBD Lower Parel 5,00,000 Q1 2010 Centre Bandra Kurla Phase I - 5,77,000 Ready Cresenzo Alternate CBD Complex Phase II - 2,28,000 Q1 2011 Ackruti Iris Alternate CBD Andheri East 7,00,000 Q1 2011 Bandra Kurla Ackruti Gold Alternate CBD 66,000 Ready Complex Urbania Alternate CBD Ghatkopar 90,000 Q2 2010 Western Edge SBD Borivali 4,50,000 Ready Rustomjee Natraj SBD Andheri East 2,86,000 Q1 2010 Silver Uthopia SBD Andheri East 4,00,000 Q2 2010 Rustomjee Aspire SBD Sion 1,24,000 Q1 2010 IT Park, Ajmera SBD Andheri East 11,00,000 Q1 2010 R Tech Park SBD Goregaon 4,00,000 Ready City Park SBD Marol 1,40,000 Q1 2010 The Chambers SBD Vile Parle 1,00,000 Q1 2010 Universal Majestic SBD Chembur 5,00,000 Ready Hiranadani Knowledge SBD Powai 3,00,000 Ready Park Supreme Chambers SBD Andheri West 2,40,000 Q1 2010 Andheri East Ackruti Star SBD 4,00,000 Q2 2010 (MIDC) HCC 247 IT Park SBD Vikhroli 18,00,000 Ready Corporate Tech Park PBD Thane 10,60,000 Ready Asher IT Park PBD Thane 7,00,000 Ready Reliable Tech Park PBD Airoli 10,00,000 Q2 2010 CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I14I
  15. 15. GLOSSARY Q4: Quarter 4 of the financial year New: Building built within the last 5 years. Absorption: Occupied Stock (n) – Occupied Stock (n-1); Where “n” is the specified Major Refurbishment: Building which has undergone structural alteration less period (quarter, year etc.) than 5 years ago, subject to planning permission. Bare Shell: Premises consisting of basic structure with lifts, power supply to Recent: Building less than 10 years old. junction box, water supply line, toilets Renovated: Building which has undergone renovation work not requiring for BPO: Business Process Outsourcing planning permission less than 5 years ago. BUA: Built up area Modern: High-performance building over 10 years old. CBD: Central Business District Old: Low-performance building over 10 years old. ECBD: Extended Central Business District CCI (Cost of construction index): Index that makes quarterly measurements of ACBD: Alternate Central Business District 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 SBD: Secondary Business District development, special foundations, etc.), fees and financial costs. PBD: Periphery Business District Demand: A search for premises expressed to BNP Paribas Real Estate. The Completed Stock: Either the building has received occupancy certificate or the analysis pertains only to the flow of new demand expressed. client has moved in and occupied space and started working in a particular For the occupier: Operation undertaken by an occupier for its own purposes. premises New Supply: Any new building and/or heavily refurbished building that adds to DU: Dwelling Unit the existing stocks. These are analysed according to progress. EPIP: Export Promotion Industrial Park Completed new supply: Buildings on which construction work is finished. FAR: Floor Area Ratio (BUA/ Plot Area) Under construction: Buildings on which construction has effectively begun. Prior Grade A: Space Office Space with efficiency in excess of 75%, floor plate in excess demolition work is not taken into account. of 15,000 sq. ft., Car Parking ratio of atleast 1 per 1000 sq. ft., Floor-to-ceiling Planning permission granted: Authorisation to build obtained, generally booked height in excess of 3.75 m, Power provision of 1.25KVA per 100 sq. ft. with 100% after settlement of third party claims. power-backup wherever applicable and professionally managed facilities Planning permission submitted: Planning permission requested, being Ground Coverage: It is the total covered area on ground by the built component processed. and is expressed as a percentage of the plot area Pre-letting: Transaction by an occupier more than 6 months before the delivery of Hard Option: Real estate space reserved by the lessee for future occupation the building. within a particular time frame and at a pre-decided rental Headline rent: Annual rent per square meter, featured on the lease, and INR: Indian National Rupees expressed excluding taxes and charges. Does not include attached premises such Rs: Rupees 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. Pre-lease: Space committed for lease before completion of construction Average headline rent: Weighted average of rented area. The average featured is Speculative Stock: The stock which can be leased and excludes Built-to-Suit a moving average over 3 quarters, to smooth out the changes. (BTS) and Campus facilities. Underlying rent: Annual rent per square meter expressed free of tax and charges Stock: Cumulative Supply and excluding advantages agreed by the owners (rent incentive building works, Supply: New construction in a particular specified period etc). Tier I Cities: NCR, Mumbai and Bangalore Prime rents: Represents the top headline rent (excluding non significant Tier II Cities: Chennai, Hyderabad, Pune, Kolkata transactions) for an office unit:- of standard size, of the highest quality and specification, in the best location in each market. Transaction Volumes: Total number of transaction in a particular specified period Top rent: Represents the top headline rent for an office unit. It is not necessarily a Vacancy: Total vacant space in the completed stock prime rent. Warm Shell: Premises consisting of power backup, high side A.C., common area fit Second hand premises: Premises that have been previously occupied by an outs and fitted out toilets occupier for vacant for more than 5 years. Q on Q: Quarter on Quarter Renovated: Premises that have been renovated for the new occupier. y-o-y: year-on-year (All growth figures in this report are y-o-y unless otherwise Very good condition: High-performance premises of high quality. mentioned Existing state of repair: Low-performance premises that can be rented as they IT: Information Technology are. ITES: Information Technology Enabled Services (includes various services To be renovated: Low performance premises that need renovation. ranging from call centres, claims processing, medical transcription, e-CRM, SCM to back-office operations such as accounting, data processing, and data mining) Supply available within 1 year: All premises and buildings available within 1 year including the supply available immediately, new supply that has not been pre-let NCR: National Capital Region (includes urban agglomeration of Delhi, Gurgaon, and second hand supply that will be vacated definitively (notable terminated Faridabad, Noida, Gaziabad etc.) leases). ORR: Outer Ring Road Take-up: Rental or sale of a property asset, finalised by the signature of a lease or Repo Rate: Rate that an eligible depository institution (such as a bank) is charged a bill of sale including turnkey transactions and owner-occupier. The transaction to borrow short term funds directly from the central bank through the discount is only taken into account once any existing conditional clauses have been lifted. window Vacancy rate: Ration measuring the relationship between the supply Reverse Repo Rate: Interest rate that a bank earns for lending money to the immediately available and the existing stock. Reserve Bank of India in exchange for government securities SEC A, B, C & D Socio: Economic Classification; SEC A represents the highest BNP Paribas Real Estate cannot be held responsible if, despites its best efforts, propensity to spend and SEC D represents the lowest propensity to spend. the information contained in the present report turns out to be inaccurate or Sq.ft: Square Feet incomplete. This report is released by BNP Paribas Real Estate and the information in it is dedicated to the exclusive use of its clients. The report and the Sq.mt: Square Meter information contained in it may not be copied or reproduced without prior Stamp Duty: Form of tax charged on instruments (written documents) requiring a permission from BNP Paribas Real Estate. physical stamp (for government legality) to be attached to or impressed. CITY REPORT MUMBAI OFFICE MARKET - Q4 2009 I15I
  16. 16. LOCATIONS ALLIANCES BAHRAIN ABUDHABI ALBANIA JAPAN RUSSIA Bahrain Financial Harbour Al Bateen Area Danos & Associates RISA Partners Astera West Tower Plot No. 144, W-11 Boulevard Deshmoret e Kombit 5F Akasaka Intercity 1-11-44 10, b.2 Nikolskaya Str. INDIA 16th Floor New Al Bateen Municipality Twin Towers - Tower 2 Akasaka, Minato-ku Moscow, 109012 P.O. Box 5253 Street 32 11th Floor 107-0052 Tokyo Tel/Fax: +7-495-925 00 05 Bangalore Manama P.O. Box 2742 Tirana Tel: +81-3-5573 8011 403, The Estate, Tel: +971-505 573 055 Abu Dhabi, UAE Tel: +355-4-2280488 Fax: +81-3-5573 8012 SERBIA 121, Dickenson Road, Fax: +971-44 257 817 Tel: +971-505 573 055 Fax: +355-4-2280192 Danos & Associates Fax: +971-44 257 817 Bangalore - 560 042 BELGIUM NETHERLANDS 6, Vladimira Popovica Street AUSTRIA Holland Realty Partners Belgrade 11000 Tel: +91 80 4050 8888 Blue Tower JERSEY Dr. Max Huber & Partner J.J. Viottastraat 33, 1071 JP Tel: +381-11-2600 603 Fax: +91 80 4050 8899 Avenue Louise 326 4th Floor, Conway House Dr. Karl-Lueger-Platz 5 Amsterdam, Fax: +381-11-2601 571 B14 Louizalaan Conway Street 1050 Brussels St Helier 1010 Vienna Tel: +31-20-305 97 20 Contact: Anuj Nautiyal Tel: +32-2-646 49 49 Jersey Je2 3NT Tel: +43-1-513 29 39 0 Fax: +31-20-305 97 21 UKRAINE Fax: +32-2-646 46 50 Tel: +44-15 34-62 90 01 Fax: +43-1-513 29 39 14 Astera anuj.nautiyal@asia.bnpparibas.com NORTHERN IRELAND 2a Konstantinovskaya Street Fax: +44-15 34-62 90 11 DUBAI BULGARIA Whelan Property Consultants 04071, Kiev Emmar Square LUXEMBOURG Danos & Associates 44 Upper Arthur Street Tel: +38-044-501 50 10 Mumbai Building No. 1, 7th Floor EBBC, Route de Trèves 6 28, Hristo Botev Boulevard Belfast Bt1 4GJ Fax: +38-044-501 50 11 704, Level 7, MMTC House, C-22, P.O. Box 7233 Bloc D Sofia Tel: +44-28-9044 1000 Bandra Kurla Complex, Bandra (E), Dubai, EAU 2633 Senningerberg Tel: +359-2-9532314 Fax: +44-28-9033 2266 USA Mumbai - 400 051 Tel: +971-505 573 055 Tel: +352-34 94 84 Fax: +359-2-9532399 Cresa Partners Fax: +971-44 257 817 Fax: +352-34 94 73 SLOVAKIA 200 State Street Tel: +91 22 6138 8088 CANADA Modesta (Dr. Max Huber & 13th Floor Fax: +91 22 6138 8089 FRANCE ROMANIA Cresa Partners Partner Group) Boston, Massachusetts 02109 13 boulevard du Fort de Vaux Union International Center Tel: +1-612-767 12 78 Heydukova 12-14 Tel: +1-612-767 12 78 75017 Paris 11 Ion Campineanu Street Fax: +1-612-337 8459 811 08 Bratislava Fax: +1-612-337 8459 Contact: Raja Kaushal Tel: +33-1-55 65 20 04 Sector 1 Tel: +421-2-3240 8888 raja.kaushal@asia.bnpparibas.com Fax: +33-1-55 65 20 00 Bucharest 010031 CYPRUS Fax: +421-2-3214 4777 Tel: +40-21-312 7000 Danos & Associates GERMANY Fax: +40-21-312 7001 35, I. Hatziosif Ave PORTUGAL Delhi Goetheplatz 4 2027, Nicosia Fenalu Level 4, Wing B, Statesman House, 60311 Frankfurt SPAIN Tel: +49-69-2 98 99 0 María de Molina, 54 Tel: +357-22 31 70 31 Av. Duarte Pacheco Barakhamba Road, Fax: +49-69-29 29 14 28006 Madrid Fax: +357-22 31 70 11 Empreendimentos das New Delhi - 110 001 Tel: +34-91-454 96 00 Amoreiras IRELAND Fax: +34-91-454 96 04 GREECE Torre 2, 14° - Sala H Tel: +91 11 3044 6406 Danos & Associates 1070-102 Lisbon 40 Fitzwilliam Place Fax: +91 11 3044 6507 Dublin 2 UNITED KINGDOM 1, Eratosthenous Str. Tel: +351-21-3833106 Tel: +353-1-66 11 233 90 Chancery Lane 11635 Athens Fax: +351-21-3833107 Contact: Ankit Tyagi Fax: +353-1-67 89 981 London WC2A 1EU Tel: +30-210 7 567 567 Tel: +44-20-7338 4000 Fax: +30-210 7 567 267 ankit.tyagi@asia.bnpparibas.com ITALY Fax: +44-20-7430 2628 Corso Italia, 15/A 20122 Milan USA Tel: +39-02-58 33 141 787 Seventh Avenue Fax: +39-02-58 33 14 39 31st Floor New York, NY 10019 Tel: +1-917-472 4970 Fax: +1-212-471 8100 www.realestate.bnpparibas.com

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