city report delhi office market q4 2010

CITY REPORTDELHI OFFICE MARKET

Q4 2010

BNP Paribas Real Estate - INDIAAll the building blocks

www.realestate.bnpparibas.co.in

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In India our specialists bring you our expertise in With our international scope and on-the-ground presence, you’ll find the perfect partner that can ensure the success of your real estate project. With BNP Paribas Real Estate, all the pieces come together.

Transaction Advisory, Consulting and Land and Building Valuations.

BNP Paribas Real Estate and Infrastructure Advisory Services Pvt. Ltd

Your contacts in India: Mumbai (Head Office) : +91 22 6138 8088 - Bangalore : +91 80 4030 [email protected]

Delhi : +91 11 4959 8800 -

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 - Q4 2010

4I I

SUMMARY

The year 2010 has been the year of real estate recovery and stability for the NCR region. In comparison to the last quarter, the achievable values have marginally improved in the CBD areas such as Connaught Place. This can be largely attributed to the active demand from Banking and Financial Services coupled with the absence of new supply within the CBD areas. The absence of new supply in turn has increased the demand for Grade B buildings within this micro-market, which are now being refurbished to meet the growing demand from this sector. On the other hand, the peripheral locations like Gurgaon and Noida showed stability in real estate prices supported by a growing demand from the IT/ITES sector.

During Q4 2010, approximately 1.5 mn sq ft of office space was transacted in the NCR region, with majority of the space being leased by IT/ITES companies. Office vacancies in NCR region stabilized to around 30%, which is a marginal decline from Q3 2010 vacancy levels owing to substantial availability of investment grade office space in Gurgaon and Noida micro-markets.

There has been growing interest from financial institutions and private equity funds to invest in ready commercial premises especially in Gurgaon and Noida. It is expected that some large ticket purchase transaction may happen in the next 3-6 months.

It is expected that 2-3 large ticket transactions will culminate in the leasing business in periphery district of Gurgaon and Noida. However, the leasing values and capital values are not expected to change.

Property Price Stability


5I ICITY REPORTDELHI 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

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

Upper Ground Floor, Unit No.7,Mercantile House, 15 KG Marg

7I I

CENTRAL BUSINESS DISTRICT (CBD)

CBD continues to have a low vacancy ratio with limited vacancy in Grade A buildings. Given the restricted availability, new supply potential demand from the banking and financial institution, the rentals are expected to move upwards during the next quarter i.e Q1 2011.

Rentals stabilize in Central Business District

Source: BNP Paribas Real Estate - Research, India

CBD

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

2009Q4

2009

250 250

Q22010

Q12010

250


CBD

AVERAGE CAPITAL VALUES (INR / SQ.FT)Q3

2009Q4

2009

30,000 30,000

Q22010

Q12010

30,000

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

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


Q42010

Q32010

Q42010

Q32010

Q32010

Q32010

290

35,000

310

30,000

36,000

Q42010

Q42010

290

35,000

8I I

ALTERNATE CENTRAL BUSINESS DISTRICT(ALTERNATE CBD)

There were no significant transaction in the Alternate CBD areas during this quarter. Markets remained stagnant with areas such as Saket witnessing higher vacancy ratio of 25 – 30% attribute to the traffic congestions and poor access roads.The rental and capital values too have remained stable over last few quarters.

No major transaction in Alternate CBD


Bikaji Cama Place

Jasola Vihar

Munirka


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 20,000 20,000

QutabInstitutional Area

12,000 12,000 12,000

Saket 18,000 18,000 20,000

Vasant Kunj 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

)

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

Q32009

Q42009

Q12010

Q22010


Q42010

Q32010

Q42010

Q32010

Q32010

Q42010


Bikaji Cama Place

Jasola ViharMunirka


2009Q4

2009

130

100150

130

100150

Q22010

Q12010

130

100150

Nehru Place 180 175 175Qutub InstitutionalArea 100 100 100

Saket 160 150 150

Vasant Kunj 150 150 150


130

110150180

105

150

150

Q32010

Q42010

130

110150180

105

150

150

12,000

13,500

15,000

20,000

12,000

20,000

20,000

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)

The office space leasing has been active in Okhla phase 3 with existing companies leasing more space mainly due to expansion and consolidation. The rentals and capital values have been stable in the last few quarters and are likely to exhibit similar characteristics in Q1 2011.

Office space leasing active in Okhla


Shahdara

MathuraIndustrialArea

Janak Puri

OkhlaPitampura


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

)

Q32009

44

Janak Puri

Mathura IndustrialAreaOkhla

Pitampura

Shahdara

Q42009

Q12010

Q22010

Capi

tal V

alue

s (IN

R / s

q.ft

)

—

5,000

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


Q42010

Q32010

Q42010

Q32010

Q32010

Q42010


Shahdara

MathuraIndustrialArea

Janak Puri

OkhlaPitampura


2009Q4

2009

50

60

60

6055

50

50

50

6050

Q22010

Q12010

50

50

605050


50

50

605050

Q32010

Q42010

50

50

605050

7,500

6,000

6,0005,500

5,500

62

50

50

605050

7,500

6,000

6,0005,500

5,500

10I I

8,500 8,500 8,500

12,000 12,000 12,000

8,000 8,000 8,000

12,000 12,000 12,000

7,500 7,500 7,500

8,500 7,000 7,000

4,500 4,500 4,500

7,700 7,300 7,300

4,700 4,300 4,3005,300 4,700 4,7004,400 4,000 4,0004,400 4,000 4,000

DLF Cyber City


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 and Noida have witnessed increased transaction activity during this quarter. There were some large IT transactions in Q4 of 2010 especially within the SEZ's of Noida and Gurgaon. There has not been any significant increase in the rentals mainly due to the excess supply in Gurgaon and Noida and the trend is expected to continue in Q1 2011 as well.

Higher absorption in Q4 2010


Q32009

010203040

Rent

al V

alue

s (IN

R / s

q.ft

/ m

onth

)

Q42009

Q12010

Q22010

50607080


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

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

60 60 60

Q32009

Q42009

Q22010

Q12010

Golf Course Rd 70 85 85

Institutional Sectors/ Sushant Lok 60 50 50

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

Sohna Rd 60 45 45

Manesar 35 35 35

Expressway 58 55 55

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


Q42010

Q32010

Q42010

Q32010

Q42010

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

Q42010

Q32010

90100

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

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

Q4 2010

290 0%

Mathura Industrial AreaJanak Puri

Region

Shahdara

Pitampura

RentINR / sq.ft

Q on QChange

Q4 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

Q4 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

Q4 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

Q4 2010

35,000 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

Q4 2010

0%0%0%

Nehru PlaceQutab Institutional AreaSaket

0%0%0%

Mathura Industrial AreaJanak Puri

Region

Shahdara

Pitampura

INR / sq.ft Q on QChange

Q4 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

Q4 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 - Research, India


13I I

KEY TRANSACTIONS



Q4 2010

Property Occupiers Space(sq.ft)

Micro Market Location

World Trade Tower SBI Capital 8,000 CBD Connaught Place

Thappar House Jindal group 6,000 CBD Janpath, Connaught Place

Global Foyer Stryker Hospitality 8,000 PBD Golf course road

Global Foyer Ciesta Hospitality 15,000 PBD Golf course road

Vatika Business Park Fuji Films 15,000 PBD Sohna road

Unitech Cyber Park Birla Sunlife Insurance 25,000 PBD Sector 39

I Labs IT Park Lanco Software 221,000 PBD Udyog Vihar

DLF building 10C KPMG 210,000 PBD Cyber City

Chimes Athena Metro Cash & Carry 6,000 PBD Sector 44

Unitech Cyber Park Accor Advantage 7,000 PBD Sector 39

Unitech Cyber Park Infosys 26,000 PBD Sector 39

Unitech Cyber Park Hewitt 30,000 PBD Sector 39

DLF 5A GTL 40,000 PBD Cyber City

DLF 5A Akzonobel India 43,000 PBD Cyber City

DLF 5A Samsung Telecom 6,000 PBD Cyber City

Centrum Plaza Unicharm 6,000 PBD Golf course road

Advant Navis - Sector 142 Indiamart.com 60,000 PBD Taj Expressway

Technology Zone Tyco India 24,000 PBD Taj Expressway

14I I

KEY PROJECTSNew Supply - Year 2010

Building Location Micro Market

Space insq.ft

Completion date (expected)

Realtech Veritas Golf Course Road PBD 110,000 Q1 2011

Salcon Platina MG Road PBD 170,000 Q1 2011

Vipul Trade Centre Sohna Road PBD 300,000 Q1 2011

Emaar MGF Palm Square Golf Course Extension PBD 350,000 Q4 2010

Unitech Info Space (Block-3) Sector-62 PBD 320,000 Q1 2011

Unitech Info Space (Block-2) Sector-62 PBD 200,000 Q4 2010

Logix Business Park (Tower-C&D) Sector-62 PBD 600,000 Q4 2010

Unitech SEZ (Tower-5) Expressway PBD 250,000 Q1 2011

Unitech SEZ (Tower-4) Expressway PBD 250,000 Q4 2010

Oxygen SEZ (Tower-C) Expressway PBD 250,000 Q1 2011

Technova Business Park (Tower-A) Expressway PBD 480,000 Q4 2010

Technova Business Park (Tower-B) Expressway PBD 420,000 Q1 2011

NKG IT Park Expressway PBD 150,000 Q4 2010

MVL I Park NH-8 PBD 140,000 Q4 2010

Matrix Tower Expressway PBD 215,000 Q1 2011

Baani Corporate Suites Golf Course Road PBD 200,000 Q1 2011

Unitech Business Zone (Tower-C) Golf Course Extension PBD 250,000 Q1 2011

Unitech Arcadia South City-2 PBD 550,000 Q4 2011

Spaze I-Tech Park Sohna road PBD 1,400,000 Q1 2011

DLF Building no. 5 (Tower C) DLF Cyber city PBD 730,000 Q1 2011

The Palm Square Golf Course Extension PBD 310,000 Q1 2011

Park View Business Tower Sohna road PBD 600,000 Q1 2011

Logix Technova Tower-B Taj Expressway PBD 320,000 Q1 2011

ASF Insignia Gurgaon - Faridabad road PBD 720,000 Q1 2011Source: BNP Paribas Real Estate - Research, India


GLOSSARYQ4:

Super Built-up Area (SBUA):

Carpet Area:

Sq.mt:

Mn:

New:

Recent:

NCR:

SEZ:

BFSI:

SLR:

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.

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 - Q4 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:

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 delhi office market q4 2010

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