city report - delhi office market q2 2010

CITY REPORTDELHI OFFICE MARKET

Q2 2010

BNP Paribas Real EstateAll 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 thesuccess of your real estate project. With BNP Paribas Real Estate, all the pieces come together.

Your contact in India: Bangalore: +91 80 4050 8888 - Mumbai: +91 22 6138 8088 - Delhi: +91 11 4959 [email protected]

www.realestate.bnpparibas.com

BNP

Parib

as Im

mob

ilier

– 13

bou

leva

rd d

u Fo

rt d

e Va

ux, 7

5017

Par

is –

Fra

nce

SAS

au c

apita

l de

225

205

616

€ -

RCS

Paris

692

012

180

– C

ode

NAF

411

0B

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 REPORTDELHI OFFICE MARKET - Q2 2010

4I I

SUMMARY

Due to better tax exemptions and incentives, most of the IT / ITES Companies are moving to new SEZ developments in the National Capital Region. Due to this movement, the demand for commercial real estate has grown. Further, as per the revised Direct Tax Code guidelines, all SEZ units set up after March 2011, will not be eligible for tax benefits. This has accelerated the absorption of real estate space in NCR.

On the development side, most of the companies have announced projects in Gurgaon & Noida. However, there is no new commercial project announcement in Delhi. A number of Government agencies are gearing up to auction certain land parcels in Delhi, which is likely to generate good interest especially from owner-occupier group.

The investors are still cautioous of investing in the region as the risk adjusted returns are below their expectations. With the massive improvement in road and rail infrastructure, it is expected that the region will attract investors attention in the next 6 months. The rental and capital values however, is likely to remain the same till the end of 2011.

High Demand for SEZ space.


5I I

20-O

ct-0

8

Repo Reverse Repo

Repo & Reverse Repo Rate10

8

6

4

Perc

ent

2

MACROECONOMIC CONTEXTRates hiked further. Well calibrated move to manage growth and inflationThe Reserve Bank of India (RBI), which is the central bank of India in its monetary policy has further raised the CRR, Repo Rate and the Reverse Repo Rate by 25 basis point each. This action by the central bank is seen as a well calibrated move to balance growth, arrest rising inflation and manage liquidity and currency. It is expected that due to rise in rates, the real estate lenders will also increase their rates especially for construction lending. The banking sector also moved to a new “base rate” system of lending effective July 1, 2010, which is expected to enhance transparency in loan pricing, promote competition in the credit market and also improve the transmission of monetary policy. On the credit side, the base rates set by major public sector banks were in the narrow range of 7.25% -8% Further, the RBI also announced two real estate indices for residential and commercial rates. These indices are expected to be updated every quarter. However, it will take some time for these indices to be active.

The economic recovery gained further momentum with the good progress of the monsoon which is expected to yield better agricultural output. The last 6 months has seen substantial rise in foreign cash flows and exports. However, the trade deficit is increasing as imports, especially the oil based imports has risen significantly as well. The economic survey report released by the government of India just ahead of the union budget announced a GDP between 8.25% - 8.75% for the year 2010-11. However, the various industry estimates pegs the GDP growth between 7% -8%.

On the SEZ space, the fate of approved Special Economic Zones, which are yet to become operational, hangs in balance with the proposed Direct Tax Code (DTC) denying tax exemptions to new units in the SEZs. According to the revised DTC draft, the tax exemptions for the SEZs have been provided only for the existing units. The new draft clearly mentions that the profit-linked deductions of units already operating in SEZs for the unexpired period (of 15 years) will be incorporated. This provision would mean end of new investment by promoters, who have received formal approvals from the Commerce Ministry after acquiring land for their projects. The uncertainty will affect even the operational SEZs because not all of them have been occupied by units. At present, SEZ units get 100% income tax exemption on export income for the first five years, 50% for the next five years. They also get exemption on 50% of the ploughed back export profit for the next five years after the first 10 years. The leading SEZ developers of India especially in the IT/ITES space are currently lobbying with the government to reverse certain decisions with respect to exemption for the SEZ units and it will be interesting to see the impact of these revisions of DTC on the decision making process especially of the international corporate occupiers in the IT/ITES services sector.

SLR CRR

CRR & SLR10

8

6

4

2

Perc

ent

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)

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

9.20%

9.30%

8.80%

8.80%

7.90%7.60%

5.30%

5.80%

6.10%

Q22007

Q32007

Q42007

Q32009

7.90%

Q42009

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%

Jan-

06

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

Q12010

8.60%

Apr-

10

May

-10

Jul-

10

DLF Limited 202,853 199,437 2% 41,103 42,638 -4%

Major Real EstateCompanies in

India

Sales (In INR / In Million) Profits (In INR / In Million)

Q2 2010 Q1 2010Q on Q

Change % Q2 2010 Q1 2010Q on Q

Change %

Unitech 82,857 113,248 -27% 18,004 16,341 10%

India Bulls 43,371 49176 -12% 13,358 9,427 42%Sobha Developers 31,560 39,950 -21% 3,430 5,570 -38%

Peninsula Land 14,831 22,474 -34% 4,996 9,627 -48%ParsvnathDevelopers 25,279 35,489 -29% 3,182 3,472 -8%

Pheonix 4,043 3,447 17% 1,826 1,570 16%

Omaxe Limited 25,293 37,820 -33% 2,172 4,511 -52%

MahindraLifespace 6,793 10,096 -33% 1,448 2,369 -39%

Ananthraj 10,342 3,409 203% 4,585 3,095 48%

Ackruti City 17,649 21,731 -19% 4,205 5,420 -22%

Ansal Properties 25,077 21,571 16% 3,686 -633 -682%

20-N

ov-0

8

20-D

ec-0

8

20-J

an-0

9

20-F

eb-0

9

20-M

ar-0

9

20-A

pr-0

9

20-M

ay-0

9

20-J

un-0

9

20-J

ul-0

9

20-A

ug-0

9

20-S

ep-0

9

20-O

ct-0

9

20-N

ov-0

9

20-D

ec-0

9

20-J

an-1

0

20-F

eb-1

0

20-M

ar-1

0

20-A

pr-1

0


DELHI MAP

6I I

Gran

d Tr

unk

Rd

SwarnaJayanthi Park Ba

dli R

d

NH-10

NH-10

Ring Rd

RajaGarden

DDA ParkNihal Vihar

VishnuGarden

Oute

r Ri

ng R

d

RajouriGarden

Shivaji Marg

PursaForest

Patel Rd

Jail Rd

Cariappa Marg

Palam Rd

Mall Rd205 Delhi Rd

Shivaji Marg

Mehrauli Najafgarh Rd

Mehrauli N

ajafgarh Rd

Palam Vihar Rd

Railway Rd

GURGAONBasai Rd

Pataudi Rd

Delh

i Rd

Mehrauli Rd

Old

Jaipu

r Rd

Gurga

on R

d

Mehrauli Najafgarh Rd

Gurg

aon

Rd

Rajokri

Mehrauli Gurgaon Rd

DLF GolfCourse

LeisureValley

Dera

dR rupratahhC niaM

RajpurKhurd

graM tarvunA

Hauz KhasDeer Park

Afri

ca A

ve

Old Jaipur

Rd

Palam

Indira GandhiInternationalAirport

graM itnayaJ anrawS

Army GolfCourse

Lodhi Rd

Delhi GolfCourse

Central RidgeReserved Forest

GolMarket

JahanpanahCity Forest

Mathura Rd

Road No. 13A

Mehrauli Badarpur Rd

Badarpur

YamunaRiver

Mathura Rd

Old Sher Shah Rd

graM ilaparmA

Greater Noida

Dodri Rd

Jain Rd

NOIDA

Dadri Rd

Noida Link Rd

Hapur BypassNH-24graMVikas

Shahibabad

dR rupizahG

ShahdaraRaj Bagh

RajendraNagar

Grand Trunk Rdk RdinL

Ghaziabad

HindanAirbase

ChandniChowk

Mahatm

a Gandhi Marg

Karnal Rd

dR gniR retuO

Dr. K. B. Hegdewar Marg

Grand Trunk Rd

St. N

agar

Mar

g

Grand Trun dk RGrand Trunk Rd

NH-24

NH-58

Rani Jhansi Marg

NH-91Najafgarh Rd

dR noagruG

Bagh

pat R

d

Sharanpur RdVivekanand Marg Loni Rd

Ring Rd

YamunaRiver

daoR gniR reppUCh

andi

garh

Jaip

ur

Agra

Aligarh

Agra

Rohtak

DomesticAirport

Indraprasth

23

6

1

23

4

8

9

10

11

12

1

23

4

Mee

rut

Madan Mohan Malviya Marg

Faridabad

GreaterNoida

NH - 8

7 6

7

Ma Anandam

ayee Marg

5

3

4

1

45

7

8

5

QutubMinar

6

1

5

7

13

12

Dwarka

North DelhiRidge Forest

6

DELHI

2

9

8

10

11

Major Roads

Railway Line

Water Bodies

Green AreaMetro

Central BusinessDistrict

Alternate Business District

Central

1. Barakhamba Road2. Connaught Place3. ITO4. Janpath5. Kasturba Gandhi

Marg6. Khan Market7. Parliament Street8. Tolstoy Marg

Secondary BusinessDistrict

Periphery BusinessDistrict

1. Bikajicama Place2. Jasola Vihar3. Munirka4. Nehru Place5. Qutub Institutional

Area6. Saket7. Vasant Kunj

1. 2. Jhadewalan3. Karkar Duma4. Karol bagh5. Okhla Industrial Estate6. Okhla Industrial Area-I7. Okhla Industrial Area-II8. Pitam Pura9. Rajendra nagar new10. Rohini11. Shahdara12. Wazirpur Industrial Area

Janakpuri 1. DLF Cyber City2. Greater Noida

Expressway3. Faridabad4. Ghaziabad5. Golf Course Road6. Golf Course Extension

Road7. MG Road - Gurgaon

8. Noida, Sector 589. Noida, Sector 6210. Noida, Sector 6311. Noida, Sector 6412. Sohna Road - Gurgaon13. Udyog Vihar - Gurgaon

NAirport


7I I

CENTRAL BUSINESS DISTRICT (CBD)

The prices for Commercial Real Estate (CRE) increased in Q2 2010 primarily due to demand from Banking and Financial services. The vacancy levels dropped to 5- 6% compared to 15% in Q1 2010 for Grade A projects. The Grade A rentals saw a marginal increase, whereas other buildings saw an increase of 5% – 7%.

Revival in Central Business District

Source: BNP Paribas Real Estate, India

CBD 325 300

Q12009

Q22009

RENTAL VALUES ( INR / SQ.FT / MONTH)Q3

2009Q4

2009

250 250

Q22010

Q12010

250


Q12009

Q22009

CBD 35,000 30,000

CAPITAL VALUES (INR / SQ.FT)Q3

2009Q4

2009

30,000 30,000

Q22010

Q12010

30,000

Q12009

Q22009

Q32009

CBD

Capi

tal V

alue

s (IN

R / s

q.ft

)

Q42009

Q12010

Q22010

29,000

31,000

33,000

36,000

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

0

50

100

150

200

250

300

350

400

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

27,000

30,000

32,000

35,000

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

275

30,000

CBD

28,000

34,000


8I I

ALTERNATE CENTRAL BUSINESS DISTRICT(ALTERNATE CBD)

There was no significant transaction in the Alternate CBD areas of Vasant Kunj and Saket remained fairly low with vacancy levels at 20% - 25% and rental values also remaining stable. Jasola District centre witnessed absorption in the range of 20,000 -25,000 sq.ft in the second quarter.

Occupiers preferring Gurgaon & Noida over Saket and Vasant Kunj



Q12009

Q22009

Bikaji Cama Place 135 135

Jasola Vihar 120 110

Munirka 150 150


2009Q4

2009

130

100150

130

100150

Bikaji Cama Place 15,000 12,000

Jasola Vihar 15,000 15,000

Munirka 17,000 15,000

Q12009

Q22009


2009Q4

2009

12,000

12,000

15,000

12,000

12,000

15,000

Q22010

Q12010

Q22010

Q12010

130

100150

12,000

12,000

15,000

Nehru Place 210 200 180 175 175Qutub InstitutionalArea 120 120 100 100 100

Saket 160 175 160 150 150

Nehru Place 21,000 18,000 18,000 20,000 20,000

QutabInstitutional Area

12,000 12,000 12,000 12,000 12,000

Saket 20,000 20,000 18,000 18,000 20,000

Vasant Kunj 20,000 20,000 18,000 18,000 20,000

Vasant Kunj 200 175 150 150 150

Nehru PlaceVasant KunjSaket

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

Munirka

Bikaji Cama PlaceJasola Vihar

Qutub InstitutionalArea

Capi

tal V

alue

s (IN

R / s

q.ft

)

Q12009

Q22009

Q32009

—

5,000

20,000

25,000

10,000

15,000

Q42009

Q12010

Q22010

Nehru PlaceVasant KunjSaketMunirka

Jasola ViharBikaji Cama PlaceQutub InstitutionalArea


130

110150180

105

150

150

12,000

13,500

15,000

20,000

12,000

20,000

20,000

0

50

100

150

200

250

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010


9I I

SECONDARY BUSINESS DISTRICT (SBD)

Office leasing was fairly inactive in these areas but may see some activities in Q3 due to improved metro connectivity. The rentals and capital values were in line with the Q1 figures and may not see any additional increase in Q3 because of additional supply which is expected in Q3 and Q4.

Additional supply in Q3 & Q4 will keep prices stable



Q12009

Q22009

Shahdara 50 50

MathuraIndustrialArea

70 60

Janak Puri 75 60

Okhla 55 55Pitampura 60 60


2009Q4

2009

50

60

60

6055

50

50

50

6050

Shahdara 6,000 6,000

MathuraIndustrialArea

7,000 7,000

Janak Puri 8,000 8,000

Okhla 6,000 6,000Pitampura 6,000 6,000

Q12009

Q22009


2009Q4

2009

5,500

6,500

7,500

6,0005,500

5,500

6,000

7,500

6,0005,500

Q22010

Q12010

Q12010

Q22010

50

50

605050

7,500

6,000

6,0005,500

5,500

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

Q12009

Q22009

Q32009

0

Janak Puri

Mathura IndustrialAreaOkhla

Pitampura

Shahdara

Q42009

Q12010

Q22010

Capi

tal V

alue

s (IN

R / s

q.ft

)

—

5,000

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

50

Janak Puri

Mathura IndustrialAreaOkhla

Pitampura

Shahdara


50

50

605050

7,500

6,000

6,0005,500

5,500

10

20

30

40

60

70

80

1,000

2,000

3,000

4,000

6,000

7,000

8,000

9,000


10I I

9,000 9,000 8,500 8,500 8,500

12,500 12,500 12,000 12,000 12,000

9,000 8,500 8,000 8,000 8,000

15,000 15,000 12,000 12,000 12,000

8,000 8,000 7,500 7,500 7,500

8,500 8,500 8,500 7,000 7,000

5,000 5,000 4,500 4,500 4,500

8,000 8,000 7,700 7,300 7,300

4,900 4,900 4,700 4,300 4,3006,000 5,300 5,300 4,700 4,7004,600 4,600 4,400 4,000 4,0004,600 4,600 4,400 4,000 4,000

DLF Cyber City


2009Q2

2009Q3

2009Q4

2009Q1

2010Q2

2010

Golf Course Rd

Institutional Sectors/ Sushant LokMG RoadNH8 / Udyog Vihar

Sohna Rd

Manesar

Expressway

Sector 58Sector 62Sector 63Sector 64

Gurgaon

Manesar

Noida

PERIPHERY BUSINESS DISTRICT (PBD)

Gurgaon market has witnessed increased level of transaction activity with approximately 0.2 mn sq.ft leased in IT parks and 0.25 mn sq.ft leased in SEZ's in the second quarter. The rental values remained stable in Gurgaon and will not see any major increase in Q3 as well mainly due to the supply .Noida market also observed increased number of queries and transactions in SEZ. The rentals in Noida also were stable and showed no increase from Q1 2010. It is expected that the rental values in the SEZ space will increase in the next 6 months.

Prices remains stable due to continuous supply


Q12009

Q22009

Q32009

0

20

40

60

80

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

Q42009

Q12010

Q22010

100

120

140

160


Q12009

Q22009

Q32009

—

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Capi

tal V

alue

s (IN

R / s

q.ft

)

Q42009

Q12010

Q22010


M G Road - GurgaonGolf Course Rd -GurgaonDLF Cyber CityInstitutional Sectors /Sushant Lok - GurgaonSohna Road -Gurgaon

NH 8 / UdyogVihar - Gurgaon

Sector 62, NoidaManesar - Gurgaon

Expressway - Noida

Sector 58, NoidaSector 63, Noida

DLF Cyber City 75 75

RENTAL VALUES ( INR / SQ.FT / MONTH)

60 60 60

Q12009

Q22009

Q32009

Q42009

Q22010

Q12010

Golf Course Rd 110 70 70 85 85

Institutional Sectors/ Sushant Lok 80 65 60 50 50

MG Road 135 90 90 90 90NH8 / Udyog Vihar 60 60 50 40 40

Sohna Rd 70 60 60 45 45

Manesar 40 35 35 35 35

Expressway 60 60 58 55 55

Sector 58 37 37 35 32 32Sector 62 45 40 40 35 35Sector 63 35 35 33 30 30Sector 64 35 35 33 30 30

Gurgaon

Manesar

Noida

60

85

50

90

40

45

35

55

32353030

8,500

12,000

8,000

12,000

7,500

7,000

4,500

7,300

4,3004,7004,0004,000

Sector 64, Noida

M G Road - GurgaonGolf Course Rd -GurgaonDLF Cyber CityInstitutional Sectors /Sushant Lok - GurgaonSohna Road -Gurgaon

NH 8 / UdyogVihar - Gurgaon

Sector 62, NoidaManesar - Gurgaon

Expressway - Noida

Sector 58, NoidaSector 63, NoidaSector 64, Noida


11I I

RENTAL VALUES


Central Business District (CBD)

Alternate Central BusinessDistrict (Alternate CBD)

Secondary Business District (SBD)

Periphery Business District (PBD)

RentINR / sq.ft

CBD

Region Q on QChange

Q2 2010

275 10%

Mathura Industrial AreaJanak Puri

Region

Shahdara

Pitampura

RentINR / sq.ft

Q on QChange

Q2 2010

5050

5050

0%0%

0%0%

Okhla 60 0%

Vasant Kunj 150 0%

Bikaji Cama Place

Jasola ViharMunirka

Region RentINR / sq.ft

Q on QChange

Q2 2010

130110150

0%10%0%

Nehru PlaceQutab Institutional AreaSaket

180105150

3%5%0%

Golf Course Rd

DLF Cyber City

Institutional Sectors /Sushant Lok

Region RentINR / sq.ft

Q on QChange

Q2 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 32Sector 62 35Sector 63 30Sector 64 30

0%0%0%0%0%


12I I

CAPITAL VALUES

Central Business District (CBD)

Alternate Central BusinessDistrict (Alternate CBD)

Secondary Business District (SBD)

Periphery Business District (PBD)

INR / sq.ft

CBD

Region Q on QChange

Q2 2010

30,000 0%

20,000

12,00013,50015,00020,00012,00020,000

Vasant Kunj 0%

Bikaji Cama Place

Jasola ViharMunirka

Region INR / sq.ft Q on QChange

Q2 2010

0%13%0%

Nehru PlaceQutab Institutional AreaSaket

0%0%0%

Mathura Industrial AreaJanak Puri

Region

Shahdara

Pitampura

INR / sq.ft Q on QChange

Q2 2010

0%0%

0%0%

Okhla 0%6,0007,500

5,5005,5006,000

Golf Course Rd

DLF Cyber City

Institutional Sectors /Sushant Lok

Region INR / sq.ft Q on QChange

Q2 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


13I I

KEY TRANSACTIONSQ2 2010

Property Occupiers Space(sq.ft)

Micro Market Location

Global Business Park Alchemist Technology United 5,000 Gurgaon MG road

Copia Corporate Suites Weldexecel 5,500 Delhi Jasola

Vatika Triangle AT&T 18,000 Gurgaon MG road

Vatika Business Park Stryker 1,00,000 Gurgaon Sohna road

Unitech Info Space SEZ RBS 3,00,000 Gurgaon Dundahera

India Glycol ICICI Prudential 20,000 Noida Taj Expressway

India Glycol E&Y 30,000 Noida Taj Expressway

Knowledge Boulevard ACS 1,00,000 Noida Sector 62

Green Boulevard Qweft Telecom 32,000 Noida Sector 62

Iris Tech Park Unitech Wireless 76,000 Gurgaon Sohna road

Gopaldas Bhavan SBER Bank 6,000 Delhi Connaught Place

Vatika Towers Biogen 5,500 Gurgaon Golf Course road

DLF Building 8C Accenture 31,000 Gurgaon DLF cyber city

Splendour Forum Agilent Technologies 14,500 Delhi Jasola

Unitech Info space SEZ IBM Daksh 33,000 Noida Taj expressway

3C's Oxygen SEZ Global Logic 1,50,000 Noida Taj Expressway

Knowledge Boulevard Ericsson 36,000 Noida Sector 62

Welldone IT Park Unitech Wireless 76,000 Gurgaon Sohna road

Unitech Info Space SEZ Bank of America 2,56,000 Gurgaon Dundahera

DLF Building no. 6 B&C IYOGI 54,000 Gurgaon DLF cyber city

Plot no. 77 Star TV 56,162 Gurgaon Sector 32



14I I

KEY PROJECTS

New Supply - Year 2010

Building Location Micro Market

Space insq.ft

Completion date (expected)

DLF Silokhera, Tower C Silokhera, NH 8, Gurgaon PBD 7,00,000 Q2 2011

DLF Silokhera, Tower D Silokhera, NH 8, Gurgaon PBD 7,50,000 Q2-Q3 2011

DLF Silokhera, Tower E Silokhera, NH 8, Gurgaon PBD 9,00,000 Q2-Q3 2011

Building no. 5, Tower B DLF Cyber City, Gurgaon PBD 6,50,000 Q1 2011

Building no. 5, Tower C DLF Cyber City, Gurgaon PBD 7,50,000 Q1 2011

Unitech Info Space, Phase 2 (Building 6) Dundahera, Gurgaon PBD 6,00,000 Q2 2011



Unitech Info Space (Building 1) Tikri, Gurgaon PBD 3,50,000 Q4 2011

Unitech infospace Sector 62, Noida PBD 2,00,000 Q2 2010

Tech Space Golf Course Extension, Gurgaon PBD 2,50,000 Q4 2010

3C's Oxygen, Phase 1 (Tower C) Sector 144, Noida PBD 3,00,000 Q3-Q4 2010

Emerald Plaza Golf Course Extension, Gurgaon PBD 3,50,000 Q4 2012

Digital Greens, Phase 1 Golf Course Extension, Gurgaon PBD 2,50,000 Q4 2010

The Palm Square Golf Course Extension, Gurgaon PBD 3,50,000 Q4 2010

The Palm Springs Plaza Golf Course Road, Gurgaon PBD 3,00,000 Q3 2011

Platina MG Road, Gurgaon PBD 2,50,000 Q1 2011


• Global Business Park, Gurgaon• 3,453 sq.ft / 4,817 sq.ft


• Unitech Cyber Park, Gurgaon• 26,000 sq.ft. approximately (2 units, Semi furnished)

Available for LEASE only

Ready to move in offices Ready to move in offices

+91 98113 [email protected]


GLOSSARYQ2:

Super Built-up Area (SBUA):

Carpet Area:

Sq.mt:

Mn:

New:

Recent:

NCR:

BFSI:

SLR:

FSI:

Quarter 2 of the financial year (April - May - June)

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, Faribad, Noida, Gaziabad etc)

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.

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

15I ICITY REPORTDELHI OFFICE MARKET - Q2 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.


.

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

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

NORTHERN IRELAND*Whelan Property Consultants44 Upper Arthur StreetBelfast Bt1 4GJTel: +44-28-9044 1000Fax: +44-28-9033 2266

POLAND*Brittain Hadley EuropaWarsaw Financial Centre13th floorEmilii Plater 5300-113 WarsawTel.: +48-22-586 31 00Fax: +48-22-586 31 16

SERBIA*6, Vladimira Popovica StreetOffice B3111000 BelgradeTel.: +381-11-2600 603Fax: +381-11-2601 571

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.: +971-505 573 055Fax: +971-44 257 817

BELGIUMBlue TowerAvenue Louise 326B14 Louizalaan1050 BrusselsTel: +32-2-646 49 49Fax: +32-2-646 46 50

DUBAIEmmar SquareBuilding No. 1, 7th FloorP.O. Box 7233Dubai, UAETel: +971-505 573 055Fax: +971-44 257 817

FRANCE13 boulevard du Fort de Vaux75017 ParisTel: +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

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

JERSEY4th Floor, Conway HouseConway StreetSt HelierJersey Je2 3NTTel: +44-15 34-62 90 01Fax: +44-15 34-62 90 11

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

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

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

UNITED KINGDOM90 Chancery LaneLondon WC2A 1EUTel: +44-20-7338 4000Fax: +44-20-7430 2628

*Alliances

Bangalore403, The Estate,121, Dickenson Road,Bangalore - 560 042Tel: +91 80 4050 8888Fax: +91 80 4050 8899

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

INDIA

Mumbai704, Level 7, MMTC House, C-22,Bandra Kurla Complex, Bandra (E),Mumbai - 400 051Tel: +91 22 6138 8088Fax: +91 22 6138 8089

For Queries / Comments:Tasneem Gandhi at+91 9930141009 or email at [email protected]

Non

con

trac

tual

doc

umen

t - R

esea

rch

depa

rtm

ent -

Aug

ust 2

010

BNP

PARI

BAS

REAL

EST

ATE

: Hea

dqua

rter

s : 1

3, b

oule

vard

du

Fort

de

Vaux

- 7

5017

Par

is -

692

012

180

RCS

Par

is

BNP PARIBAS REAL ESTATE& INFRASTRUCTURE ADVISORYSERVICES PVT. LTD.

city report - delhi office market q2 2010

Documents