India office property market overview april 2013

Office
Property Market Overview
INDIA
QUARTERLY UPDATE | APRIL | 2013
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MACRO ECONOMIC OVERVIEW
GDP growth was recorded at 4.5% in 4Q•
2012, the lowest in the last decade. The
economic growth in the first nine months of
fiscal year 2012-13 stood at 5%, much lower
than 6.6% recorded during the same period
last year.
Headline inflation, based on the wholesale•
price index, stood at 5.96% for the month of
March 2013 as compared to 7.96% for the
corresponding month of previous year. The
reduction in the inflation was primarily due to
low food inflation.
The Reserve Bank of India reduced the CRR•
(Cash Reserve Ratio) of scheduled banks by
25 basis points from 4.25 to 4%, effective
from January 2013, to induce immediate
liquidity in the market. The central bank also
reduced the repo rate by 50 basis points in
two tranches in January and March this
quarter.
The Indian Rupee remained under pressure•
and closed at 54.28 to the USD and 70.37 to
the Euro as on 15 March 2013.
The commercial office market showed signs•
of revival in almost all markets. The six major
markets, i.e. Mumbai, NCR, Bangalore, Chennai
Kolkata and Pune recorded an overall
absorption of around 8 million sq ft in 1Q
2013. Bangalore saw the highest absorption,
followed by the Mumbai and NCR markets.
The Kolkata and NOIDA markets to witnessed
relatively weaker demand. IT/ITeS and BFSI
remained the key demand drivers this quarter
in almost all major markets.
COLLIERS VIEW: The prevailing recovery in
occupier demand is anticipated to continue in
medium term. We anticipate stability in rental
values across the major markets due to large
inventory in pipeline despite recovery in
demand.
ECONOMIC BAROMETER
Return on Alternative Investments
research & forecast Report
SYDNEY CENTRAL BUSINESS DISTRICT
India office market
Research & forecast report
Mar-12 Mar-13
REPO RATE 8.50% 7.50%
REVERSE REPO
RATE
7.50% 6.75%
CRR 4.75% 4.00%
INFLATION (WPI)1
7.69% 5.96%
PLR2
10.00% - 10.75% 9.70% - 10.25%
DEPOSIT RATE3
8.50% - 9.25% 7.50% - 9.00%
Exchange RATE
INR - USD 50.39 54.28
INR- Euro 65.89 70.37
Mar-12 Mar-13 YoY %
Change
Gold 27,300 29,348 7.50%
SILVER 56,014 53,859 -3.85%
EQUITY (BSE
SENSEX) 17,676 19,428 9.91%
REALTY INDEX 1,,822 2,048 12.46%
Source: Colliers International India Research
ECONOMIC INDICATORS
INRCroreInPercentage
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
April-Feb13
FDI in Real Estate
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Jan-Mar09
Apr-Jun09
Jul-Sep09
Oct-Dec09
Jan-Mar10
Apr-Jun10
Jul-Sep10
Oct-Dec10
Jan-Mar12
Oct-Dec12
Jun-Sep12
Oct-Dec11
Jul-Sep11
Apr-Jun11
Jan-Mar11
Gross Domestic Product at Factor Cost
0.0%
1.0%
2.0%
3.0%
1Q 2013 | OFFICE
70
80
120
130
100
110
90
1-feb-2013
1-Mar-2013
15-feb-2013
1-Jan-2013
15-Jan-2013
30-Jan-2013
15-Mar-2013
BSE Sensex & Realty Index
BSE Sensex Realty Index* Rebase to 100
USD Euro
Exchange Rates
65
70
55
60
50
75
80
1-Jan-13
15-Jan-13
30-Jan-13
15-Feb-13
1-Feb-13
1-Mar-13
15-Mar-12
Note : All values in the above tables are as on 15th of March
2012 and 2013
1
Wholesale Price Index
2
SBI Prime Lending Rate
3
SBI interest rate < INR 1 croreTerm Deposits for ≤1Year
Apr-Jun12

Note:All the rentals shown above are indicative Grade A rentals in INR per sq ft per month.
Colliers International | p. 3
INDIA | 1Q 2013 | OFFICE
MUMBAI
During the surveyed quarter, about 8.2 million•
sq ft of Grade A commercial office space was
available for fit-out. More than 65% of this
available space was concentrated in Lower
Parel, Andheri East and Thane.
No new major Grade A commercial office•
supply was added to the city’s office
inventory.
During the quarter, office space absorption•
was recorded at around 2.17 million sq ft. A
number of large-sized (40,000 – 100,000
sq ft) leases were signed. BFSI and IT/ITeS
were the primary sectors contributing to this
demand.
No major movement in capital values were•
recorded across the submarkets, except in
Bandra Kurla Complex (BKC) and Lower Parel,
where capital values increased in the range of
2 -5% QoQ.
Average rental values remained stable in•
almost all micro–markets, except for a
marginal decrease in the range of 1 -3% in
areas like Nariman Point and Lower Parel.
In this quarter, construction work on the•
Eastern Freeway project was completed.
The 16 km long elevated road connects south
Mumbai to Wadala and continues onwards to
Ghatkopar in the eastern suburbs.
COLLIERS VIEW: In 1Q 2013, occupier demand
is expected to remain healthy with micro-
markets like Andheri, BKC and Lower Parel
continuing to be the preferred destination
for the occupiers. Overall rentals across
the micro-markets are expected to remain
unchanged, while rentals for premium office
space may increase slightly due to limited
availability.
Andheri East
25%
CBD
1%
Thane / LBS
21%
Worli / Prabhadevi
1%
Goregoan / JVLR
5%
Powai
4%
Malad
6%
Navi Mumbai
5%
Lower Parel
22%
BKC
9%
Kalina
2%
AVAILABLE Supply in Prime Areas
4Q 2012 1Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
CITY OFFICE BAROMETER
Micro Market Rental
Values
% Change
QoQ YoY
CBD 225 - 260 -3% -3%
Andheri East 90 - 125 0% 0%
BKC 225 - 315 0% 3%
Lower Parel 140 - 180 -3% -3%
Malad 80 - 90 0% 0%
Navi Mumbai 55 - 75 0% 0%
Powai 100 - 120 0% 0%
Worli/ Prabhdevi 175 - 225 0% 0%
Goregaon/ JVLR 80 - 110 0% -5%
Kalina 175 - 210 0% 0%
Thane / LBS 50 - 100 0% 0%
AndheriEast
BKC
LowerParel
Malad
NaviMumbai
Powai
Worli/
Prabhdevi
Goregaon/
JVLR
Kalina
Thane/LBS
CBD
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Grade a Capital Values
CapitalValues-INRPerSq.ft.
1Q2008
1Q2009
3Q2008
3Q2009
3Q2010
1Q2010
3Q2013F
1Q2013
3Q2014F
1Q2014F
3Q2012
1Q2012
3Q2011
1Q2011
50 5,000
0 0
100 10,000
150 15,000
200 20,000
250 25,000
300 30,000
AVERAGE RENTAL AND CAPITAL VALUE TREND
Forecast
RentalValues-INRPerSq.ft.PerMonth
Note:
Available Supply: Total Grade A office space being marketed for sale or lease in
surveyed quarter.
Grade A Rental/Capital Values: Indicative asking price for Grade A office space.
Prime Office Average RentalTrends: Average market rental values for Grade A
properties.
KEY UNDER CONSTRUCTION PROJECTS
BUILDING NAME Developer AREA (Sq. Ft.) LOCATION Expected Completion
Godrej One Godrej & Boyce 758,000 Vikhroli 2013
Marathon Futurex Phase III Marathon Group 360,000 Lower Parel 2013
iThink Techni Campus C wing Lodha Developer 212,700 LBS Marg 2013
KEY MARKET TRANSACTIONS
CLIENT Building Name AREA (Sq. Ft.) LOCATION TRANSCATION TYPE
Aditya Birla Minacs Worldwide Ltd. Symphony IT Park 30,000 Andheri East Lease
Axis Securities Ltd. Phoenix Market City 40,000 Kurla Lease
Barclays Nirlon 180,000 Goregaon Lease
Colgate Palmolive India Ltd. L&T Business Park 100,000 Andheri East Lease
Future Generali India Insurance Co. Ltd. iThink 27,000 Thane Lease
Tata Group Lodha Simtools 100,000 Thane Sale
MumBAI

p. 4 | Colliers International
4Q 2012 1Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
DELHI
In 1Q 2013, more than 1.5 million sq ft of•
Grade A office space was available for fit-out.
The majority of this supply was located in the
Jasola and Saket micro-markets.
During 1Q 2013, the completion of Red Fort•
Capital Parsvnath Towers by Parsvnath
Developers added approximately 0.5 million
sq ft of Grade A new supply to the CBD.
Commercial projects launched in 1Q 2013•
include Prime Towers at Okhla by DLF Ltd
measuring 0.7 million sq ft. The project is
expected to be completed by the end of 2014.
Steady occupier demand was noticed during•
the quarter. A few mid-sized (15,000 to
50,000 sq ft) leases were concluded in micro-
markets such as Netaji Subhash Place, Minto
Road and Okhla Phase I. The city witnessed
absorption of approximately 0.1 million sq ft
during the quarter.
The investment market continued to remain•
sluggish with no major sales transactions
concluded this quarter.
Rental values in new buildings completed•
recently in the CBD are commanding higher
than the market rentals due to their state-of-
the-art facilities and amenities. However, the
overall rents and capital values for Grade A
offices remained stable in all micro-markets.
COLLIERS VIEW : Not much supply is
anticipated in Delhi except in Aerocity, an
emerging location near the International
Airport. Demand is expected to remain steady,
the limited supply of Grade A office space will
keep overall rents at the same levels.
Jasola
59%
Nehru Place
10%
Saket
29%
Connaught place
2%
Micro Market Rental
Values
% Change
QoQ YoY
Connaught Place 330 - 384 0% 5%
Nehru Place 180 - 192 0% 9%
Netaji Subhash
Place
65 - 75 0% 1%
Jasola 112 - 130 0% -4%
Saket 162 - 180 0% 3%
NehruPlace
ConnaughtPlace
Jasola
Saket
NetajiSubhash
0
10,000
20,000
30,000
40,000
50,000
60, 000
50 5,000
0 0
100
10,000
150
15,000
200
20,000
250
25,000
400
350
300
30,000
35,000
45,000
40,000
Forecast
Note:
surveyed quarter.
properties.
Caddie Commercial Tower Caddie Hotel 100,000 Aerocity 2013
DLF Towers DLF Ltd. 420,000 Okhla 2013
NBCC Plaza NBCC 350,000 Okhla 2013
Essilor A-3 15,000 Okhla Phase I Lease
OTIS Cyber Plaza II 14,896 Netaji Subhash Place Lease
Ebay Statesman House 5,850 Barakhamba Road Lease
VFS Global Konnectus 50,000 Minto Road Lease
George Institute Splendor Forum 3,000 Jasola Lease
delhi
1Q2008
1Q2009
3Q2008
3Q2009
3Q2010
1Q2010
3Q2013F
1Q2013
3Q2014F
1Q2014F
3Q2012
1Q2012
3Q2011
1Q2011

MG Road
4%
Institutional Sectors /
Sushant Lok
8%
Manesar
23%
DLF Cyber City
4%
NH8/Udhyog Vihar
21%
Golf Course Road/
Ext /Sohna Road
42%
GolfCourse
Road/Ext
/SohnaRoad
NH8/UdhyogVihar
Institutional
Sectors/
SushantLok
GolfCourse
Road/Ext/Sohna
Road(IT)
NH8/Udhyog
Vihar(IT)
Manesar(IT)
Manesar
MGRoad
0
5,000
10,000
15,000
20,000
25,000
20 2,000
0 0
40 4,000
60 6,000
80 8,000
100 10,000
120 12,000
Forecast
Note:
surveyed quarter.
properties.
Corporate Green - Tower 1 DLF 660,000 NH-8 2013
Digital Greens Tower A Emmar MGF 350,000 Golf Course Ext Rd. 2013
Unitech Infospace, Phase 2 Building 7 Unitech 432,000 NH-8 2013
KEY MARKET TRANSACTION
Carlsberg Paras Twin Tower 15,000 Golf Course Road Lease
Clairvolex Unitech Infospace 12,000 Dundahera Lease
Daffodil World Tech Centre 22,000 Silokhera - NH8 Lease
Macy’s Plot no 32 10,000 Sector 44 Lease
Toshiba Building-10 25,000 DLF Cyber City Lease
Xerox Bestech Park 40,000 Sohna Road Lease
Gurgaon
4Q 2012 1Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
Micro Market Rental
Values
% Change
QoQ YoY
M. G. Road 112 - 121 1% -1%
Golf Course Rd./
Ext /Sohna Rd.
55 - 108 -1% -11%
NH8/Udhyog
Vihar
110 - 140 0% 10%
Manesar 45 - 62 0% 0%
Institutional
Sectors /
Sushant Lok
60 - 117 0% 21%
GURGAON
More than 17 million sq ft of Grade A office•
space was available for fit-out during 1Q 2013.
Most of the available supply was concentrated
along Golf Course Road and its extension,
Sohna Road, Udyog Vihar and NH-8,up to
Manesar.
More than 1.5 million sq ft of Grade A office•
space was added to the city’s total inventory.
In 1Q 2013, a number of commercial projects•
were launched, including Elvedor by Imperia
Structures in Sector 37D; Capital Cyberscape
by Capital Builders at Sector 59; GPL Trade
Towers by GPL Group and Business Club by
AIPL Group, both of which are located on Golf
Course Extension Road. All of these projects
are expected to contribute around 1.5 million
sq ft to the city’s Grade A office space by the
end of 2015.
The office take-up rate in this quarter was•
around 1 million sq ft. Demand from both new
tenants and existing tenants seeking to expand
increased, especially in the IT/ITeS sector.
Rental values posted moderate growth in•
the range of 1 to 2% QoQ in micro-markets
such as NH-8, Udhyog Vihar and M.G. Road;
however other micro-markets remained stable
on account of huge supply availability.
COLLIERS VIEW : The office market shall
witness increased vacancy due to the massive
new supply in the pipeline expected to be
completed in the next 12 months. The office
rental value growth will be capped due to
existing vacancy and the forthcoming new
supply. Moreover, due to the cost-cautious
approach taken by most occupiers, micro-
markets with affordable rents will remain the
preferred location.
1Q2008
1Q2009
3Q2008
3Q2009
3Q2010
1Q2010
3Q2013F
1Q2013
3Q2014F
1Q2014F
3Q2012
1Q2012
3Q2011
1Q2011

nOIDA
In 1Q 2013, around 8.8 million sq ft of Grade•
A and Grade B office space was available for
fit-out. About 90% of this available space
was IT/ITeS office space located primarily in
Sectors 16A and 62, and Sectors 125 to 143
along the NOIDA Expressway.
More than 1 million sq ft of Grade A office•
space was added to the city’s total inventory.
Two new commercial projects were launched•
in 1Q 2013: Mist Avenue by Bhasin Group at
Sector 143; and Cosmic Corporate Park II
by Cosmic Group at Sector 140. These two
projects together will contribute about 1.4
million sq ft of Grade A office space by the
end of 2015.
Occupier demand from the traditional demand•
drivers IT/ITeS in the city remained muted
and very few large floor-plate deals were
executed during the quarter. Total absorption
of around 0.5 million sq ft was recorded in the
surveyed quarter.
Following last quarter’s trend, the rental•
values further declined by 2% in most of
the Commercial and Industrial sectors, while
rental values in the Institutional sectors
remained stable.
COLLIERS VIEW : Demand decreased
marginally for the third consecutive quarter in
NOIDA. Further a large commercial supply is
expected to hit the market by the end of 2013
and in early 2014, we anticipate that the rental
values will remain stable in the near future.
This is primarily because the rental values
have already reached levels at which there is
not much scope for further reduction.
Commercial Sectors (Sec
18) (Grade B)
0.7%
Industrial Sectors
(Sec. 1-9, 57-60, 63-65)
(Grade B)
8.6%
Commercial Sectors
(Sec 18) (Grade B)
0.2%
Institutional Sectors
(Sec.16A, 62, 125-142
90.5%
Micro Market Rental
Values
% Change
QoQ YoY
Institutional
Sectors (Non IT)
61 - 72 0% -11%
Institutional
Sectors (IT)
46 - 50 0% -6%
Comercial
Sectors
95 - 105 -2% -0%
Industrial
Sector
23 - 32 -2% 2%
Institutional
Sectors(NonIT)
Institutional
Sectors(IT)
Commercial
Sectors
0
3,000
6,000
9,000
12,000
15,000
Grade A Capital Values
20 3,000
0 0
40 6,000
9,000
60
12,000
80
15,000120
100
Forecast
Amigo Cyber Park Amigo 250,000 NOIDA Expressway 2013
Corporate Park Ansal API 200,000 NOIDA Expressway 2013
Oxygen SEZ Tower F 3C Group 250,000 NOIDA Expressway 2013
ACL Mobile Express Trade Tower 18,000 Sector 132 Lease
HCL Individual Building 98,000 Sector 1 Lease
Fiserv DLF IT Park 200,000 Sector 62 Lease
Sunguard Financial Services Advant IT Park 10,000 Sector 142 Lease
Note:
surveyed quarter.
properties.
noida
4Q 2012 1Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
1Q2009
3Q2009
3Q2010
1Q2010
3Q2013F
1Q2013
3Q2014F
1Q2014F
3Q2012
1Q2012
3Q2011
1Q2011

PROJECT NAME Developer AREA (Sq. Ft.) LOCATION Expected Completion
Purva Moneta Puravankara Projects 300,000 Guindy 2013
Ramanujan IT City Little Wood Tower Block D Tata Realty & Infrastructure 600,000 Taramani 2013
SP InfoCity Shapoorji Pallonji Group 1,200,000 OMR 2013
CHENNAI
Approximately, 13.5 million sq ft of Grade•
A office space was available for fit-out this
quarter. More than half of this supply was
located along the OMR IT corridor.
The city has not witnessed any major•
completions this quarter. Developers have
adopted a cautious approach due to high
vacancy levels, and have slowed the pace of
their construction works
•Demand in special economic zones (SEZs)
remained upbeat and a number of medium to
large floor plate size deals (40,000 – 200,000
sq ft) were concluded this quarter. The total
office space absorption was recorded at
around 1 million sq ft. More than 60% of the
total absorption has taken place in SEZs.
BFSI and IT/ITeS were the primary sectors
contributing to this demand.
•No majormovement of capital and rentalvalues
were recorded, across all micro-markets.
In 1Q 2013, the Chennai Corporation Council•
approved the proposed property tax for
buildings that accommodate IT companies.
This will increase tax rates in the range of 50-
200%.
COLLIERS VIEW: In 1Q 2013, the city
witnessed moderate leasing activities, with
demand mostly driven by IT/ITeS occupants
in SEZs. We anticipate the same level
of absorption momentum in the coming
quarters. With controlled supply in the near
future, rental values are expected to remain
at current levels in preferred micro-markets
such as the CBD, OMR and Guindy. However,
there will be downward pressure in locations
on the fringes of the city due to lower demand
for such locations.
CBD
14%
Guindy (SBD)
6%
Velachery
1%
Vadapalini
0%
GST Rd
3%
OMR (IT Corridor)
51%
Ambattur
24%
Micro Market Rental
Values
% Change
QoQ YoY
CBD 65 - 85 0% 0%
Guindy (SBD) 50 - 60 0% 4%
Ambattur 25 - 30 0% 0%
OMR (IT
Corridor)
25 - 40 0% 0%
GST road 35 - 40 0% 0%
Guindy(SBD)
Ambattur
OMR(IT
Corridor)
CBD
0
2,000
4,000
6,000
8,000
10,000
0
1Q2008
1Q2009
3Q2008
1Q2010
3Q2010
1Q2011
3Q2011
1Q2012
3Q2012
1Q2013
3Q2013
3Q2009
1Q2013F
3Q2013F
20
0
40
2,000
4,000
60 6,000
80 8,000
100 10,000
Forecast
ADP India Tamarai IT Park 41,000 Gunidy Lease
Altimetrik Ascendas 24,000 OMR Lease
Barclays India DLF SEZ 69,000 Guindy Lease
Flextronics RMZ Millennia Business Park 80,000 OMR Lease
Mindtree Ramanujam IT SEZ 200,000 OMR Lease
Tata Consultancy Services Ramanujam IT SEZ 100,000 OMR Lease
Note:
surveyed quarter.
properties.
chennai
4Q 2012 1Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value

BENGALURU (BANGALORE)
About 11.2 million sq ft of Grade A office space•
was available for fit-out. Most of this available
supply was concentrated in areas such as the
EPIP Zone, Whitefield, Outer Ring Road (ORR)
and Electronic City.
During 1Q 2013, construction activities in•
Bangalore remained active, resulting in
numerous completions. More than 1.5 million
sq ft of Grade A office space was added to the
city’s total inventory.
Following last quarter’s trend, most of the•
demand was generated by small and medium
enterprises in the IT/ITeS sector, in micro-
markets such as Whitefield, Electronic City
and ORR. More than 2.6 million sq ft of Grade
A office space was absorbed during this
quarter.
Despite healthyoccupierdemand, rentalvalues•
remained stable across all the micro-markets.
This is primarily due to the supply/demand
equilibrium in the city’s office market.
COLLIERS VIEW : In 1Q 2013, we witnessed
improved absorption from the IT/ITeS sector,
the traditional driver of office demand in the
city. We anticipate that in the short to medium
term, rental values will remain stable on
account of supply/demand equilibrium. There
will be limited additional supply in the near to
medium term, as developers are refraining
from speculative development due to the
uncertainty in the future performance of the
IT/ITeS sector, and competitive developments
in from other locations such as Pune and
Hyderabad.
Hosur Road
3%
CBD
7%
Bannerghatta Road
2%
Electronic City
12%
EPIP Zone/ Whitefield
46%
Outer Ring Road
30%
Micro Market Rental
Values
% Change
QoQ YoY
CBD 80 - 100 0% 6%
Hosur Rd. 20 - 40 0% 0%
EPIP Zone/
Whitefield
23 - 32 0% -2%
Electronic City 25 - 35 0% 7%
Bannerghatta Rd. 48 - 54 0% -4%
Outer Ring Rd. 47 - 60 2% 5%
-
HosurRoad
EPIPZone/
Whitefield
Electronic
City
Bannerghatta
Road
OuterRing
Road
CBD
0
5,000
10,000
15,000
20,000
20 2,000
0 0
40 4,000
6,00060
80 8,000
100 10,000
Forecast
Divyasree Tech Park Divyasree Developers 650,000 Whitefield 2013
Vaswani Presidio Vaswani Group 125,000 Outer ring road 2013
RMZ Eco World 5A & 5B RMZ Corp 500,000 Outer ring road 2013
Goodrich Aerospace Netra Tech Park 45,000 Whitefield Lease
Linkedin Prestige Tech park 80,000 Outer Ring Road Lease
Microchip Technology Renaissance First Face 155,000 Whitefield Lease
SAP RMZ Nxt 34,765 Whitefield Sale
Siemens India Golden Supreme Tech Park 240,000 Electronic City Lease
VM Ware RPS Green Space 60,000 JP Nagar Lease
Note:
surveyed quarter.
properties.
bengaluru
4Q 2012 1Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
1Q2008
1Q2009
3Q2008
3Q2009
3Q2010
1Q2010
3Q2013F
1Q2013
3Q2014F
1Q2014F
3Q2012
1Q2012
3Q2011
1Q2011

KOLKATA
About 0.5 million sq ft of new Grade A office•
supply was added to the city’s office inventory.
Most of this new supply was located in the
PBD micro-market such as Sector – 5 and
Sonarpur.
During the quarter a few mid sized projects•
such as “Arihant Square” by Arihant Group
(at Park Street), and “Primarc Tower” by
Primarc Group (at Sector 5 in Saltlake) were
launched.
Occupier demand remained bleak during•
the surveyed quarter and a limited number
of small-sized leases were concluded,
predominately in micro-markets like Park
Street, Rajarhat and Saltlake. The city
witnessed total absorption to the tune of
approximately 0.15 million sq ft.
Due to poor uptake of commercial stock, rental•
values declined in the range of 5 - 7% QoQ in
micro-markets like Ballygunge Circular Road
and Sector-5, however other micro-markets
remained stable.
Capital values remained stable during the•
quarter with the exception of New Town –
Rajarhat, which recorded a decline of 6% in
capital values QoQ.
COLLIERS VIEW: Rental values declined
in few micro-markets in 1Q 2013; other
micro markets are also facing considerable
downward pressure due to low occupier
demand. We anticipate that demand will
continue to remain low in the near term and
rental may further decline in the range of 2 -
5% QoQ.
Sector-5
86%
PBD (Narendrapur, Sonarpur,
VIP, Madhyamgram)
14%
Micro Market Rental
Values
% Change
QoQ YoY
CBD (Park
St,Camac
St,AJC Bose
Road)
110 - 130 0% 4%
Ballygunge
Circular Rd.
100 - 110 -5% -5%
East Kolkata 75 - 85 0% 0%
Sector-5 48 - 50 -7% -7%
PBD (New Town,
Rajarhat)
34 - 39 0% 0%
CBD(Park
St,CamacSt,AJC
BoseRoad)
Ballygunge
Circular
Road
EastKolkata
Sector-5
PBD(New
Town,
Rajarhat)
0
5,000
10,000
15,000
20,000
20 2,000
0 0
40 4,000
60 6,000
80 8,000
100 10,000
120 12,000
Forecast
Acropolis Merlin Group 500,000 EM Bypass 2013
IT Godrej Simocco Phase 2 Godrej Waterside 1,000,000 Salt Lake Sector V 2013
Unitech Infospace, Kolkata Phase 3 B Unitech Ltd. 1,306,800 Rajarhat 2013
General Motors Apeejay Tower 3,300 Ruby Lease
HP Apeejay Surrendra 30,000 Taratala Lease
ITC Limited Apeejay Surrendra 60,000 Taratala Lease
Prax Air DLF IT Park 1 6,000 New Town, Rajarhat Lease
Reliance Industries Eco Space 50,000 New Town, Rajarhat Lease
Sanofi Pharma Apeejay House 10,000 Park Street Lease
Note:
surveyed quarter.
properties.
Kolkata
4Q 2012 1Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
1Q2008
1Q2009
3Q2008
3Q2009
3Q2010
1Q2010
3Q2013F
1Q2013
3Q2014F
1Q2014F
3Q2012
1Q2012
3Q2011
1Q2011

PUNE
During 1Q 2013, more than 5.8 million sq ft•
of Grade A office space was available for
fit-out in the city. Most of this supply was
concentrated in the Hinjewadi, Airport Road,
Kharadi and Nagar Road micro-markets.
Approximately 0.8 million sq ft of Grade•
A office space was added to the city’s total
inventory during this quarter.
Occupier demand showed a marginal•
reduction in 1Q 2013. The city witnessed
more than 1 million sq ft absorption in Grade A
office space. The most active micro-markets
during the quarter were Hinjewadi, Hadapsar,
Viman Nagar and Yerwada.
Overall, average rentals in almost all the micro•
markets remained stable in 1Q 2013. A few
new completions in micro market such as
Baner, Bavadhan, Aundh and Nagar Road was
leased above 10 to 15% above market rentals
due to their state of an facilities and amenities.
This resulted in increase of 5 to 10% in overall
average rental values in these micro markets.
The Pimpri Chinchwad Municipal Corporation•
(PCMC) has planned to construct dedicated
Bus Rapid Transit System (BRTS) lanes on
the Pune-Mumbai Highway and Aundh-Ravet
Road, at an estimated cost of INR 12 Crore.
This will improve connectivity between the
Mumbai & Pune.
COLLIERS VIEW: Pune witnessed significant
demand from the IT/ITeS sector this quarter
when compared to same period last year. The
demand momentum is likely to remain the
same in the upcoming quarters. We anticipate
a marginal appreciation in rental values in
micro-markets like Hinjewadi, Hadapsar,
Viman Nagar, Yerwada and Kharadi.
Bavdhan
3%
Kalyani Nagar
7%
Senapati Bapat Road
2%
Aundh
3%
Baner
6%
Bund Garden
4%
Airport road/
pune station
21%
Hinjewadi
21%
Nagar Road
11%
Kharadi
17%
Hadapsar/Fursungi
5%
Micro Market Rental
Values
% Change
QoQ YoY
Baner 45 - 55 11% 18%
Bund Garden 60 - 70 8% 8%
Airport Rd. 47 - 60 2% 2%
Aundh 45 - 51 13% 13%
Senapati Bapat 65 - 90 3% 3%
Bavdhan 38 - 44 9% 9%
Kalyani Nagar 45 - 60 0% 5%
Nagar Rd. 40 - 50 6% 6%
Hinjewadi 32 - 40 3% 31%
Hadapsar/
Fursungi
32 - 45 -9% 10%
Kharadi 32 - 50 -9% 9%
BundGarden
Airportroad/
punestation
Aundh
Senapati
BapatRoad
Bavdhan
KalyaniNagar
NagarRoad
Hinjewadi
Hadapsar/
Fursungi
Kharadi
Baner
0
2,000
4,000
6,000
8,000
10,000
12,000
20 2,000
0 0
40 4,000
60 6,000
80 8,000
100 10,000
Forecast
Marvel Edge Marvel Realtor 500,000 Fursungi 2013
DLF IT Park, Phase 2 Building 6 DLF Ltd. 750,000 Hinjewadi 2013
SP InfoCity, Building 6 Shapoorji Pallonji Group 500,000 Fursungi 2013
KEY MARKET TRANSAcTIONS
Axa Technologies Marvel Edge 120,000 Viman Nagar Lease
Kohler India P5 50,000 Hadapsar Lease
PRAJ Industries Ltd. Vascon 111,000 Hinjewadi Lease
Siemens Embassy Tech Zone 84,000 Hinjewadi Lease
Synechron Ascendas 600,000 Hinjewadi Lease
Synygy India Business Bay 50,000 Yerwada Lease
Note:
surveyed quarter.
properties.
pune
4Q 2012 1Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
1Q2008
1Q2009
3Q2008
3Q2009
3Q2010
1Q2010
3Q2013F
1Q2013
3Q2014F
1Q2014F
3Q2012
1Q2012
3Q2011
1Q2011

Mumbai
The major business locations in Mumbai are the CBD (Nariman Point, Fort and Ballard Estate), Central Mumbai (Worli, Lower Parel and Parel), Bandra
Kurla Complex (BKC) and Andheri Kurla stretch. Powai, Malad and Vashi are the preferred IT/ITES destinations, while Airoli at Navi Mumbai and Lal
Bahadur Shastri Marg are emerging as new office and IT/ITES submarkets.
Delhi
The commercial areas in New Delhi metropolitan area can be broadly classified into the CBD (Connaught Place), SBD Nehru Place, Bhikaji Cama Place,
Netaji Subhash Place, Jasola and Saket .
Gurgaon
The prime business locations in Gurgaon are MG Road, Golf Course Road, Cyber City and Udyog Vihar. Manesar on the outskirts of Gurgaon is also
emerging as the city’s new office destination.
NOIDA
NOIDA market is comprised of sectors broadly classified as institutional, industrial and commercial sectors. Institutional sectors include sec 16A, 62 and
125-142, industrial sectors include sec 1-9, 57-60 and 63- 65 while sector 18 is the most developed commercial sector.
Chennai
Prime office properties in Chennai are located in four principal sub-markets: the CBD, the IT Corridor, the SBD and the PBD. The SBD comprises Guindy,
Manapakkam, Velachery and other areas. The PBD primarily includes Ambattur and GST Road, while the IT Corridor is the Old Mahaballipuram Road
(OMR) in south Chennai.
Bengaluru (Bangalore)
Prime office properties in Bengaluru can be divided into three principal sub-market— CBD, the SBD consisting of Banerghatta Road & Outer Ring Road
(ORR) and PBD including Hosur Road, EPIP Zone, Electronic City and Whilefield.
Pune
The prime office sub-markets of Pune include Deccan Gymkhana, Bund Garden Road, Senapati Bapat Road & Camp (CBD), while the Off CBD includes
Aundh, Airport Road and Kalyani Nagar, among other locations. The eastern corridor, along with Nagar Road and Kharadi, have emerged as a preferred
location for financial and IT/ITES companies.
Kolkata
The major business locations in Kolkata are CBD (Park Street, Camac Street, Chowranghee Rd), SBD (AJC Bose Rd, Ballygunge circular Rd, East
Kolkata), East Kolkata and PBD (New Town & Rajarhat). The area around Park Street, Camac Street and AJC Bose road houses number of high-rises
commercial buildings such as Chatterjee International Centre, Tata Centre, Everest House and Industry House among others.
OFFICE SUBMARKETS
City Barometer
Increasing as compared to previous quarter
Decreasing as compared to previous quarter
Remained stable from previous quarter

Colliers International (India) provides property services to property Investors and Occupiers. We
deliver customised service solutions utilising local and global knowledge in partnership with our
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For national offices services related queries please contact:
George Mckay, South Asia Director Vikas Kalia, National Director
Office & Integrated Services Office Services
George.mckay@colliers.com Vikas.kalia@colliers.com
Tel: +91 22 4050 4553 Tel: +91 124 456 7531
India office India reSIDENTIAL apac office APAC iNDUSTRIAL GLOBAL RETAIL iNDIA bUDGET
Mumbai : Vaibhav Kumar, Office Director
Vaibhav.kumar@colliers.com
31/A, 3rd floor, Film Center, 68, Tardeo Road, Mumbai, India - 400 034.
Tel : +91 22 4050 4527, fax : +91 22 2351 4272
Delhi NCR : Ajay Rakheja, Office Director
Ajay.rakheja@colliers.com
New Delhi : Statesman House, 4th Floor, Barakhamba Road, Connaught Place,
New Delhi, India - 110001
Tel : +91 11 3044 6423, fax : +91 11 3044 6500
Gurgaon : Technopolis Building, 1st floor, DLF Golf Course Main Road, Sector 54, Gurgaon,
India - 122002
Tel : +91 124 456 7500, fax : +91 124 456 7502
Bengaluru : Goutam Chakraborthy, Office Director
Goutam.chakraborthy@colliers.com
Prestige Garnet, Level 2, Unit No.201/202, 36 Ulsoor Road, Bengaluru,
India - 560 042
Tel : +91 80 4079 5500, fax : +91 80 4112 3131
Pune : Suresh Castellino, Office Director
Suresh.castellino@colliers.com
Hotel Le Meridian, 101, R.B.M. Road, Pune, India - 411 001
Tel : +91 20 4120 6438, fax : +91 20 4120 6434
Chennai : Kaushik Reddy, Office Director
Kaushik.reddy@colliers.com
Heavitree Complex, Unit 1C, 1st floor, 23, Spurtank Road, Chetpet, Chennai,
India - 600 031
Tel : +91 44 2836 1064, fax : +91 44 2836 1377
Kolkata : Soumya Mukherjee , Office Director
Soumya.mukherjee@colliers.com
Infinity Business Centre, Infinity Benchmark, Room No 13, Level 18, Plot G - 1,
Block EP & GP, Salt Lake Sector V, Kolkata - 700 091 West Bengal, India
Tel : +91 33 2357 6501, fax : +91 33 2357 6502
Recent Reports :
This book is printed on 100% Recyclable paper
AUTHORS
Amit Oberoi MRICS
National Director, Valuation & Advisory; Research
Email: Amit.oberoi@colliers.com
Surabhi Arora MRICS
Associate Director, Research
Email: Surabhi.arora@colliers.com
Sachin Sharma
Assistant Manager, Research
Email: Sachin.sharma@colliers.com
Heliana Mano
Assistant Manager,Valuation & Advisory
Email: Heliana.mano@colliers.com
For general queries and feedback :
India.Research@colliers.com
Tel: +91 124 456 7580
This report and other research materials may be found on
our website at www.colliers.com/India. Questions related
to information herein should be directed to the Research
Department at the number indicated above. This document
has been prepared by Colliers International for advertising
and general information only. Colliers International makes
no guarantees, representations or warranties of any kind,
expressed or implied, regarding the information including,
but not limited to, warranties of content, accuracy and
reliability. Any interested party should undertake their
own inquiries as to the accuracy of the information.
Colliers International excludes unequivocally all inferred
or implied terms, conditions and warranties arising out
of this document and excludes all liability for loss and
damages arising there from.
© Copyright 2012 - 2013 All Rights Reserved.
482 offices in 62 countries on 6 continents
United States: 140
Canada: 42
Latin America: 20
Asia Pacific: 195
EMEA: 85
$2.0 billion in annual revenue
1.1 billion square feet under management
Over 13,500 + professionals
ASIA PACIFIC
OFFICE MARKET OVERVIEW
3Q 2012
ASIA PACIFIC
INDUSTRIAL MARKET OVERVIEW
May 2012
STREET/PRECINCT
RENT
(USD)**
ANNUAL
CHANGE
(%)
New York – Fifth Avenue ��,�� .�
Hong Kong – Queen's
Road Central, Central (tie)
��,�� .�
Hong Kong –
Canton Road (tie)
��,�� .�
London – Old Bond St.*** ��,�� .�
Paris – Avenue des***
Champs-Élysées
��,�� flat
Hong Kong -
Causeway Bay
��,�� .�
New York –
Madison Avenue
�� .�
Zurich – Bahnhofstrasse �� flat
Milan –
Via Monte Napoleone
�� (�.�)
Sydney – Pitt Street Mall �� (��.�)
HIGHLIGHTS
GLOBAL
www.colliers.com
MID-YEAR 2012 | RETAIL
ANN T. NATUNEWICZ Manager | Retail Research | USA
Colliers’ 2012 Global Retail Streets survey found that of 129 locations tracked, 51 posted higher year
over year average rental rates, 49 were flat, and 24 were down (5 lacked comparable data).
Retailers entering new markets—both developed and developing—continue to hedge risk by targeting
the same one or two premier locations, generating heated competition and outsized rental rate growth
in a handful of space-constrained corridors.
Companies with the most ambitious long-term expansion plans remain focused on emerging markets
with rapidly growing middle-class populations, but recently institutional capital has pulled back
somewhat to favor core markets and investments.
While economic and political turmoil did affect rental rates in headline-generating markets (such
as Cairo and Athens), high streets with strong fundamentals remained remarkably resilient, suggest-
ing, at least for now, some separation between macroeconomic issues and underlying real
estate fundamentals.
Since we conducted our survey, however, weakening consumer sentiment among affluent shoppers
has already begun to impact retailers’ revenues and could hinder landlords’ near-term ability to
raise rents, suggesting flattening growth rates for the coming year.
This spring proved to be a tricky time to conduct global benchmarking, as market sentiment has
deteriorated markedly since April. During the past year, virtually every entity making a forecast—
including Colliers in our 2012 U.S. Retail Outlook—included a caveat related to not-yet-quantifiable global
fallout from Europe’s fiscal issues. As the past few months have illustrated, the time to face Eurozone
issues has finally arrived, spawning a new wave of financial uncertainty.
More than two years post-recession, though, results from our annual survey of High Street rents
illustrate that the world’s priciest retail corridors continue to attract the most sought-after tenants at lofty
rental rates. Eight of Colliers’ top ten Global Retail Streets in 2011 made the list again this year. The big
story, however, lies with the explosive year over year rental growth achieved in a handful of markets. Six
of our Top 10 grew at double-digit levels year over year in local currency units, five of them by more than
20%.
At a regional level, streets in areas that entered 2007-08 better-positioned economically—Australia,
Canada, parts of Eastern Europe—had a higher percentage of this year's flat-to-higher rents than those
slower to emerge from the recession. We will be watching these areas closely. Even as they represent
some of the most attractive destinations for expansion-minded companies and yield-seeking investors,
they too are vulnerable to softening consumer demand and, for those with reliable data, encroachment of
e-commerce.
This report contains two parts. The first summarizes the results of our annual Global Retail Streets
survey, conducted in April 2012. The second incorporates content from Colliers’ brokerage and research
teams worldwide who contributed market operational metrics, nuanced commentary on retail conditions,
and forward-looking opinions on what the next year will hold for consumers, landlords, and investors.
Record Rents for Top Retail Corridors; Global
Slowdown Impacts Momentum Elsewhere
TOP 10 GLOBAL RETAIL STREETS*
(USD PER SQUARE FOOT PER YEAR)
REGIONAL RETAIL RESEARCH CONTACTS
AMERICAS
> Ann T. Natunewicz
Ann.Natunewicz@colliers.com
EUROPE/MIDDLE EAST/AFRICA
> Zuzanna Baranowska
Zuzanna.Baranowska@colliers.com
ASIA
> Simon Lo
Simon.Lo@colliers.com
AUSTRALIA/NEW ZEALAND
> Nora Farren
Nora.Farren@colliers.com
Source: Colliers International
* selected cities
** exchange rate as of March 31, 2012
*** Zone A rents

India office property market overview april 2013

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