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Industrial Snapshot H2 2016AHMEDABAD, INDIA
MARKETBEAT
www.cushmanwakefield.com
Industrial Snapshot H2 2016AHMEDABAD, INDIA
MARKETBEAT
EconomyThe GDP growth of India witnessed an upswing during the July-
September quarter at 7.3%, up from 7.1% in the preceding
quarter. The manufacturing sector clocked in growth of 7.1%
during the quarter, after four quarters of growth above 9%.
Moreover, the Nikkei India Manufacturing Purchasing Managers'
Index (PMI) — an indicator that tracks the manufacturing sector’s
performance — was seen at 52.3 in November, lower than the
22-month high of 54.4 in October. The Indian manufacturing
sector not only continues to reel under slow growth of new
orders, but also due to cash shortages arising from
demonetization, which is hampering payments of wages, buying
activity for raw materials and overall production. Further, the
demonetization is also likely to impact volume of land deals,
which typically involve substantial cash component. The
implementation of the Goods & Services Tax (GST), which was
set to simplify the complex and multiple taxation system, is also
likely to be delayed by up to 6 months as the deadline has been
moved from April 1st to Sept 1st.
Market OverviewDemand for industrial land remained high as prices
remained stable. Sanand and Changodar continued to witness
buoyant demand for industrial land owing to inherent advantages
of strong connectivity through National Highway 8 and proximity
to the node at Dholera Special Investment Region (DSIR) along
the soon-to-be-completed Delhi-Mumbai Industrial Corridor
(DMIC). Despite high demand, the capital values of land
remained at similar levels during the second half of 2016 due to
sufficient availability of land parcels.
Industrial shed rentals remained consistent. Demand
remained subdued across major submarkets and no major
transactions in industrial shed leasing was recorded during the
second half of 2016. Sanand continued to be the preferred
market and witnessed higher enquiries from auto and auto-
ancillary companies during the period. Hence, industrial shed
rentals did not show any momentum from the first half of 2016.
Warehousing rentals maintained status quo across
submarkets. Changodar and Kheda witnessed healthy demand
for warehousing spaces during the second half of 2016, mainly
from companies in e-commerce and logistics sectors. However,
rentals remained range-bound across all submarkets due to
sufficient availability to cater to existing demand.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 6.9% 7.3% 7.5%
CPI Growth 6.7% 6.0% 5.9%
Private Final Expenditure Growth 6.2% 6.3% 7.0%
Govt. Final Expenditure Growth 8.2% 6.6% 7.9%
Source: CSO, RBI, Oxford Economics
LAND RATES – DECEMBER 2016
SUBMARKET
INR
MN/ACRE
US$
MN/ACRE
EURO
MN/ACRE
Y-O-Y
Change
Sanand# 24 0.4 0.3 0.0%
Changodar 24 0.4 0.3 0.0%
Note: Quoted land rates for serviced industrial land parcels are mentioned# Represents government owned serviced plots in industrial parks
Percentage growth are in local currency; Y-O-Y – Year on Year
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
INDUSTRIAL AND WAREHOUSING RENTS – H2 2016
0%
50%
100%
0
5
10
15
20
25
30
Sanand Changodar Aslali Kheda
Industrial Rent (INR/sf/month) Warehousing Rent (INR/sf/month)
Industrial Rent Y-o-Y Growth (%) Warehousing Rent Y-o-Y Growth (%)
Industrial Snapshot H2 2016AHMEDABAD, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director
Research Services, IndiaTel: +91 80 40465555
OutlookLand capital values to rationalize in select submarkets. In
the aftermath of the currency demonetization, demand for land is
expected to be lower over the next few months, which could
exert some downward pressure on capital values.
Industrial shed rentals to have marginal upside. Transaction
activity for industrial sheds is expected to gain momentum,
driven by pharmaceuticals and automobile sectors, in the
submarkets of Changodar and Sanand respectively. As a result,
rentals are expected to increase marginally in the first half of
2017.
Warehousing rentals expected to remain stable across all
submarkets. Approximately 1 million square feet (msf) of
warehousing supply is currently under-construction in
Changodar. This supply infusion in an already oversupplied
market will keep the rentals stable in the first half of 2017.
SIGNIFICANT TRANSACTIONS
Buyer/
Lessee
Seller/
LessorType Submarket
Sale/
LeaseArea (sf)
LG NA Warehousing Changodar Lease 80,000
Amazon NA Warehousing Changodar Lease 75,000
Coldrush
LogisticsNA Warehousing Kheda Lease 50.000
Industrial Snapshot H2 2016BENGALURU, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India witnessed an upswing during the July-
September quarter at 7.3%, up from 7.1% in the preceding quarter.
The manufacturing sector clocked in growth of 7.1% during the
quarter, after four quarters of growth above 9%. Moreover, the
Nikkei India Manufacturing Purchasing Managers' Index (PMI) — an
indicator that tracks the manufacturing sector’s performance — was
seen at 52.3 in November, lower than the 22-month high of 54.4 in
October. The Indian manufacturing sector not only continues to reel
under slow growth of new orders, but also due to cash shortages
arising from demonetization, which is hampering payments of
wages, buying activity for raw materials and overall production.
Further, the demonetization is also likely to impact volume of land
deals, which typically involve substantial cash component. The
implementation of the Goods & Services Tax (GST), which was set
to simplify the complex and multiple taxation system, is also likely to
be delayed by up to 6 months as the deadline has been moved from
April 1st to Sept 1st.
Market OverviewLand rates remained stable across locations. Owing to adequate
availability capital values for industrial land across all the
submarkets remained stable during the second half of the year.
Rental values of industrial sheds and warehouses have
maintained status quo across all submarkets. After an increase
in rental values in select submarkets in the first half of the year,
rental values have stabilized across the submarkets owing to
adequate availability of vacant spaces. This is largely because
occupiers from sectors such as ecommerce, cargo and third party
logistics providers are more keen on going on built-to-suit (BTS)
options to ensure quality and lower rentals.
The submarkets of Nelamangala, Hoskote and Jigani-Bannerghata
belt are currently in high demand by occupiers given their
connectivity and infrastructure. Besides online retailers, demand for
warehousing space is also being driven by traditional offline retailers
and hypermarkets who are looking at tapping into online / digital
sales as well.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 6.9% 7.3% 7.5%
CPI Growth 6.7% 6.0% 5.9%
Private Final Expenditure Growth 6.2% 6.3% 7.0%
Govt. Final Expenditure Growth 8.2% 6.6% 7.9%
Source: CSO, RBI, Oxford Economics
LAND RATES – JUNE 2016
SUBMARKET INR
MN/ACRE
US$
MN/ACRE
EURO
MN/ACRE
Y-O-Y
Change
Bengaluru Hardware
Park25 0.37 0.35 0.2%
Narsapura 15 0.22 0.21 1.5%
Bommasandra 54 0.80 0.77 13.6%
Bidadi 23 0.34 0.32 5.0%
Dabaspet 20 0.29 0.28 9.8%
Harohalli 13 0.19 0.18 -14.3%
Peenya 135 1.99 1.90 3.3%
Note: Quoted land rates for serviced industrial land parcels are mentioned
Percentage growth are in local currency; Y-O-Y – Year on Year
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
INDUSTRIAL AND WAREHOUSING RENTS – H2 2016
0%
10%
20%
30%
0
5
10
15
20
25
30
35
BommasandraIndustrial Area
PeenyaIndustrial Area
Bidali IndustrialArea
Hosur Road Nelamangala Whitefield/Soukya Road
Industrial Rent (INR/sf/month) Warehousing Rent (INR/sf/month)
Industrial Rent Y-o-Y Growth (%) Warehousing Rent Y-o-Y Growth (%)
Industrial Snapshot H2 2016BENGALURU, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director Research Services, India
Tel: +91 80 40465555
OutlookIndustrial land rates expected to remain stable. Owing to the
recent currency demonetization, the demand of land is expected
to remain stable, keeping the land values firm throughout all the
submarkets. However, we anticipate that new industrial parks
and large warehousing facilities catering to more organized
demand will find favour with developers and funds looking to
diversify their investment portfolios.
Rental values for commercial warehouses and industrial
sheds are expected to remain stable. The rental values are
expected to remain stable during the first half of 2017 given
existing business sentiments.
SIGNIFICANT TRANSACTIONS
Buyer /
Lessee
Seller /
Lessor
Type Submarket Sale /
Rent
Area (sf)
Rajdhani
Papers
Various
individuals
Land Dabaspet Purchase 33 acres
Rashi
Granites
Indian
Packaging
Land Jigani
Industrial Area
Purchase 3 acres
Big Basket Individual Warehousing Jigani Link
Road
Rent 80,000
Industrial Snapshot H2 2016CHENNAI, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India witnessed an upswing during the July-
September quarter at 7.3%, up from 7.1% in the preceding
quarter. The manufacturing sector clocked in growth of 7.1%
during the quarter, after four quarters of growth above
9%. Moreover, the Nikkei India Manufacturing Purchasing
Managers' Index (PMI) — an indicator that tracks the
manufacturing sector’s performance — was seen at 52.3 in
November, lower than the 22-month high of 54.4 in October. The
Indian manufacturing sector not only continues to reel under slow
growth of new orders, but also due to cash shortages arising
from demonetization, which is hampering payments of wages,
buying activity for raw materials and overall production. Further,
the demonetization is also likely to impact volume of land deals,
which typically involve substantial cash component. The
implementation of the Goods & Services Tax (GST), which was
set to simplify the complex and multiple taxation system, is also
likely to be delayed by up to 6 months as the deadline has been
moved from April 1st to Sept 1st.
Market OverviewNo change in industrial land capital values. Land rates in all
the submarkets maintained status quo from the first half of 2016
on account of limited transaction activity in the city.
lndustrial shed and warehousing rentals decline in select
submarkets. Submarkets like Sriperumbudur – Oragadam, Red
Hills – Periyapalayam, and Maraimalai Nagar recorded a dip of
4-13% in industrial shed rentals from H1 2016. Warehousing
rentals witnessed a 4-7% decrease in most of the submarkets.
Muted demand in comparison to the supply is a major reason
behind the fall in rentals in both industrial shed and warehousing
spaces. Warehousing rents for Sriperumbudur – Thiruvallur
remained stable over the period, while Maraimalai Nagar
witnessed an increase of 5% over H1 2016 on account of steady
demand from the automobile sector.
Entry of large developers in the industrial space as well as
investment by major private equity players in logistics parks in
the city will bode well by making the industrial market more
organized.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 6.9% 7.3% 7.5%
CPI Growth 6.7% 6.0% 5.9%
Private Final Expenditure Growth 6.2% 6.3% 7.0%
Govt. Final Expenditure Growth 8.2% 6.6% 7.9%
Source: CSO, RBI, Oxford Economics
LAND RATES – DECEMBER 2016SUBMARKET INR
MN/ACRE
US$
MN/ACRE
EURO
MN/ACRE
Y-O-Y
Change
NH 4 –
Sriperumbudur –
Oragadam SIPCOT#
10 0.1 0.1 25%
Sriperumbudur –
Tiruvallur*
12.5 0.2 0.2 0%
NH 5 –
Gummidipoondi
SIPCOT#
4 0.06 0.06 0%
NH 5 – (Red Hills –
Gummidipoondi)*
15 0.2 0.2 0%
Tada* 7.7 0.1 0.1 10%
Note: Quoted land rates for serviced industrial land parcels are mentioned
*Represents land rates for serviced land parcels of private land owners
#Represent government owned serviced plots in industrial parks
Percentage growth are in local currency; Y-O-Y – Year on Year
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
INDUSTRIAL AND WAREHOUSING RENTS – H2 2016
-15.0%
-12.0%
-9.0%
-6.0%
-3.0%
0.0%
3.0%
6.0%
0
5
10
15
20
25
30
Industrial Rent (H2 2016) Warehousing Rent (H2 2016)
Industrial Rent Y-o-Y Growth Warehousing Rent Y-o-Y Growth
Industrial Snapshot H2 2016CHENNAI, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director Research Services,
India
Tel: +91 80 40465555
OutlookLand capital values to remain unchanged. Industrial land
values in most submarkets are expected to maintain status quo
over the first half of 2017 due to steady demand.
Industrial sheds and warehouse rentals expected to remain
stable. Rentals for industrial sheds and warehousing spaces are
likely to remain largely unchanged in most of the submarkets due
to sufficient space availability.
SIGNIFICANT TRANSACTIONS
Buyer /
LesseeSeller / Lessor Type Submarket
Sale /
LeaseArea (sf)
Microchip Nucleus
Technologies
Industrial
land
Chemmenchery Sale 1.5 acres
LG Sugal &
Damani
Warehouse Red Hills Lease 100,000
Intex Individual
landlord
Warehouse Vanagaram Lease 6,500
Industrial Snapshot H2 2016DELHI-NCR, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India witnessed an upswing during the July-
September quarter at 7.3%, up from 7.1% in the preceding
quarter. The manufacturing sector clocked in growth of 7.1%
during the quarter, after four quarters of growth above
9%. Moreover, the Nikkei India Manufacturing Purchasing
Managers' Index (PMI) — an indicator that tracks the
manufacturing sector’s performance — was seen at 52.3 in
November, lower than the 22-month high of 54.4 in October. The
Indian manufacturing sector not only continues to reel under slow
growth of new orders, but also due to cash shortages arising
from demonetization, which is hampering payments of wages,
buying activity for raw materials and overall production. Further,
the demonetization is also likely to impact volume of land deals,
which typically involve substantial cash component. The
implementation of the Goods & Services Tax (GST), which was
set to simplify the complex and multiple taxation system, is also
likely to be delayed by up to 6 months as the deadline has been
moved from April 1st to Sept 1st.
Market OverviewLand prices witnessed mixed trends.
Land prices increased by about 5% in the Rohtak submarket of
Haryana and by around 3% in the Khushkhera submarket in
Rajasthan from the first half year of 2016 due to a revision in
allotment rates. Noida Phase I in Uttar Pradesh witnessed a 11%
decline on a sequential basis, as a fallout of the demonetization
exercise.
Land prices in all other submarkets across Haryana, Uttar
Pradesh and Rajasthan maintained status quo from the first half
year on account of steady demand.
Industrial shed rentals largely stable across Delhi-NCR.
Industrial shed rentals maintained status quo from the first half of
2016 in all the submarkets of Haryana, Uttar Pradesh and
Rajasthan. However, the submarket of Faridabad in Haryana
recorded a 2% decline on account of slower demand.
Warehousing rentals maintained status quo.
Warehousing rentals for NH-8, Dharuhera, Hassangarh and
Palwal submarkets remained unchanged from the first half of
2016. E-commerce companies were the key demand drivers in
warehousing during the half year period, with corporates like
Amazon and BigBasket transacting large warehouse spaces in
NH-8 (in Haryana) and Greater Noida (in Uttar Pradesh).
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 6.9% 7.3% 7.5%
CPI Growth 6.7% 6.0% 5.9%
Private Final Expenditure Growth 6.2% 6.3% 7.0%
Govt. Final Expenditure Growth 8.2% 6.6% 7.9%
Source: CSO, RBI, Oxford Economics
LAND RATES – DECEMBER 2016
SUBMARKET
INR
MN/ACRE
US$
MN/ACRE
EURO
MN/ACRE
Y-O-Y
Change
DELHI-NCR-
HARYANA
Faridabad 91 1.3 1.3 0.0%
IMT Manesar 87 1.3 1.2 0.0%
Bawal 30 0.4 0.4 11.1%
Rohtak# 31 0.5 0.4 5.6%
DELHI-NCR-
UTTAR PRADESH
Noida Phase I 324 4.8 4.6-
17.9%
Noida Phase II 75 1.1 1.1 0.0%
Noida Phase III 202 3.0 2.9 -4.8%
Greater Noida 44 0.6 0.6 0.0%
Yamuna
Expressway#19 0.3 0.3 0.0%
DELHI-NCR-
RAJASTHAN
Bhiwadi 42 0.6 0.6 -2.3%
Khushkhera* 24 0.4 0.3 2.6%
Neemrana 42 0.6 0.6 0.0%
Note: Quoted land rates for serviced industrial land parcels are mentioned
#Represents primary land rates by Infrastructure Development Corporation of
respective states
*Khushkhera includes Khushkhera, Tapukara and Chaupanki
Percentage growth are in local currency; Y-O-Y – Year on Year
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
Industrial Snapshot H2 2016DELHI-NCR, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director Research Services,
India
Tel: +91 80 40465555
OutlookSelect submarkets might see a decline in industrial land
rates. Select submarkets in Haryana and Rajasthan that have
been witnessing weak demand due to recent regulatory changes
may witness a decline in circle rates, which could eventually
Higher business activity anticipated in industrial sheds.
The demand for industrial sheds is expected to witness higher
momentum in the first half of 2017. Land acquisition for a
dedicated pharma park in the Kundli-Manesar-Palwal (KMP)
corridor will lend impetus to business in the NH-1 and NH-2
submarkets.
Implementation of the Goods & Services Tax is expected to have
a positive impact on the warehousing business in NH-8, which is
expected to take a lead among all other submarkets. We may
also witness a consolidation of warehouse spaces in the NH-8
submarket.
Both warehousing and industrial shed rentals are expected to
remain largely unchanged due to sufficient space availability.
SIGNIFICANT TRANSACTIONS
Buyer/
Lessee
Seller/
LessorType Submarket Sale/Lease Area (sf)
Amazon Individual Warehousing NH-8 Lease 275,000
BigBasket Individual WarehousingGreater
NoidaLease 90,000
Compal
ElectronicsIndividual Industrial
Greater
NoidaLease 200.000
INDUSTRIAL AND WAREHOUSING RENTS – H2 2016
Delhi-NCR-Haryana
Delhi-NCR-Uttar Pradesh
Delhi-NCR-Rajasthan
-10%
-5%
0%
5%
10%
0
5
10
15
20
25
Industrial Rent (INR/sf/month) Warehousing Rent (INR/sf/month)
Industrial Rent Y-o-Y Growth (%) Warehousing Rent Y-o-Y Growth (%)
0%
1%
1%
2%
2%
3%
0
5
10
15
20
25
30
35
40
Noida Ph I Noida Ph II Noida Ph III Greater Noida
Industrial Rent (INR/sf/month) Industrial Rent Y-o-Y Growth (%)
0%
20%
40%
60%
80%
100%
14.00
14.50
15.00
15.50
16.00
Bhiwadi Khushkhera Neemrana
Industrial Rent (INR/sf/month) Industrial Rent Y-o-Y Growth (%)
Industrial Snapshot H2 2016HYDERABAD, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India witnessed an upswing during the July-
September quarter at 7.3%, up from 7.1% in the preceding
quarter. The manufacturing sector clocked in growth of 7.1%
during the quarter, after four quarters of growth above
9%. Moreover, the Nikkei India Manufacturing Purchasing
Managers' Index (PMI) — an indicator that tracks the
manufacturing sector’s performance — was seen at 52.3 in
November, lower than the 22-month high of 54.4 in October.
The Indian manufacturing sector not only continues to reel under
slow growth of new orders, but also due to cash shortages
arising from demonetization, which is hampering payments of
wages, buying activity for raw materials and overall production.
Further, the demonetization is also likely to impact volume of
land deals, which typically involve substantial cash component.
The implementation of the Goods & Services Tax (GST), which
was set to simplify the complex and multiple taxation system, is
also likely to be delayed by up to 6 months as the deadline has
been moved from April 1st to Sept 1st.
Market OverviewLand capital values remained stable.
The capital values of land maintained status-quo from the first
half of 2016 across all the sub-markets. Kothur and Sangareddy
continued to be the most preferred locations for industrial
segment, owing to their established presence, affordability and
strong connectivity to Bengaluru and Mumbai highways.
Industrial shed rentals maintained staus quo.
Demand remained subdued across major submarkets and no
major transaction was recorded in industrial sheds during the
second half of 2016. While industrial rentals remained at similar
levels across most of the submarkets, it increased by 9% in
Shamshabad from the first half of 2016.
Stable warehousing rentals across submarkets.
Transactions in warehousing were mainly witnessed in Malkapur
(Vijayawada highway) and Gudlapochampally during H2 2016,
mainly driven by FMCG sector. However, warehousing rents
remained stable from the first half of 2016 across all submarkets
owing to ample availability.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 6.9% 7.3% 7.5%
CPI Growth 6.7% 6.0% 5.9%
Private Final Expenditure Growth 6.2% 6.3% 7.0%
Govt. Final Expenditure Growth 8.2% 6.6% 7.9%
Source: CSO, RBI, Oxford Economics
LAND RATES – DECEMBER 2016
SUBMARKET
INR
MN/ACRE
US$
MN/ACRE
EURO
MN/ACRE
Y-O-Y
Change
Medchal* 23 0.3 0.3 0.0%
Shamirpet 5 0.1 0.1 0.0%
Fab City 6 0.1 0.1 0.0%
Kothur* 5 0.1 0.1 0.0%
Moulali, Nacharam 46 0.7 0.6 0.0%
Uppal 44 0.6 0.6 0.0%
Patancheru 20 0.3 0.3 0.0%
Note: Quoted land rates for serviced industrial land parcels are mentioned
Percentage growth are in local currency; Y-O-Y – Year on Year
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
INDUSTRIAL AND WAREHOUSING RENTS – H2 2016
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
5
10
15
20
Industrial Rent (H2 2016) Warehousing Rent (H2 2016)
Industrial Rent Y-o-Y Growth Warehousing Rent Y-o-Y Growth
Industrial Snapshot H2 2016HYDERABAD, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director Research Services, India
Tel: +91 80 40465555
OutlookLand rates to rationalize in select submarkets. On the back of
demonetization, transaction volumes are likely to be hit hard and
the land values are expected to decline in the outskirts of the
city.
Industrial shed rents and warehousing rents for all
submarkets are expected to hold steady. Due to sufficient
availability and subdued demand, all submarkets are expected to
witness stable rentals.
SIGNIFICANT TRANSACTIONS
Buyer/Lessee Seller/Lessor Type Submarket Sale/Rent Area (sf)
FMCG firm Indo Aarya Warehouse Vijayawada
Higway
Rent 80,000
FMCG firm Individual Warehouse Gundla
Pochampally
Rent 40,000
Industrial Snapshot H2 2016KOLKATA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India witnessed an upswing during the July-
September quarter at 7.3%, up from 7.1% in the preceding
quarter. The manufacturing sector clocked in growth of 7.1%
during the quarter, after four quarters of growth above
9%. Moreover, the Nikkei India Manufacturing Purchasing
Managers' Index (PMI) — an indicator that tracks the
manufacturing sector’s performance — was seen at 52.3 in
November, lower than the 22-month high of 54.4 in October. The
Indian manufacturing sector not only continues to reel under slow
growth of new orders, but also due to cash shortages arising
from demonetization, which is hampering payments of wages,
buying activity for raw materials and overall production. Further,
the demonetization is also likely to impact volume of land deals,
which typically involve substantial cash component. The
implementation of the Goods & Services Tax (GST), which was
set to simplify the complex and multiple taxation system, is also
likely to be delayed by up to 6 months as the deadline has been
moved from April 1st to Sept 1st.
Market OverviewLand rates remain stable. Capital values for land in both
Bombay Road – NH6 and Delhi Road – NH2 remained
unchanged from the first half year of 2016 due to steady market
conditions.
Rents for industrial sheds and warehouses largely
unchanged. Rents for industrial sheds maintained status quo
from the first half year for Bombay Road submarket. However,
Delhi Road submarket witnessed an increase of 8% on a
sequential basis due to increased traction in the area owing to its
proximity to Dankuni railway station.
Rentals for warehousing spaces remained at similar levels from
the first half of 2016 for both Bombay Road and Delhi Road
submarkets due to stable demand coupled with adequate
availability. Retail sector was a major demand driver for
warehousing spaces in the city during the half year period,
largely due to new brands making an entry into east India.
The rollout of GST, interest from private equity players in the
logistics space and addition of more organized supply in the
market is expected to lend impetus to the city’s logistics markets
in 2017.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 6.9% 7.3% 7.5%
CPI Growth 6.7% 6.0% 5.9%
Private Final Expenditure Growth 6.2% 6.3% 7.0%
Govt. Final Expenditure Growth 8.2% 6.6% 7.9%
Source: CSO, RBI, Oxford Economics
LAND RATES – DECEMBER 2016
SUBMARKET
INR
MN/ACRE
US$
MN/ACRE
EURO
MN/ACRE
Y-O-Y
Change
Bombay Road –
NH654 0.8 0.8 0.0%
Delhi Road – NH2 42 0.6 0.6 27.0%
Note: Quoted land rates for serviced industrial land parcels are mentioned
Percentage growth are in local currency; Y-O-Y – Year on Year
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
INDUSTRIAL AND WAREHOUSING RENTS – H2 2016
0%
2%
4%
6%
8%
10%
0
5
10
15
20
Bombay Road - NH6 Delhi Road - NH 2
Industrial Rent (INR/sf/month) Warehousing Rent (INR/sf/month)
Industrial Rent Y-o-Y Growth (%) Warehousing Rent Y-o-Y Growth (%)
Industrial Snapshot H2 2016KOLKATA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director Research Services,
India
Tel: +91 80 40465555
OutlookLand rates expected to remain stable. Land rates are likely to
remain unchanged in the first half of 2017, especially in an
environment of regulatory changes leading to transaction
decisions being put on hold.
Positive prospects for warehousing. The Eastern Dedicated
Freight Corridor project is expected to lend impetus to the
warehousing markets in the city. Rents are likely to witness slight
increase over the next few months.
SIGNIFICANT TRANSACTIONS – H2 2016
Buyer/Lessee Seller/Lessor Type Submarket Sale/Rent Area (sf)
Win Pen
Linc Pen
Corporate
Corporate
Warehousing
Warehousing
Bombay
Road
Bombay
Road
Rent
Rent
27,000
25,000
Industrial Snapshot H2 2016MUMBAI, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India witnessed an upswing during the July-
September quarter at 7.3%, up from 7.1% in the preceding
quarter. The manufacturing sector clocked in growth of 7.1%
during the quarter, after four quarters of growth above
9%. Moreover, the Nikkei India Manufacturing Purchasing
Managers' Index (PMI) — an indicator that tracks the
manufacturing sector’s performance — was seen at 52.3 in
November, lower than the 22-month high of 54.4 in October. The
Indian manufacturing sector not only continues to reel under slow
growth of new orders, but also due to cash shortages arising
from demonetization, which is hampering payments of wages,
buying activity for raw materials and overall production. Further,
the demonetization is also likely to impact volume of land deals,
which typically involve substantial cash component. The
implementation of the Goods & Services Tax (GST), which was
set to simplify the complex and multiple taxation system, is also
likely to be delayed by up to 6 months as the deadline has been
moved from April 1st to Sept 1st.
Market OverviewCapital values of land parcels remained stable. The capital
values of land continued to remain stable across most of the
submarkets in the second half of 2016 on the back of weak
demand sentiments. The prospective buyers are adopting a
cautious approach to assess the impact of the Real Estate
Regulation Act (RERA) and demonetization, thus prolonging
closure of transactions.
Lacklustre industrial activity. The industrial activity lacked
momentum during second half year of 2016, with no major
closure of transactions. Thus, rentals for industrial sheds
continued to remain stable across most of the submarkets
(except Thane-Belapur Road) during this period. Industrial rents
in Thane-Belapur Road witnessed an increase of 3% on a
sequential basis on the back of steady demand from IT-BPM
sector and limited availability of quality space.
Warehousing rents appreciated in select submarkets.
Transactions in warehousing were mainly concentrated in
Bhiwandi and rentals in Bhiwandi continued to remain in line with
market expectations.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 6.9% 7.3% 7.5%
CPI Growth 6.7% 6.0% 5.9%
Private Final Expenditure Growth 6.2% 6.3% 7.0%
Govt. Final Expenditure Growth 8.2% 6.6% 7.9%
Source: CSO, RBI, Oxford Economics
LAND RATES – DECEMBER 2016
SUBMARKET
INR
MN/A
CRE
US$
MN/ACRE
EURO
MN/ACRE
Y-O-Y
Change
Bhiwandi 20 0.3 0.3 0.0%
Thane-Belapur Road# 109 1.6 1.5 0.0%
Taloja Industrial Estate# 65 1.0 0.9 0.0%
Rasayani Patalganga# 20 0.3 0.3 0.0%
Pen-Khopoli Road 16 0.2 0.2 4.9%
Note: Quoted land rates for serviced industrial land parcels are mentioned
# Represents government owned serviced plots in industrial parks
Percentage growth are in local currency; Y-O-Y – Year on Year
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
INDUSTRIAL AND WAREHOUSING RENTS – H2 2016
-10%
-5%
0%
5%
10%
15%
20%
0
5
10
15
20
25
30
35
40
45
Industrial Rent (H2 2016) Warehousing Rent (H2 2016)
Industrial Rent Y-o-Y Growth Warehousing Rent Y-o-Y Growth
Industrial Snapshot H2 2016MUMBAI, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
OutlookLand rates to remain unchanged. Given that transaction
volumes are likely to be slower in the first half of 2017 in the
aftermath of demonetization, capital values for land are expected
to largely remain stable.
Industrial and warehousing rentals to remain range-bound.
Industrial transactions are expected to remain subdued in the
first half of 2017, keeping rentals at stable levels across
submarkets. Submarkets such as Bhiwandi, Panvel and Pen-
Khopoli Road are likely to witness momentum in warehousing
transactions during 2017.
SIGNIFICANT TRANSACTIONS
Buyer/Lessee Seller/Lessor Type Submarket Sale/Rent Area (sf)
DHL Antariksh Warehousing Bhiwandi Rent 85,000
Interglobe
Hotels
Modi Auto
Corporation
Land Thane Sale 35,221
Siddhart GoelSenior Director Research Services, India
Tel: +91 80 40465555
Industrial Snapshot H2 2016PUNE, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India witnessed an upswing during the July-
September quarter at 7.3%, up from 7.1% in the preceding
quarter. The manufacturing sector clocked in growth of 7.1%
during the quarter, after four quarters of growth above 9%.
Moreover, the Nikkei India Manufacturing Purchasing Managers'
Index (PMI) — an indicator that tracks the manufacturing sector’s
performance — was seen at 52.3 in November, lower than the
22-month high of 54.4 in October. The Indian manufacturing
sector not only continues to reel under slow growth of new
orders, but also due to cash shortages arising from
demonetization, which is hampering payments of wages, buying
activity for raw materials and overall production. Further, the
demonetization is also likely to impact volume of land deals,
which typically involve substantial cash component. The
implementation of the Goods & Services Tax (GST), which was
set to simplify the complex and multiple taxation system, is also
likely to be delayed by up to 6 months as the deadline has been
moved from April 1st to Sept 1st.
Market OverviewStable land capital values.
The capital values of land across various submarkets remained
stable from the first half of 2016. Post the currency
demonetization, enquiries dropped and no major transaction was
closed during the second half of 2016. Chakan continued to be
most preferred location for companies looking to expand or set
up new base in Pune due to sufficient availability of land parcels.
Buoyant leasing activity in industrial sheds.
The second half of 2016 witnessed buoyant leasing activity in
industrial sheds, which was concentrated in Chakan and driven
by companies in automobile and auto-ancillary sectors. The
presence of an established ecosystem and comparatively lower
transportation costs on the back of better connectivity aided the
increased demand in this submarket. However, industrial shed
rentals maintained status-quo across all submarkets during the
second half of 2016 due to sufficient availability.
Warehousing rentals maintained status-quo.
Transactions in warehousing were mainly witnessed in Chakan
during H2 2016, driven by e-commerce and logistics sectors.
However, warehousing rents continued to remain stable across
all submarkets owing to ample availability of warehousing space.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 6.9% 7.3% 7.5%
CPI Growth 6.7% 6.0% 5.9%
Private Final Expenditure Growth 6.2% 6.3% 7.0%
Govt. Final Expenditure Growth 8.2% 6.6% 7.9%
Source: CSO, RBI, Oxford Economics
LAND RATES – DECEMBER 2016
SUBMARKET
INR
MN/ACRE
US$
MN/ACRE
EURO
MN/ACRE
Y-O-Y
Change
Talegaon 20 0.3 0.3 0.0%
Chakan 30 0.4 0.4 0.0%
Pimpri-Chinchwad 65 1.0 0.9 25.7%
Pirangut 30 0.4 0.4 0.0%
Hinjewadi 60 0.9 0.8 0.0%
Lonikand 25 0.4 0.3 0.0%
Sanaswadi
Ranjangaon#
Khed
Shirwal
20
16
15
12
0.3
0.2
0.2
0.2
0.3
0.2
0.2
0.2
0.0%
0.0%
0.0%
0.0%
Note: Quoted land rates for serviced industrial land parcels are mentioned#Represents government owned serviced plots in industrial parks
Pimpri Chinchwad includes Bhosari; Lonikand also includes Phulgaon, Sanaswadi also
includes Shikrapur, Kondhapuri and Koregaon Bhima
Percentage growth are in local currency; Y-O-Y – Year on Year
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
INDUSTRIAL AND WAREHOUSING RENTS – H2 2016
0%
20%
40%
60%
80%
100%
05
10152025303540
Industrial Rent (INR/sf/month) Warehousing Rent (INR/sf/month)
Industrial Rent Y-o-Y Growth (%) Warehousing Rent Y-o-Y Growth (%)
Industrial Snapshot H2 2016PUNE, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director Research Services, India
Tel: +91 80 40465555
OutlookLand prices expected to remain at similar levels. While
transaction volumes are likely to be hit as a fallout of the recent
demonetization, land rates are expected to remain stable in the
first half of 2017.
Warehousing rentals and industrial shed rentals likely to
remain stable. Expected demand from companies in automobile
and home furnishing sectors is likely to aid healthy transaction
volumes, mainly in Chakan. However, industrial shed rentals are
expected to remain at the current levels due to sufficient
availability. Also, warehousing transactions are expected to
witness steady demand in the first half of 2017, keeping the
rentals range-bound.
SIGNIFICANT TRANSACTIONS
Buyer / LesseeSeller /
LessorType Submarket
Sale /
LeaseArea (sf)
Mahindra
Logistics
Agility
LogisticsWarehousing Chakan Lease 110,000
Nexteer
Automotive
India
Individual Industrial Shed Chakan Lease 35,000