city report - delhi office market q3 2010

CITY REPORTDELHI OFFICE MARKET

Q3 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.

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www.realestate.bnpparibas.com

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BNP Paribas Real Estate and Infrastructure Advisory Services Pvt. Ltd

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 - Q3 2010

4I I

SUMMARY

The Q3 of 2010 has shown increase in absorption for both commercial and IT real estate space in the NCR region of Delhi. The overall demand for commercial office space has also improved and will show improvement in the Q4 2010 as many corporate plan to finalize the space before the end of the year. The CBD area has a vacancy level of 5% compared to 12% of Q1 2010 for Grade A projects. This has been mainly due to absorption from Banking and Financial services.

There is a demand from large business group to move from CBD to Alternate CBD of Jasola and Nehru Place. Similarly, there is a renewed interest from investors to invest in these areas as well.

The PBD of Gurgaon and Noida witnessed increased level of activity both in terms of sale and leasing. Both these districts have shown availability of high quality projects at affordable rentals. Even though the absorption has improved in Gurgaon and Noida, the rental values will remain stable in the near future , due to excessive supply.

While the existing stock is unevenly distributed between the two markets, the future scenario shows a more even distribution of stock. Prospective tenants will have more than 6 million sq ft of future SEZ office space in Gurgaon and Noida combined - 3.3 million sq ft in Gurgaon and 2.7 million sq ft in Noida.

Increase in absorption of commercial / IT space


5I ICITY REPORTDELHI OFFICE MARKET - Q3 2010

Repo Reverse Repo

Repo & Reverse Repo Rate7

6

3

Perc

ent

1

SLR CRR

CRR & SLR30

20

10

5

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%

9.30%

8.80%

8.80%

7.90%7.60%

5.30%

5.80%

6.10%

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%

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

22-M

ay-0

9

22-J

un-0

9

23-J

ul-0

923

-Aug

-09

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

Sep-

10

15

25

20-M

ay-1

0

20-J

un-1

0

27-J

ul-1

020

-Aug

-10

16-S

ep-1

0

2

4

5

0

Jul-

10

Q22010

8.80%

2-Ju

l-10

DLF Limited 20,285 17% 4,110 2%

Major Real EstateCompanies in

India

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

Q3 2010 Q2 2010Q on Q

Change % Q3 2010 Q2 2010Q on Q

Change %

Unitech 8,286 -22% 1,800 -3%

India Bulls 4,337 25% 1,336 31%Sobha Developers 3,156 35% 343 72%

Peninsula Land 1,483 -17% 500 28%ParsvnathDevelopers 2,528 -23% 318 82%

Pheonix 404 10% 183 21%

Omaxe Limited 2,529 40% 217 69%

MahindraLifespace 679 31% 145 70%

Anantraj 1,034 28% 459 5%

Ackruti City 1,765 -8% 421 31%

Ansal Properties 2,508 27% 369 -38%

5,414 1,745

4,257 589

1,226 638

443

890 247

1,624 550

3,197 228

221

23,690 4,186

3,544 368

MACROECONOMIC CONTEXTThe Central Bank takes a more sophisticated approach: maintains status quo on CRR & SLR

1.329 480

6,445 1,740

1,955 579

The Reserve Bank's Review of Monetary Policy on July 27, 2010 expressed concerns over the global outlook. Indicators of economic activity in advanced economies continue to suggest that the recovery is slowing and that the second half of 2010 will post slower growth than the first, although expectations have generally not been revised downwards since end-July.

Under the Liquidity Adjustment Facility (LAF), the RBI has increased the repo rate by 25 basis points from 5.75% to 6.0% and also hiked the reverse repo rate by 50 basis points from 4.5% to 5.0% with immediate effect. This will help maintain financial conditions conducive to sustaining growth, according to the RBI.

India’s GDP during the quarter starting July 2010, rose to 8.8%. Although some of this is attributable to a favourable base effect, the growth rate indicates that the recovery is consolidating and the economy is rapidly converging to its trend rate of growth. Inflation remains the dominant concern in macroeconomic management. The main priority of the Reserve Bank is to curb the ongoing inflation, which peaked at 11% in the month of August. Interest rates have been increased by the banks to contain the inflation, but it could slow down the growth of the Indian economy in the coming months. But even though there has been a rise in the interest rates, there hasn't been much change in the distribution of loans, the Indian customer is hardly affected with the hiked interest rates. Overall, even as the global environment continues to be a cause for caution, the big picture has not worsened significantly since July.

India has replaced the US as the second most important Foreign Directive Investment (FDI) destination for transnational corporations during 2010-2012, according to a survey conducted UNCTAD. In its latest 'World Investment Prospects Survey 2010-2012', the United Nations Conference on Trade and Development said transnational corporations remain buoyant about investment prospects in China, India and Brazil. According to the survey, India is the most important FDI destination next only to China.

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

4

5

1

45

7

8

5

QutubMinar

6

1(a)

1(b)

Dwarka

North DelhiRidge Forest

6

DELHI

Manesar

1

1(c)1(d)

1(e)

1(f)

2

3

3(a)

3(b)

3(c)3(d)

3(e)

Major Roads

Railway Line

Water Bodies

Green AreaMetro

Central 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. Jhandewalan3. 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. Gurgaon 1 (a). DLF Cyber City 1 (b). Golf Course Road 1 (c). Institutional

Sectors / Sushant Lok 1 (d). MG Road 1 (e). Udyog Vihar / Nh8 1 (f). Sohna Road2. Manesar

NAirport


3. Noida 3 (a). Expressway 3 (b). Sector 58 3 (c). Sector 62 3 (d). Sector 63 3 (e). Sector 644. Faridabad5. Ghaziabad

7I I

CENTRAL BUSINESS DISTRICT (CBD)

There has been good absorption of from the Banking and Financial services sector. This

has led to very low vacancy in the . The rentals in Grade B buildings have also appreciated by 10 – 15% but overall the average rentals have not seen any major increase.

Further, the property owner have now started to quote 5-10% higher than the rates of Q2 of 2010.

commercial office space in CBD of Delhi especially

Grade A buildings in this district

Low Vacancy levels in Central Business District

Source: BNP Paribas Real Estate, India

CBD 300

Q22009

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

2009Q4

2009

250 250

Q22010

Q12010

250


Q22009

CBD 30,000

CAPITAL VALUES (INR / SQ.FT)Q3

2009Q4

2009

30,000 30,000

Q22010

Q12010

30,000

Q22009

Q32009

CBD

Capi

tal V

alue

s (IN

R / s

q.ft

)

Q42009

Q12010

Q22010

29,000

32,000

34,000

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

220230240250260270280290300

Q22009

Q32009

Q42009

Q12010

Q22010

27,000

31,000

33,000

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

275

30,000

CBD

28,000

35,000


Q32010

Q32010

Q32010

Q32010

290

35,000

310

30,000

36,000

8I I

ALTERNATE CENTRAL BUSINESS DISTRICT(ALTERNATE CBD)

The demand for large office spaces is picking up in this district. There is movement of tenants from the CBD to ACBD. However, this has not impacted the prices yet. There are 2-3 enquiries for large office space in Jasola and Nehru Place. These absorptions are likely to happen by end of year 2010 and therefore it is expected that there can be upward revision in both rental and capital values in this district.

Demand is slowly picking up


Bikaji Cama Place 12,000

Jasola Vihar 15,000

Munirka 15,000

Q22009


2009Q4

2009

12,000

12,000

15,000

12,000

12,000

15,000

Q22010

Q12010

12,000

12,000

15,000

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

QutabInstitutional Area

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

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

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

Nehru 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

)

Q22009

Q32009

—

5,000

20,000

25,000

10,000

15,000

Q42009

Q12010

Q22010

Nehru PlaceVasant KunjSaketMunirka

Jasola ViharBikaji Cama PlaceQutub InstitutionalArea

12,000

13,500

15,000

20,000

12,000

20,000

20,000

0

50

100

150

200

250

Q22009

Q32009

Q42009

Q12010

Q22010


Q32010

Q32010

Q32010


Q22009

Bikaji Cama Place 135

Jasola Vihar 110

Munirka 150


2009Q4

2009

130

100150

130

100150

Q22010

Q12010

130

100150

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

Saket 175 160 150 150

Vasant Kunj 175 150 150 150


130

110150180

105

150

150

Q32010

130

110150180

105

150

150

12,000

13,500

15,000

20,000

12,000

20,000

20,000

9I I

SECONDARY BUSINESS DISTRICT (SBD)

There is no major activity being reported in this district except certain expansion enquiries by existing tenants. Due to this, there is no change in rental and capital values.

Expansion by existing corporates


Shahdara 6,000

MathuraIndustrialArea

7,000

Janak Puri 8,000

Okhla 6,000Pitampura 6,000

Q22009


2009Q4

2009

5,500

6,500

7,500

6,0005,500

5,500

6,000

7,500

6,0005,500

Q12010

Q22010

7,500

6,000

6,0005,500

5,500

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

Q22009

Q32009

44

Janak Puri

Mathura IndustrialAreaOkhla

Pitampura

Shahdara

Q42009

Q12010

Q22010

Capi

tal V

alue

s (IN

R / s

q.ft

)

—

5,000

Q22009

Q32009

Q42009

Q12010

Q22010

54

Janak Puri

Mathura IndustrialAreaOkhla

Pitampura

Shahdara

7,500

6,000

6,0005,500

5,500

46485052

565860

1,000

2,000

3,000

4,000

6,000

7,000

8,000

9,000


Q32010

Q32010

Q32010


Q22009

Shahdara 50

MathuraIndustrialArea

60

Janak Puri 60

Okhla 55Pitampura 60


2009Q4

2009

50

60

60

6055

50

50

50

6050

Q22010

Q12010

50

50

605050


50

50

605050

Q32010

50

50

605050

7,500

6,000

6,0005,500

5,500

62

10I I

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

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

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

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

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

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

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

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

4,900 4,700 4,300 4,3005,300 5,300 4,700 4,7004,600 4,400 4,000 4,0004,600 4,400 4,000 4,000

DLF Cyber City


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)

There is a surge in leasing and purchase activity for commercial real estate in Gurgaon and Noida. There is estimated demand of approximately 4 mn. sq.ft which is likely to be absorbed in the next 6-9 months. There is good demand for SEZ space from Multi National Corporations. This will push the lease rentals upward in the SEZ space both in Noida and Gurgaon. The investors are keen to invest in new commercial developments especially on Golf Course Extension road and on projects abutting the highway.

Office space demand picking up


Q22009

Q32009

010203040

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

Q42009

Q12010

Q22010

50607080


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

RENTAL VALUES ( INR / SQ.FT / MONTH)

60 60 60

Q22009

Q32009

Q42009

Q22010

Q12010

Golf Course Rd 70 70 85 85

Institutional Sectors/ Sushant Lok 65 60 50 50

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

Sohna Rd 60 60 45 45

Manesar 35 35 35 35

Expressway 60 58 55 55

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


Q32010

Q32010

Q32010

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

Q22010

90100

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

Q3 2010

290 5%

Mathura Industrial AreaJanak Puri

Region

Shahdara

Pitampura

RentINR / sq.ft

Q on QChange

Q3 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

Q3 2010

130110150

0%0%0%

Nehru PlaceQutab Institutional AreaSaket

180105150

0%0%0%

Golf Course Rd

DLF Cyber City

Institutional Sectors /Sushant Lok

Region RentINR / sq.ft

Q on QChange

Q3 2010

85

60

50

0%

0%

0%

Manesar 35 0%

MG Road 90 0%

NH8 / Udyog vihar 40 0%

Expressway 55

Sohna Rd 45 0%

Gurgaon

Manesar

Noida

Sector 58 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

Q3 2010

35,000 17%

20,000

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

Vasant Kunj 0%

Bikaji Cama Place

Jasola ViharMunirka

Region INR / sq.ft Q on QChange

Q3 2010

0%0%0%

Nehru PlaceQutab Institutional AreaSaket

0%0%0%

Mathura Industrial AreaJanak Puri

Region

Shahdara

Pitampura

INR / sq.ft Q on QChange

Q3 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

Q3 2010

12,000

8,500

8,000

0%

0%

0%

Manesar 4,500 0%

MG Road 12,000 0%

NH8 / Udyog vihar 7,500 0%

Expressway 7,300 0%

Sohna Rd 7,000 0%

Gurgaon

Manesar

Noida

Sector 58 4,300 0%Sector 62 4,700 0%Sector 63 4,000 0%Sector 64 4,000 0%Source: BNP Paribas Real Estate, India


13I I

KEY TRANSACTIONS



Q3 2010

Property Occupiers Space(sq.ft)

Micro Market Location

Mercantile House, KG Marg Sarasin Alpen India 2,500 CBD Connaught Place

Baani Suites Ingersoll Rand 2,400 Alternate CBD Jasola

Salcon Aurum Savita Oil 3,800 Alternate CBD Jasola

ITT Building Louis Vuitton 5,500 Alternate CBD Nehru Place

Vatika Buisness Park Stryker 105,000 PBD Golf course road

Unitech SEZ - Infospace NIIT 12,000 PBD Dundahera

Unitech SEZ - N2 IBM Daksh 75,000 PBD Expressway

Unitech SEZ - N2 Genpact 5,00,000 PBD Expressway

DLF SEZ - Silokhera IBM Daksh 78,000 PBD Silokhera

DLF SEZ - Silokhera Max 250,000 PBD Silokhera

A 110 Etisalat 5,200 PBD Sector 4

Windsor IT Park Asia Hotel 16,000 PBD Sector 125

Advant Navis Vaishnavi Advisory 9,000 PBD Sector 142

Advant Navis Indiamart.com 63,000 PBD Sector 142

Times Tower Godrej Property 3,000 PBD MG road

Times Tower Laxmi Nivas Bank 8,500 PBD MG road

Times Tower Harvest Gold 1,500 PBD MG road

Plot 582, Phase 5 Anton Paar India 7,500 PBD Udyog Vihar

Unitech Cyber Park Hewitt 25,000 PBD Sector 39

14I I

KEY PROJECTSNew Supply - Year 2010

Building Location Micro Market

Space insq.ft

Completion date (expected)

MGF Metropolis MG Road PBD 1,50,000 Q3 2010

Salcon Platina MG Road PBD 1,70,000 Q4 2010

Suncity Business Tower Golf Course Road PBD 2,70,000 Q3 2010

DLF South Point Mall Golf Course Road PBD 2,70,000 Q3 2010

Realtech Veritas Golf Course Road PBD 1,10,000 Q4 2010

Emaar MGF Palm Square Golf Course Extension PBD 3,50,000 Q4 2010

Raheja Mall Sohna Road PBD 3,00,000 Q3 2010

ILD Trade Centre Sohna Road PBD 3,50,000 Q3 2010

Spazedge Sohna Road PBD 3,50,000 Q3 2010

Omaxe City Centre Sohna Road PBD 1,50,000 Q3 2010

Vipul Trade Centre Sohna Road PBD 3,20,000 Q3 2010

Orchid Business Park Sohna Road PBD 3,50,000 Q3 2010

DLF Star Mall NH-8 PBD 2,20,000 Q3 2010

MVL I Park NH-8 PBD 1,40,000 Q4 2010

Unitech Info Space (Block-4) Sector-62 PBD 2,75,000 Q3 2010

Unitech Info Space (Block-2) Sector-62 PBD 2,00,000 Q4 2010

Logix Business Park (Tower-C&D) Sector-62 PBD 6,00,000 Q3 2010

Unitech SEZ (Tower-3) Expressway PBD 2,50,000 Q3 2010

Unitech SEZ (Tower-4) Expressway PBD 2,50,000 Q4 2010

Oxygen SEZ (Tower-C) Expressway PBD 2,50,000 Q4 2010

Technova Business Park (Tower-A) Expressway PBD 4,80,000 Q3 2010

Technova Business Park (Tower-B) Expressway PBD 4,20,000 Q4 2010



GLOSSARYQ3:

Super Built-up Area (SBUA):

Carpet Area:

Sq.mt:

Mn:

New:

Recent:

NCR:

SEZ:

BFSI:

SLR:

FSI:

Quarter 3 of the financial year (July - August - September)

Built-up area + common area including lifts area, common passages, utilities, terrace etc. & varies from building to building.

Actual usable area, and does not include any common areas, area occupied by walls etc.

Square Meter

Million

Building built within the last 5 years.

Building less than 10 years old.

National Capital Region (Includes urban agglomeration of Delhi, Gurgaon, Faridabad, Noida, Gaziabad etc)

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

Banking & Financial Services Industry

Statutory Liquidity Ratio

Floor Space Index

Absorption:

Bare Shell:

BPO:

BUA:

Completed Stock:

DU:

EPIP:

FAR:

Grade A Space:

Ground Coverage:

Hard Option:

INR:

Pre-lease:

Speculative Stock:

Stock:

Supply:

Transaction Volumes:

Vacancy:

Warm Shell:

Q on Q:

y-o-y:

IT:

ITES:

Repo Rate:

Reverse Repo Rate:

SEC A, B, C & D Socio:

Sq.ft:

Stamp Duty:

Occupied Stock (n) – Occupied Stock (n-1); Where “n” is the specified period (quarter, year etc.)

Premises consisting of basic structure with lifts, power supply to junction box, water supply line, toilets

Business Process Outsourcing

Built up area

Either the building has received occupancy certificate or the client has moved in and occupied space and started working in a particular premises

Dwelling Unit

Export Promotion Industrial Park

Floor Area Ratio (BUA/ Plot Area)

Office Space with efficiency in excess of 75%, floor plate in excess of 15,000 sq. ft., Car Parking ratio of atleast 1 per 1000 sq. ft., Floor-to-ceiling height in excess of 3.75 m, Power provision of 1.25KVA per 100 sq. ft. with 100% power-backup wherever applicable and professionally managed facilities

It is the total covered area on ground by the built component and is expressed as a percentage of the plot area

Real estate space reserved by the lessee for future occupation within a particular time frame and at a pre-decided rental

Indian National Rupees

Space committed for lease before completion of construction

The stock which can be leased and excludes Built-to-Suit (BTS) and Campus facilities.

Cumulative Supply

New construction in a particular specified period

Total number of transaction in a particular specified period

Total vacant space in the completed stock

Premises consisting of power backup, high side A.C., common area fit outs and fitted out toilets

Quarter on Quarter

year-on-year (All growth figures in this report are y-o-y unless otherwise mentioned

Information Technology

Information Technology Enabled Services (includes various services ranging from call centres, claims processing, medical transcription, e-CRM, SCM to back-office operations such as accounting, data processing, and data mining)

Rate that an eligible depository institution (such as a bank) is charged to borrow short term funds directly from the central bank through the discount window

Interest rate that a bank earns for lending money to the Reserve Bank of India in exchange for government securities

Economic Classification; SEC A represents the highest propensity to spend and SEC D represents the lowest propensity to spend.

Square Feet

Form of tax charged on instruments (written documents) requiring a physical stamp (for government legality) to be attached to or impressed.

15I ICITY REPORTDELHI OFFICE MARKET - Q3 2010

CRR:

Headline rent:

Average headline rent:

Disclaimer:

Cash Reserve Ratio

Monthly rent per square feet, charged on super built-up area basis, featured on the lease, and expressed excluding fitouts, taxes, deposits, advances, maintenance charges and does not take into account building efficiency (super built up area - carpet area ratio). Further it does not include attached premises such as parking areas, archives, staff canteens, etc. If the rental is progressive, the value applied is the average for the first 3 years or the fixed term of the lease.

Weighted average of rented area. The average featured is a moving average over the quarter, to smooth out the changes, exclusive of all taxes, deposits, advances & maintenance charges.

Major Refurbishment:

Renovated:

Modern:Old:CCI (Cost of construction index):

Demand:

For the occupier:New Supply:

Completed new supply:Under construction:

Planning permission granted:

Planning permission submitted:Pre-letting:

Underlying rent:

Prime rents:

Top rent:

Second hand premises:

Renovated:Very good condition:Existing state of repair:To be renovated:Supply available within 1 year:

Take-up:

Vacancy rate:

Building which has undergone structural alteration less than 5 years ago, subject to planning permission.

.

Building which has undergone renovation work not requiring for planning permission less than 5 years ago.

High-performance building over 10 years old. Low-performance building over 10 years old.

Index that makes quarterly measurements of construction prices for new house building. It is the price after VAT paid by the owner to construction companies. It excludes land-related prices and costs (site development, special foundations, etc.), fees and financial costs.

A search for premises expressed to BNP Paribas Real Estate. The analysis pertains only to the flow of new demand expressed.

Operation undertaken by an occupier for its own purposes. Any new building and/or heavily refurbished building that adds to the

existing stocks. These are analysed according to progress. Buildings on which construction work is finished.

Buildings on which construction has effectively begun. Prior demolition work is not taken into account.

Authorisation to build obtained, generally booked after settlement of third party claims.

Planning permission requested, being processed.Transaction by an occupier more than 6 months before the delivery of the

building.

Annual rent per square meter expressed free of tax and charges and excluding advantages agreed by the owners (rent incentive building works, etc).

Represents the top headline rent (excluding non significant transactions) for an office unit:- of standard size, of the highest quality and specification, in the best location in each market.

Represents the top headline rent for an office unit. It is not necessarily a prime rent.

Premises that have been previously occupied by an occupier for vacant for more than 5 years.

Premises that have been renovated for the new occupier. High-performance premises of high quality.

Low-performance premises that can be rented as they are. Low performance premises that need renovation.

All premises and buildings available within 1 year including the supply available immediately, new supply that has not been pre-let and second hand supply that will be vacated definitively (notable terminated leases).

Rental or sale of a property asset, finalised by the signature of a lease or a bill of sale including turnkey transactions and owner-occupier. The transaction is only taken into account once any existing conditional clauses have been lifted.

Ratio measuring the relationship between the supply immediately available and the existing stock.

This report is released by BNP Paribas Real Estate & Infrastructure Advisory Services and the information in it is dedicated to the exclusive use of its clients. The report and the information contained in it should not be copied or reproduced without prior permission from BNP Paribas Real Estate and Infrastructure Advisory Services. The facts of these reports are believed to be correct at the time of it's release but cannot be guaranteed. Please note the findings, projections, conclusions and recommendations are based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. BNP Paribas Real Estate & Infrastructure Advisory Services cannot be held responsible if, despite it's best efforts, the information contained in the present report turns out to be inaccurate or incomplete.

www.realestate.bnpparibas.com

.

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

Bangalore (Regd. Office)Level 15, Concorde Block,UB City, Vittal Mallya Road,Bangalore – 560001Tel: +91 80 4030 0334Fax: +91 80 4030 0400

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

INDIA

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

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city report - delhi office market q3 2010

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