Colliers research has come up with its latest knowledge report India Office Property Market Overview, April 2012. You might find it interesting to note that as per our research, office inventory is forecasted to increase due to new developments that are expected to be completed in a span of 2-3 years. However, rental rates are forecasted to remain stable in the near future due to the equilibrated situation of office demand and supply in most of the markets. For more detailed information kindly download the report. I am sure you will find the report an interesting and informative read.

1. Office
Property Market Overview
INDIA
QUARTERLY UPDATE | APRIL | 2012
Accelerating success.

2. 1Q 2012 | THE KNOWLEDGE
Research & forecast report
SYDNEY CENTRAL BUSINESS DISTRICT
research & forecast Report
India office market
MACRO ECONOMIC OVERVIEW
ECONOMIC INDICATORS
• During 4Q 2011 GDP grew at 6.9 percent in
real terms suggesting a moderation in growth Gross Domestic Product at factor cost
in comparison to preceding two quarters. The 10.0%
9.0%
finance minister presented India’s Union 8.0%
Budget 2012 -13 this quarter projecting a GDP 7.0%
6.0%
growth rate of 7.6% for 2012-13. 5.0%
4.0%
3.0%
• The headline inflation figure moderated from 2.0%
8.3 percent in December 2011 to 6.6 and 1.0%
0.0%
6.95% in January and February 2012,
Jan - Mar 09
Apr - Jun 09
Jul - Sep 09
Oct - Dec 09
Jan - Mar 10
Apr - Jun 10
Jul - Sep 10
Oct - Dec 10
Jan - Mar 11
Apr - Jun 11
Jul - Sep 11
Jan - Dec 11
ECONOMIC BAROMETER respectively. Keeping in view the moderation
in inflation rate the Reserve Bank of India
Mar-11 Mar-12
(RBI) has softened monetary policy for the
FDI in Real Estate
first time since one and a half year . This has 16,000
REPO RATE 6.50% 8.50%
been done by reducing CRR (Cash Reserve 14,000
Ratio) by 50 basis points in January and a
12,000
REVERSE REPO RATE 5.50% 7.50% 10,000
further reduction of 75 basis point in March 8,000
CRR 6.00% 4.75% 2012. The current CRR rate is 4.75%. 6,000
4,000
INR Crore
INFLATION 9.68% 6.89% • The Budget remained silent on most of the
2,000
0
major real estate related issues. It did however
2005 - 06
2006 - 07
2007 - 08
2008 - 09
2009 - 10
2010 - 11
April - Jan 2012
PRIME
8.25% - 9.50% 10.00% - 10.75%
LENDING Rate mentioned that efforts are on to arrive at a
DEPOSIT RATE political consensus on the issue of allowing
7.75% - 9.50% 8.50% - 9.25%
(>1 YEAR) 51% Foreign Direct Investment (FDI) in multi-
Foreign Exchange brand retailing. 160
BSE Sensex & Realty Index
45.02 50.39 150
INR - USD
140
• The Budget aims to provide impetus to 130
INR- Euro 59.12 65.89 affordable housing by providing various 120
110
incentives to both developers and end users. 100
For example the external Commercial 90
Return on Alternative Investments Borrowings (ECB) is allowed for low cost
80
70
affordable housing projects which would help
2-Jan-12
11-Jan-12
20-Jan-12
29-Jan-12
7-Feb-12
16-Feb-12
25-Feb-12
5-Mar-12
14-Mar-12
23-Mar-12
1-Apr-12
Mar-11 Mar-12 YoY %
developers to raise debt at lower cost.
Change * Rebase to 100 BSE Sensex Realty Index
Note: As of 1st August 2011
Gold 20,730 27,300 31.69% • From an end user perspective, the budget
provides few incentives including, Service tax 110
Exchange Rates
SILVER 52,450 56,014 6.80% exemption for construction service related to 105
EQUITY (BSE residential dwelling and low cost mass 100
housing up to an area of 60 sq mtr under the 95
SENSEX) 18167.64 17,675.85 -2.71%
scheme of affordable housing. The existing 90
REALTY INDEX 2053.69 1821.35 -11.31% scheme of interest subvention of 1% for 85
housing loans up to INRs 15 lakh (where the
80
75
cost of the house does not exceed INR 25
2-Jan-12
11-Jan-12
20-Jan-12
29-Jan-12
7-Feb-12
16-Feb-12
25-Feb-12
5-Mar-12
14-Mar-12
23-Mar-12
1-Apr-12
lakhs), was extended by one more year.
US$ Euro
* Rebase to 100
Note: As of 1st August 2011
Source: Colliers International India Research
www.colliers.com

3. THE KNOWLEDGE | 1Q 2012 | OFFICE | Mumbai
MUMBAI
AVAILABLE Supply in Prime Areas
• In Mumbai, approximately 10 million sq ft of
grade ‘A’ office space was available for lease Goregoan / JVLR 8%
Kalina 1%
in 1Q 2012. Out of the total available supply
Navi Mumbai 6%
Powai 5%
around 64% was IT/ITeS office space mostly Worli / Prabhadevi 1%
Thane / LBS 21%
concentrated in the Lower Parel and Thane
Malad 5%
micro-markets.
CBD 1%
• Project launched during this quarter was
“Equinox Business Park-Tower IV” by Equinox Lower Parel 20%
Realty & Infrastructure Private Limited. The Andheri East 24%
project has a gross leasable area of BKC 8%
approximately 0.5 million sq ft and is located
off BKC. Another mixed use project “Island
City Centre” was also launched by Wadia
MUMBAI Group’s real estate venture Bombay Realty
1Q 2012 GRADE ‘A’ AND GRADE ’B’
spreading over 45 acres of land at Dadar. RENTAL VALUES
CITY OFFICE BAROMETER • Following the previous quarter trend 300
construction activities remained slow, no new 250
4Q 2011 1Q 2012 grade ‘A’ office space was added to the city’s 200
total inventory this quarter.
INR Per Sq ft Per Month
150
VACANCY
• Occupier demand remained steady in almost
100
ABSORPTION all of the micro markets and few large space 50
commercial leases were signed during the 0
CBD
Andheri East
BKC
Lower Parel
Malad
Navi Mumbai
Powai
Worli/Prabhdevi
Goregaon / JVLR
Kalina
Thane / LBS
Andheri East (IT)
Lower Parel (IT)
Malad (IT)
Navi Mumbai (IT)
Powai (IT)
Goregaon / JVLR (IT)
Thane / LBS (IT)
CONSTRUCTION quarter. Rental values for grade ‘A’ office
space remained stable across Mumbai baring
RENTAL VALUE
Nariman Point, the CBD of Mumbai, as Grade A Grade B
occupiers are gradually shifting towards newly
developed areas like Lower Parel, Bandra
Kurla Complex (BKC) and Andheri due to
better accessibility and state of an art
GRADE ‘A’ AVERAGE RENTAL VALUE prime office space rental trend
infrastructure.
245
Forecast
• Looking ahead demand is likely to be remained 420
210 moderate, however due to limited supply 370
rentals are expected to remain stable.
320
175 270
INR per Sq ft per Month
220
140
• As part of the State Government’s plan to 170
105 120
make Wadala a business hub in lines of the
INR per Sq ft per Month
70
70
BKC; MMRDA has invited consultants to 20
1Q2008
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q2011
3Q2011
4Q2011
35 1Q2012
prepare a detailed development plan for
approximately 110 hectares of land.
0 CBD Andheri East Malad BKC
1Q2008
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012F
3Q2012F
4Q2012F
1Q2013F
Lower Parel Navi Mumbai Powai Worli /
Prabhadevi
Goregaon Kalina Thane / LBS
/ JVLR
MARKET TRANSaCTIONS
CLIENT building name AREA LOCATION TRANSACTION TYPE
(Sq. Ft.)
Altisource Vishwaroop IT Park 137,000 Vashi Lease
ANZ Bank Boomerang 6,000 Andheri Lease
Liberty Insurance Peninsula Business Park 30,000 Lower Parel Lease
L’Oreal Marathon Futurex 71,000 Lower Parel Lease
Naaptol.com Sigma IT Park 32,000 Navi Mumbai Lease
Star Union Dai-ichi Life Insurance Vishwaroop IT Park 67,000 Vashi Lease
Source: Colliers International India Research
Colliers International | p. 3

4. THE KNOWLEDGE | 1Q 2012 | OFFICE | delhi
DELHI
AVAILABLE Supply in Prime Areas
• More than 1 million sq ft of grade ‘A’ office
space was available for lease in Delhi in Connaught Place 2%
1Q 2012. Most of this available supply was Nehru Place 10%
concentrated in Jasola and Saket.
• No new supply was added to the city’s grade Saket 29%
‘A’ inventory. Similarly, no new grade ‘A’ office
projects was launched during this quarter.
Jasola 59%
• Absorption remained relatively subdued as
only a few small office spaces leases were
signed in locations such as Connaught Place,
Saket and Nehru Place. This can primarily be
attributed to the shift in demand from the CBD
delhi and SBD to areas in as Gurgaon and NOIDA
1Q 2012 GRADE ‘A’ AND GRADE ’B’
on account of better quality office and lower RENTAL VALUES
real estate cost.
CITY OFFICE BAROMETER 400
• Rental values witnessed marginal pressure 350
300
4Q 2011 1Q 2012 across the micro markets and a decrease in 250
the range of 1 to 4% was observed for grade 200
VACANCY ‘A’ office space.
INR per Sq Ft per Month
150
100
ABSORPTION
• In mid term rentals are expected to remained 50
CONSTRUCTION under pressure on account of lesser demand. 0
Nehru Place
Jasola
Saket
Netaji Subhash
Place
Connaught
RENTAL VALUE • To encourage development of non polluting
small and medium scale industries in the Grade A Grade B
city Delhi State Industrial and Infrastructure
Development Corporation (DSIIDC) is
planning to set up a multi level manufacturing
GRADE ‘A’ AVERAGE RENTAL VALUE
hub in Rani Khera in north west Delhi with an prime office space rental trend
estimated cost of INR 3100 crore. The work
on another knowledge based industrial park
280
Forecast
in Baprola has already started. 450
400
245
350
210 • In an another infrastructure related intiative 300
175 the Delhi Development Authority(DDA) has 250
140 planned to develop three Urban Extension 200
INR per Sq ft per Month
105 Roads (UERs). These link roads will facilitate 150
INR per Sq ft per Month
70 smooth travelling between two States — 100
35 Delhi and Haryana — Dwarka-Palam Vihar, 50
0
Najafgarh-Dhansa and Nelson Mandela Road-
2Q2008
3Q2008
4Q2008
1Q2008
2Q2009
3Q2009
4Q2009
1Q2009
2Q2010
3Q2010
4Q2010
1Q2010
2Q2011
3Q2011
4Q2011
1Q2012
0
MG Road.
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012F
3Q2012F
4Q2012F
1Q2013F
Nehru Place Jasola Cannaught Saket
place
Netaji Subhash
MARKET TRANSaCTIONS
CLIENT building name AREA LOCATION TRANSACTION TYPE
(Sq. Ft.)
Hitachi Eros Corporate Tower 3,000 Nehru Place Lease
Mizuho Bank DLF Capitol Point 16,000 C.P. Lease
Pragati Equity Advisors Southern Park 1,500 Saket Lease
Snap Deal Southern Park 22,000 Okhla-III Lease
Source: Colliers International India Research
p. 4 | Colliers International