city report bangalore office market q4 2010

CITY REPORTBANGALORE OFFICE MARKET

Q4 2010

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CITY REPORTBANGALORE OFFICE MARKET - Q4 2010

Summary p. 3

Macroeconomic Context p. 4

Bangalore Map p. 5

Central Business District (CBD) p. 6

Secondary Business District (SBD) p. 7

Periphery Business District (PBD) p. 8

Rental Values & Capital Values p. 9

Key Projects p. 9

p. 11Glossary

CONTENTS

Key Transactions p. 10

3I I

SUMMARY

There has been significant increase in leasing enquiries in Q4 of 2010. However, inspite of a steady rise in number of enquiries, the volume of space transacted in the region witnessed a sharp decline as compared to the previous quarter. During this quarter Bangalore witnessed a cumulative transaction of approx. 0.8 mn sq.ft as compared to approx. 3.7 mn sq.ft. in Q3 2010.

The achievable values exhibited a mixed trend. While, as there was a marginal increase in rental and capital values within the CBD, there was an increased pressure on the achievable values within the suburban and peripheral micro-markets. Restricted availability of space options across the CBD with a steady demand resulted in firming up of rentals within the micro-market. On the other hand, the ongoing construction activity within the SBD and PBD micro-markets with ready availability of large volume of office space has led to increased vacancy levels in these micro-markets.

During this quarter, approx. 1.1 mn sq.ft of additional space was added to the existing inventory across the SBD and PBD areas. At the same time, a total stock of approx. 10 mn sq.ft of investment grade office space is currently under various stages of construction across the city and is likely to be added to the existing stock by the end of the next year i.e. Q4 2011. The SBD alone is likely to witness additional supply of approx. 5 mn sq.ft of Grade A office space during the coming year. Given the existing availability of ready stock with stagnant demand, some of the developers have slowed down the pace of construction in their on-going projects. However, most of these projects are expected to be completed by end of 2011.

Bangalore is currently witnessing a significant number of infrastructure projects being implemented, and are under various stages of development. The Government of Karnataka has undertaken the development of 7 flyovers on the Outer Ring Road to provide seamless connectivity to the developing peripheral regions and ease traffic flow to the existing SBD regions. Once completed these projects are likely to have a positive impact on the demand for real estate within the region as a whole.

The Phase I of Metro is progressing as per schedule and trial run is expected to commence in the last week of January 2011. Planning and land acquisition for the second phase is currently underway and the construction is expected to commence shortly. Similar to other cities the ongoing construction activity is likely to have a negative impact on the demand for surrounding development during the short term. However in the long run, the projects in these regions are likely to benefit from the initiatives.

During the past few quarters, Bangalore has witnessed an increased demand for IT SEZ space with many blue-chip companies actively looking at SEZ space. However, currently there is a limited supply of ready to move SEZ space in the region. This scenario is however likely to change with significant volume of supply likely to be added in the SBD and PBD areas of Bangalore by mid 2012.

Looking forward, the rental and capital values are expected to rise marginally in the CBD area. On the other hand the achievable values are likely to be impacted in the SBD areas such as Bannerghatta Road, Jaya Nagar and JP road due to ongoing construction activity of metro rail during the short term. Alternatively, based on the growing interest for additional space from the Blue-chip companies, the rentals in PBD are expected to remain stable over the next few quarters.


4I ICITY REPORTBANGALORE OFFICE MARKET - Q4 2010

MACROECONOMIC CONTEXTGDP growth moderates on account of unanticipated factorsThe Indian economy, continued on the high growth path in 2010-11 despite an uncertain global environment. Though the overall global outlook suggested some moderation in growth in both advanced and emerging economies in 2011, downside risks to India's growth momentum have receded considerably. However, the GDP grew moderately at 8.2 % during the quarter as compared to 8.8% during the previous two quarters. Significant slowdown in the industrial sector along with marginal downward movement in the services sector were primary factors that led to moderation in the GDP growth, despite of sharp increase in agricultural growth.

Modest softening of manufactured products price and pressures aided by past monetary tightening by RBI, led to moderation in Wholesale Price Index (WPI) during August-November 2010 relative to double digit levels of 11% experienced during March-July 2010. However, inflationary pressures revived in December 2010 with WPI inflation increasing to 8.4 percent from 7.5 per cent in November 2010. These were attributed to unanticipated factors such as unseasonal showers and supply chain factors affecting the prices of essential commodities such as vegetables. New drivers such as Fuel and non-fuel international commodity prices and demand-supply imbalances in some food items emerged as factors impacting the inflation rates.

Liquidity conditions remained tight during the third quarter of 2010-11, prompting liquidity easing measures being adopted by the Reserve Bank. Under the Liquidity Adjustment Facility (LAF), the RBI increased the repo rate by 25 basis points from 6.0% to 6.25% and hiked the reverse repo rate by 25 basis points from 5.0% to 5.25%. Conditions for enhancing the efficiency of monetary policy however, improved during the quarter with the tightness in liquidity leading to competition among banks, resulting in higher deposit and lending rates.

Supported by a stable economy, India continued to be high on Global Investment radar. According to The World Prospectus Survey by the United Nations Conference on Trade and Development (UNCTAD), in spite of a dip in the FDI Inflows, India continues to be the second best attractive destination for FDI after China. India witnessed a total FDI inflow of USD 16,039 million dollars (as on Dec 2010) followed by Singapore and USA at third and fourth places.

Overall, robust and broad – based growth is expected to co-exist with elevated inflation in the near term.

DLF Limited 5% 11%

Major Real EstateCompanies in

India

Sales (In INR / In million) Profits (In INR / In million)

Q4 2010 Q3 2010Q on Q

Change % Q4 2010 Q3 2010Q on Q

Change %

Unitech 2% -36%

India Bulls 10% 17%Sobha Developers -15% -17%

Peninsula Land -4% -3%ParsvnathDevelopers 12% -37%

Pheonix 2% 7%

Omaxe Limited -2% -39%

MahindraLifespace 75% 36%

Anantraj -100% 5%

Ackruti City 31% 31%

Ansal Properties 6% 63%

5,414 1,727

4,257 589

1,226 638

443

890 247

1,624 557

3,197 199

221

23,690 4,184

3,544 367

1.329 480

6,445 1,740

1,955 498

24,799 4,657

5,962 2,025

3,629 490

1,178 621

451 238

1,558 334

2,123 678

3,378 324

2,198 314

3,480 226

6,598 1,113

2 502

Repo Reverse Repo

Repo & Reverse Repo Rate7

6

3

Perc

ent

1

Gross Domestic Product (GDP)

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

0.00

2.00

4.00

6.00

8.00

10.00

Q32009

Q42009

Wholesale Price Index (WPI)

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

Sept

-06

Dec-

06

Mar

-07

Jun-

07

Sept

-07

Dec-

07

Mar

-08

Jun-

08

Sept

-08

Dec-

08

Mar

-09

Jun-

09

Sept

-09

Dec-

09

Mar

-10

Jun-

10

Source: Confederation of Indian Industries

Q12010

Sept

-10

23-J

ul-0

9

23-A

ug-0

9

23-S

ep-0

9

24-O

ct-0

9

24-N

ov-0

9

25-D

ec-0

9

25-J

an-1

0

25-F

eb-1

0

19-M

ar-1

0

20-A

pr-1

0

20-M

ay-1

0

20-J

un-1

0

27-J

ul-1

0

20-A

ug-1

0

16-S

ep-1

0

2

4

5

0

Dec-

10

Q22010

2-Ju

l-10

2-N

ov-1

0

8.80%

7.90%7.60%

5.30%

5.80%6.10%

7.90%

6%

8.60%

8.80%8.20%

8.80%

1.00

3.00

5.00

7.00

9.00

Q32010

Q42010

SLR CRR

CRR & SLR

30

20

10

5

Perc

ent

0

Jan-

09Fe

b-09

Mar

-09

May

-09

Jul-

09

Sep-

09

Nov

-09

Jan-

10

Mar

-10

May

-10

Jul-

10

Sep-

10

15

25

Nov

-10

35

Apr-

09

Jun-

09

Aug-

09

Oct-

09

Dec-

09

Feb-

10

Apr-

10

Jun-

10

Aug-

10

Oct-

10

Dec-

10

Perc

ent

Perc

ent

5I I

BANGALORE MAP

Coce urs ada e RoR Race

Course

RajBhavan

VidhanSoudha

HighCourt

CubbonParkChikpete Rd

Kastur

ba Rd

nroa yh oM R

Rd

Brig

ade

Rd WHITEFIELD

Hoodi

Brigade TechPark

Whi

tefie

ld

Whitefield Rd

Rd

Bela

tur

Rd

Belatur

Kodugodi

Whitefield

Kodugodi RdStation Rd

BhattarahalliRd

Domsandra

Sadarmangal

1 M

ain

Rd

2 Main Rd

Borewell Rd

Vartur Rd

VarturKere

Vartur

Adarsh PalmRetreat

Vartu

r Rd

Channapanhalli

Southern Railway

Vartur Rd

Marattahalli

InnovativeMultiplex

Soul Space

Bellandur

BellandurTank

Salarpuria Softzone

Vimanpura

HAL

LB ShastriNagar

Suranjaindas Rd

Outer Ring Road

DoddaNekkundi

Old Madras Rd

KodihalliVictoria d R

Cantonment

Cubbon Rd

ChinnaswamyCricketStadiumSeshadri Rd

KSRTCBus Terminal

Majestic

Chikpete

Elevated RdVictoria

UrvashiAlbert Victor Rd

K R

Road

Bull Temple Rd

Basavangudi

LalBagh

Lal Bagh Fort Rd

UlsoorLake

Whe

eler

Rd

Munireddypalya

Mattadahalli

Ram

anam

ahar

ishi

Rd

Nagavara

Nag

avar

a M

ain

Rd

Hennu

ru M

ain Rd

Hennuru

Krishnarajapura

RamamurthyNagar

YellarnallappachettyKere

Chikkabanhalli

Old Madras Rd

Whitefield Rd

Devasandra

BhattarahalliAnandapuram

BangaloreHALAirportGolf

Course

Chamarajpet

Sarjapur Rd

Outer Ring Road

HSR Layout

South End Rd

Banashankari

dR arup kanaK

Uttarahalli

li RdlaharattU

Malleshvaram

Chor

d Rd

West ofChord Rd

Pineline Rd

Magadi Rd Chor

d Rd

Link Rd

Magadi Rd

Uni

vers

ity R

d

Hegganahalli

dR illahanaggeH

Bangalore CityRailway Station

Lottegollahalli

Lottegollahalli

Mattikere

Yeshvantpur

Bel Road

HebbalKere

Esteem Mall

NagavaraKere

CoxTown

Hosur RdKana

kpur

a Rd

Chandrapura

Madurai

Begur

Begu

r Rd

Kudlu

Kudlu Rd

NH-7

Bann

ergh

atta

JPNagar

MandivalaTank

MandivalaAgaraKere

adoR erosyM

Chor

d Rd

Magadi Rd

BangalorePalace

Bommanahalli

Marigowda Rd

HosakerehalliKere

dR illU ahattar

Vasantpura Rd

DoddaKalsandra

Kana

kpur

a

da oR attaghcnuhC

Electronic City

Kambipura Rd

Southern Railw

ayBangaloreUniversity

University Rd

TajWestend

JayamahalPalace

Karirobanhalli RdPeenya

YeshvantpurSuburb

Tumkur Road

NH-4

C V Raman Rd

Old Tumkur Rd

Bupasandra Rd

Jalahalli

Kodigehalli RdBELDefence

Colony

Byatarayanapura RachanaHalliKere

Bella

ry R

d

Agrahara

Bella

ry R

d

YelahankaNew Town

Dod Ballapur RdHindupur

Southern Railway

YelahankaKere

BangaloreInternationalAirport

Hyde

raba

d

Harohalli

d RurtpnvahYes

NH-7

ChikkaBommasandra

Rajiv GandhiNagar

KodigehalliKere

Kodigehalli

Southern Railway

Banaswadi idawsanaB

B Channasandra

NH-4

KrishnarajaPuram

Channasandra

BaiyyappanaHalli

R illahanam

maK

d

dR illahalaJ

Chikka Banavar Rd

Southern Railway

Bagalakunte

NH-4

Sarjapur Rd

ChikkaNayakamahalli

Salem

Anek

al

NH-4

NH-4

BangaloreEast

Major Roads

Roads

River / Water Bodies

Park / Green AreaRailway Station CBD

SBD

PBD

Airport

Outer / Ring Road

Inner

1

4

5 6

1

3

8

6

9

13

15

16

4

1

2

3

RajajiNagar

VijayNagar

16

16

16

2

5

7

10

11

1214

17

18

27

8 9

10

113

N

Level 15, Concorde Block,UB City, Vitthal Mallya Rd.

Central Business District Secondary Business District Periphery Business District

1. Electronic City2. Mysore Road3. Whitefield

1. Cunningham Road2. Langford Road3. Lavelle Road4. MG Road5. Residency Road6. Richmond Road7. Richmond Town

1. Airport Road 2. Adugodi3. Banerghatta Road 4. Bellary Road5. BTM Layout6. CV Raman Nagar7. Domlur8. Hebbal9. Indiranagar

10. Jaya Nagar11. Jayamahal Rd12. Kammanahalli13. Koramangala 14. Mekhri Circle15. Old Madras Road16. Outer Ring Road 17. R T Nagar18. Shanti Nagar

8. St Marks Road9. Ulsoor10. Vasanth Nagar11. Vitthal Malya

Road


6I I

CENTRAL BUSINESS DISTRICT (CBD)

Supply & Vacancy Trend

The transaction volume recorded in the CBD during Q4 2010 was approx 0.04 mn sq ft. The vacancy rate in the CBD dropped marginally from 3.6% to 3.5% currently. The vacancy level is expected to fall further during Q1 2011 due to absence of ready to occupy space backed by a strong demand.

The testing of metro phase 1, Reach 1 from Baiyyappana Halli to MG Road is scheduled in January and would be functional by end of Q1 2011 which would ease commuting to CBD from Old Madras road.

The Q4 witnessed subdued leasing activity due to the non availability of large grade A commercial office space.

Presently, 0.41 million sq ft of office space is under construction in the CBD, half of which is expected to be completed by Q2 2011.

Absence of new supply pushes rentals higher

Rental & Capital Values

55

60

65

70

75

80

5,500

6,000

6,500

7,000

7,500

8,000

Q32009

Q42009

Q12010

Capital Value (INR/sq.ft)

Rent

al V

alue

(IN

R/sq

.ft/m

onth

)

Q22010

2,500

3,000

3,500

0.0%

0.5%

Q32009

Q42009

Q12010


Stoc

k (’0

00 s

q. ft

) Vacancy Rate4,000

Q22010

Rental & Capital ValuesThe rental values in the CBD increased marginally by 4% in comparison to Q3 2010 and are presently at an average of INR 78 per sq.ft. per month. This rise in price was attributed to non availability of space, backed by a steady flow of enquries. Due to lack of space options and existing high rentals, the clients are now looking at off CBD locations such as Kormangala and Jayanagar, where the rentals have remained stable or are holding on till additional stock enters the market, thereby impacting the values.

Source: BNP Paribas Real Estate - Research, India

Q3 2009 5,651 1.6%

Stock ('000 sq ft) Vacancy

SUPPLY & VACANCY TREND FOR THE PAST 6 QUARTERS

Q4 2009 5,933 2.7%


Q3 2009 70 7,200

Rental Values (INR / sq. ft / month)

Capital Values(INR / sq. ft)

AVERAGE RENTAL & CAPITAL VALUESOVER THE PAST 6 QUARTERS

Q4 2009 73 7,500

Major areas that constitute CBD include:-• MG Road• Residency Road• Richmond Road• Cunningham Road

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4,500

5,000

5,500

6,000

6,500


The average headline rentals & capital values for the last 6 quarters are as follows:-

Q2 2010Q1 2010 75 8,300

Q2 2010Q1 2010 6,050 3.6%

75 8,300

6,050 3.8%

85

90

8,500

9,000

Stock Vacancy Rate

Capital Value Rental Value

Q32010

Q42010

Q32010

Q3 2010

Q3 2010

6,243 3.6%

75 8,300

Q4 2010

Q42010

Q4 2010

6,243 3.5%

78 8,500

7I I

Supply & Vacancy TrendThe SBD witnessed transaction volumes of around 0.7 million sq ft during Q4 2010. Most of the leasing activity was witnessed along the Bannerghatta road and Outer Ring Road (Marathalli- Sarjapur stretch). During this quarter 1.1 million sq ft of fresh stock was added to the existing stock. This increase in stock has led to an overall increase in vacancy rates from 3.7% during Q3 2010 to 4.2% in Q4 2010.

Fresh supply leading to higher vacancy rate

SECONDARY BUSINESS DISTRICT (SBD)

Rental & Capital ValuesThe rental value in the SBD region fell marginally to INR 48 per sq ft per month. This can be partially attributed to the ongoing metro work in some of these pockets. Further, a sizeable number of projects are currently under construction in this micro-market. Approx. 5 mn. sq.ft of supply is likely to be complete and launched by the end of 2011. Therefore, developers with ready stocks are currently offering lower rentals to offload the available stock. In the next 6 months, it is expected that the rentals in this market are expected to fall further due to availability of large space with increasing demand.


Q3 2009 24,904 7.8%



Q4 2009 25,899 7.5%


Q3 2009 40 4,000

Rentals (INR / sq. ft / month)


Q4 2009 45 4,400

Major areas that constitute SBD include:-• Koramangala • Indiranagar and CV Raman Nagar • Old Madras Road• Airport Road • Banerghatta Road • Outer Ring Road • Hebbal• Bellary Road

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

26,000

0%

1%

2%

3%

4%

5%

6%

7%

8%

Stoc

k (’0

00 s

q.ft

) Vacancy Rate

Q32009

Q42009

Q12010


Q22010

9%28,000

Stock Vacancy Rate

3,7003,9004,1004,3004,500

3739414345

Rent

al V

alue

(IN

R/sq

.ft/m

onth

)



Q32009

Q42009

Q12010

35

47

Q22010

49

3,500

4,7004,900




Q2 2010Q1 2010 26,419 6.1%

Q2 2010Q1 2010 47 4,400

27,333 3.7%

49 4,500

Q42010

Q32010

Q42010

Q32010

Q3 2010

Q3 2010

27,445 3.7%

49 4,500

51 5,100

Q4 2010

Q4 2010

28,545 4.2%

45 4,500


8I I

Increased pressure on rentals due to high vacancy rateSupply & Vacancy TrendThe PBD witnessed transaction volumes of around 0.1 million sq ft. No new stock was added to the existing inventory. In comparison to the last quarter, the vacancy level fell by 2% and currently stand at 23%. Around 3.8 million sq ft of office space is presently under construction in the two micro markets of Whitefield and Electronic city most of which is expected to be completed by the first half of 2012.

PERIPHERY BUSINESS DISTRICT (PBD)

500

1,000

1,500

2,000

2,500

3,000

3,500

Q32009

Q42009

Q12010

Rent

al V

alue

(IN

R/sq

.ft/m

onth

)



5

10

15

20

25

30

35

Q22010

0

5%

10%

15%

20%

Stoc

k (’0

00 s

q.ft

) Vacancy Rate


Q32009

Q42009

Q12010

5,000

Q22010

Rental & Capital ValuesThe rental values in the PBD dropped by around 7% and currently stand at INR 26 per sq ft per month. In line with the rental values, the capital values too dropped during Q4 2010 and currently stands at INR 2,250 per sq ft. The availability of large spaces, with absence of demand were primary factors impacting the increase in vacancy levels. However, it is the increase in number of enquiries from Blue chip organisations that are indicative of a likely strong demand for this micro-market in the near future.


Q3 2009 16,680 16.2%



Q4 2009 17,280 17.3%

Major areas that constitute PBD include:-• Whitefield• Electronic City• Mysore Road


Q3 2009 25 2,150

Rentals (INR / sq. ft / month)


Q4 2009 26.5 2,350

10,000

25,000

15,000

20,000

0%

25%



Q2 2010Q1 2010 17,752 19.5%

Q2 2010Q1 2010 27.5 2,300

19,221 22.14%

27.5 2,300


Stock Vacancy Rate

Q42010

Q32010

Q42010

Q32010

Q3 2010

Q3 2010

20,416 23.5%

28 2,350

Q4 2010

Q4 2010

20,416 23%

26 2,250


9I I

RENTAL VALUES FOR Q4 2010

RentINR/ sq.ft/ month

CBD

PBD

SBD

MicroMarket

Q on QChange

78

2645 -8%

-7%

4%

CAPITAL VALUES FOR Q4 2010

SBDCBD

PBD

MicroMarket

Q on QChangeINR / sq.ft

4,5008,500

2,2500%-4%

2%

KEY PROJECTS


New Supply – Year 2010

Property Location Micro Market

Total built up area (sq ft)

Completion Date(expected)

Cosmo Lavelle Lavelle Road CBD 150,000 Q1 2011

Pride Hulkul Lalbagh Road SBD 230,000 Q1 2011

Sigma Grand Outer Ring Road (Marathalli - KR Puram) SBD 500,000 Q1 2011

Prestige EXORA Phase-1 Outer Ring Road (Marathalli - Sarjapur) SBD 700,000 Q1 2011

Adarsh Software park SEZ (Multitenanted)

Outer Ring Road (Marathalli - Sarjapur) SBD 505,000 Q2 2011

Bhoruka IT Park Phase II Whitefield PBD 423,000 Q1 2011

GVR Tech Park Whitefield PBD 480,000 Q1 2011

Salrpuria Symphony Hosur Road PBD 160,000 Q1 2011

Ascendas ITPB SEZ Whitefield PBD 535,000 Q2 2011

Bearys Global Research Triangle Whitefield PBD 1,250,000 Q1 2011



KEY TRANSACTIONS



Q4 2010

Building Occupiers Space(sq.ft)

Micro Market Location

Millenia Tower D Thomson Reuters 21,600 CBD Murphy Road

Kalyani Magnum Honeywell Software 39,000 SBD Bannerghatta Road

Subramanya Arcade Honeywell Software 40,000 SBD Bannerghatta Road

Subramanya Arcade Emulax 20,000 SBD Bannerghatta Road

EGL Mercedes 44,000 SBD Inner Ring Road

North Star Angle Software 57,000 SBD Malleshwaram

Pritech Park NDS 220,000 SBD Outer Ring Road

Ferns Icon Lennovo 13,000 SBD Outer Ring Road

Manyata Embassy Tech Park Cognizant 250,000 SBD Outer Ring Road

Kay ARR Cornerstone Siemens IT Solutions and Services Pvt Ltd 4,000 SBD Koramangala

RM Plaza B & R Automation 3,300 SBD BEL Road

Bagmane WTC-3 Xentrix 22,000 SBD Outer Ring Road

Gopalan Axis Infinite Computer Soln 100,000 PBD Whitefield


GLOSSARYQ4:

Super Built-up Area (SBUA):

Carpet Area:

Sq.mt:

Mn:

New:

Recent:

SEZ:

BFSI:

SLR:

CRR:

FSI:

Quarter 4 of the financial year (October - November - December)

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.

Special Economic Zone having special tax exemptions / incentives to corporate occupiers

Banking & Financial Services Industry

Statutory Liquidity Ratio

Cash Reserve 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.

ORR:

Headline rent:

Average headline rent:

Disclaimer:

Outer Ring Road

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:

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.

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.

.

SPAINMaría de Molina, 5428006 MadridTel: +34-91-454 96 00Fax: +34-91-454 97 65

UNITED KINGDOM5 Aldermanbury SquareLondon EC2V 8HRTel.: +44-20-7338 4000Fax: +44-20-7430 2628

ALBANIA*Danos & AssociatesBlvd. Deshmoret e KombitTwin Towers - Building 211th FloorTiranaTel.: +355-4-2280488Fax: +355-4-2280192

AUSTRIA*Dr. Max Huber & PartnerDr. Karl-Lueger-Platz 51010 ViennaTel: +43-1-513 29 39 0Fax: +43-1-513 29 39 14

BULGARIA*

28, Hristo Botev BoulevardSofiaTel: +359-2-9532314Fax: +359-2-9532399

CANADA*Cresa PartnersTel.: +1-617-758 6000Fax: +1-617-742 0643

CYPRUS*Danos & Associates35, I. Hatziosif Ave2027, NicosiaTel.: +357-22 31 70 31Fax: +357-22 31 70 11

Danos & Associates

GREECE*Danos & Associates1, Eratosthenous Str.11635 AthensTel: +30-210 7 567 567Fax: +30-210 7 567 267

JAPAN*RISA Partners5F Akasaka Intercity 1-11-44Akasaka, Minato-ku107-0052 TokyoTel: +81-3-5573 8011Fax: +81-3-5573 8012

RUSSIA*Astera10, b.2 Nikolskaya Str.Moscow, 109012Tel/Fax: +7-495-925 00 05

SERBIA*Danos & associates6, Vladimira Popovica StreetOffice B3111000 BelgradeTel.: +381-11-2600 603Fax: +381-11-2601 571

NETHERLANDS*Holland Realty PartnersJ.J. Viottastraat 33,1071 JPAmsterdam,Tel: +31-20-305 97 20Fax: +31-20-305 97 21

NORTHERN IRELAND*Whelan Commercial LimitedArthur House41 Arthur StreetBelfast BT1 4GBTel.: +44-28-9044 1000Fax: +44-28-9033 2266

SLOVAKIA*Modesta (Dr. Max Huber &Partner Group)Heydukova 12-14811 08 BratislavaTel.: +421-2-3240 8888Fax: +421-2-3214 4777

SWITZERLAND*NaefAvenue Eugène-Pittard 14-16Case Postale 301211 Geneva 17Tel.: +41-22 839 39 39Fax: +41-22 839 38 38

UKRAINE*Astera2a Konstantinovskaya Street04071, KievTel: +38-044-501 50 10Fax: +38-044-501 50 11

USA*Cresa Partners200 State Street13th FloorBoston, Massachusetts 02109Tel.: +1-617-758 6000Fax: +1-617-742 0643

Falcon Real Estate570 Lexington Avenue32nd FloorNew York, NY 10022Tel.: +1-212 271-5445Fax: +1-212 271-5588

ABU DHABIAl Bateen AreaPlot No. 144, W-11New Al Bateen MunicipalityStreet 32P.O. Box 2742Abu Dhabi, UAETel.: +971-44 248 271Fax: +971-44 257 817

BELGIUMBoulevard LouisSchmidtlaan 2 B31040 BrusselsTel: +32 2 646 49 49Fax: +32 2 646 46 50

CZECH REPUBLICPobøežni 3186 00 Praha 8Czech RepublicTel.: +420 224 835 000Fax: +420 222 323 723

DUBAIEmaar SquareBuilding No. 1, 7th FloorP.O. Box 7233Dubai, UAETel: +971-44 248 271Fax: +971-44 257 817

FRANCE167, quai de la Bataillede Stalingrad92867 Issy-les-MoulineauxTel: +33-1-55 65 20 04Fax: +33-1-55 65 20 00

GERMANYGoetheplatz 460311 FrankfurtTel.: +49-69-2 98 99 0Fax: +49-69-2 92 91 4

HUNGARYAlkotas u. 53.H-1123 Budapest,HungaryTel.: +36 1 487 5501Fax: +36 1 487 5542

IRELAND40 Fitzwilliam PlaceDublin 2Tel: +353-1-66 11 233Fax: +353-1-67 89 981

ITALYCorsa Italia, 15/A20122 MilanTel: +39-02-58 33 141Fax: +39-02-58 33 14 39

LUXEMBOURGAxento BuildingAvenue J.F. Kennedy 441855 LuxembourgTel.: +352-34 94 84Fax: +352-34 94 73

POLANDul. Gorczewska 12401-460 WarszawaPolandTel.: +48 22 533 40 03Fax: +48 22 533 40 04

ROMANIAUnion International Center11 Ion Campineanu StreetSector 1Bucharest 010031Tel: +40-21-312 7000Fax: +40-21-312 7001

JERSEYDialogue HousePO Box 158Anley StreetSt HelierJersey JE4 8RDTel.: +44 (0)1 534 815 300Fax: +44 (0)1 534 629 011

*Alliances

INDIA

For Queries / Commentsemail at:[email protected]

BNP PARIBAS REAL ESTATE& INFRASTRUCTURE ADVISORYSERVICES PVT. LTD.

MUMBAI (HEAD OFFICE)704, Level 7, MMTC House, C-22,Bandra Kurla Complex, Bandra (E),Mumbai - 400 051Tel: +91 22 6138 8088Fax: +91 22 6138 8089

DELHIUpper ground floor, Unit No 7,Mercantile House, 15 KG Marg,New Delhi 110001Tel: +91 11 4959 8800Fax: +91 11 4959 8818

BANGALORELevel 15, Concorde Block,UB City, Vittal Mallya Road,Bangalore – 560001Tel: +91 80 4030 0334Fax: +91 80 4030 0400

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city report bangalore office market q4 2010

Documents

volume of space

sez space

ft of additional space

rental values capital

achievable values

sbd areas

existing sbd regions

pbd areas of bangalore