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Property Market OverviewINDIAQUARTERLY UPDATE | JULY | 2010

c o l l i e r s i n t e r n at i o n a l

s e c o n D Q u a rt e rMACRO ECONOMIC REVIEW

|

2010econoMic inDicatorsFDI in Real Estate

The GDP at constant prices for 2009-10 showed an YoY increase of 7.4 per cent over 2008-09. The quarterly estimates of GDP at constant prices for Jan-March 2010 show an YoY increase of 8.6 per cent over last year.national oFFice BaroMeter cBD MuMBai Delhi GurGaon NOIDA chennai BenGaluru Pune KolKata sBD

16000 14000 12000 10000 8000 6000 4000 2000 0

12.00

10.00 6.004.00 Per cent24-Jun-10

INR Crore

8.00

2.000.00

2005-06

2006-07

2007-08

2008-09

2009-10

The FDI in Real Estate in 2009-10 has increased to INR 13586 crore from INR 12621 crore in 2008-09.The share of Real estate in total FDI rose to 11.01 per cent in 2009-10 from 10.27 per cent in 200809. Overall BSE realty index fell during 2Q2010. It started to rise after touching 2869.54 on May 25, 2010. Over the last one year the monthly wholesale general inflation continually rose from (-) 1.01 per cent to a double digit figure of 10.16 per cent. In this quarter, Indian rupees initially experienced depreciation against US dollars till INR 47.71 on May 25, 2010; however, it started appreciating thereafter. The price of gold reached new height in second quarter of 2010 at INR 18800 per 10 grams on June 8, 2010 after hovering around INR 16500 per 10 grams in the previous quarter. This quarter RBI has increased repo and reverse repo rate in two consecutive months by 25 basis points each which resulted into the repo rate at 5.25 per cent and reverse repo rate at 3.75 per cent. It also hiked Cash Reserve Ratio (CRR) by 25 basis points.

FDI in Real Estate

Real Estate in Total FDI

Realty Index

3700 3500 3300 3100

29002700

Exchange rate (INR/USD)

national resiDential BaroMeter PriMe suBurBs MuMBai Delhi GurGaon noiDa chennai BenGaluru KolKataNote: All Rental and Capital Values provided in this document are for Warm Shell properties and for reference only. Capital and Rental Values may vary on various parameters.

48 47.5 47 46.5 46 45.5 45 44.5 44

INR/USD

Mar 15,10

Mar 22,10

May 10,10

May 17,10

May 24,10

Apr 12,10

Apr 19,10

Mar 01,10

Mar 08,10

Mar 29,10

Apr 26,10

Apr 05,10

Jun 07,10

May 03,10

May 31,10

Jun 14,1017-Jun-10

Price of Gold in India19000 18500 18000

INR

17500 17000

16500 16000 15500 6-Apr-10 12-May-10 19-May-10 26-May-10 20-Apr-10 27-Apr-10 19-Feb-1012-Feb-10 26-Feb-10 13-Apr-10

5-May-10

5-Feb-10

3-Jun-10

19-Mar-10

12-Mar-10

INR Per 10 Grams

www.colliers.com/india

26-Mar-10

10-Jun-10

22-Jan-10

15-Jan-10

29-Jan-10

5-Mar-10

1-Jan-10

8-Jan-10

Jun 21,10

The Knowledge Report | Second Quarter | 2010 | Commercial

MuMBai

Approximately 12.5 million sq ft of prime office space was available in Mumbai in 2Q2010. 70 percent of this available supply was in the form of IT/ITES office space primarily concentrated in Lower Parel, LBS/Thane, Navi Mumbai and Goregaon/JVLR. A number of new office buildings were ready for fit-out in 2Q2010 in areas such as Andheri, BKC, LBS and Thane, adding approximately 2.5 million sq ft of prime office space to the existing inventory. These projects include Pittie Chambers by Pittie Developers, Everest Urbania by Everest Group, Boomerang by Kanakia Spaces, Ackruti Star by Ackruti Developers, Silver Utopia by Silver Group and Element by Dosti & Neptune Group. Rentals and capital values remained stable for both IT and non-IT office space in almost all of the micro-markets. Vacancy remained high during the quarter, due to addition of new supply and the limited number of transactions in the market. In a recent notification, the state urban development department decided to amend the regulation 33 (1) of the Development Control Rules 1991 and to provide 25 per cent more floor space index (FSI) to the developers should they construct a road on a portion of land surrendered to the BMC. In line with Central Legislation, the Building and the Other Construction workers Cess Act, 1996, Maharashtra Government decided to charge 1 per cent labour cess on construction cost of all new public and private projects.

suPPlY in PriMe areasCBD 0.5% Andheri East 17% LBS / Thane 25% BKC 5% Kalina 2% Lower Parel 18% Goregaon / JVLR 10 % Worli Prabhadevi 1 % Powai 6 % Navi MumBai 11%

Nariman Point

Malad 5%

citY oFFice BaroMeter1Q2010 2Q2010

PriMe oFFice sPace rental trenD480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30

VacancY AbsORPTION construction rental rate

INR per sq ft per month

1Q2008

2Q2008

3Q2008

2Q2009

3Q2009

4Q2008

4Q2009

1Q2010

CBD Malad Goregaon / JVLR

Andheri East Navi Mumbai Kalina

1Q2009

BKC Powai Thane / LBS

Lower Parel Worli / Prabhadevi

2Q2010 GraDe a anD GraDeB rentals300 250

INR per sq ft per month

200 150 100 50 0 Navi Mumbai (IT) Malad (IT) Goregaon / JVLR (IT) CBD Andheri East BKC Lower Parel Malad Navi Mumbai Powai Worli / Prabhadevi Goregaon / JVLR Thane / LBS Andheri East (IT) Lower Parel (IT) Kalina Thane / LBS (IT) Powai (IT)

Grade A

Grade B

MarKet Dealsclient edelweiss siemens india infoline sBi cipla canonIL&FS Financial Centre, BKC

BuilDinG naMe

area (sQ. Ft.)

location

transaction tYPe

lotus Midtown hcc sun infotech Park Kaledonia raj Plaza rustomjee nataraj rustomjee nataraj

2,00,000 1,00,000 1,15,000 20,000 20,000 15,000 15,000

Kalina Vikroli thane andheri (e) Vikhroli andheri (e) andheri (e)

outright sale lease outright sale lease lease lease lease

amway

Source: Colliers International India Research

colliers international

2Q2010

3

The Knowledge Report | Second Quarter | 2010 | Commercial

Delhi

In 2Q2010 approximately 1.0 million sq ft of prime office space was available for fit-outs. This supply was primarily concentrated in Jasola and Saket. Virtually no new supply was added to the citys prime office space inventory this quarter. Rentals for Grade A office space across all the CBD and SBD locations witnessed a marginal increase in the range of 2-5 per cent quarter-on-quarter, due to limited supply and improved demand. Capital values have also strengthened marginally over the quarter, in the range of 3-4 per cent across all the micromarkets. Vacancy level in the CBD has witnessed a decrease from the previous quarter; however, vacancy in SBD areas such as Jasola, Nehru Place and Saket remained unchanged, due to limited numbers of transactions. The much awaited flyover connecting Delhi to Ghaziabad and Noida via NH24 at Ghazipur became operational this quarter. Due to the upcoming Commonwealth Games, the citys infrastructure has improved at a fast pace. It is expected that all the related infrastructure work will be handed over by 31st July 2010.

suPPlY in PriMe areas

Nehru Place 16% Saket 30%

Connaught Place 3%

Statesman House, CBD

Jasola 51%

citY oFFice BaroMeter1Q2010 2Q2010

PriMe oFFice sPace rental trenD500 450 400 350 300 250 200 150 100 50 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 Saket JasolaSaketGrade B

VacancY AbsORPTION construction rental rate

INR per sq ft per month

Nehru Place Connaught Place

Netaji Subhash

2Q2010 GraDe a anD GraDeB rentals350INR per sq ft per month

300 250 200 150 100 50Connaught Place Nehru Place Jasola

0

Grade A

MarKet Dealsclient louis Vuitton hyundai Max BupaBuilDinG naMe area (sQ. Ft.) location transaction tYPe

itt Baani corporate one salcon rasvilas

5,500 50,000 20,000

nehru Place Jasola saket

lease lease lease

Source: Colliers International India Research

Splendor Forum, Jasola

4

colliers international

2Q2010

The Knowledge Report | Second Quarter | 2010 | Commercial

GurGaon

Over 8.5 million sq ft of Grade A office space was ready for fit-outs in Gurgaon in 2Q2010. Most of this supply was concentrated at National Highway 8/ Udhyog Vihar, followed by Golf Course Road/Extension, Sohna Road and Manesar. Approximately 60 per cent of this available supply was in the form of IT/ ITES office space.

suPPlY in PriMe areasGolf Course Road/Ext /Sohna Road 25%

Manesar 17%

MG Road 7% DLF Cyber City 7% NH8/Udhyog Vihar 40% Institutional Sectors / Sushant Lok 4%

Times Square, Sushant Lok

citY oFFice BaroMeter1Q2010 2Q2010

VacancY AbsORPTION construction rental rate

INR per sq ft per month

Projects or parts of projects completed in this quarter in Gurgaon include Unitech Business Zone; a non-IT office space at Golf Course Extension Road and Bestech Orient Business Tower; an IT building at NH-8. Both these projects contributed approximately 0.8 million sq ft to the citys Grade A office space. Capital values for non-IT office space witnessed an increase in the range of 2-4 per cent quarter-on-quarter in most of the micro-markets in Gurgaon. However, capital values for IT/ITES office space remained stable across all the micromarkets. Following the capital value trends, rentals for non-IT Grade A office space in areas such as MG Road, Golf C