City Report - Delhi Office Market Q3 2010
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Transcript of City Report - Delhi Office Market Q3 2010
CITY REPORTDELHI OFFICE MARKET
Q3 2010
BNP Paribas Real EstateAll the buildings blocks
In India our specialists bring you our expertise in Transaction Advisory, Valuation, Consulting.With our international scope and on-the-ground presence, you’ll find the perfect partner that can ensure thesuccess of your real estate project. With BNP Paribas Real Estate, all the pieces come together.
Your contact in India: Bangalore: +91 80 4030 0334 - Mumbai: +91 22 6138 8088 - Delhi: +91 11 4959 [email protected]
www.realestate.bnpparibas.com
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BNP Paribas Real Estate and Infrastructure Advisory Services Pvt. Ltd
Summary p. 4
Macroeconomic Context p. 5
Delhi Map p. 6
Central Business District (CBD) p. 7
Alternate Central Business District (Alternate CBD) p. 8
Secondary Business District (SBD) p. 9
Periphery Business District (PBD) p. 10
Rental Values p. 11
Glossary
p. 13Key Transactions
p. 14Key Projects
p. 15
CONTENTS
Capital Values p. 12
CITY REPORTDELHI OFFICE MARKET - Q3 2010
4I I
SUMMARY
The Q3 of 2010 has shown increase in absorption for both commercial and IT real estate space in the NCR region of Delhi. The overall demand for commercial office space has also improved and will show improvement in the Q4 2010 as many corporate plan to finalize the space before the end of the year. The CBD area has a vacancy level of 5% compared to 12% of Q1 2010 for Grade A projects. This has been mainly due to absorption from Banking and Financial services.
There is a demand from large business group to move from CBD to Alternate CBD of Jasola and Nehru Place. Similarly, there is a renewed interest from investors to invest in these areas as well.
The PBD of Gurgaon and Noida witnessed increased level of activity both in terms of sale and leasing. Both these districts have shown availability of high quality projects at affordable rentals. Even though the absorption has improved in Gurgaon and Noida, the rental values will remain stable in the near future , due to excessive supply.
While the existing stock is unevenly distributed between the two markets, the future scenario shows a more even distribution of stock. Prospective tenants will have more than 6 million sq ft of future SEZ office space in Gurgaon and Noida combined - 3.3 million sq ft in Gurgaon and 2.7 million sq ft in Noida.
Increase in absorption of commercial / IT space
CITY REPORTDELHI OFFICE MARKET - Q3 2010
5I ICITY REPORTDELHI OFFICE MARKET - Q3 2010
Repo Reverse Repo
Repo & Reverse Repo Rate7
6
3
Perc
ent
1
SLR CRR
CRR & SLR30
20
10
5
Perc
ent
0
May
-08
Jul-
08
Sep-
08
Nov
-08
Jan-
09
Mar
-09
May
-09
Jul-
09
Sep-
09
Mar
-08
Nov
-09
Jan-
10
Mar
-10
Gross Domestic Product (GDP)
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
9.30%
8.80%
8.80%
7.90%7.60%
5.30%
5.80%
6.10%
Q32007
Q42007
Q32009
7.90%
Q42009
6.00%
Wholesale Price Index (WPI)
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
Apr-
06
Jul-
06
Oct-
06
Jan-
07
Apr-
07
Jul-
07
Oct-
07
Jan-
08
Apr-
08
Jul-
08
Oct-
08
Jan-
09
Apr-
09
Jul-
09
Oct-
09
Jan-
10
Source: Confederation of Indian Industries
Q12010
8.60%
Apr-
10
May
-10
Jul-
10
22-M
ay-0
9
22-J
un-0
9
23-J
ul-0
923
-Aug
-09
23-S
ep-0
9
24-O
ct-0
9
24-N
ov-0
9
25-D
ec-0
9
25-J
an-1
0
25-F
eb-1
0
19-M
ar-1
0
20-A
pr-1
0
Sep-
10
15
25
20-M
ay-1
0
20-J
un-1
0
27-J
ul-1
020
-Aug
-10
16-S
ep-1
0
2
4
5
0
Jul-
10
Q22010
8.80%
2-Ju
l-10
DLF Limited 20,285 17% 4,110 2%
Major Real EstateCompanies in
India
Sales (In INR / In million) Profits (In INR / In million)
Q3 2010 Q2 2010Q on Q
Change % Q3 2010 Q2 2010Q on Q
Change %
Unitech 8,286 -22% 1,800 -3%
India Bulls 4,337 25% 1,336 31%Sobha Developers 3,156 35% 343 72%
Peninsula Land 1,483 -17% 500 28%ParsvnathDevelopers 2,528 -23% 318 82%
Pheonix 404 10% 183 21%
Omaxe Limited 2,529 40% 217 69%
MahindraLifespace 679 31% 145 70%
Anantraj 1,034 28% 459 5%
Ackruti City 1,765 -8% 421 31%
Ansal Properties 2,508 27% 369 -38%
5,414 1,745
4,257 589
1,226 638
443
890 247
1,624 550
3,197 228
221
23,690 4,186
3,544 368
MACROECONOMIC CONTEXTThe Central Bank takes a more sophisticated approach: maintains status quo on CRR & SLR
1.329 480
6,445 1,740
1,955 579
The Reserve Bank's Review of Monetary Policy on July 27, 2010 expressed concerns over the global outlook. Indicators of economic activity in advanced economies continue to suggest that the recovery is slowing and that the second half of 2010 will post slower growth than the first, although expectations have generally not been revised downwards since end-July.
Under the Liquidity Adjustment Facility (LAF), the RBI has increased the repo rate by 25 basis points from 5.75% to 6.0% and also hiked the reverse repo rate by 50 basis points from 4.5% to 5.0% with immediate effect. This will help maintain financial conditions conducive to sustaining growth, according to the RBI.
India’s GDP during the quarter starting July 2010, rose to 8.8%. Although some of this is attributable to a favourable base effect, the growth rate indicates that the recovery is consolidating and the economy is rapidly converging to its trend rate of growth. Inflation remains the dominant concern in macroeconomic management. The main priority of the Reserve Bank is to curb the ongoing inflation, which peaked at 11% in the month of August. Interest rates have been increased by the banks to contain the inflation, but it could slow down the growth of the Indian economy in the coming months. But even though there has been a rise in the interest rates, there hasn't been much change in the distribution of loans, the Indian customer is hardly affected with the hiked interest rates. Overall, even as the global environment continues to be a cause for caution, the big picture has not worsened significantly since July.
India has replaced the US as the second most important Foreign Directive Investment (FDI) destination for transnational corporations during 2010-2012, according to a survey conducted UNCTAD. In its latest 'World Investment Prospects Survey 2010-2012', the United Nations Conference on Trade and Development said transnational corporations remain buoyant about investment prospects in China, India and Brazil. According to the survey, India is the most important FDI destination next only to China.
DELHI MAP
6I I
Gran
d Tr
unk
Rd
SwarnaJayanthi Park Ba
dli R
d
NH-10
NH-10
Ring Rd
RajaGarden
DDA ParkNihal Vihar
VishnuGarden
Oute
r Ri
ng R
d
RajouriGarden
Shivaji Marg
PursaForest
Patel Rd
Jail Rd
Cariappa Marg
Palam Rd
Mall Rd205 Delhi Rd
Shivaji Marg
Mehrauli Najafgarh Rd
Mehrauli N
ajafgarh Rd
Palam Vihar Rd
Railway Rd
GURGAONBasai Rd
Pataudi Rd
Delh
i Rd
Mehrauli Rd
Old
Jaipu
r Rd
Gurga
on R
d
Mehrauli Najafgarh Rd
Gurg
aon
Rd
Rajokri
Mehrauli Gurgaon Rd
DLF GolfCourse
LeisureValley
Dera
dR rupratahhC niaM
RajpurKhurd
graM tarvunA
Hauz KhasDeer Park
Afri
ca A
ve
Old Jaipur
Rd
Palam
Indira GandhiInternationalAirport
graM itnayaJ anrawS
Army GolfCourse
Lodhi Rd
Delhi GolfCourse
Central RidgeReserved Forest
GolMarket
JahanpanahCity Forest
Mathura Rd
Road No. 13A
Mehrauli Badarpur Rd
Badarpur
YamunaRiver
Mathura Rd
Old Sher Shah Rd
graM ilaparmA
Greater Noida
Dodri Rd
Jain Rd
NOIDA
Dadri Rd
Noida Link Rd
Hapur BypassNH-24graMVikas
Shahibabad
dR rupizahG
ShahdaraRaj Bagh
RajendraNagar
Grand Trunk Rdk RdinL
Ghaziabad
HindanAirbase
ChandniChowk
Mahatm
a Gandhi Marg
Karnal Rd
dR gniR retuO
Dr. K. B. Hegdewar Marg
Grand Trunk Rd
St. N
agar
Mar
g
Grand Trun dk RGrand Trunk Rd
NH-24
NH-58
Rani Jhansi Marg
NH-91Najafgarh Rd
dR noagruG
Bagh
pat R
d
Sharanpur RdVivekanand Marg Loni Rd
Ring Rd
YamunaRiver
daoR gniR reppUCh
andi
garh
Jaip
ur
Agra
Aligarh
Agra
Rohtak
DomesticAirport
Indraprasth
23
6
1
23
4
8
9
10
11
12
1
23
4
Mee
rut
Madan Mohan Malviya Marg
Faridabad
GreaterNoida
NH - 8
7 6
7
Ma Anandam
ayee Marg
5
4
5
1
45
7
8
5
QutubMinar
6
1(a)
1(b)
Dwarka
North DelhiRidge Forest
6
DELHI
Manesar
1
1(c)1(d)
1(e)
1(f)
2
3
3(a)
3(b)
3(c)3(d)
3(e)
Major Roads
Railway Line
Water Bodies
Green AreaMetro
Central BusinessDistrict
Alternate Business District
Central
1. Barakhamba Road2. Connaught Place3. ITO4. Janpath5. Kasturba Gandhi
Marg6. Khan Market7. Parliament Street8. Tolstoy Marg
Secondary BusinessDistrict
Periphery BusinessDistrict
1. Bikajicama Place2. Jasola Vihar3. Munirka4. Nehru Place5. Qutub Institutional
Area6. Saket7. Vasant Kunj
1. 2. Jhandewalan3. Karkar Duma4. Karol bagh5. Okhla Industrial Estate6. Okhla Industrial Area-I7. Okhla Industrial Area-II8. Pitam Pura9. Rajendra nagar new10. Rohini11. Shahdara12. Wazirpur Industrial Area
Janakpuri 1. Gurgaon 1 (a). DLF Cyber City 1 (b). Golf Course Road 1 (c). Institutional
Sectors / Sushant Lok 1 (d). MG Road 1 (e). Udyog Vihar / Nh8 1 (f). Sohna Road2. Manesar
NAirport
CITY REPORTDELHI OFFICE MARKET - Q3 2010
3. Noida 3 (a). Expressway 3 (b). Sector 58 3 (c). Sector 62 3 (d). Sector 63 3 (e). Sector 644. Faridabad5. Ghaziabad
7I I
CENTRAL BUSINESS DISTRICT (CBD)
There has been good absorption of from the Banking and Financial services sector. This
has led to very low vacancy in the . The rentals in Grade B buildings have also appreciated by 10 – 15% but overall the average rentals have not seen any major increase.
Further, the property owner have now started to quote 5-10% higher than the rates of Q2 of 2010.
commercial office space in CBD of Delhi especially
Grade A buildings in this district
Low Vacancy levels in Central Business District
Source: BNP Paribas Real Estate, India
CBD 300
Q22009
RENTAL VALUES ( INR / SQ.FT / MONTH)Q3
2009Q4
2009
250 250
Q22010
Q12010
250
Source: BNP Paribas Real Estate, India
Q22009
CBD 30,000
CAPITAL VALUES (INR / SQ.FT)Q3
2009Q4
2009
30,000 30,000
Q22010
Q12010
30,000
Q22009
Q32009
CBD
Capi
tal V
alue
s (IN
R / s
q.ft
)
Q42009
Q12010
Q22010
29,000
32,000
34,000
Rent
al V
alue
s (IN
R / s
q.ft
/ m
onth
)
220230240250260270280290300
Q22009
Q32009
Q42009
Q12010
Q22010
27,000
31,000
33,000
The average headline rentals & capital values for the last 6 quarters are as follows:-
275
30,000
CBD
28,000
35,000
CITY REPORTDELHI OFFICE MARKET - Q3 2010
Q32010
Q32010
Q32010
Q32010
290
35,000
310
30,000
36,000
8I I
ALTERNATE CENTRAL BUSINESS DISTRICT(ALTERNATE CBD)
The demand for large office spaces is picking up in this district. There is movement of tenants from the CBD to ACBD. However, this has not impacted the prices yet. There are 2-3 enquiries for large office space in Jasola and Nehru Place. These absorptions are likely to happen by end of year 2010 and therefore it is expected that there can be upward revision in both rental and capital values in this district.
Demand is slowly picking up
Source: BNP Paribas Real Estate, India
Bikaji Cama Place 12,000
Jasola Vihar 15,000
Munirka 15,000
Q22009
CAPITAL VALUES (INR / SQ.FT)Q3
2009Q4
2009
12,000
12,000
15,000
12,000
12,000
15,000
Q22010
Q12010
12,000
12,000
15,000
Nehru Place 18,000 18,000 20,000 20,000
QutabInstitutional Area
12,000 12,000 12,000 12,000
Saket 20,000 18,000 18,000 20,000
Vasant Kunj 20,000 18,000 18,000 20,000
Nehru PlaceVasant KunjSaket
Rent
al V
alue
s (IN
R / s
q.ft
/ m
onth
)
Munirka
Bikaji Cama PlaceJasola Vihar
Qutub InstitutionalArea
Capi
tal V
alue
s (IN
R / s
q.ft
)
Q22009
Q32009
—
5,000
20,000
25,000
10,000
15,000
Q42009
Q12010
Q22010
Nehru PlaceVasant KunjSaketMunirka
Jasola ViharBikaji Cama PlaceQutub InstitutionalArea
12,000
13,500
15,000
20,000
12,000
20,000
20,000
0
50
100
150
200
250
Q22009
Q32009
Q42009
Q12010
Q22010
CITY REPORTDELHI OFFICE MARKET - Q3 2010
Q32010
Q32010
Q32010
Source: BNP Paribas Real Estate, India
Q22009
Bikaji Cama Place 135
Jasola Vihar 110
Munirka 150
RENTAL VALUES ( INR / SQ.FT / MONTH)Q3
2009Q4
2009
130
100150
130
100150
Q22010
Q12010
130
100150
Nehru Place 200 180 175 175Qutub InstitutionalArea 120 100 100 100
Saket 175 160 150 150
Vasant Kunj 175 150 150 150
The average headline rentals & capital values for the last 6 quarters are as follows:-
130
110150180
105
150
150
Q32010
130
110150180
105
150
150
12,000
13,500
15,000
20,000
12,000
20,000
20,000
9I I
SECONDARY BUSINESS DISTRICT (SBD)
There is no major activity being reported in this district except certain expansion enquiries by existing tenants. Due to this, there is no change in rental and capital values.
Expansion by existing corporates
Source: BNP Paribas Real Estate, India
Shahdara 6,000
MathuraIndustrialArea
7,000
Janak Puri 8,000
Okhla 6,000Pitampura 6,000
Q22009
CAPITAL VALUES (INR / SQ.FT)Q3
2009Q4
2009
5,500
6,500
7,500
6,0005,500
5,500
6,000
7,500
6,0005,500
Q12010
Q22010
7,500
6,000
6,0005,500
5,500
Rent
al V
alue
s (IN
R / s
q.ft
/ m
onth
)
Q22009
Q32009
44
Janak Puri
Mathura IndustrialAreaOkhla
Pitampura
Shahdara
Q42009
Q12010
Q22010
Capi
tal V
alue
s (IN
R / s
q.ft
)
—
5,000
Q22009
Q32009
Q42009
Q12010
Q22010
54
Janak Puri
Mathura IndustrialAreaOkhla
Pitampura
Shahdara
7,500
6,000
6,0005,500
5,500
46485052
565860
1,000
2,000
3,000
4,000
6,000
7,000
8,000
9,000
CITY REPORTDELHI OFFICE MARKET - Q3 2010
Q32010
Q32010
Q32010
Source: BNP Paribas Real Estate, India
Q22009
Shahdara 50
MathuraIndustrialArea
60
Janak Puri 60
Okhla 55Pitampura 60
RENTAL VALUES ( INR / SQ.FT / MONTH)Q3
2009Q4
2009
50
60
60
6055
50
50
50
6050
Q22010
Q12010
50
50
605050
The average headline rentals & capital values for the last 6 quarters are as follows:-
50
50
605050
Q32010
50
50
605050
7,500
6,000
6,0005,500
5,500
62
10I I
9,000 8,500 8,500 8,500
12,500 12,000 12,000 12,000
8,500 8,000 8,000 8,000
15,000 12,000 12,000 12,000
8,000 7,500 7,500 7,500
8,500 8,500 7,000 7,000
5,000 4,500 4,500 4,500
8,000 7,700 7,300 7,300
4,900 4,700 4,300 4,3005,300 5,300 4,700 4,7004,600 4,400 4,000 4,0004,600 4,400 4,000 4,000
DLF Cyber City
CAPITAL VALUES (INR / SQ.FT)Q2
2009Q3
2009Q4
2009Q1
2010Q2
2010
Golf Course Rd
Institutional Sectors/ Sushant LokMG RoadNH8 / Udyog Vihar
Sohna Rd
Manesar
Expressway
Sector 58Sector 62Sector 63Sector 64
Gurgaon
Manesar
Noida
PERIPHERY BUSINESS DISTRICT (PBD)
There is a surge in leasing and purchase activity for commercial real estate in Gurgaon and Noida. There is estimated demand of approximately 4 mn. sq.ft which is likely to be absorbed in the next 6-9 months. There is good demand for SEZ space from Multi National Corporations. This will push the lease rentals upward in the SEZ space both in Noida and Gurgaon. The investors are keen to invest in new commercial developments especially on Golf Course Extension road and on projects abutting the highway.
Office space demand picking up
Source: BNP Paribas Real Estate, India
Q22009
Q32009
010203040
Rent
al V
alue
s (IN
R / s
q.ft
/ m
onth
)
Q42009
Q12010
Q22010
50607080
Source: BNP Paribas Real Estate, India
Q22009
Q32009
—
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Capi
tal V
alue
s (IN
R / s
q.ft
)
Q42009
Q12010
Q22010
The average headline rentals & capital values for the last 6 quarters are as follows:-
M G Road - GurgaonGolf Course Rd -GurgaonDLF Cyber CityInstitutional Sectors /Sushant Lok - GurgaonSohna Road -Gurgaon
NH 8 / UdyogVihar - Gurgaon
Sector 62, NoidaManesar - Gurgaon
Expressway - Noida
Sector 58, NoidaSector 63, Noida
DLF Cyber City 75
RENTAL VALUES ( INR / SQ.FT / MONTH)
60 60 60
Q22009
Q32009
Q42009
Q22010
Q12010
Golf Course Rd 70 70 85 85
Institutional Sectors/ Sushant Lok 65 60 50 50
MG Road 90 90 90 90NH8 / Udyog Vihar 60 50 40 40
Sohna Rd 60 60 45 45
Manesar 35 35 35 35
Expressway 60 58 55 55
Sector 58 37 35 32 32Sector 62 40 40 35 35Sector 63 35 33 30 30Sector 64 35 33 30 30
Gurgaon
Manesar
Noida
60
85
50
90
40
45
35
55
32353030
8,500
12,000
8,000
12,000
7,500
7,000
4,500
7,300
4,3004,7004,0004,000
Sector 64, Noida
M G Road - GurgaonGolf Course Rd -GurgaonDLF Cyber CityInstitutional Sectors /Sushant Lok - GurgaonSohna Road -Gurgaon
NH 8 / UdyogVihar - Gurgaon
Sector 62, NoidaManesar - Gurgaon
Expressway - Noida
Sector 58, NoidaSector 63, NoidaSector 64, Noida
CITY REPORTDELHI OFFICE MARKET - Q3 2010
Q32010
Q32010
Q32010
60
85
50
90
40
45
35
55
32353030
8,500
12,000
8,000
12,000
7,500
7,000
4,500
7,300
4,3004,7004,0004,000
Q22010
90100
11I I
RENTAL VALUES
Source: BNP Paribas Real Estate, India
Central Business District (CBD)
Alternate Central BusinessDistrict (Alternate CBD)
Secondary Business District (SBD)
Periphery Business District (PBD)
RentINR / sq.ft
CBD
Region Q on QChange
Q3 2010
290 5%
Mathura Industrial AreaJanak Puri
Region
Shahdara
Pitampura
RentINR / sq.ft
Q on QChange
Q3 2010
5050
5050
0%0%
0%0%
Okhla 60 0%
Vasant Kunj 150 0%
Bikaji Cama Place
Jasola ViharMunirka
Region RentINR / sq.ft
Q on QChange
Q3 2010
130110150
0%0%0%
Nehru PlaceQutab Institutional AreaSaket
180105150
0%0%0%
Golf Course Rd
DLF Cyber City
Institutional Sectors /Sushant Lok
Region RentINR / sq.ft
Q on QChange
Q3 2010
85
60
50
0%
0%
0%
Manesar 35 0%
MG Road 90 0%
NH8 / Udyog vihar 40 0%
Expressway 55
Sohna Rd 45 0%
Gurgaon
Manesar
Noida
Sector 58 32Sector 62 35Sector 63 30Sector 64 30
0%0%0%0%0%
CITY REPORTDELHI OFFICE MARKET - Q3 2010
12I I
CAPITAL VALUES
Central Business District (CBD)
Alternate Central BusinessDistrict (Alternate CBD)
Secondary Business District (SBD)
Periphery Business District (PBD)
INR / sq.ft
CBD
Region Q on QChange
Q3 2010
35,000 17%
20,000
12,00013,50015,00020,00012,00020,000
Vasant Kunj 0%
Bikaji Cama Place
Jasola ViharMunirka
Region INR / sq.ft Q on QChange
Q3 2010
0%0%0%
Nehru PlaceQutab Institutional AreaSaket
0%0%0%
Mathura Industrial AreaJanak Puri
Region
Shahdara
Pitampura
INR / sq.ft Q on QChange
Q3 2010
0%0%
0%0%
Okhla 0%6,0007,500
5,5005,5006,000
Golf Course Rd
DLF Cyber City
Institutional Sectors /Sushant Lok
Region INR / sq.ft Q on QChange
Q3 2010
12,000
8,500
8,000
0%
0%
0%
Manesar 4,500 0%
MG Road 12,000 0%
NH8 / Udyog vihar 7,500 0%
Expressway 7,300 0%
Sohna Rd 7,000 0%
Gurgaon
Manesar
Noida
Sector 58 4,300 0%Sector 62 4,700 0%Sector 63 4,000 0%Sector 64 4,000 0%Source: BNP Paribas Real Estate, India
CITY REPORTDELHI OFFICE MARKET - Q3 2010
13I I
KEY TRANSACTIONS
Source: BNP Paribas Real Estate, India
CITY REPORTDELHI OFFICE MARKET - Q3 2010
Q3 2010
Property Occupiers Space(sq.ft)
Micro Market Location
Mercantile House, KG Marg Sarasin Alpen India 2,500 CBD Connaught Place
Baani Suites Ingersoll Rand 2,400 Alternate CBD Jasola
Salcon Aurum Savita Oil 3,800 Alternate CBD Jasola
ITT Building Louis Vuitton 5,500 Alternate CBD Nehru Place
Vatika Buisness Park Stryker 105,000 PBD Golf course road
Unitech SEZ - Infospace NIIT 12,000 PBD Dundahera
Unitech SEZ - N2 IBM Daksh 75,000 PBD Expressway
Unitech SEZ - N2 Genpact 5,00,000 PBD Expressway
DLF SEZ - Silokhera IBM Daksh 78,000 PBD Silokhera
DLF SEZ - Silokhera Max 250,000 PBD Silokhera
A 110 Etisalat 5,200 PBD Sector 4
Windsor IT Park Asia Hotel 16,000 PBD Sector 125
Advant Navis Vaishnavi Advisory 9,000 PBD Sector 142
Advant Navis Indiamart.com 63,000 PBD Sector 142
Times Tower Godrej Property 3,000 PBD MG road
Times Tower Laxmi Nivas Bank 8,500 PBD MG road
Times Tower Harvest Gold 1,500 PBD MG road
Plot 582, Phase 5 Anton Paar India 7,500 PBD Udyog Vihar
Unitech Cyber Park Hewitt 25,000 PBD Sector 39
14I I
KEY PROJECTSNew Supply - Year 2010
Building Location Micro Market
Space insq.ft
Completion date (expected)
MGF Metropolis MG Road PBD 1,50,000 Q3 2010
Salcon Platina MG Road PBD 1,70,000 Q4 2010
Suncity Business Tower Golf Course Road PBD 2,70,000 Q3 2010
DLF South Point Mall Golf Course Road PBD 2,70,000 Q3 2010
Realtech Veritas Golf Course Road PBD 1,10,000 Q4 2010
Emaar MGF Palm Square Golf Course Extension PBD 3,50,000 Q4 2010
Raheja Mall Sohna Road PBD 3,00,000 Q3 2010
ILD Trade Centre Sohna Road PBD 3,50,000 Q3 2010
Spazedge Sohna Road PBD 3,50,000 Q3 2010
Omaxe City Centre Sohna Road PBD 1,50,000 Q3 2010
Vipul Trade Centre Sohna Road PBD 3,20,000 Q3 2010
Orchid Business Park Sohna Road PBD 3,50,000 Q3 2010
DLF Star Mall NH-8 PBD 2,20,000 Q3 2010
MVL I Park NH-8 PBD 1,40,000 Q4 2010
Unitech Info Space (Block-4) Sector-62 PBD 2,75,000 Q3 2010
Unitech Info Space (Block-2) Sector-62 PBD 2,00,000 Q4 2010
Logix Business Park (Tower-C&D) Sector-62 PBD 6,00,000 Q3 2010
Unitech SEZ (Tower-3) Expressway PBD 2,50,000 Q3 2010
Unitech SEZ (Tower-4) Expressway PBD 2,50,000 Q4 2010
Oxygen SEZ (Tower-C) Expressway PBD 2,50,000 Q4 2010
Technova Business Park (Tower-A) Expressway PBD 4,80,000 Q3 2010
Technova Business Park (Tower-B) Expressway PBD 4,20,000 Q4 2010
Source: BNP Paribas Real Estate, India
CITY REPORTDELHI OFFICE MARKET - Q3 2010
GLOSSARYQ3:
Super Built-up Area (SBUA):
Carpet Area:
Sq.mt:
Mn:
New:
Recent:
NCR:
SEZ:
BFSI:
SLR:
FSI:
Quarter 3 of the financial year (July - August - September)
Built-up area + common area including lifts area, common passages, utilities, terrace etc. & varies from building to building.
Actual usable area, and does not include any common areas, area occupied by walls etc.
Square Meter
Million
Building built within the last 5 years.
Building less than 10 years old.
National Capital Region (Includes urban agglomeration of Delhi, Gurgaon, Faridabad, Noida, Gaziabad etc)
Special Economic Zone having special tax exemptions / incentives to corporate occupiers
Banking & Financial Services Industry
Statutory Liquidity Ratio
Floor Space Index
Absorption:
Bare Shell:
BPO:
BUA:
Completed Stock:
DU:
EPIP:
FAR:
Grade A Space:
Ground Coverage:
Hard Option:
INR:
Pre-lease:
Speculative Stock:
Stock:
Supply:
Transaction Volumes:
Vacancy:
Warm Shell:
Q on Q:
y-o-y:
IT:
ITES:
Repo Rate:
Reverse Repo Rate:
SEC A, B, C & D Socio:
Sq.ft:
Stamp Duty:
Occupied Stock (n) – Occupied Stock (n-1); Where “n” is the specified period (quarter, year etc.)
Premises consisting of basic structure with lifts, power supply to junction box, water supply line, toilets
Business Process Outsourcing
Built up area
Either the building has received occupancy certificate or the client has moved in and occupied space and started working in a particular premises
Dwelling Unit
Export Promotion Industrial Park
Floor Area Ratio (BUA/ Plot Area)
Office Space with efficiency in excess of 75%, floor plate in excess of 15,000 sq. ft., Car Parking ratio of atleast 1 per 1000 sq. ft., Floor-to-ceiling 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
It is the total covered area on ground by the built component and is expressed as a percentage of the plot area
Real estate space reserved by the lessee for future occupation within a particular time frame and at a pre-decided rental
Indian National Rupees
Space committed for lease before completion of construction
The stock which can be leased and excludes Built-to-Suit (BTS) and Campus facilities.
Cumulative Supply
New construction in a particular specified period
Total number of transaction in a particular specified period
Total vacant space in the completed stock
Premises consisting of power backup, high side A.C., common area fit outs and fitted out toilets
Quarter on Quarter
year-on-year (All growth figures in this report are y-o-y unless otherwise mentioned
Information Technology
Information Technology Enabled Services (includes various services ranging from call centres, claims processing, medical transcription, e-CRM, SCM to back-office operations such as accounting, data processing, and data mining)
Rate that an eligible depository institution (such as a bank) is charged to borrow short term funds directly from the central bank through the discount window
Interest rate that a bank earns for lending money to the Reserve Bank of India in exchange for government securities
Economic Classification; SEC A represents the highest propensity to spend and SEC D represents the lowest propensity to spend.
Square Feet
Form of tax charged on instruments (written documents) requiring a physical stamp (for government legality) to be attached to or impressed.
15I ICITY REPORTDELHI OFFICE MARKET - Q3 2010
CRR:
Headline rent:
Average headline rent:
Disclaimer:
Cash Reserve Ratio
Monthly rent per square feet, charged on super built-up area basis, featured on the lease, and expressed excluding fitouts, taxes, deposits, advances, maintenance charges and does not take into account building efficiency (super built up area - carpet area ratio). Further it does not include attached premises such 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.
Weighted average of rented area. The average featured is a moving average over the quarter, to smooth out the changes, exclusive of all taxes, deposits, advances & maintenance charges.
Major Refurbishment:
Renovated:
Modern:Old:CCI (Cost of construction index):
Demand:
For the occupier:New Supply:
Completed new supply:Under construction:
Planning permission granted:
Planning permission submitted:Pre-letting:
Underlying rent:
Prime rents:
Top rent:
Second hand premises:
Renovated:Very good condition:Existing state of repair:To be renovated:Supply available within 1 year:
Take-up:
Vacancy rate:
Building which has undergone structural alteration less than 5 years ago, subject to planning permission.
.
Building which has undergone renovation work not requiring for planning permission less than 5 years ago.
High-performance building over 10 years old. Low-performance building over 10 years old.
Index that makes quarterly measurements of 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 development, special foundations, etc.), fees and financial costs.
A search for premises expressed to BNP Paribas Real Estate. The analysis pertains only to the flow of new demand expressed.
Operation undertaken by an occupier for its own purposes. Any new building and/or heavily refurbished building that adds to the
existing stocks. These are analysed according to progress. Buildings on which construction work is finished.
Buildings on which construction has effectively begun. Prior demolition work is not taken into account.
Authorisation to build obtained, generally booked after settlement of third party claims.
Planning permission requested, being processed.Transaction by an occupier more than 6 months before the delivery of the
building.
Annual rent per square meter expressed free of tax and charges and excluding advantages agreed by the owners (rent incentive building works, etc).
Represents the top headline rent (excluding non significant transactions) for an office unit:- of standard size, of the highest quality and specification, in the best location in each market.
Represents the top headline rent for an office unit. It is not necessarily a prime rent.
Premises that have been previously occupied by an occupier for vacant for more than 5 years.
Premises that have been renovated for the new occupier. High-performance premises of high quality.
Low-performance premises that can be rented as they are. Low performance premises that need renovation.
All premises and buildings available within 1 year including the supply available immediately, new supply that has not been pre-let and second hand supply that will be vacated definitively (notable terminated leases).
Rental or sale of a property asset, finalised by the signature of a lease or a bill of sale including turnkey transactions and owner-occupier. The transaction is only taken into account once any existing conditional clauses have been lifted.
Ratio measuring the relationship between the supply immediately available and the existing stock.
This report is released by BNP Paribas Real Estate & Infrastructure Advisory Services and the information in it is dedicated to the exclusive use of its clients. The report and the information contained in it should not be copied or reproduced without prior permission from BNP Paribas Real Estate and Infrastructure Advisory Services. The facts of these reports are believed to be correct at the time of it's release but cannot be guaranteed. Please note the findings, projections, conclusions and recommendations are based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. BNP Paribas Real Estate & Infrastructure Advisory Services cannot be held responsible if, despite it's best efforts, the information contained in the present report turns out to be inaccurate or incomplete.
www.realestate.bnpparibas.com
.
ALBANIA*Danos & AssociatesBlvd. Deshmoret e KombitTwin Towers - Building 211th FloorTiranaTel.: +355-4-2280488Fax: +355-4-2280192
AUSTRIA*Dr. Max Huber & PartnerDr. Karl-Lueger-Platz 51010 ViennaTel: +43-1-513 29 39 0Fax: +43-1-513 29 39 14
BULGARIA*
28, Hristo Botev BoulevardSofiaTel: +359-2-9532314Fax: +359-2-9532399
CANADA*Cresa PartnersTel.: +1-617-758 6000Fax: +1-617-742 0643
CYPRUS*Danos & Associates35, I. Hatziosif Ave2027, NicosiaTel.: +357-22 31 70 31Fax: +357-22 31 70 11
Danos & Associates
GREECE*Danos & Associates1, Eratosthenous Str.11635 AthensTel: +30-210 7 567 567Fax: +30-210 7 567 267
JAPAN*RISA Partners5F Akasaka Intercity 1-11-44Akasaka, Minato-ku107-0052 TokyoTel: +81-3-5573 8011Fax: +81-3-5573 8012
RUSSIA*Astera10, b.2 Nikolskaya Str.Moscow, 109012Tel/Fax: +7-495-925 00 05
NETHERLANDS*Holland Realty PartnersJ.J. Viottastraat 33,1071 JPAmsterdam,Tel: +31-20-305 97 20Fax: +31-20-305 97 21
NORTHERN IRELAND*Whelan Property Consultants44 Upper Arthur StreetBelfast Bt1 4GJTel: +44-28-9044 1000Fax: +44-28-9033 2266
POLAND*Brittain Hadley EuropaWarsaw Financial Centre13th floorEmilii Plater 5300-113 WarsawTel.: +48-22-586 31 00Fax: +48-22-586 31 16
SERBIA*6, Vladimira Popovica StreetOffice B3111000 BelgradeTel.: +381-11-2600 603Fax: +381-11-2601 571
SLOVAKIA*Modesta (Dr. Max Huber &Partner Group)Heydukova 12-14811 08 BratislavaTel.: +421-2-3240 8888Fax: +421-2-3214 4777
SWITZERLAND*NaefAvenue Eugène-Pittard 14-16Case Postale 301211 Geneva 17Tel.: +41-22 839 39 39Fax: +41-22 839 38 38
UKRAINE*Astera2a Konstantinovskaya Street04071, KievTel: +38-044-501 50 10Fax: +38-044-501 50 11
USA*Cresa Partners200 State Street13th FloorBoston, Massachusetts 02109Tel.: +1-617-758 6000Fax: +1-617-742 0643
Falcon Real Estate570 Lexington Avenue32nd FloorNew York, NY 10022Tel.: +1-212 271-5445Fax: +1-212 271-5588
ABU DHABIAl Bateen AreaPlot No. 144, W-11New Al Bateen MunicipalityStreet 32P.O. Box 2742Abu Dhabi, UAETel.: +971-505 573 055Fax: +971-44 257 817
BELGIUMBlue TowerAvenue Louise 326B14 Louizalaan1050 BrusselsTel: +32-2-646 49 49Fax: +32-2-646 46 50
DUBAIEmmar SquareBuilding No. 1, 7th FloorP.O. Box 7233Dubai, UAETel: +971-505 573 055Fax: +971-44 257 817
FRANCE13 boulevard du Fort de Vaux75017 ParisTel: +33-1-55 65 20 04Fax: +33-1-55 65 20 00
GERMANYGoetheplatz 460311 FrankfurtTel.: +49-69-2 98 99 0Fax: +49-69-2 92 91 4
IRELAND40 Fitzwilliam PlaceDublin 2Tel: +353-1-66 11 233Fax: +353-1-67 89 981
JERSEY4th Floor, Conway HouseConway StreetSt HelierJersey Je2 3NTTel: +44-15 34-62 90 01Fax: +44-15 34-62 90 11
ITALYCorsa Italia, 15/A20122 MilanTel: +39-02-58 33 141Fax: +39-02-58 33 14 39
LUXEMBOURGAxento BuildingAvenue J.F. Kennedy 441855 LuxembourgTel.: +352-34 94 84Fax: +352-34 94 73
ROMANIAUnion International Center11 Ion Campineanu StreetSector 1Bucharest 010031Tel: +40-21-312 7000Fax: +40-21-312 7001
SPAINMaría de Molina, 5428006 MadridTel: +34-91-454 96 00Fax: +34-91-454 97 65
UNITED KINGDOM90 Chancery LaneLondon WC2A 1EUTel: +44-20-7338 4000Fax: +44-20-7430 2628
*Alliances
Bangalore (Regd. Office)Level 15, Concorde Block,UB City, Vittal Mallya Road,Bangalore – 560001Tel: +91 80 4030 0334Fax: +91 80 4030 0400
DelhiUpper ground floor, Unit No 7,Mercantile House, 15 KG Marg,New Delhi 110001Tel: +91 11 4959 8800Fax: +91 11 4959 8818
INDIA
For Queries / Comments:Tasneem Gandhi at+91 9930141009 or email at [email protected]
BNP PARIBAS REAL ESTATE& INFRASTRUCTURE ADVISORYSERVICES PVT. LTD.
Mumbai (Head Office)704, Level 7, MMTC House, C-22,Bandra Kurla Complex, Bandra (E),Mumbai - 400 051Tel: +91 22 6138 8088Fax: +91 22 6138 8089
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