2. Summary
Summary p. 3
Macroeconomic Context p. 4
Mumbai Office Market p. 5
Central Business District (CBD) p. 6
Extended Central Business District (ECBD) p. 7
Alternate Central Business District (Alternate CBD) p. 8
Secondary Business District (SBD) p. 9
Periphery Business District (PBD) p. 10
Prime Rents p. 11
Capital Values p. 12
Key Transactions p. 13
Key Projects p. 14
Glossary p. 15
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009
3. SUMMARY
Cautious investing is on the anvil, albeit increasing supply
In Mumbai, the demand for commercial space in the third quarter A lot of opportunistic buying is on the anvil as domestic and NRI
(July - September), marginally increased over the second quarter. investors are now finding the valuations a bit interesting. These
There is a general perception among corporate occupiers that investors are seeking net returns in excess of 12% per annum.
rents have “bottomed out”. The take up improved significantly There are also many fence sitters , still, who feel that there is a
especially in the suburbs, though there is an increasing supply scope for 5-10% of further correction, by the end of December.
being added in the market. The vacancy rates in CBD area of Most of the development companies, are only offering properties
Nariman point continue to increase further and now is forcing the for lease and are not releasing any commercial office space for
owners to become more flexible in their commercial terms. The sale. Since there is an availability of 10 million sq.ft. of new,
fund flow situation of large real estate developers improved modern supply of office space in Mumbai, our assessment is there
dramatically as they were able to successfully raise capital via will be downward pressure on rents and capital values at least for
Qualified Institutional Placement’s (QIP) and other alternate the next 6 months.
investment vehicles promoted by international capital market
advisors. However the small and medium scale developers are
still facing liquidity issues and have therefore delayed the the
construction of their projects by at least 6 months.
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I3I
4. MACROECONOMIC CONTEXT
Gross Domestic Product (GDP)
12.00%
GDP growth rate beat all estimates. Records 7.9%
10.00% 10.10%
9.70%
9.30%
9.30% India recorded a GDP growth of 7.9 % in the quarter – July –September of
9.20%
8.80%
8.80%
2009, which is more than estimated rate of 6.1%. In fact, this is the highest
8.00% 7.90%
7.90% growth in GDP rate ever since 1996. The key factors are increase in domestic
7.60%
6.10% consumption, global recovery and abundant liquidity in the system. The
6.00% manufacturing and service sector grew by more than 9% . Despite the weak
5.80%
5.30%
credit demand, the banking and financial sector also showed a healthy
4.00% growth. The agriculture sector showed the highest growth, however the
perception among the industry leaders is that the harvest shortfall will get
2.00% captured in the next quarter and therefore the overall GDP will be lower for
the next quarter. There is also a perception that the central bank is now
0.00% poised to increase the Cash Reserve Rate (CRR) Ratio and Reverse Repo Rate
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009
as the inflation is expected to breach central bank's comfort level by January
2010. The finance ministry has also made a statement that it will review the
Source: Confederation of Indian Industries
situation in February 2010. Major business chambers feel there's a need for
the government to continue with the existing monetary and fiscal policies to
sustain the process of economic recovery.
The high GDP rate indicate that the government policy measures have been
successful in reversing the impact of the global slowdown. It is expected that
Wholesale Price Index (WPI) the recovery will be sustainable, as investment and consumption are
14%
showing an upswing, and with policy guidance a growth rate of 7% can be
12% achieved in the current financial year.
10%
8%
6%
4% Real Estate
2% Most of the real estate development companies showed high growth rate
0% both in sales and profits. This is fuelled by lowering of interest rates on home
05-Jan-09
05-Feb-09
05-Mar-09
05-Apr-09
05-May-09
05-Jun-09
05-Jul-09
05-Aug-09
05-Sept-09
05-Jul-08
05-Aug-08
05-Sept-08
05-Oct-08
05-Nov-08
05-Dec-08
-2% loans by banks & financial institutions and further lowering of property
-4% prices. Most of the growth is due to higher sales in residential developments
and also in certain cases, due to sale of land which have resulted in windfall
Source: Confederation of Indian Industries
profits for certain companies in this quarter. In the stock markets, the stocks
of major listed real estate development companies saw a surge both in
terms of price and volumes. It is expected that the demand for commercial
real estate development will pick up across the country, in the next two
quarters both in terms of sales and leasing.
Sensex & Nifty
25,000 Major Real Estate Sales (In INR / In Million) Profits (In INR / In Million)
Companies in Q3 09 Q2 09 Q on Q Q3 09 Q2 09 Q on Q
India Change % Change %
20,000
DLF Limited 16,498.6 17,509.4 -6% 3,960 4,397.4 -10%
Unitech 5,094.9 5,149 -1% 1,778.6 1,577.7 13%
15,000
India Bulls 2,965.9 3,245.3 -9% 711.3 719 -1%
Sobha Developers 2,236 1,771 26% 275 127 117%
10,000
Peninsula Land 1,687.2 1,154 46% 728.7 328.5 122%
5,000 Parsvnath
1,684.7 1,137.2 48% 614.3 138.1 345%
Developers
Pheonix 263.9 247.9 6% 175.4 153.3 14%
0
13-Jan-09
13-Feb-09
13-Mar-09
13-Apr-09
13-May-09
13-Jun-09
13-Jul-09
13-Aug-09
13-Sept-09
13-Aug-07
13-Sept-07
13-Oct-07
13-Nov-07
13-Dec-07
13-Jan-08
13-Feb-08
13-Mar-08
13-Apr-08
13-May-08
13-Jun-08
13-Jul-08
13-Aug-08
13-Sept-08
13-Oct-08
13-Nov-08
13-Dec-08
Omaxe Limited 2,239.2 1,189.1 88% 225.1 149.7 50%
Mahindra
635.2 472.6 34% 173.4 104.2 66%
Lifespaces
Sensex Nifty Ananthraj 871.3 824.8 6% 712.7 689.3 3%
Source: Confederation of Indian Industries Ackruti City 782.9 409 91% 297.9 100.2 197%
Ansal Properties 1,768.4 1,367.4 29% 316 103.2 206%
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I4I
5. MUMBAI OFFICE MARKET
Borivali East
Borivali West
¤
¤
Sanjay Gandhi
National Park
Tulsi
Lake
Thane
Goregaon
v
¤
ya
hw
H ig
v
Airoli
s
p res
Ex
¤ Andheri East Ghansoli
v
Powai
n
¤ Powai
ter
Lake
Andheri West¤
Ville Parle ¤
¤ Ville Parle
East
Eas
West ¤ Vikhroli
¤ Koperkhairne
v
Airport ¤ Ghatkoper
]
Santacruz ¤ Chembur
East
v
Sanpada
¤
Bandra Bandra Kurla
] Vashi
v Turbhe
v
West Complex
Bandra ¤ Sion
]
i
Sea - Worl
East
Link
¤King Circle v
Nerul Kharghar
v
dr a
Dadar
¤ Dadar
East
Ban
West
W
WorliW
¤ Sewri Trombay v
W ¤ Parel New Panvel
Mahalaxmi W
Lower Parel
Tardeo W
W
Pedder Road
Breach X
Candy CST
X
Fort
Churchgate X
XEstate
Ballad
Nariman Point
X
Cuff Parade X Gateway of
India N
X
Colaba
a) Central Business b) Extended Central c) Alternate Central d) Secondary Business e) Periphery Business
District Business District Business District District (SBD) District (PBD)
Ballard
X Estate Dadar
W West Santacruz
] East ¤ Andheri ¤ Sewri Airoli
v Turbhe
v
Breach Candy
X W Parel
Lower (Kalina) ¤ Bandra West ¤ Sion Ghansoli
v Vashi
v
Churchgate
X Mahalaxmi
W Bandra
] Kurla ¤ Borivali ¤ Chembur Kharghar
v Thane
v
Complex Koperkhairne
v
Colaba
X W Road
Pedder ¤ Goregaon ¤ Ghatkoper
] East
Bandra
X Parade
Cuffe Tardeo
W ¤ Vile Parle ¤ Powai Nerul
v
Fort
X Worli
W ¤ King Circle ¤ Vikhroli New Panvel
v
Nariman Point
X ¤ Parel Sanpada
v
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I5I
6. CENTRAL BUSINESS DISTRICT (CBD)
Repositioning of old stock has started to happen
In the CBD area, no fresh suppy was added. However a few old
600 buildings are being refurbished and repositioned as the new Grade-
Rental Values (in Rs / sq.ft / month)
A supply. One such example is Express Towers in Nariman point,
located at walking distance from Trident – Oberoi Hotel. The letting
500 rates have now stabilised, though the owners have become more
flexible in offering long term leases (9 years). There is an
400 opportunistic demand from small and medium investors to own
offices between 3,000- 10,000 sq.ft. in the Nariman point/ Fort/ Cuffe
Parade area. However, no fresh supply is recorded in this area. There
300 is a demand for office space in excess of 50,000 sq.ft. from 4-5
corporates in the banking and financial services industry.
200
100
RENTALS OVER THE PAST 6 QUARTERS
Q2 Q3 Q4 Q1 Q2 Q3
0
Q2 Q3 Q4 Q1 Q2 Q3 2008 2008 2008 2009 2009 2009
2008 2008 2008 2009 2009 2009
Ballard Estate 450 400 300 275 250 250
Cuffe Parade 350 280 250 225 200 200
Nariman Point Ballard Estate
Fort 300 250 170 150 150 150
Cuffe Parade Fort Nariman Point 500 450 375 350 325 325
Source: BNP Paribas Real Estate, India
70,000
Capital Values (in Rs / sq.ft)
60,000
50,000
40,000
30,000
20,000
10,000
CAPITAL VALUES OVER THE PAST 6 QUARTERS
Q2 Q3 Q4 Q1 Q2 Q3
— 2008 2008 2008 2009 2009 2009
Q2 Q3 Q4 Q1 Q2 Q3
2008 2008 2008 2009 2009 2009 Ballard Estate 45,000 42,000 38,000 35,000 35,000 35,000
Cuffe Parade 35,000 32,000 32,000 30,000 30,000 30,000
Nariman Point Ballard Estate
Fort 30,000 27,500 25,000 22,500 22,500 22,500
Cuffe Parade Fort Nariman Point 60,000 50,000 45,000 40,000 40,000 40,000
Source: BNP Paribas Real Estate, India
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I6I
7. EXTENDED CENTRAL BUSINESS DISTRICT
(ECBD)
Aggressively competing with old and weary CBD
stock
The new and modern supply, especially in Lower Parel is creating
new level of interest from corporate occupiers mostly in the banking
and financial services industry. With aggressive price positioning,
superior and modern building quality, the area is taking up major
tenants from CBD area of Nariman point. There is fresh supply to the
tune of 2 million. sq.ft which will come up by end of 2009 and
600 therefore will keep the letting and selling rates on a stable mode.
Rental Values (in Rs / sq.ft / month)
There is good amount of enquires from investors, to buy properties in
500 this micro market, however there is very less stock available for sale.
The area was expected to record some large ticket transactions of
upwards of 50,000 sq.ft. from 3-4 tenants, which has got postponed
400 to next quarter. We expect that this area will witness some major
letting transactions from corporate occupiers in the next six months.
300
200
RENTALS OVER THE PAST 6 QUARTERS
100 Q2 Q3 Q4 Q1 Q2 Q3
2008 2008 2008 2009 2009 2009
0 Lower Parel 300 280 250 180 180 180
Q2 Q3 Q4 Q1 Q2 Q3
2008 2008 2008 2009 2009 2009 Mahalaxmi 225 225 200 150 150 150
Worli Prabhadevi Prabhadevi 325 325 280 250 250 250
Lower Parel Mahalaxmi Worli 450 400 375 300 300 300
Source: BNP Paribas Real Estate, India
60,000
Capital Values (in Rs / sq.ft)
50,000
40,000
30,000
20,000
CAPITAL VALUES OVER THE PAST 6 QUARTERS
10,000
Q2 Q3 Q4 Q1 Q2 Q3
2008 2008 2008 2009 2009 2009
—
Q2 Q3 Q4 Q1 Q2 Q3 Lower Parel 30,000 28,000 25,000 18,000 18,000 18,000
2008 2008 2008 2009 2009 2009 Mahalaxmi 22,500 22,500 20,000 15,000 15,000 15,000
Worli Prabhadevi Prabhadevi 32,500 32,500 28,000 25,000 25,000 25,000
Lower Parel Mahalaxmi Worli 45,000 40,000 37,500 30,000 30,000 30,000
Source: BNP Paribas Real Estate, India
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I7I
8. ALTERNATE CENTRAL BUSINESS DISTRICT
(ALTERNATE CBD)
Take up nudged marginally higher
There is a marginal increase in leasing activity and investment
activity in Bandra Kurla complex as some medium size lettings
(15,000-25000 sq.ft.) have been recorded. The ready office supply
availability is levelling off and we foresee a shortage of ready space
in the next 6 months. However, there are unconfirmed news that
Bharat Diamond bourse campus, which consists of 8 buildings and
about 2,500 offices and is ready will be available for occupation by
500 end of December. This will change the supply dynamics in this area
and will put pressure on letting rates. The area has also witnessed
450 some investment activity, as banks like ICICI Bank are reported to
Rental Values (in Rs / sq.ft / month)
400 have sold some of their properties in this area. There are also reports
that Kotak Bank, who acquired a property in Bandra Kurla complex is
350 planning to move its corporate office in this area. The Standard
300 Chartered bank who bought approx. 150,000 sq.ft. is also expected to
move in this area. Further, the immediate suburbs of Kurla and
250 Ghatkopar , where a lot of campus style office developments are
200 taking place will aggressively compete on price with the Bandra
Kurla complex stock.
150
100
RENTALS OVER THE PAST 6 QUARTERS
50
Q2 Q3 Q4 Q1 Q2 Q3
0 2008 2008 2008 2009 2009 2009
Q2 Q3 Q4 Q1 Q2 Q3
2008 2008 2008 2009 2009 2009 Bandra - Kurla 450 350 350 250 250 250
Complex
Bandra - Kurla Complex
Kalina Bandra East 250 230 225 175 175 175
Bandra East Kalina 300 275 250 200 200 200
Source: BNP Paribas Real Estate, India
50,000
45,000
Capital Values (in Rs / sq.ft)
40,000
35,000
30,000
25,000
20,000
15,000 CAPITAL VALUES OVER THE PAST 6 QUARTERS
10,000 Q2 Q3 Q4 Q1 Q2 Q3
5,000 2008 2008 2008 2009 2009 2009
— Bandra - Kurla 45,000 35,000 35,000 25,000 25,000 25,000
Q2 Q3 Q4 Q1 Q2 Q3 Complex
2008 2008 2008 2009 2009 2009
Bandra East 25,000 23,000 22,500 17,500 17,500 17,500
Bandra - Kurla Complex
Kalina Kalina 30,000 27,500 25,000 20,000 20,000 20,000
Source: BNP Paribas Real Estate, India
Bandra East
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I8I
9. SECONDARY BUSINESS DISTRICT (SBD)
Letting activity has increased, but fresh supply is
rapidly increasing too
This area is witnessing leasing activity especially in Powai and LBS
marg area. A lot of large format letting ( 50,000 sq.ft.-200,000 sq.ft. )
has happened in the area. However the supply is increasing rapidly
250 and increasing the demand –supply gap further. The ongoing work of
Rental Values (in Rs / sq.ft / month)
Metro line in the Andheri - Versova Airport link, is creating lot of
traffic pandemonium due to which the demand from corporate
200 occupiers has significantly dipped especially in the Andheri east
area. There is good demand from corporate investor to buy
properties located on western express highway especially between
150 Andheri and Goregaon.
100
RENTALS OVER THE PAST 6 QUARTERS
Q2 Q3 Q4 Q1 Q2 Q3
50 2008 2008 2008 2009 2009 2009
Andheri E 175 150 130 120 120 120
0
Q2 Q3 Q4 Q1 Q2 Q3 Andheri W 150 130 120 110 110 110
2008 2008 2008 2009 2009 2009 Borivali 60 60 50 50 50 50
Vile Parle Malad Malad 110 110 100 90 90 90
Andheri East Vikhroli Powai 130 130 100 90 90 90
Vikhroli 95 95 80 65 65 65
Andheri West Borivali
Powai Vile Parle 175 160 160 120 120 120
Source: BNP Paribas Real Estate, India
25,000
Capital Values (in Rs / sq.ft)
20,000
15,000
10,000 CAPITAL VALUES OVER THE PAST 6 QUARTERS
Q2 Q3 Q4 Q1 Q2 Q3
5,000 2008 2008 2008 2009 2009 2009
Andheri E 17,500 15,000 13,000 12,000 12,000 12,000
— Andheri W 15,000 13,000 12,000 11,000 11,000 11,000
Q2 Q3 Q4 Q1 Q2 Q3 Borivali 6,000 6,000 5,000 5,000 5,000 5,000
2008 2008 2008 2009 2009 2009
Malad 11,000 11,000 10,000 9,000 9,000 9,000
Vile Parle Malad
Powai 13,000 13,000 10,000 9,000 9,000 9,000
Andheri East Vikhroli
Vikhroli 9,500 9,500 8,000 6,500 6,500 6,500
Andheri West Borivali
Vile Parle 17,500 16,000 16,000 12,000 12,000 12,000
Powai
Source: BNP Paribas Real Estate, India
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I9I
10. PERIPHERY BUSINESS DISTRICT (PBD)
Demand from IT back office is on the rise
There is some demand witnessed from IT back offices in this
area. However this has not been converted into occupation as
of now. There is a lot of supply which is getting added in the
Rental Values (in Rs / sq.ft / month)
80
area especially in Thane area as lot of industrial estates are
70 being converted and repositioned as low cost occupation
60 structures. The liquidity issues with the developers are still
very evident in this area and this may result in delay of certain
50 key IT developments in this area.
40
30
20
RENTALS OVER THE PAST 6 QUARTERS
Q2 Q3 Q4 Q1 Q2 Q3
10 2008 2008 2008 2009 2009 2009
0
Q2 Q3 Q4 Q1 Q2 Q3 Airoli 45 40 35 35 35 35
2008 2008 2008 2009 2009 2009 Thane 50 45 40 40 40 40
Vashi Thane Airoli Vashi 75 75 70 65 60 60
Source: BNP Paribas Real Estate, India
8,000
Capital Values (in Rs / sq.ft)
7,000
6,000
5,000
4,000
3,000
CAPITAL VALUES OVER THE PAST 6 QUARTERS
2,000
Q2 Q3 Q4 Q1 Q2 Q3
1,000 2008 2008 2008 2009 2009 2009
— Airoli 4,500 4,000 3,500 3,500 3,500 3,500
Q2 Q3 Q4 Q1 Q2 Q3
2008 2008 2008 2009 2009 2009 Thane 5,000 4,500 4,000 4,000 4,000 4,000
Vashi 7,500 7,500 7,000 6,500 6,000 6,000
Vashi Thane Airoli
Source: BNP Paribas Real Estate, India
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I10I
11. PRIME RENTS
Q3 2009
Region Rent Q on Q
INR/ sq.ft/ month Change
Ballard Estate 250 0% Central Business District (CBD)
Cuffe Parade 200 0%
Fort 150 0%
Nariman Point 325 0%
Q3 2009
Region Rent Q on Q
INR/ sq.ft/ month Change
Lower Parel 180 0%
Extended Central Business
Mahalaxmi 150 0% District (ECBD)
Prabhadevi 250 0%
Worli 300 0%
Q3 2009
Region Rent Q on Q
INR/ sq.ft/ month Change
Bandra - Kurla
Alternate Central Business
250 0% District (Alternate CBD)
Complex
Bandra East 175 0%
Kalina 200 0%
Q3 2009
Region Rent Q on Q
INR/ sq.ft/ month Change
Andheri E 120 0%
Andheri W 110 0%
Borivali 50 0%
Secondary Business District (SBD)
Malad 90 0%
Powai 90 0%
Vikhroli 65 0%
Vile Parle 120 0%
Q3 2009
Region Rent Q on Q
INR/ sq.ft/ month Change
Airoli 35 0% Periphery Business District (PBD)
Thane 40 0%
Vashi 60 0%
Source: BNP Paribas Real Estate, India
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I11I
12. CAPITAL VALUES
CAPITAL Q3 2009
Region INR / sq.ft Q on Q
Change
Ballard Estate 35,000 0% Central Business District (CBD)
Cuffe Parade 30,000 0%
Fort 22,500 0%
Nariman Point 40,000 0%
CAPITAL Q3 2009
Region INR / sq.ft Q on Q
Change
Lower Parel 18,000 0%
Extended Central Business
Mahalaxmi 15,000 0% District (ECBD)
Prabhadevi 25,000 0%
Worli 30,000 0%
CAPITAL Q3 2009
Region INR / sq.ft Q on Q
Change
Bandra - Kurla
Alternate Central Business
25,000 0% District (Alternate CBD)
Complex
Bandra East 17,500 0%
Kalina 20,000 0%
CAPITAL Q3 2009
Region INR / sq.ft Q on Q
Change
Andheri E 12,000 0%
Andheri W 11,000 0%
Borivali 5,000 0%
Secondary Business District (SBD)
Malad 9,000 0%
Powai 9,000 0%
Vikhroli 6,500 0%
Vile Parle 12,000 0%
CAPITAL Q3 2009
Region INR / sq.ft Q on Q
Change
Airoli 3,500 0% Periphery Business District (PBD)
Thane 4,000 0%
Vashi 6,000 0%
Source: BNP Paribas Real Estate, India
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I12I
13. KEY TRANSACTIONS
Q3 2009
Building Tenant Space Type Location
(in sq.ft)
1 India Bulls Centre Marsh India 25,000 Extended CBD Lower Parel
Lodha, I think Techno Share Khan 40,000 SBD Kanjur marg
Park
Nirlon Knowledge Morgan Stanley 150,000 SBD Goregaon East
Park
Kensington Wipro 100,000 SBD Powai
Hiranandani JP Morgan 215,000 SBD Powai
Business Park
Free Press House Morgan Stanley 5,000 CBD Nariman Point
Nariman Bhawan Axis Bank 10,000 CBD Nariman Point
Lodha Excelus KPMG 1,22,000 Extended CBD Mahalaxmi
MMTC House Trans Union 3,000 Alternate CBD Bandra Kurla Complex
Vibgyor Towers BASF 20,000 Alternate CBD Bandra Kurla Complex
JPMC Tower (earlier
JP Morgan 1,44,000 Alternate CBD Kalina
known as IRIS)
Platina SAP Labs 15,000 Alternate CBD Bandra Kurla Complex
Platina Wyeth 27,000 Alternate CBD Bandra Kurla Complex
Techniplex Etisalat 1,20,000 SBD Goregaon West
Leela Business Park Milward Brown 11,000 SBD Andheri East
Kalpataru Square Varian Medical System 10,500 SBD Andheri East
Kalpataru Square Ingersoll Rand 14,621 SBD Andheri East
Solaris INX Media 15,000 SBD Andheri East
Hiranandani
Credit Suisse 59,000 SBD Powai
Business Park
Nirlon Knowledge LRN Technology 24,675 SBD Malad
Delphi Building Kellog India 14,100 SBD Powai
Gigaspace Capita 40,000 PBD Navi Mumbai
Source: BNP Paribas Real Estate, India
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I13I
14. KEY PROJECTS
New Supply – Year 2009
Building Type of Location Location Space (in sq.ft.) Completion date
( expected )
Lodha Excelus Extended CBD Lower Parel 4,00,000 Q4 2009
One India Bulls Centre Extended CBD Lower Parel 7,00,000 Q4 2009
India Bulls Financial
Extended CBD Lower Parel 5,00,000 Q4 2009
Centre
Bandra Kurla
Cresenzo Alternate CBD 5,77,000 Q4 2009
Complex
Ackruti Iris Alternate CBD Andheri East 6,00,000 Q4 2009
Bandra Kurla
Ackruti Gold Alternate CBD 66,000 Q4 2009
Complex
Urbania Alternate CBD Ghatkopar 90,000 Q4 2009
Western Edge SBD Borivali 4,50,000 Q4 2009
Rustomjee Natraj SBD Andheri East 2,86,000 Q3 2009
Silver Uthopia SBD Andheri East 4,00,000 Q3 2009
Rustomjee Aspire SBD Sion 1,24,000 Q4 2009
IT Park, Ajmera SBD Andheri East 11,00,000 Q4 2009
R Tech Park SBD Goregaon 4,00,000 Q3 2009
City Park SBD Marol 1,40,000 Q4 2009
The Chambers SBD Vile Parle 1,00,000 Q4 2009
Universal Majestic SBD Chembur 5,00,000 Q4 2009
Hiranadani Knowledge SBD Powai 3,00,000 Q3 2009
Park
Supreme Chambers SBD Andheri West 2,40,000 Q3 2009
Andheri East
Ackruti Star SBD 4,00,000 Q4 2009
(MIDC)
HCC 247 IT Park SBD Vikhroli 18,00,000 Ready
Corporate Tech Park PBD Thane 10,60,000 Ready
Asher IT Park PBD Thane 7,00,000 Q4 2009
Reliable Tech Park PBD Airoli 10,00,000 Q4 2009
Source: BNP Paribas Real Estate, India
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I14I
15. GLOSSARY
Q3: Quarter 3 of the financial year NRI: Non Resident Indian.
Absorption: Occupied Stock (n) – Occupied Stock (n-1); Where “n” is the specified New: Building built within the last 5 years.
period (quarter, year etc.) Major Refurbishment: Building which has undergone structural alteration less
Bare Shell: Premises consisting of basic structure with lifts, power supply to than 5 years ago, subject to planning permission.
junction box, water supply line, toilets Recent: Building less than 10 years old.
BPO: Business Process Outsourcing Renovated: Building which has undergone renovation work not requiring for
BUA: Built up area planning permission less than 5 years ago.
CBD: Central Business District Modern: High-performance building over 10 years old.
ECBD: Extended Central Business District Old: Low-performance building over 10 years old.
ACBD: Alternate Central Business District CCI (Cost of construction index): Index that makes quarterly measurements of
SBD: Secondary Business District construction prices for new house building. It is the price after VAT paid by the
owner to construction companies. It excludes land-related prices and costs (site
PBD: Periphery Business District development, special foundations, etc.), fees and financial costs.
Completed Stock: Either the building has received occupancy certificate or the Demand: A search for premises expressed to BNP Paribas Real Estate. The
client has moved in and occupied space and started working in a particular analysis pertains only to the flow of new demand expressed.
premises
For the occupier: Operation undertaken by an occupier for its own purposes.
DU: Dwelling Unit
New Supply: Any new building and/or heavily refurbished building that adds to
EPIP: Export Promotion Industrial Park the existing stocks. These are analysed according to progress.
FAR: Floor Area Ratio (BUA/ Plot Area) Completed new supply: Buildings on which construction work is finished.
Grade A: Space Office Space with efficiency in excess of 75%, floor plate in excess Under construction: Buildings on which construction has effectively begun. Prior
of 15,000 sq. ft., Car Parking ratio of atleast 1 per 1000 sq. ft., Floor-to-ceiling demolition work is not taken into account.
height in excess of 3.75 m, Power provision of 1.25KVA per 100 sq. ft. with 100%
power-backup wherever applicable and professionally managed facilities Planning permission granted: Authorisation to build obtained, generally booked
after settlement of third party claims.
Ground Coverage: It is the total covered area on ground by the built component
and is expressed as a percentage of the plot area Planning permission submitted: Planning permission requested, being
processed.
Hard Option: Real estate space reserved by the lessee for future occupation
within a particular time frame and at a pre-decided rental Pre-letting: Transaction by an occupier more than 6 months before the delivery of
the building.
INR: Indian National Rupees
Headline rent: Annual rent per square meter, featured on the lease, and
Rs: Rupees expressed excluding taxes and charges. Does not include attached premises such
PBD: Peripheral Business District as parking areas, archives, staff canteens, etc. If the rental is progressive, the
value applied is the average for the first 3 years or the fixed term of the lease.
Pre-lease: Space committed for lease before completion of construction
Average headline rent: Weighted average of rented area. The average featured is
Speculative Stock: The stock which can be leased and excludes Built-to-Suit a moving average over 3 quarters, to smooth out the changes.
(BTS) and Campus facilities.
Underlying rent: Annual rent per square meter expressed free of tax and charges
Stock: Cumulative Supply and excluding advantages agreed by the owners (rent incentive building works,
Supply: New construction in a particular specified period etc).
Tier I Cities: NCR, Mumbai and Bangalore Prime rents: Represents the top headline rent (excluding non significant
Tier II Cities: Chennai, Hyderabad, Pune, Kolkata transactions) for an office unit:- of standard size, of the highest quality and
specification, in the best location in each market.
Transaction Volumes: Total number of transaction in a particular specified period
Top rent: Represents the top headline rent for an office unit. It is not necessarily a
Vacancy: Total vacant space in the completed stock prime rent.
Warm Shell: Premises consisting of power backup, high side A.C., common area fit Second hand premises: Premises that have been previously occupied by an
outs and fitted out toilets occupier for vacant for more than 5 years.
Q on Q: Quarter on Quarter Renovated: Premises that have been renovated for the new occupier.
y-o-y: year-on-year (All growth figures in this report are y-o-y unless otherwise Very good condition: High-performance premises of high quality.
mentioned
Existing state of repair: Low-performance premises that can be rented as they
IT: Information Technology are.
ITES: Information Technology Enabled Services (includes various services To be renovated: Low performance premises that need renovation.
ranging from call centres, claims processing, medical transcription, e-CRM, SCM
to back-office operations such as accounting, data processing, and data mining) Supply available within 1 year: All premises and buildings available within 1 year
including the supply available immediately, new supply that has not been pre-let
NCR: National Capital Region (includes urban agglomeration of Delhi, Gurgaon, and second hand supply that will be vacated definitively (notable terminated
Faridabad, Noida, Gaziabad etc.) leases).
ORR: Outer Ring Road Take-up: Rental or sale of a property asset, finalised by the signature of a lease or
Repo Rate: Rate that an eligible depository institution (such as a bank) is charged a bill of sale including turnkey transactions and owner-occupier. The transaction
to borrow short term funds directly from the central bank through the discount is only taken into account once any existing conditional clauses have been lifted.
window Vacancy rate: Ration measuring the relationship between the supply
Reverse Repo Rate: Interest rate that a bank earns for lending money to the immediately available and the existing stock.
Reserve Bank of India in exchange for government securities
SEC A, B, C & D Socio: Economic Classification; SEC A represents the highest BNP Paribas Real Estate cannot be held responsible if, despites its best efforts,
propensity to spend and SEC D represents the lowest propensity to spend. the information contained in the present report turns out to be inaccurate or
Sq.ft: Square Feet incomplete. This report is released by BNP Paribas Real Estate and the
information in it is dedicated to the exclusive use of its clients. The report and the
Stamp Duty: Form of tax charged on instruments (written documents) requiring a information contained in it may not be copied or reproduced without prior
physical stamp (for government legality) to be attached to or impressed. permission from BNP Paribas Real Estate.
CITY REPORT
MUMBAI OFFICE MARKET - Q3 2009 I15I
16. LOCATIONS ALLIANCES
BAHRAIN ABUDHABI ALBANIA JAPAN RUSSIA
Bahrain Financial Harbour Al Bateen Area Danos RISA Partners Astera
West Tower Plot No. 144, W-11 Boulevard Deshmoret e Kombit 5F Akasaka Intercity 1-11-44 10, b.2 Nikolskaya Str.
INDIA 16th Floor New Al Bateen Municipality Twin Towers - Tower 2 Akasaka, Minato-ku Moscow, 109012
P.O. Box 5253 Street 32 11th Floor 107-0052 Tokyo Tel/Fax: +7-495-925 00 05
Bangalore Manama P.O. Box 2742 Tirana Tel: +81-3-5573 8011
403, The Estate, Tel: +971-505 573 055 Abu Dhabi, UAE Tel: +355-4-2280488 Fax: +81-3-5573 8012 SERBIA
121, Dickenson Road, Fax: +973-17 536 506 Tel: +971-505 573 055 Fax: +355-4-2280192 Danos
Fax: +971-44 257 817
Bangalore - 560 042 BELGIUM
NETHERLANDS 6, Vladimira Popovica Street
AUSTRIA Holland Realty Partners Belgrade 11000
Tel: +91 80 4050 8888 Blue Tower JERSEY
Dr. Max Huber & Partner J.J. Viottastraat 33, 1071 JP Tel: +381-11-2600 603
Fax: +91 80 4050 8899 Avenue Louise 326 4th Floor, Conway House
Dr. Karl-Lueger-Platz 5 Amsterdam, Fax: +381-11-2601 571
B14 Louizalaan Conway Street
1050 Brussels St Helier 1010 Wien Postbus 9669
Contact: Anuj Nautiyal Tel: +32-2-646 49 49 Jersey Je2 3NT Tel: +43-1-513 29 39 0 1006 GD Amsterdam UKRAINE
Fax: +32-2-646 46 50 Tel: +44-15 34-62 90 01 Fax: +43-1-513 29 39 14 Tel: +31-20-305 97 20 Astera
anuj.nautiyal@asia.bnpparibas.com Fax: +31-20-305 97 21 2a Konstantinovskaya Street
Fax: +44-15 34-62 90 11
DUBAI BULGARIA 04071, Kiev
Emmar Square LUXEMBOURG Danos NORTHERN IRELAND Tel: +38-044-501 50 10
Mumbai
Building No. 1, 7th Floor EBBC, Route de Trèves 6 28, Hristo Botev Boulevard Whelan Property Consultants Fax: +38-044-501 50 11
704, Level 7, MMTC House, C-22, P.O. Box 7233 Bloc D Sofia 44 Upper Arthur Street
Bandra Kurla Complex, Bandra (E), Dubai, UAE 2633 Senningerberg Tel: +359-2-9532314 Belfast Bt1 4GJ USA
Mumbai - 400 051 Tel: +971-505 573 055 Tel: +352-34 94 84 Fax: +359-2-9532399 Tel: +44-28-9044 1000 Cresa Partners
Fax: +971-44 257 817 Fax: +352-34 94 73 Fax: +44-28-9033 2266 100 Park Avenue, 24th Floor
Tel: +91 22 6138 8088 CANADA New York, NY 10017
Fax: +91 22 6138 8089 FRANCE ROMANIA Cresa Partners POLAND Tel: +1-212-758 3131
13 boulevard du Fort de Vaux Union International Center Tel: +1-212-758 3131 Kancelaria Brochocki Fax: +1-212-980 1977
75017 Paris 11 Ion Campineanu Street Fax: +1-212-980 1977 Krakowskie Przedmiescie 14
Contact: Raja Kaushal Tel: +33-1-55 65 20 04 Sector 1 00325 Warsaw
raja.kaushal@asia.bnpparibas.com Fax: +33-1-55 65 20 00 Bucharest 010031 USA Tel: +48-22-826 14 14
Tel: +40-21-312 7000
787 Seventh Avenue Fax: +48-22-828 15 45
GERMANY Fax: +40-21-312 7001
31st Floor
Delhi Goetheplatz 4
New York City, NY 10019 PORTUGAL
Level 4, Wing B, Statesman House, 60311 Frankfurt am Main SPAIN
Tel: +49-69-2 98 99 0 María de Molina, 54 Tel: +1-917-472 4970 Fenalu
Barakhamba Road, Fax: +49-69-29 29 14 28006 Madrid Fax: +1-212-471 8100 Av. Eng. Duarte Pacheco
New Delhi - 110 001 Tel: +34-91-454 96 00 Torre 2
IRELAND Fax: +34-91-454 97 65 GREECE Piso 10, Sala 6/7
Tel: +91 11 3044 6406 Danos 1070-102 Lisboa
40 Fitzwilliam Place
Fax: +91 11 3044 6507 Dublin 2 UNITED KINGDOM 1, Eratosthenous Str. Tel: +351-21-3833106
Tel: +353-1-66 11 233 90 Chancery Lane 11635 Athens Fax: +351-21-3833107
Contact: Arjun S. Harsh Fax: +353-1-67 89 981 London WC2A 1EU Tel: +30-210 7 567 567
Tel: +44-20-7338 4000 Fax: +30-210 7 567 267
arjun.harsh@asia.bnpparibas.com ITALY Fax: +44-20-7430 2628
Corsa Italia, 15/A
20122 Milan USA
Tel: +39-02-58 33 141 787 Seventh Avenue
Fax: +39-02-58 33 14 39 31st Floor
New York City, NY 10019
Tel: +1-917-472 4970
Fax: +1-212-471 8100
www.realestate.bnpparibas.com
