the knowledge report_india office property market overview 1q 2012

8/2/2019 The Knowledge Report_India Office Property Market Overview 1Q 2012

1/12

OfficePrOPerty Market OverviewiNDia

QUarterLy UPDate | aPriL | 2012

Accelerating success.


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MACRO ECONOMIC OVERVIEW

During 4Q 2011 GDP grew at 6.9 percent in

real terms suggesting a mderatin in grwt

in cmparisn t preceding tw quarters. Te

nance minister presented Indias Unin

Budget 2012 -13 tis quarter prjecting a GDP

grwt rate 7.6% r 2012-13.

Te eadline inatin gure mderated rm

8.3 percent in December 2011 t 6.6 and

6.95% in January and February 2012,

respectively. Keeping in view te mderatin

in inatin rate te Reserve Bank India

(RBI) as stened mnetary plicy r te

rst time since ne and a al year . Tis as

been dne by reducing CRR (Cas Reserve

Rati) by 50 basis pints in January and a

urter reductin 75 basis pint in Marc

2012. Te current CRR rate is 4.75%.

Te Budget remained silent n mst te

majr real estate related issues. It did wever

mentined tat erts are n t arrive at a

plitical cnsensus n te issue allwing

51% Freign Direct Investment (FDI) in multi-

brand retailing.

Te Budget aims t prvide impetus t

ardable using by prviding varius

incentives t bt develpers and end users.

Fr eample te eternal CmmercialBrrwings (ECB) is allwed r lw cst

ardable using prjects wic wuld elp

develpers t raise debt at lwer cst.

Frm an end user perspective, te budget

prvides ew incentives including, Service ta

eemptin r cnstructin service related t

residential dwelling and lw cst mass

using up t an area 60 sq mtr under te

sceme ardable using. Te eisting

sceme interest subventin 1% r

using lans up t INRs 15 lak (were te

cst te use des nt eceed INR 25laks), was etended by ne mre year.

ECONOMIC BAROMETER

RETuRN ON AlTERNATIVE INVEsTMENTs

RESEARCh & FoRECAST REPoRTsYDNEY CENTRAl BusINEss DIsTRICT

INDIA oFFICE MARKETREsEARCh & fORECAsT REpORT

Mar-11 Mar-12

REPo RATE 6.50% 8.50%

REVERSE REPo RATE 5.50% 7.50%

CRR 6.00% 4.75%

INFLATIoN 9.68% 6.89%

PRIME

LENDING RATE8.25% - 9.50% 10.00% - 10.75%

DEPoSIT RATE

(>1 YEAR)7.75% - 9.50% 8.50% - 9.25%

FoREIGN ExChANGE

INR - USD45.02 50.39

INR- EURo 59.12 65.89

Mar-11 Mar-12 YoY %

Cange

GoLD 20,730 27,300 31.69%

SILVER 52,450 56,014 6.80%

EQUITY (BSE

SENSEx) 18167.64 17,675.85 -2.71%

REALTY INDEx 2053.69 1821.35 -11.31%

Source: Colliers International India Research

ECONOMIC INDICATORs

4.0%

5.0%

6.0%

7.0%

8.0%9.0%

10.0%

INRCrre

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

April-Jan2012

Jan-Mar09

Apr-Jun09

Jul-Sep09

oct-Dec09

Jan-Mar10

Apr-Jun10

Jul-Sep10

oct-Dec10

Jan-Dec11

Jul-Sep11

Apr-Jun11

Jan-Mar11

Gro Dometic prodct at actor cot

fDI in Rea Etate

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0.0%

1.0%

2.0%

3.0%

US$

Nte: As 1st August 2011

Eur

1Q 2012 | THE KNOWLEDGE

70

80

90

110

100

150

140

130

120

160

14-Mar-12

7-Feb-12

2-Jan-12

23-Mar-12

16-Feb-12

1-Apr-12

25-Feb-12

11-Jan-12

20-Jan-12

29-Jan-12

5-Mar-12

BsE senex & Reaty Index

Excange Rate

BSE Sense

Nte: As 1st August 2011

Realty Inde* Rebase t 100

* Rebase t 100

75

80

85

95

90

105

100

110

14-Mar-12

7-Feb-12

2-Jan-12

23-Mar-12

16-Feb-12

11-Jan-12

1-Apr-12

20-Jan-12

29-Jan-12

25-Feb-12

5-Mar-12


3/12

1Q 2012 GRADE A AND GRADE BRENTAl VAluEs

pRIME OffICE spACE RENTAl TREND

CBD

AnderiEast

BKC

LwerParel

Malad

NaviMumbai

Pwai

Wrli/Prabdevi

Gregan/JVLR

Kalina

Tane/LBS

AnderiEast(IT)

LwerParel(IT)

Malad(IT)

NaviMumbai(IT)

Pwai(IT)

Gregan/JVLR(IT)

Tane/LBS(IT)

INRPerSqtPerMnt

0

50

100

150

200

250

300

2Q2008

1Q2008

INRperSqtperMnt

INRperSqtperMnt

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

4Q2010

1Q2012

4Q2011

3Q2011

2Q2011

1Q2011

3Q2010

70

20

120

170

220

270

320

370

420

CBD

Lwer Parel Navi Mumbai

KalinaGregan

/ JVLR

Anderi East Malad

Pwai

BKC

Wrli /

Prabadevi

Tane / LBS2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

2Q2012F

4Q2012F

1Q2013F

3Q2012F

1Q2012

4Q2009

1Q2008

1Q2010

2Q2010

3Q2010

Grade A Grade B

COllIERs INTERNATIONAl | p. 3

MARKET TRANsACTIONs

CLIENT BUILDING NAME AREA(SQ. FT.)

LoCATIoN TRANSACTIoN TYPE

Altisurce Viswarp IT Park 137,000 Vasi Lease

ANZ Bank Bmerang 6,000 Anderi Lease

Liberty Insurance Peninsula Business Park 30,000 Lwer Parel Lease

Loreal Maratn Future 71,000 Lwer Parel Lease

Naaptl.cm Sigma IT Park 32,000 Navi Mumbai Lease

Star Unin Dai-ici Lie Insurance Viswarp IT Park 67,000 Vasi Lease

MuMBAI

In Mumbai, apprimately 10 millin sq t

grade A fce space was available r lease

in 1Q 2012. out te ttal available supply

arund 64% was IT/ITeS fce space mstly

cncentrated in te Lwer Parel and Tanemicr-markets.

Prject launced during tis quarter was

Equin Business Park-Twer IV by Equin

Realty & Inrastructure Private Limited. Te

prject as a grss leasable area

apprimately 0.5 millin sq t and is lcated

BKC. Anter mied use prject Island

City Centre was als launced by Wadia

Grups real estate venture Bmbay Realty

spreading ver 45 acres land at Dadar.

Fllwing te previus quarter trend

cnstructin activities remained slw, n new

grade A fce space was added t te citys

ttal inventry tis quarter.

occupier demand remained steady in almst

all te micr markets and ew large space

cmmercial leases were signed during te

quarter. Rental values r grade A fce

space remained stable acrss Mumbai baring

Nariman Pint, te CBD Mumbai, as

ccupiers are gradually siting twards newly

develped areas like Lwer Parel, Bandra

Kurla Cmple (BKC) and Anderi due t

better accessibility and state an artinrastructure.

Lking aead demand is likely t be remained

mderate, wever due t limited supply

rentals are epected t remain stable.

As part te State Gvernments plan t

make Wadala a business ub in lines te

BKC; MMRDA as invited cnsultants t

prepare a detailed develpment plan r

apprimately 110 ectares land.

AVAIlABlE supplY IN pRIME AREAs

Anderi East 24%

CBD 1%

Tane / LBS 21%

Navi Mumbai 6%

Gregan / JVLR 8%

Pwai 5%

Wrli / Prabadevi 1%

Malad 5%

Lwer Parel 20%

BKC 8%

CITY OffICE BAROMETER

4Q 2011 1Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 1Q 2012 | Office | MUMbai

GRADE A AVERAGE RENTAl VAluE

MUMBAI

0

35

70

140

105

210

245

175


Kalina 1%

Frecast


4/12

Grade A Grade B

Neru Place Saket

Netaji Subas

Jasla Cannaugt

place

p. 4 | COllIERs INTERNATIONAl




MARKET TRANsACTIONs



hitaci Ers Crprate Twer 3,000 Neru Place Lease

Mizu Bank DLF Capitl Pint 16,000 C.P. Lease

Pragati Equity Advisrs Sutern Park 1,500 Saket Lease

Snap Deal Sutern Park 22,000 okla-III Lease

DElhI

Mre tan 1 millin sq t grade A fce

space was available r lease in Deli in

1Q 2012. Mst tis available supply was

cncentrated in Jasla and Saket.

N new supply was added t te citys grade

A inventry. Similarly, n new grade A fce

prjects was launced during tis quarter.

Absrptin remained relatively subdued as

nly a ew small fce spaces leases were

signed in lcatins suc as Cnnaugt Place,

Saket and Neru Place. Tis can primarily be

attributed t te sit in demand rm te CBD

and SBD t areas in as Gurgan and NoIDA

n accunt better quality fce and lwer

real estate cst.

Rental values witnessed marginal pressure

acrss te micr markets and a decrease in

te range 1 t 4% was bserved r grade

A fce space.

In mid term rentals are epected t remained

under pressure n accunt lesser demand.

T encurage develpment nn pllutingsmall and medium scale industries in tecity Deli State Industrial and InrastructureDevelpment Crpratin (DSIIDC) isplanning t set up a multi level manuacturingub in Rani Kera in nrt west Deli wit anestimated cst INR 3100 crre. Te wrkn anter knwledge based industrial parkin Baprla as already started.

In an anter inrastructure related intiativete Deli Develpment Autrity(DDA) asplanned t develp tree Urban EtensinRads (UERs). Tese link rads will acilitatesmt travelling between tw States Deli and haryana Dwarka-Palam Viar,Najagar-Dansa and Nelsn Mandela Rad-MG Rad.


Cnnaugt Pl ace 2%

Neru Place 10%

Saket 29%

Jasla 59%


4Q 2011 1Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 1Q 2012 | Office | DeLhi


2Q2008

3Q2008

0

50

100

150

200

250

300

350

400

Cnnaugt

Place

NeruPlace

Jasla

INRperSqFtperMnt

Saket

NetajiSubas

0

50

100

150

200

250

300

350

400

450

1Q2010

INRperSqtperMnt

0

35

70

105

140

175

210

245

280

INRperSqtperMnt

DELhI

2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

3Q2012F

4Q2012F

1Q2013F

2Q2012F

1Q2012

4Q2009

1Q2010

2Q2010

3Q2010

1Q2008

4Q2008

2Q2009

3Q2009

2Q2010

1Q2009

4Q2009

3Q2010

4Q2011

1Q2012

3Q2011

2Q2011

4Q2010

Frecast


5/12


MGRad

GlCurseRad

/Ext/SnaRad

Nh8/UdygViar

Manesar

InstitutinalSectrs/

SusantLk

SnaRad

DLFCyberCity

Nh8/UdygViar

Manesar

0

20

40

60

80

100

120

140

Grade A Grade B

MG Rad

Gl Curse Rad/Et /Sna Rad

Nh8/Udyg Viar (IT)

Institutinal Sectrs /Susant Lk

Nh8/Udyg Viar

DLF Cyber City (IT)

Gl Curse Rad/Et /Sna Rad (IT)

Manesar

Manesar (IT)

4Q2011



MARKET TRANsACTIONs



Bausc & Lmb First India Place 16,000 M.G. Rad Lease

DhR hldings Plt 121 20,700 Udyg Viar Lease

Epedia DLF Building N 5C 50,000 DLF Cyber City Lease

Ggle Signature Twer-II 175,000 Sectr 15 Lease

Ingersll Rand DLF Building N 5A 49,000 DLF Cyber City Lease

Ri Tint DLF Building N 5A 40,600 DLF Cyber City Lease

GuRGAON

Mre tan 7 millin sq t grade À fce

space supply was available r t-ut in 1Q

2012. Mst tis available supply was

cncentrated in Udyg Viar and alng

Natinal higway 8 up t Manesar.

Several prjects were launced during 1Q

2012 including one hrizn Centre by

hines India at Gl Curse Rad and Atena

by Brama-Bestec at Nh-8. Bt tese

prject are epected t be cmpleted by te

rst al 2015 and will add arund 1.2

millin sq t grade À fce space t te

citys ttal inventry.

N majr grade À prject/pase te

prject was cmpleted in tis quarter.

Absrptin remained ptimistic and a number

large rmat leases were signed during

te quarter including a ew pre-cmmitment

leases in under- cnstructin buildings. Te

investr market als remained active during

te quarter and a ew deals were cncluded

suc as te BPTP buyut 49% te Merrill

Lync stake in te grade À fce prject

`CCrest. M3M bugt a 28-acre land parcel

rm DLF lcated at sectr 70A.

Rental values r grade À prperties

increased in te range 2 t 6% in almstall te majr micr-markets barring Udyg

Viar / Nh-8 and DLF Cyber City were rental

values remained stable.

In near uture rentals are epected t remain

stable r bt IT/ITES and cmmercial fce

space.

In 1Q 2012 te state gvernment apprved

inrastructure prjects valued at INR1,394

crre r strengtening rads, water supply

and sewage systems in newly develping

sectrs 77 t 114.


Institutinal Sectrs /Susant Lk

16%

DLF Cyber City 8%

MG Rad 5%

Manesar 35%

Nh8/ UdygViar 36%


4Q 2011 1Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 1Q 2012 | Office | GUrGaON

GRADE A AVERAGE RENTAl VAluE pRIME OffICE spACE RENTAl TREND

INRpersqtpermnt

INRpersqtpermnt

180

20

40

60

80

100

120

140

160

2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

2Q2012F

3Q2012F

4Q2012F

1Q2013F

INRperSqtperMnt

0

20

30

10

40

50

70

90

110

60

80

120

100

GURGAoN

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

4Q2010

1Q2011

2Q2011

3Q2011

1Q2012

3Q2010

2Q2008

3Q2008

Frecast


6/12

Grade A Grade B

p. 6 | COllIERs INTERNATIONAl



MARKET TRANsACTIONs



Barclays sared services Individual Building 25,000 Sectr 62 Lease

halcrw B-1D 52,000 Sectr 10 Lease

hewitt 3Cs Building Twer-A 100,000 Sectr 127 Lease

oracle 3Cs Building Twer-B 170,000 Sectr 127 Lease

NOIDA

Mre tan 5 millin sq t fce space supply

was available r t ut in NoIDA tis quarter.

Mre tan 85% tis available fce space

was in te rm IT/ITeS. Grade A IT/ITeS

fce space was cncentrated in sectr 16A,62 and sectrs 125 t 143 alng te NoIDA

Epress-way, wile IT/ITeS fce space

available in industrial sectrs was primarily

grade B fce space.

Prjects launced during tis quarter were

Jaypee Cambers by Jaypee Grup in

Sectr 129, Wave City Centre by Wave Grup

and Lgi City Centre by Lgi Grup bt

lcated at sectr 32. All tese prjects

tgeter are epected t cntribute arund

2.1 millin sq t grade A fce space t te

citys ttal inventry by te end 2015.

In 1Q 2012 cnstructin activities slwed

dwn due t state electins, tus n prjects/

pases te prject were cmpleted during

te quarter.

A ew large fce space leases were

cncluded during te quarter. Demand was

largely driven by te IT/ITeS sectr.

In ne te private equity eit, Ktak Realty

Fund as sld its stake back t prmters in

3C cmpanys inrmatin tecnlgy parkprject in NoIDA.

Te rental values r nn IT fce space

remained stable because limited supply

wever, rental values r IT/ITeS fce space

witnessed marginal pressure n accunt

large available supply. Similar rental trends

can be anticipated in near uture.


Cmmercial Sectrs(Sec 18) 2%

Institutinal Sectrs(Sec.16A, 62, 125-142)

86%

Industrial Sectrs (Sec.1-9, 57-60, 63-65)

(Grade B)12%


4Q 2011 1Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 1Q 2012 | Office | NOiDa

1Q2009

INRPerSqFtPerMnt

0

20

40

60

80

100

120

140

0

10

20

30

40

60

70

50

80

100

90

2Q2009

3Q2009

4Q2009

1Q2010

InstitutinalSectrs

(Sec16A,62,125-

142)(IT)

IndustrialSectrs

(Sec1-9,57-60,

63-65)

CmmercialSectrs

(Sec18)I

NRPerSqFtPerMnt

Institutinal

Sectrs(Sec.16A,62,

125-142)

2Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

4Q2010

3Q2010

Institutinal Sectrs (IT)

Institutinal Sectrs (Nn IT)Cmmercial Sectrs

Industrial Sectr


1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

1Q2011

2Q2011

3Q2011

4Q2011

3Q2012F

4Q2012F

1Q2012

2Q2012F

4Q2010

3Q2010

INRperSqtperMnt

0

10

20

40

30

50

80

60

70

NoIDA


1Q2013F

Frecast


7/12

1Q 2012 GRADE A IT AND NON ITRENTAl VAluEs

CBD

INRpersqtpermnt

Guindy(SBD)

Ambattur

oMR(ITCrridr)

GSTrad

0

10

20

30

40

50

60

70

80

IT NoN IT


MARKET TRANsACTIONs



Bank New Yrk Melln DLF IT Park 50,000 Manapakkam Lease

Barclays DLF IT Park 63,000 Manapakkam Lease

Cambridge Tecnlgies Agniti Park 60,000 Kandancavady Lease

Emersn Ascendas 18,000 Taramani Lease

Mindtree Ramanujam IT Park 100,000 Taramani Lease

Sriram Value Servies Individual Building 18,000 Mylapre Sale

ChENNAI

over 13 millin sq t grade A fce space

supply was available r lease in 1Q 2012.

Mre tan 90% tis stck was IT/ITeS fce

space primarily lcated at oMR and Ambattur

wile nn IT fce space was mstly availablein te CBD area, Vadapalani and Velacery.

N new grade A cmmercial prjects were

cmpleted tis quarter in Cennai.

Prject launced during tis quarter included

ASV Candilya admeasuring apprimately

0.04 millin sq t by ASV Cnstructins.

Te prject is lcated at Traipakkam and

estimates t be cmpleted by 2Q 2013.

Demand was primarily cncentrated in Guindy,

Ambattur and oMR as cmpanies werepreerring tese micr markets r relcatin

and epansin cnsidering accessibility and

state--an-art acilities. Te market seems

t be well segmented suc as KPos and

BPos preerring lking spaces at ceaper

rentals and ready t g at te ar away end

oMR wile ter crprate were ready t pay

iger rentals and preerring initial stretc

oMR, Guindy and Ambattur.

Rental values in 1Q 2012 remained stable

acrss all micr markets. Absrptin was

cmparatively lesser as te ccupiersremained cautius n te backdrp te

current ecnmic scenari. In near uture

rentals are likely t remain stable n accunt

te limited supply sceduled r cmpletin

in 2012.

Under te Mega City prgramme te Cennai

Crpratin as laid ut 360 integrated rads

at an estimated cst INR 800 crre, cvering

an area 176 km. Te state gvernment ad

alltted INR 333 crre last year r te same.


CBD14%

Guindy (SBD) 5%

Velacery 1%Vadapalini 1%

GST Rd 3%

oMR (IT Crridr) 51%

Ambattur 24%


4Q 2011 1Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 1Q 2012 | Office | cheNNai


4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

1Q2012

4Q2011

3Q2011

2Q2011

1Q2011

4Q2010

3Q2010

2Q2008

1Q2008

INRpersqtpermnt

90

20

30

40

50

60

70

80

3Q2008

Ambattur GST rad

oMR (IT Crridr)

Guindy (SBD)CBD


2Q2008

1Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2013F

4Q2012F

3Q2012F

2Q2012F

1Q2012

4Q2010

3Q2010

INRperSqtperMnt

0

5

15

25

10

20

30

35

45

55

40

60

50

ChENNAI


Frecast


8/12p. 8 | COllIERs INTERNATIONAl

4Q 2011 1Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE



MARKET TRANsACTIONs



Ats origin India Gpalan Millennium Twer 125,000 Witeeld Lease

Ericssn Umyia Business Bay 22,500 outer Ring Rad Lease

Intersil RMZ Centinnial 17,000 Witeeld Lease

Just dial Embassy Star 10,962 Vasant Nagar Lease

Meru Netwrks Salarpuria Adnis 35,133 old Madras Rad Lease

Tejas Netwrks JP IT Park 90,000 Electrnic City Lease

BENGAluRu (BANGAlORE)

Apprimately 9 millin sq t grade A

supply was available r lease during 1Q

2012. Micr markets suc as te EPIP Zne,

Witeeld, outer Ring Rad and te CBD

accunt r abut 88% tis ttal availablesupply.

New supply cmmercial grade A fce

space r 1Q 2012 accunts r apprimately

0.60 millin sq t. Prjects/ pases te

prjects cntributing t tis new supply were

Mantri Cmmerci develped by Mantri

Grup at outer Ring Rad (oRR) and Equin

Tec Park - Nrt Blck by Essar Grup at

Electrnic City.

During 1Q 2012, a number new prjects

were launced in periperal business area

in Bengaluru, including Prestige Tec ParkIII by Prestige Grup in outer Ring Rad

(oRR), RMZ Galleria and RMZ Latitude

by RMZ Crp at Yelaanka and Bellary Rad,

respectively, Glden Supreme Tec Park

and Maruti Cncrd by lcal develpers in

Electrnic City. Furter, Bagmane Grup als

launced a new twer in its Special Ecnmic

zne (SEZ) Wrld Trade Centre 4 lcated at

oRR. All tese Prjects altgeter will add

apprimately 2.5 millin sq t grade A

fce space t te citys ttal inventry by te

end 2013.

occupier demand was relatively less during

te quarter as cmpared t previus 2-3

quarters, primarily due t cautius ccupiers

sentiments. In terms absrptin micr

markets suc as CBD, Witeeld and EPIP

zne remained active due t lesser availability

grade A fce space in ter preerred

areas suc as outer Ring Rad.

Average rental values r grade A fce space

remain stable quarter n quarter acrss all

te micr markets.

Due t limited supply in te market, rentals are

epected t increase marginally in mid term.


CBD 8%

outer Ring Rad 15%

Bannergatta Rad 3%

Electrnic City 4%

EPIP Zne/ Witeeld 65% hsur Rd 5%


THE KNOWLEDGE | 1Q 2012 | Office | beNGaLUrU

1Q2008

2Q2008IN

RPerSqFtPerMnt

0

10

20

30

40

50

60

70

80

90

100

3Q2008

4Q2008

1Q2009

3Q2009

1Q2010

2Q2009

4Q2009

2Q2010

3Q2010

1Q2011

2Q2011

1Q2012

4Q2011

3Q2011

4Q2010

0

10

20

30

40

50

60

70

80

90

outerRingRad

Grade A Grade B

Electrnic

City(IT)

BannergattaRad

EPIPZne/

Witefeld

hsurRad

INRPerSqFtPerMnt

CBD

CBD

Electrnic City

outer Ring RadEPIP Zne / Witeeld

hsur Rad

Bannergatta Rad


INRperSqtperMnt

15

20

25

30

50

40

45

35

BENGALURU

2Q2008

1Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

1Q2011

2Q2011

3Q2011

4Q2011

3Q2012F

1Q2013F

4Q2012F

2Q2012F

1Q2012

4Q2010

3Q2010


Frecast


9/12



CBD(ParkSt,Camac

St,AJCBseRd)I

NRpersqtpermnt

Sectr-5(IT)

Sectr-5

PBD(New

Twn,Rajarat

Ballygunge

-CircularRD

PBDNewTwn,

Rajarat(IT)

EastKlkata

0

20

40

60

80

100

120

140

Grade A Grade B


MARKET TRANsACTIONs



Bajaj Allianz Mani Square 9,000 Sectr 5 Lease

Danalami Bank Citrakut building 2,000 AJC Bse Rad Lease

Magma Finance Ec Space 17,000 New Twn Lease

Ra omega Innity Tink Tank 4,500 Sectr 5 Lease

Recn Innity Bencmark 30,000 Sectr 5 Lease

Sarda Grup Crystal Glbsyn 33,000 Sectr 5 Lease

KOlKATA

In 1Q 2012, apprimately 0.08 millin sq t

as been added t grade A fce space supply

in te PBD area. Te prject / pases te

prject wic cntributed t tis new supply

was Risi Tec Park develped by NatvarTracn Pvt. Ltd. lcated at New Twn.

A number cmmercial prjects were

launced during te quarter including Ideal

Unique Centre by Ideal Grup at EM Bypass,

Wdburn Central by Belani Prjects at Elgin

Rad, DN 21 by Midwest hlding Private Ltd

(Catterjee Grup) and Pentagn by Team

Tarus bt at Sectr 5. All tese prjects

will tgeter cntribute apprimately 2

millin sq t grade A fce space t te

citys inventry by te end 2014.

Absrptin remained subdued during te

quarter and nly ew small cmmercial leases

were signed during te quarter. Rental values

r grade A fce space in 1Q 2012 remained

stable acrss all te majr micr markets

due t ample stck availability in majr

cmmercial ubs suc as Rajarat, New Twn

and Sectr 5.

Ging rward rentals are epected t be

under pressure due t prevailing uncertainties

in land plicies and lesser demand.

In a majr decisin te state gvernment

West Bengal as ruled ut SEZ status r

Insys. Te decisin was taken t prtect

te rigts armers and arm land by nt

relaing te urban ceiling laws r Special

Ecnmic Znes (SEZs).

Te Airprts Autrity India (AAI) is

planning t develp cmmercial space in te

vicinity Klkata airprt. Te autrity as

identied apprimately 45 acres land r

cmmercial develpment. Te prject wuld

be develped by ating a public tender andunded trug public-private partnersip.

NEW supplY IN pRIME AREAs

PBD (New Twn,Rajarat)

100%


4Q 2011 1Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 1Q 2012 | Office | kOLkata

1Q2008

1Q2009

2Q2008

2Q2009

3Q2008

3Q2009

4Q2008

4Q2009

1Q2010

2Q2010

4Q2010

3Q2011

1Q2012

4Q2011

2Q2011

1Q2011

3Q2010

INRpersqtpermnt

20

40

60

80

100

120

140

160

Sectr 5

East Klkatta

Ballygunge Circular Rd

PBD (New Twn, Rajarat

CBD (Park St,Camac St,AJC Bse Rd)


INRperSqtperMnt 40

50

70

90

60

80

0

10

20

30

KoLKATA

1Q2008

2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

2Q2010

1Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

2Q2012F

3Q2012F

4Q2012F

1Q2013F

4Q2010

3Q2010


Frecast


10/12p. 10 | COllIERs INTERNATIONAl

1Q 2012 GRADE A IT AND NON ITRENTAl VAluEs

MARKET TRANsACTIONs



Amdcs Magarpatta SEZ 88,000 hadapsar Lease

Bekaert Amar Paradigm 40,000 Baner Lease

CCRT Pride Kumar Senate 1,700 S B Rad Lease

DVS Tara Icn 1,700 Wakdewadi Lease

ExL Magapatta SEZ 88,000 hadapsar Lease

hCL Maragatta SEZ 44,000 hadapsar Lease

puNE

In 1Q 2012 mre tan 9.7 millin sq t

grade A fce space was available r t-

ut in Pune. Mst tis supply was lcated

in hinjewadi, Karadi, hadapsar, Fursungi and

Nagar Rad.

Apprimately 1 millin SEZ space was

added in te eisting SEZ prjects in Pune.

mre tan 60% tis space was switly

absrbed as spaces were pre-cmmitted

by te eisting tenants. In additin t Pune

cmmercial grade A fce space witnessed

an inusin apprimately 0.12 millin sq

t new supply during te quarter. Prject/

pases prject cntributing t tis new

supply was Blue Cip develped by K Raeja

at hinjewadi.

Rental values r grade A fce space

increased in te range 2 t 5% specically

in SEZs in almst all te micr markets.

A ew markets suc as Viman Nagar and

Karadi als witnessed demand r utrigt

purcases.

Ging rward rentals are epected t remain

stable n accunt large available supply,

baring eastern crridr were te rental may

witnessed an increase 7 t 10% in net 2-3

quarters.

Tis quarter te ready reckner rate as been

increased in te range 10 t 30% acrss

Pune. Tis will elp in te imprvement

transparency in real estate transactin in te

lng term.

An veread bridge cnnecting Wakdewadi

(central Crridr) t Nagar Rad/Yerwada

(Eastern crridr), rad cnnecting Cakan,

Bsari and Digii anter rad cnnecting

between Baner Rad and Pimple Nilka t

Pimple Saudagar became peratinal. Tis

will give an impetus t te real estate activitiesin te nearby areas.

supplY IN pRIME AREAs

Kalyani Nagar 4%

Nagar Rad 12%

Aund 3%

Bund Garden 2%

Airprt rad/pune statin 6%

Bavdan 4%

Baner 5%

Karadi 23%

hinjewadi 28%

hadapsar/Fursungi 12%

Senapati Bapat Rad 1%


4Q 2011 1Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

THE KNOWLEDGE | 1Q 2012 | Office | PUNe

1Q2008

2Q2008

INRPerSqFtPerMnt

20

30

40

50

60

70

80

90

100

110

120

130

3Q2008

4Q2008

1Q2009

3Q2009

1Q2010

2Q2009

4Q2009

2Q2010

4Q2010

2Q2011

1Q2012

4Q2011

3Q2011

1Q2011

3Q2010


0

10

20

30

40

50

60

70

90

80

Karadi

KalyaniNagar

NagarRad

Bavdan

hadapsar/Fursungi

hinjewadi

SenapatiBapatRad

Aund

Airprtrad/

punestatin

BundGarden

INRPerSqFtPerMnt

Baner

Bavdan Airprt rad/pune statin

Baner

Kardi

Nagar Rad

hinjewadi / hadapsar/Fursungi

Kalyani Nagar

Bund Garden

Aund

Senapati Bapat Rd


INRperSqtperMnt

0

10

30

20

40

70

60

50

PUNE

2Q2008

1Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

3Q2012F

2Q2012F

4Q2012F

1Q2013F

4Q2010

3Q2010

IT Nn IT


Frecast


11/12

Mumbai

Te majr business lcatins in Mumbai are te CBD (Nariman Pint, Frt and Bal lard Estate), Central Mumbai (Wrli, Lwer Parel and Parel), Bandra

Kurla Cmple (BKC) and Anderi Kurla stretc. Pwai, Malad and Vasi are te preerred IT/ITES destinatins, wile Airli at Navi Mumbai and Lal

Baadur Sastri Marg are emerging as new fce and IT/ITES submarkets.

Delhi

Te cmmercial areas in New Deli metrplitan area can be bradly classied int te CBD (Cnnaugt Place), SBD Neru Place, Bikaji Cama

Place, Netaji Subas Place, Jasla and Saket .

Gurgaon

Te prime business lcatins in Gurgan are MG Rad, Gl Curse Rad, Cyber City and Udyg Viar. Manesar n te utskirts Gurgan is als

emerging as te citys new fce destinatin.

NOIDA

NoIDA market is cmprised sectrs bradly classied as institutinal, industrial and cmmercial sectrs. Institutinal sectrs include sec 16A, 62

and 125-142, industrial sectrs include sec 1-9, 57-60 and 63- 65 wile sectr 18 is te mst develped cmmercial sectr.

ChennaiPrime fce prperties in Cennai are lcated in ur principal sub-markets: te CBD, te IT Crridr, te SBD and te PBD. Te SBD cmprises

Guindy, Manapakkam, Velacery and ter areas. Te PBD primarily includes Ambattur and GST Rad, wile te IT Crridr is te old Maaballipuram

Rad (oMR) in sut Cennai.

Bengaluru (Bangalore)

Prime fce prperties in Bengaluru can be divided int tree principal sub-market CBD, te SBD cnsisting Banergatta Rad & outer Ring

Rad (oRR) and PBD including hsur Rad, EPIP Zne, Electrnic City and Wileeld.

Pune

Te prime fce sub-markets Pune include Deccan Gymkana, Senapati Bapat Rad & Camp (SBD), wile te PBD includes Aund, Bund Garden,

Airprt Rad and Kalyani Nagar, amng ter lcatins. Te eastern crridr, alng wit Nagar Rad and Karadi, ave emerged as a preerred

lcatin r nancial and IT/ITES cmpanies.

Kolkata

Te majr business lcatins in Klkata are CBD (Park Street, Camac Street, Cwrangee Rd), SBD (AJC Bse Rd, Ballygunge circular Rd, East

Klkata), East Klkata and PBD (New Twn & Rajarat). Te area arund Park Street, Camac Street and AJC Bse rad uses number ig-rises

cmmercial buildings suc as Catterjee Internatinal Centre, Tata Centre, Everest huse and Industry huse amng ters.

OffICE suBMARKETs


THE KNOWLEDGE | 1Q 2012 | Office | sUbMarkets

CITY BAROMETER

Increasing as cmpared t previus quarter

Decreasing as cmpared t previus quarter

Remained stable rm previus quarter


12/12


Clliers Internatinal (India) prvides prperty services t prperty Investrs and occupiers. We

deliver custmised service slutins utilising lcal and glbal knwledge in partnersip wit ur

clients via ur prperty Investment and occupier service lines. Tese service lines include - ofce

Services, Facility Management, Prject Management, Residential Services, Investment Services

and Valuatin & Advisry Services.

www.clliers.cm/india

Fr natinal fces services related queries please cntact:

Gerge Mckay, Sut Asia Directr Vikas Kalia, Natinal Directr

ofce & Integrated Services ofce Services

[email protected] [email protected]

Tel: +91 22 4050 4553 Tel: +91 124 456 7531

Mumbai : Prabu Ragavendra, ofce Directr

[email protected]

31/A, 3rd r, Film Center, 68, Tarde Rad, Mumbai, India - 400 034.

Tel : +91 22 4050 4500, a : +91 22 2351 4272

Delhi NCR : Ajay Rakeja, ofce Directr

[email protected]

New Deli :Statesman huse, 4t Flr, Barakamba Rad, Cnnaugt Place,

New Deli, India - 110001

Tel : +91 11 4360 7500 - 23, a : +91 11 2335 6624

Gurgan : Tecnplis Building, 1st r, DLF Gl Curse Main Rad, Sectr 54, Gurgan,

India - 122002

Tel : +91 124 437 5807, a : +91 124 437 5806

Bengaluru : Gutam Cakrabrty, ofce Directr

[email protected]

Prestige Garnet, Level 2, Unit N.201/202, 36 Ulsr Rad, Bengaluru,

India - 560 042

Tel : +91 80 4079 5500, a : +91 80 4112 3131

Pune : Sures Castellin, ofce Directr

[email protected]

htel Le Meridian, 101, R.B.M. Rad, Pune, India - 411 001

Tel : +91 20 4120 6438, a : +91 20 4120 6434

Chennai : Kausik Reddy, ofce Directr

[email protected]

heavitree Cmple, Unit 1C, 1st r, 23,Spurtank Rad, Cetpet, Cennai,

India - 600 031

Tel : +91 44 2836 1064, a: +91 44 2836 1377

Kolkata : Sumya Mukerjee , ofce Directr

[email protected]

Innity Business Centre, Innity Bencmark, Rm N 13, Level 18, Plt G - 1,

Blck EP & GP, Salt Lake Sectr V, Klkata - 700 091 West Bengal, India

Tel : +91 33 2357 6501 Etn : 206 , a +91 33 2357 6502

Recent Reports :

This book is printed on 100% Recyclable paper

THE KNOWLEDGE | 1Q 2012


AUTHORS

Amit Oberoi MRICS

Natinal Directr, Valuatin & Advisry; ResearcEmail: [email protected]

Surabhi Arora MRICS

Assciate Directr, ResearcEmail: [email protected]

Sachin Sharma

Assistant Manager, ResearcEmail: [email protected]

Heliana Mano

Assistant Manager,Valuatin & AdvisryEmail: [email protected]

Fr general queries and eedback :

[email protected]: +91 124 456 7580

Tis reprt and ter researc materials may be und nur website at www.clliers.cm/India. Questins relatedt inrmatin erein suld be directed t te ResearcDepartment at te number indicated abve. Tis dcumentas been prepared by Clliers Internatinal r advertisingand general inrmatin nly. Clliers Internatinal makesn guarantees, representatins r warranties any kind,epressed r implied, regarding te inrmatin including,but nt limited t, warranties cntent, accuracy andreliability. Any interested party suld undertake teirwn inquiries as t te accuracy te inrmatin.

Clliers Internatinal ecludes unequivcally all inerredr implied terms, cnditins and warranties arising ut tis dcument and ecludes all liability r lss anddamages arising tere rm.

Cpyrigt 2012 - 2013 All Rigts Reserved.

522 fces in 62 cuntries n 6 cntinents

United States: 147Canada: 37Latin America: 19Asia Pacic: 201EMEA: 118

$1.8 billin in annual revenue2.55billin square eet under management

over 12,300 + pressinals

Acceleratingsuccess.

Residential PropertyMarket OverviewINDIA

QUARTERLY UPDATE | FEBRUARY | 2012

ASIA PACIFIC

INDUSTRIAL MARKET OVERVIEW


December2011

HIGHLIGHTS

GLOBAL INDUSTRIAL

WWW.COLLIERS.COM

SECONDHALF2011| INDUSTRIAL

JAMESCOOKDirectorof Research |USA

GlobalIndustrialTrendForecastGrowingglobaltradewillsteadydemandforqualitywarehousespaceinmanyregions.

Industrialvacancyrateswillfurtherdropinmostmarkets.

Somemarkets,U.S.andAustraliaamongthem,willexperiencealackofnewsupplyinthefaceofgrowingdemand.

PrimewarehouserentswillclimbinmostAsiaPacicmarkets,remainstableinEMEAandLATAM,andcontinuetostrengtheninNorthAmericanmarkets.

Citingdeterioratingnancialconditionsanddimminggrowthprospect,the InternationalMonetaryFunds(IMF)reviseditsSeptember2011WorldEconomicOutlookgrowth projectionsdownwardinJanuary2012.However,theIMFstillforecaststhatglobaltradevolumewillriseby3.8percentin2012and5.4percentin2013;asglobaltraderises,sotoowill demandforwarehousespace.

WhilewarehouserentshavestabilizedinmostEMEAand LatinAmericanmarkets, primewarehouserentsquotedin localcurrenciesincreasedinthemajorityofAsiaPacicandNorthAmericanmarketsin2011overthepreviousyear.Weexpectthistrendtocontinue,withprimewarehouserentsclimbinginmostAsiaPacicandNorthAmericanmarketsinthenextyear.

LatinAmericanRentsPoisedtoStabilizeInLatinAmerica,primewarehouserentalratestookafall.In71.4percentofthemarketswetrack,year-endrentsdecreasedin2011fromayearearlier. However,weexpectwarehouserentsinLatinAmericatostabilizeinthecomingyear.

SoPaulosawa12.4percentdropinwarehouserentsinlocalcurrency,duetoincreasedsupply.However,withabsorptionsettooutpacesupply,

weexpectoverallwarehouserentsintheSoPauloregiontorisebyasmuchasfourpercentinthecomingyear.

MexicoCitysawathreepercentdecreaseinitsindustrialvacancyrateinthesecondhalfof2011,downto4.8percent.MexicowasmorenegativelyaectedbytherecessionthanmostcountriesinNorthAmerica,anditseconomicfutureislargelytiedtothatofitskeytradingpartner,theUnitedStates.ButwithU.S. growthontheupswing,Mexicotooispoisedtogrowatamodestrateandweexpectthatvacanciescouldmakefurtherdropsinthecountry.

SteadyDemandinNorthAmericaSincepeakingin2010,growthinthemanufacturinganddistributionindustryhaskepttheU.S.vacancyratedroppinginamostlyregularfashion.Vacancydroppedto9.72percentin Q42011. Withconstructionproceedingatlowlevels,weexpectvacanciestocontinuetodropatameasuredrateinto2013.

Toronto,Canadasbiggestindustrialmarket,saw13.7millions quarefeetofindustrial spaceabsorbedin2011,andthecitysprimewarehouserentsgrewby7.1percentinthesecondhalfof2011.

DroppingVacanciesinMostAsianMarketsAsiaPacicsawdroppingvacanciesinnearlyeverymarket. Primewarehouserentsgrewinmorethanhalfofthemarkets,andobserversinmorethanhalfofthose marketsexpectthatwarehouserentswillcontinuetoclimboverthenextsixmonths.

Australianindustrialhasbeenespeciallystronginmostmajormarkets.Retailpurchases,mademoreattractivebytherelativelystrongAustraliandollar,havepushedupdemandforlargewarehousespaceinseveralportmarkets. Whilethereisgrowingdemandforlargemodernwarehouse

GlobalWarehouseDemandShows

Consistent Growth

GLOBALINDUSTRIALCAPITALIZATION RATES(PrimeYield/Percent)

MARKET(SelectMarkets) REGION

DEC2011

DEC2010

HongKong Asia Pacic . . S i ng ap o re A s i a Pa c i c . . L o n do n (H e at h r ow ) E M E A . . T ok y o A s i a P a ci c . . LosAngelesInland Empire,CA

N A . .

C hi ca go ,I L N A . . Paris E ME A . . M un ic h E ME A . . V an co uv er , BC N A . . M ar se il le s E ME A . . Ne w J er se y No r t he r n NA . . Dallas-Ft.Worth,TX NA . . Shanghai Asi a Pac i c . . S eo ul A s ia P ac i c . . M ad ri d E ME A . . Sydney Asi a Pac i c . . Mexico C ity L A TA M . . P ra gu e E ME A . . A th en s E ME A . . B u ch a re s t E M EA . .

GLOBALTOPTE N INDUSTRIALWAREHOUSE RENTS

M AR K ET R EG I ON

RENT(USD/

PSF/Year)6-MONTHCHANGE*

T ok y o A s ia P ac i c . - . %L o n do n (H e a th r o w) E M E A . . %H on g Ko n g A s ia P a c i c . . %S i n ga p o re Asi a Pa c i c . . %Z ur ic h E ME A . . %O sl o E ME A . . %M os co w E ME A . . %G en ev a E ME A . - . %S oP a ul o L A TA M . - . %H el si nk i E ME A . . %M ar se il le s E ME A . . %P ar is E ME A . . %

*Local currency

Continuedonpage8

HIGHLIGHTSGLOBAL OFFICE

WWW.COLLIERS.COM

SECONDHALF2011| OFFICE

JAMESCOOK Directorof Research |USA

GlobalOfceTrendForecast

Globalocevacancieswillcontinuetheirdecline,duetosteadydemandandlowlevelsofnewconstructioninNorthAmericaandEurope.

Theighttoqualitytrendwillcontinueinmanymajormarkets,withoccupierstradinguptohigher-qualityspaceorabetterlocationastheirleasesexpire.

TheEuropeansovereigndebtcrisiswilllikelypushtheEurozoneintoamildrecessioninearly2012.Thiscontractionwillbefeltmostprofoundlyinahandfulofcommercialpropertymarketswithinthemosttroublednations.

EconomicprospectsintheEurozonehaveslightlyreducedoverallposit iveglobalexpectationsformarketperformancein2012.Weexpectcontinuingmodestdemandforocespace,withmostcit iesseeingadropinvacancyrates.Butglobalaveragesdonotspeaktothenuancesofindividualmarkets,andwhileweexpectposit iveabsorptionduetobusinessgrowthandexpansionintheUnitedStates,ChinaandAustraliasomeEurozonecountriesmayseenegativeabsorptionandincreasedvacancyastheregionentersamildrecession.

GlobalOfceDemandGrowthSlowandSteady

GLOBALCAPITALIZATION RATES/PRIME YIELDS:10 LOWESTCITIES

MARKET(Ranked byDec 2011)

DEC2011

JUNE2011

DEC2010

T ai pe i . . .

H on g Ko n g . . .

Vienna . . .

L o n do n We st E n d . . .

Zurich . . .

S i ng ap o re . . .

G e ne va . . .

B ei ji ng . . .

P ar is . . .

M un ic h . . .

T ok yo . . .

GLOBALOFFICE OCCUPANCY COSTS:TOP10 CITIES

MARKET(Ranked byDec 2011)

DEC2011

JUNE2011

DEC2010

H o ng K o n g . . .

London WestEnd. . .

P ar i s . . .

R i o d e Ja n e ir o . . .

M os c ow . . .

L o n do n C i ty . . .

Perth . . .

S i n ga p o re . . .

G e ne va . . .

S o Pau l o . . .

CBD CAPRATE (%)

LatinAmericaBoaststheTightestOfceMarketsSomeoftheworldslowestocevacancyratesarefoundinLatinAmericancit ies.Santiago,Chile;RiodeJaneiro,Brazil;SoPaulo,Brazil;andLima,Peruallhavevacancyratesbelowthreepercent,result inginamarketthatstronglyfavorslandlords,promptsnewconstructionandmightsqueezesometenantsthatdesiretoexpand.Forthemostpart,weexpectthestrengthofthesemarketstopersist.WhiledecreasesinEuropeandemandforitscommoditieswilllikelyhurtLatinAmerica,thiswill betemperedbycontinueddemandfromChina.InSoPaolo,heighteneddemandhasspurredthehighestratesofnewdevelopmentintheregion,whichwill eventuallyputdownwardpressureonaskingrents.

SelectAsiaPacicMarketsSeeBigVacancyDropsTheglobaltrendindroppingvacancyratesshouldbeevi-dentinAsiaandcontinuethrough2012.Marketsthatsawadropinvacancyinthesecondhalfof2011outnumberedbyatwo-to-onemarginthosewherevacancyincreased.

Oftheworldsmostpopulousmarkets,thosewiththemostsignicantdeclinesinsix-monthvacancyrateswerenearlyallintheAsiaPacicregion. Chengdu,propelledbyitsstrongmanufacturingsector,sawitsvacancyratedropby7.8percentintheperiod,andShanghaisawa3.2percentdropinvacancy.

TwootherlargeAsianmarketssawvacancyratesdropby1.5percentormore: Jakarta,whichhasalso seensustainedgrowthinCBDrentalratesandrenewedglobalinvestorinterest;andSingapore,whereoccupanciesareexpectedtostabilize.

MarqueeMarketsSeeRentDeclineWhileHongKong,LondonsWestEndandPariscommandthetopthreehighestaskingrentsforClassAocespace,

eachhasshownapparentdeclineinrentsbetweenJuneandDecemberof2011,whenquotedin U.S.dollars.Substantialdeclines,infact:ledbya$10.87USD dropinParisianClassArents.

Buthowsignicantarethesegures?ThechangeinLondonandParisrentsisduetothestrengtheningdollarrelativetotheeuroandpoundsterling.Inlocalcurrency,primerentsinthesemarketsareholdingground.Althoughsmaller,thedeclineinHongKongof$7.56USD($5.10HKD)persquarefootmaybeamoreimportantindicatorofthingstocome,asdemandfromthebankingandnancialsectorcontinuetoweaken.

EMEAandAsiaPacicLeadGlobalConstructionAsignicantpercentageofthe ocespaceunderconstructionisinEurope,theMiddleEastand Africa(EMEA),andmuchofthatisoccurringinMoscowandDubai.Whilebothofthesemarketsshouldexpectstrongeconomicgrowthin2012,thefactthatDubaiwithavacancyrateof50percentisconstructingatsuchapaceleadsustoexpectthatsupplywillcontinuetooutpacedemandinthatmarket.

TheothertwotopmarketsforoceconstructionareintheAsiaPacic region. GuangzhouChinasleadingcommercialportcityandTokyohave19.6and15.6millionsquarefeetunderconstructionrespectively.Asianeconomicgrowthrateswillremainstronginthecomingmonths,withChinaandIndialeadingthepack. Rentsareontheriseinmostcit iesintheregion.However,droppingrentsinSeoulandHongKongareapotentialindicatorofglobaleconomicuncertainty.InTokyo,wherenewsupplyhasbeenincreasingforthepastthreeyears,weexpectconstructiontopeakandbegintodeclineinthecomingyear.

CLASSA / NETRENT(USD/SQFT)

www.colliers.com/india

BudgetHighlights|Real Estate

FinanceMinisterPran abMukherjeestarted hisbudgetspeech 2012-13in the

backdropof challengingmacroeconomic scenario.Thenancemini sterprojects

theeconomyto growby7.6% in thenextscal upfrom6.9% in 2011-12.Hementioned thatduetoadverse global economic sentimentsthereh asbeen a

slowdown in theIndian Economybutthefact isIndia still remainsamongthe

frontrunners in theeconomic growth in anycrosscountrycomparison. The

budgetaimsat faster,sustainablean d moreinclusive growth acrosssectors

emphasizingon vefocusar easincluding revival of domestic consumption,

rapid revival of high growth in privateinvestment,removal of supplybottlenecks,

addressingmalnutrition in 200high burden districtsand expediteimprovementin deliverysystem,governanceand transparency.

Froma real estateperspective,thebudgetremained silenton mostof themajorissuesincluding statusof STPIs(SoftwareTechnology Parksof India),RealEstateRegulatoryBill, Land Bill etc.however,itmention ed thateortsareon toarriveat a political consensuson theissueof allowing51% Foreign DirectInvestment(FDI) in multi-brand retail.

THE KEY HIGHLIGHTSOFTHE BUDGETWHICHMAY IMPACTREALESTATE

SECTORARE ASFOLLOWS:

- External Commercial Borrowings(ECB) forlowcostaordablehousingprojects. Impact:Realestate companiesdeveloping large aordable housing

projectswith large fundrequirementswillbenetthe mostfrom the ea sing ofexternalcommercialborrowing (ECB)normsasinterestrate chargedislowerin

case of externalborrowingsin comparison to rateschargedby domestic

institutions.

- Increasein provision underRural HousingFund toINR4,000crore fromtheexistingINR3,000crore. Impact:Itwillprovide housing nance to targeted

groupsinruralareasatcompetitiverates.

-Extension of theexistingschemeo f interestsubvention of 1% on housing

loansupto INR15lakh wherethecostof thehousedoesnotexceed INR25

lakh foranotheryear. Impact:Thiswillboostthe aordable housing segment

by providing cheaperloan to the endusers.

MARKETREACTION TOBUDGET

Q1 2012 | RESEARCH

Source:www.bseindia.com|Mar16,2012

C o mp a ny C h an g e (% )

BSESENSEX -1.19

RealtyIndex -1.26

AnantRaj Inds -6.04

D BRealty -2.02

DLF 0.15

Godrej Properties -2.82

HDIL -5.21

Hubtown Ltd. -4.13

IndiabullsReal Estate -1.95

Mahindra Lifespaces -0.72

OrbitCorp. -3.37

Parsvnath Developers -4.04

Peninsula Land -3.18

Phoenix Mills -2.65

S o bh a D e v e lo p er s 3 . 04

SunteckRealty -1.13

Unitech -1.68

UNION BUDGET 2012 -13

A SNEAK PREVIEW

P.1 |COLLIERSINTERNATIONAL

OFFICE

PROPERTY MARKET OVERVIEWINDIA

QUARTERLY UPDATE | JANUARY | 2012


the knowledge report_india office property market overview 1q 2012

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