India Office Property Market Overview July 2013
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Transcript of India Office Property Market Overview July 2013
Office PrOPerty Market Overview iNDia
QUarterLy UPDate | JUly | 2013
Accelerating success.
www.colliers.com
MACRO ECONOMIC OVERVIEW
GDP growth in India registered at 4.7% in the •January to March quarter of 2013, which was marginally higher from the last quarter figure of 4.5%.
Headline inflation, based on the wholesale •price index, stood at 4.86% for the month of June 2013 as compared to 7.58% for the corresponding month of the previous year.
The rupee plunged 8.6% against the US Dollar •in the April to June quarter due to massive capital outflows and month-end dollar demand from importers. The rupee closed at an all-time low of 60.72 against the US dollar in the last week of June.
The reserve bank of India kept the policy rates •unchanged despite lower inflation due to concerns on economic indicators such as currency depreciation and fiscal deficit.
Most of the corporate occupiers maintained a •cautious outlook on the external environment and remained cost conscious in regards to real estate expenditure. The six major cities ie; Mumbai, NCR, Bengaluru, Chennai, Kolkata and Pune recorded an overall absorption of around 6.93 million sq ft which is approximately 15% less than 1Q 2013. Bengaluru continued to see the highest absorption followed by Mumbai and NCR respectively.
COLLIERS VIEW : In the latter half of 2013, corporate tenants are expected to remain largely cost conscious until there are more concrete signs of global economic recovery. We anticipate stability in rents across the markets with a downward bias in markets with huge available supply such as Chennai, Gurgaon and NOIDA.
ECONOMIC BAROMETER
RETuRN ON AlTERNATIVE INVEsTMENTs
RESEARCH & fORECAST REPORTsYDNEY CENTRAl BusINEss DIsTRICT
INDIA OffICE MARKETREsEARCh & fORECAsT REpORT
Jun-12 Jun-13
REPO RATE 8.00% 7.25%
REVERSE REPO RATE
7.00% 6.25%
CRR 4.75% 4.00%
INfLATION (WPI)1 7.58% 4.86%
PLR2 9.75% - 10.50% 9.70% - 10.25%
DEPOSIT RATE3 8.00% - 9.25% 7.50% - 9.00%
ExCHANGE RATE INR - USD 55.68 57.62
INR- EURO 70.04 76.87
Jun-12 Jun-13 YoY %
Change
GOLD 30,097 27,827 -7.54%
SILVER 54,494 43,983 -19.28%
EQUITY (BSE
SENSEx) 16,950 19,326 14.02%
REALTY INDEx 1,623 1,603 -1.25%
Source: Colliers International India Research
ECONOMIC INDICATORs
INR
Cror
eIn
Per
cent
age
2005
- 0
6
2006
- 0
7
2007
- 0
8
2008
- 0
9
2009
- 1
0
2010
- 1
1
2011
-12
2012
- 13
fDI in Real Estate
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
4.0%
6.0%
8.0%
10.0%
12.0%
Jan
- M
ar 0
9
Apr
- Ju
n 09
Jul -
Sep
09
Oct
- D
ec 0
9
Jan
- M
ar 1
0
Apr
- Ju
n 10
Jul -
Sep
10
Oct
- D
ec 1
0
Jan
- M
ar 1
2
Jan
-Mar
13
Oct
- D
ec 1
2
Jun
- Se
p 12
Oct
- D
ec 1
1
Jul -
Sep
11
Apr
- Ju
n 11
Jan
- M
ar 1
1
Gross Domestic product at factor Cost
0.0%
2.0%
2Q 2013 | OFFICE
70
80
120
130
100
110
90
1-M
ay-2
013
10-J
un-2
013
20-J
un-2
013
21-m
ay-2
013
31-m
ay-2
013
11-m
ay-2
013
1-Ap
r-20
13
11-A
pr-2
013
21-A
pr-2
013
30-J
un-2
013
BsE sensex & Realty Index
BSE Sensex Realty Index* Rebase to 100
USD Euro
Exchange Rates
65
70
55
60
50
75
80
1-Ap
r-13
11-A
pr-1
3
21-A
pr-1
3
11-m
ay-1
3
21-m
ay-1
3
31-m
ay-1
3
1-M
ay-1
3
10-J
un-1
3
20-J
un-1
3
30-J
un-1
3
Note : All values in the above tables are as on 15th of June 2012 and 20131 Wholesale Price Index2 SBI Prime Lending Rate3 SBI interest rate < INR 1 crore Term Deposits for ≤1 Year
Apr
- Ju
n 12
Note: All the rentals shown above are indicative Grade A rentals in INR per sq ft per month.
COllIERs INTERNATIONAl | p. 3
iNDia | 2Q 2013 | OFFICE
Source: Colliers International India Research
Andheri East 23%
Thane / LBS 21%
Worli / Prabhadevi 1%
Goregoan / JVLR 4%
Powai 4%
Malad 6%
Navi Mumbai 3%
Lower Parel 21%
BKC 15%
Kalina 2%
AVAIlABlE supplY IN pRIME AREAs
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
CITY OffICE BAROMETER
Micro Market Rental Values
% Change
QoQ YoY
CBD 225 - 260 0% -3%
Andheri East 90 - 125 0% 0%
BKC 225 - 320 1% 1%
Lower Parel 140 - 180 0% -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% 0%
Kalina 175 - 210 0% 0%
Thane / LBS 50 - 100 0% 0%
Andh
eri E
ast
BKC
Low
er P
arel
Mal
ad
Navi
Mum
bai
Pow
ai
Wor
li/Pr
abhd
evi
Gore
gaon
/
JVLR
Kalin
a
Than
e /
LBS
CBD
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
GRADE A CApITAl VAluEs
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
1Q20
08
4Q20
08
4Q20
09
4Q20
10
4Q20
13f
4Q20
14f
4Q20
12
4Q20
11
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
Rent
al V
alue
s -IN
R Pe
r Sq
.ft. P
er M
onth
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
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 Rental Trends: Average market rental values for Grade A properties.
KEY uNDER CONsTRuCTION pROJECTs
BUILDING NAME DEVELOPER AREA (SQ. fT.) LOCATION ExPECTED COMPLETION
Kohinoor Square Kohinoor Group 800,000 Dadar 2013
Rustomjee Central Park Rustomjee 216,000 Andheri 2013
Zillion Kanakia Spaces 525,000 Kurla 2014
KEY MARKET TRANsACTIONs
CLIENT BUILDING NAME AREA (SQ. fT.) LOCATION TRANSCATION TYPE
Apple Inc fIfC 10,000 BKC Lease
Cognizant Mindspace SEZ 230,000 Navi Mumbai Lease
DKSH Sarla Software Park 9,000 Andheri Lease
Edward Life Sciences Techniplex 9,000 Goregaon Lease
HSBC Nesco 172,000 Goregaon Lease
Mitsui & Co Platina 12,000 BKC Lease
MUMBAI
forecast
MuMBAI
In 2Q 2013, more than 8.2 million sq ft •of commercial Grade A office space was available for lease.
The city witnessed a supply of approximately •1 million sq ft of Grade A office space. The projects contributing to this supply were fIfC (The first International financial Centre) in BKC developed by Vornado Realty, and Kalptaru Prime in Thane developed by Kalpataru Group.
Projects launched during this quarter were •Green Span by BK Birla Group at Lower Parel, and Zillion by Kanakia Spaces at Kurla. Both the projects together will have a gross leasable area of more than 0.8 million sq ft and are expected to be completed by 2014.
Demand for office space witnessed a drop •this quarter due to a cautious approach adopted by occupiers and a delay in expansion plans. The city’s total absorption for 2Q 2013 was recorded at around 1.41 million sq ft this quarter as compared to the last quarter figure of 2.17 million sq ft.
Rental values for Grade A office space •remained stable in all of the micro-markets, except Bandra Kurla Complex (BKC), which is emerging as the preferred office location for corporate occupiers, and witnessed a marginal increase in rental values.
COLLIERS VIEW :• Mumbai office market has had fairly good absorption during the last two quarters. Occupier demand is expected to remain healthy in the coming quarters. With limited premium commercial development expected to be completed in 2013, the rent for commercial office space is expected to increase slightly however, rental values of IT/ITeS office space will by and large remain stable due to demand supply equilibrium.
p. 4 | COllIERs INTERNATIONAl
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
iNDia | 2Q 2013 | OFFICE
Source: Colliers International India Research
Jasola 59%
Nehru Place 10%
Saket 29%
Connaught place 2%
CITY OffICE BAROMETER
AVAIlABlE supplY IN pRIME AREAs
Micro Market Rental Values
% Change
QoQ YoYConnaught Place 326 - 380 -1% 1%
Nehru Place 180 - 192 0% 2%
Saket 166 - 185 3% 17%
Jasola 112 - 130 0% 1%
Netaji Subhash 65 - 75 0% 1%
Nehr
u Pl
ace
Conn
augh
t Pla
ce
Jaso
la
Sake
t
Neta
ji Su
bhas
h
0
10,000
20,000
30,000
40,000
50,000
60, 000
GRADE A CApITAl VAluEs
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
505,000
0 0
100
10,000
150
15,000
200
20,000
250
25,000
300
30,000
35,000
40,000
AVERAGE RENTAl AND CApITAl VAluE TREND
forecast
Rent
al V
alue
s -IN
R Pe
r Sq
.ft. P
er M
onth
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
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 Rental Trends: Average market rental values for Grade A properties.
KEY uNDER CONsTRuCTION pROJECTs
BUILDING NAME DEVELOPER AREA (SQ. fT.) LOCATION ExPECTED COMPLETION
Caddie Commercial Tower Caddie Hotel 100,000 Aerocity 2013
DLf Towers DLf Ltd. 420,000 Okhla 2013
NBCC Plaza NBCC 350,000 Okhla 2014
KEY MARKET TRANsACTIONs
CLIENT BUILDING NAME AREA (SQ. fT.) LOCATION TRANSCATION TYPE
Axis Group Statesman House 5,800 CP Lease
Kotak Bank Ambadeep 35,000 CP Lease
Max Bupa Mohan Cooperative 30,000 Mohan Cooperative Lease
Samsung Data Systems M6 Plaza 22,700 Jasola Lease
Vatika Business Centre Konnectus 18,000 CP Lease
DELHI
Note: All the rentals shown above are indicative Grade A rentals in INR per sq ft per month.
1Q20
08
4Q20
08
4Q20
09
4Q20
10
4Q20
13f
4Q20
14f
4Q20
12
4Q20
11
DElhI
About 1.7 million sq ft of Grade A commercial •office space was available for lease in 2Q 2013. Most of this supply was concentrated in Connaught Place, Jasola and Saket.
In 2Q 2013, the completion of Worldmark Block •1 by Bharti Group in Aero-City, an upcoming commercial destination near the airport, added 0.3 million sq ft of Grade A commercial office supply to the city’s total inventory.
No new commercial Grade A projects were •launched in Delhi this quarter.
Sluggish occupier demand was observed in •the city during the quarter. Only a few mid-sized (15,000 to 30,000 sq ft) leases were concluded in micro-markets like Connaught Place, Mohan Cooperative and Vasant Kunj, totalling around 0.15 million sq ft of absorption in 2Q 2013.
The rental values for Grade A commercial •offices remained stable in almost all micro-markets, except Saket where rents rose by 3% QoQ.
Capital values remained stable in almost •all micro-markets, except Connaught Place where values moved up by 3% QoQ. The city witnessed almost negligible activity in the strata-title sales secondary market due to an increase in the circle rate.
COLLIERS VIEW : Occupier demand is expected to remain moderate in the coming quarters. Limited supply of Grade A office space will keep overall rental values at the same levels except for the CBD where there may be marginal pressure on account of increased vacancy levels due to the recent addition of new office space and firms preferring to locate in Gurgaon or NOIDA.
COllIERs INTERNATIONAl | p. 5
iNDia | 2Q 2013 | OFFICE
Source: Colliers International India Research
MG Road 5%
Golf Course Road 3%
DLf Cyber City4%
Institutional Sectors (Sec44, 32, 18)
4%
Manesar 28%
National Highway 813%
Udyog Vihar & Industrial Sectors
7%
Golf Course Road Ext./Sohna Road
36%
CITY OffICE BAROMETER
AVAIlABlE supplY IN pRIME AREAs
Inst
itutio
nal S
ecto
rs
(Sec
44, 3
2, 1
8)
Golf
Cour
se R
oad
Ext./
Sohn
a Ro
ad
Man
esar
Golf
Cour
se
Road
Ext
./So
hna
Road
(IT)
Udy
og V
ihar
& In
dus-
tria
l Sec
tors
(IT)
Natio
nal H
ighw
ay 8
(IT
)
Man
esar
(IT)
Natio
nal H
ighw
ay 8
MG
Road
Golf
Cour
se R
oad
0
5,000
10,000
15,000
20,000
25,000
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
20 2,000
0 0
40 4,000
60 6,000
80 8,000
100 10,000
120 12,000forecast
Rent
al V
alue
s -IN
R Pe
r Sq
.ft. P
er M
onth
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
GRADE A CApITAl VAluEs
AVERAGE RENTAl AND CApITAl VAluE TREND
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 Rental Trends: Average market rental values for Grade A properties.
KEY uNDER CONsTRuCTION pROJECTs
BUILDING NAME DEVELOPER AREA (SQ. fT.) LOCATION ExPECTED COMPLETION
Magnnum Tower Welldone 350,000 Secto 58 2016
One on One Vatika 1,200,000 32 Milestone NH8 2017
Spaze Spaze 435,600 Sector 114 2016
KEY MARKET TRANsACTION
CLIENT BUILDING NAME AREA (SQ. fT.) LOCATION TRANSCATION TYPE
Huawei Spaze I Tech Park 70,000 Sohna Road Lease
IBM Daksh ASf Insignia 40,700 Gwalpahari Lease
Manpower DLf Building No.10 11,000 DLf Cyber City Lease
Qualcomm Global Business Park 13,600 MG Road Lease
Reliance 4G RK Square 80,000 Cyber City Lease
GURGAON
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
Note: All the rentals shown above are indicative Grade A rentals in INR per sq ft per month.
GuRGAON
In 2Q 2013, more than 14.6 million sq ft •of Grade A commercial office space was available for lease. Most of this available stock was concentrated in micro-markets like Golf Course Road and its extension Road, Sohna Road, Udyog Vihar and NH-8, up to Manesar.
This quarter, a number of projects / parts of •the projects were launched including Spaze by Spaze Group at Sector 114, Magnnum Tower by Welldone Group at Sector 58 and One on One by Vatika Ltd at 32 milestones NH8. All of these projects are expected to be completed by the end of 2015 and will add about 0.5 million sq ft of Grade A office space.
Several projects / parts of the projects were •completed this quarter, contributing more than 0.5 million sq ft of Grade A office space to the city’s total inventory.
The total absorption recorded in 2Q 2013 was •to the tune of 0.8 million sq ft. Absorption was primarily driven by the IT/ITeS sector in locations such as DLf Cyber City, Sohna Road and MG Road.
Rental values remained stable this quarter •in most of the markets except for marginal appreciation in micro markets such as DLf Cyber City and Manesar.
COLLIERS VIEW : The demand for office space is expected to remain moderate in the next quarter due to vigilant expansion plans by the occupiers. With continuous addition of new supply, vacancy levels are expected to rise, thus putting pressure on the rental values in mid-term. 1Q
2008
4Q20
08
4Q20
10
4Q20
10
4Q20
13f
4Q20
14f
4Q20
12
4Q20
11
Micro Market Rental Values
% Change
QoQ YoY
MG ROAD 100 - 140 0% 0%
Golf Course Rd 80 - 115 0% -5%
Institutional Sect. (18,32,44) 55 - 65 -2% -8%
Golf Course Rd Ext./Sohna Rd 50 - 75 0% 0%
NH8 97 - 125 0% 0%
Manesar 38 - 42 0% 0%
DLf Cyber City 75 - 78 2% 18%
Udyog Vihar & Industrial Sectors
45 - 65 0% 5%
p. 6 | COllIERs INTERNATIONAl
iNDia | 2Q 2013 | OFFICE
Source: Colliers International India Research
Commercial Sectors (Sec 18) (Grade B)
0.5%
Industrial Sectors (Sec. 1-9, 57-60, 63-65)
(Grade B) 9.6%
Commercial Sectors (Sec 18) (Grade B)
0.2%
Institutional Sectors (Sec.16A, 62, 125-142
90.5%
CITY OffICE BAROMETER
AVAIlABlE supplY IN pRIME AREAs
Micro Market Rental Values
% Change
QoQ YoYInstitutional Sectors (Non IT) 61 - 72 0% -6%
Institutional Sectors (IT) 44 - 50 -2% -8%
Comercial Sectors 96 - 103 2% 2%
IndustrialSector 23 - 32 0% -2%
Inst
itutio
nal
Sec
tors
(Non
IT)
Inst
itutio
nal
Sect
ors
(IT)
Indu
stria
l Se
ctor
s
Com
mer
cial
Se
ctor
s
0
3,000
6,000
9,000
12,000
15,000
GRADE A CApITAl VAluEs
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
10
2,000
0 0
20
4,000
6,000
40
30
8,000
50
10,00080
70
60
AVERAGE RENTAl AND CApITAl VAluE TREND
forecast
Rent
al V
alue
s -IN
R Pe
r Sq
.ft. P
er M
onth
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
KEY uNDER CONsTRuCTION pROJECTs
BUILDING NAME DEVELOPER AREA (SQ. fT.) LOCATION ExPECTED COMPLETION
Amigo Cyber Park Amigo 250,000 NOIDA Expressway 2013
Oxygen SEZ Tower f 3C Group 250,000 NOIDA Expressway 2013
Centrade Business Park Karasa Group 600,000 NOIDA Expressway 2017
KEY MARKET TRANsACTIONs
CLIENT BUILDING NAME AREA (SQ. fT.) LOCATION TRANSCATION TYPE
Get It GYS Heights 17,000 Sector 125 Lease
Haldiram C 31 50,000 Sector 62 Lease
GE Inox Tower NA Sector 16A Lease
Samsung Engineering Individual Building 500,000 Sector 126 Lease
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 Rental Trends: Average market rental values for Grade A properties.
NOIDA
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
Note: All the rentals shown above are indicative Grade A rentals in INR per sq ft per month.
1Q20
09
4Q20
09
4Q20
10
4Q20
13f
4Q20
14f
4Q20
12
4Q20
11
NOIDA
During 2Q 2013, about 9.4 million sq ft of Grade •A and Grade B office space was available for lease. More than 90% of this supply was IT/ITeS office space located primarily in Sectors 16A, 62 and Sectors 125 to 143 along the NOIDA Expressway.
New projects / parts of the projects launched •during the surveyed quarter include Sunshine Business Park by Sunshine Group at Sector 94, and Centrade Business Park by Karasa Group at Sector 140. Both of the projects will add approximately 1 million sq ft by the end of 2017.
About 1 million sq ft of Grade A commercial •office space was added to the city’s total inventory. Projects / part of the projects contributing to this new supply include Infospace (Block 2) by Unitech Ltd at Sector 62, and an individual structure on Plot No. 1A by Corcoustie Management at Sector 16A.
Occupier demand remained weak and •approximately 0.6 million sq ft of office space was absorbed in this quarter.
In 2Q 2013, rents increased by 2% QoQ in the •commercial sectors due to lower vacancy in Grade A stock. The institutional and industrial sectors witnessed a marginal decline in IT rentals due to abundant supply and less demand.
COLLIERS VIEW : NOIDA will continue to attract the corporate occupier looking for consolidation measures and low cost alternatives. Rental values for commercial office space will remain stable due to limited supply availability in near term however; rentals for IT/ITeS will continue to witness downward pressures across micro markets in NOIDA due to high level of vacancies.
COllIERs INTERNATIONAl | p. 7
KEY uNDER CONsTRuCTION pROJECTs
PROJECT NAME DEVELOPER AREA (SQ. fT.) LOCATION ExPECTED COMPLETION
Chennai One (BPO Park) Phase 2 ETL 1,100,000 OMR 2013
Ramanujan IT City Little Wood Tower Block D Tata Realty & Infrastructure 1,340,000 Taramani 2013
SP InfoCity Shapoorji Pallonji Group 1,200,000 OMR 2013
iNDia | 2Q 2013 | OFFICE
Source: Colliers International India Research
ChENNAI
More than 13.5 million sq ft of grade A •commercial office space was available for lease during 2Q 2013. The majority of this supply was concentrated along the OMR IT Corridor.
No new major supply was added and no new •projects were launched during the surveyed quarter.
Absorption remained in-line with the previous •quarter. A number of mid-sized transactions (10,000 to 45,000 sq ft) were recorded during the quarter. The micro-markets which remained most active in terms of commercial leasing were OMR, RK Salai and Dr MGR Road. The total absorption recorded till 2Q 2013 was to the tune of 1.53 million sq ft.
During the surveyed quarter, major occupiers •were looking for relocations rather than expansion. Major occupiers like IBM Daksh, AT&T and Bosch etc. have relocated to smaller spaces.
In 2Q 2013, rental values and capital values •for Grade A commercial office space remained stable, except Ambattur where capital values decline by 6% QoQ. This is due to restraint in demand due to supply / demand equilibrium. Going ahead, rental and capital values both are expected to remain stable due to large anticipated supply in the pipe line.
COLLIERS VIEW : Overall absorption dipped in Chennai this quarter. Amid cautious market sentiments and more prime office supply in the pipeline, the average rental values remained stable across all micro-markets this quarter. Looking ahead, the rents are expected to remain stable due to the large supply in the pipeline and cautious economic sentiments.for such locations.
CITY OffICE BAROMETER
AVAIlABlE supplY IN pRIME AREAs
Micro Market Rental Values
% Change
QoQ YoYCBD 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%
Guin
dy (S
BD)
Amba
ttur
OM
R (IT
Co
rrid
or)
CBD
0
2,000
4,000
6,000
8,000
10,000
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
0
1Q 2
008
4Q 2
008
4Q 2
010
4Q 2
011
4Q 2
012
4Q 2
013
4Q 2
009
4Q 2
013f
10
0
20
2,000
1,000
4,000
3,000
30
6,000
5,00040
50
8,000
7,000
60
Rent
al V
alue
s -IN
R Pe
r Sq
.ft. P
er M
onth
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
KEY MARKET TRANsACTIONs
CLIENT BUILDING NAME AREA (SQ. fT.) LOCATION TRANSCATION TYPE
Ajuba AKDR 34,000 OMR Lease
Daksh IBM Prince Infocity 34,000 OMR Lease
Duetsche Bank Sunnyside 10,000 CBD Lease
ford RMZ Millenia I 44,000 Dr MGR Road Lease
MLS Business Centre Acropolis 30,000 RK Salai Lease
Siemens SP Infocity 44,000 OMR Lease
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 Rental Trends: Average market rental values for Grade A properties.
GRADE A CApITAl VAluEs
AVERAGE RENTAl AND CApITAl VAluE TREND
CHENNAI
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
Note: All the rentals shown above are indicative Grade A rentals in INR per sq ft per month.
forecast
Guindy (SBD)7%
CBD14%
Vadapalani0%
GST Rd3%
Velachery1%
OMR (IT Corridor)50%
Ambattur24%
p. 8 | COllIERs INTERNATIONAl
iNDia | 2Q 2013 | OFFICE
Source: Colliers International India Research
BENGAluRu (BANGAlORE)
More than 11 million sq ft of Grade A office •space was available for lease in Bangalore this quarter.
A number of projects / part of the projects were •completed during this quarter. All of these projects together contributed approximately 0.6 million sq ft of Grade A commercial office space to the city’s total inventory.
Approximately 2.5 million sq ft of Grade A •office space was absorbed during 2Q 2013 out of which 0.5 million sq ft was Built to Suit (BTS). Most of this demand was generated by small and mid-size enterprises for expansion. Outer Ring Road and Whitefield continued to remain a preferred destination for corporate occupiers.
Amid consistent absorption, rental values •appreciated marginally in the range of 3 - 8% QoQ in micro-markets such as EPIP Zone, Whitefield, Bannerghatta Road and Outer Ring Road.
The central government has approved •a proposal for setting up an Information Technology Investment Region (ITIR) on around 10,500 acres of land near The International Airport in North Bangalore with an estimated investment of INR 1.06 lakh crore.
COLLIERS VIEW : Occupier demand in the coming quarter is expected to remain moderate as not many large space RfPs are floating in the market. Most of the occupiers are adopting a cost conscious approach and concentrating on utilising existing space in efficient ways. We anticipate stable rental values in most of the micro-markets as developers refrain additional speculative supply to the market.
Hosur Road 5%
CBD 7%
Bannerghatta Road 2%
Electronic City 13%
EPIP Zone/ Whitefield 46%
Outer Ring Road 27%
CITY OffICE BAROMETER
AVAIlABlE supplY IN pRIME AREAs
Micro Market Rental Values
% Change
QoQ YoYCBD 80 - 100 0% 0%
Hosur Rd. 20 - 40 0% 0%
EPIP Zone/ Whitefield 24 - 33 5% 4%
Electronic City 23 - 32 -7% 0%
Bannerghatta Rd. 50 - 60 8% 4%
Outer Ring Rd. 50 - 60 3% 1%
Hos
ur R
oad
EPIP
Zon
e/
Whi
tefie
ld
Elec
tron
ic
City
Bann
ergh
atta
Ro
ad
Out
er R
ing
Road
CBD
0
5,000
10,000
15,000
20,000
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
102,000
0 0
20
4,000
6,000
30
40
8,00050
60 10,000forecast
Rent
al V
alue
s -IN
R Pe
r Sq
.ft. P
er M
onth
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
KEY uNDER CONsTRuCTION pROJECTs
BUILDING NAME DEVELOPER AREA (SQ. fT.) LOCATION ExPECTED COMPLETION
Divyasree Tech Park C2 Divyasree Developers 650,000 Whitefield 2013
RMZ ECO WORLD 8A&8B - SEZ RMZ Corp 1,200,000 Outer Ring road 2013
Pritech Park STPI Block Primal Projects 220,000 Outer Ring road 2013
KEY MARKET TRANsACTIONs
CLIENT BUILDING NAME AREA (SQ. fT.) LOCATION TRANSCATION TYPE
Akamai Salarpuria Softzone 70,000 Outer Ring Road Lease
Amazon Brigade WTC 256,000 Malleshwaram Lease
Analog Devices RMZ Infinity 54,000 Old Madras Road Lease
BMC Software Prestige Tech Park 80,000 Outer Ring Road Lease
Honeywell RMZ Ecoworld 500,000 Outer Ring Road Lease
HP Kalyani Platina 180,000 Whitefield Lease
GRADE A CApITAl VAluEs
AVERAGE RENTAl AND CApITAl VAluE TREND
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 Rental Trends: Average market rental values for Grade A properties.
BENGALURU
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
Note: All the rentals shown above are indicative Grade A rentals in INR per sq ft per month.
1Q20
08
4Q20
08
4Q20
09
4Q20
10
4Q20
13f
4Q20
14f
4Q20
12
4Q20
11
COllIERs INTERNATIONAl | p. 9
iNDia | 2Q 2013 | OFFICE
Source: Colliers International India Research
KOlKATA
In 2Q 2013, more than 0.2 million sq ft of •Grade A commercial office space was added to the city’s total inventory. Most of this supply was located in East Kolkata.
The market did not witness any new project •completions. The total absorption recorded in 2Q 2013 was to the tune of 0.21 million sq ft. Most of this demand was generated by domestic corporations looking for expansion in locations such as Sector 5-Salt Lake and Rajarhat.
During the reviewed period, average rents •for Grade A office space remained stable in almost all micro-markets. High vacancy levels and slow uptake of office space kept the rental values in check.
Investors took a cautious approach resulting •in fewer transaction activities in the sales market. Capital values remained stable except for the CBD and Ballygunge Circular Road where a marginal appreciation in the range of 2 - 3% QoQ in capital values was recorded.
COLLIERS VIEW : Overall occupier demand is expected to remain restrained in the coming two quarters. We anticipate downward pressure on rents in PBD areas, in view of the current vacancy levels and expected new supply pipeline by the end of 2013. However, rents in the CBD are likely to remain stable due to limited additional supply.
East Kolkata 74%
CBD (Park St,Camac St,AJC Bose Road)
26%
CITY OffICE BAROMETER
AVAIlABlE supplY IN pRIME AREAs
Micro Market Rental Values
% Change
QoQ YoYCBD (PARK ST,CAMAC ST,AJC BOSE ROAD)
110 - 130 0% 0%
Ballygunge Circular Rd. 100 - 110 0% -5%
East Kolkata 75 - 85 0% 0%
Sector-5 48 - 50 0% -7%
PBD (New Town, Rajarhat) 34 - 39 0% 0%
CBD
(Par
k St
,Cam
ac S
t,AJC
Bo
se R
oad)
Bally
gung
e Ci
rcul
ar
Road
East
Kol
kata
Sect
or-5
PBD
(New
To
wn,
Ra
jarh
at)0
5,000
10,000
15,000
20,000
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
20 2,000
0 0
40 4,000
60 6,000
80 8,000
100 10,000
120 12,000forecast
Rent
al V
alue
s -IN
R Pe
r Sq
.ft. P
er M
onth
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
KEY uNDER CONsTRuCTION pROJECTs
BUILDING NAME DEVELOPER AREA (SQ. fT.) LOCATION ExPECTED COMPLETION
Acropolis Merlin Group 500,000 EM Bypass 2013
IT Godrej Simocco Phase 2 Godrej Genesis 1,000,000 Salt Lake Sector V 2013
Unitech Infospace, Kolkata Phase 3 B Unitech Ltd. 1,306,800 Rajarhat 2013
KEY MARKET TRANsACTIONs
CLIENT BUILDING NAME AREA (SQ. fT.) LOCATION TRANSCATION TYPE
Asian Paints Srijan Techpark 6,500 Sector 5, Saltlake Lease
Doller Om Tower 10,000 Park Street Lease
Global ID Asstyst Park 15,000 Sector 5, Saltlake Lease
Reliance Netgeo Crystal Globsyn 60,000 Sector 5, Saltlake Lease
Star TV Rene Building 15,000 RB Connector Lease
Surokhha Diagonistic Centre Infinity Benchmark 10,000 Sector 5, Saltlake Lease
GRADE A CApITAl VAluEs
AVERAGE RENTAl AND CApITAl VAluE TREND
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 Rental Trends: Average market rental values for Grade A properties.
KOLKATA
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
Note: All the rentals shown above are indicative Grade A rentals in INR per sq ft per month.
1Q20
08
4Q20
08
4Q20
09
4Q20
10
4Q20
13f
4Q20
14f
4Q20
12
4Q20
11
p. 10 | COllIERs INTERNATIONAl
iNDia | 2Q 2013 | OFFICE
Source: Colliers International India Research
puNE
In 2Q 2013, approximately 6.1 million sq ft •of Grade A commercial office space was available for fit-out in Pune. The majority of this supply was concentrated in the Airport Road, Hinjewadi, Kharadi, Nagar Road and Kalyani Nagar micro-markets.
During the surveyed quarter, more than 0.23 •million sq ft of Grade A commercial office space was added to the city’s total inventory.
Developers refrained from adding new supply •to the market and only one new project, Nyati Corporate, by Nyati Group at Yerwada, measuring 0.35 million sq ft, was launched during the quarter. The project is expected to be completed by 2Q 2014.
Pune recorded limited number of transactions. •However, a few large floor plate deals were signed, resulting in total absorption of approximately 1 million sq ft of Grade A office space. Micro-markets such as Hadapsar, Balewadi, Kharadi and Hinjewadi remained the preferred destination for IT/ITeS occupiers.
Restricted supply in both IT parts of and SEZ •and a broadening of the range in rents has resulted in marginal upward correction in the rental values for Grade A commercial buildings in select micro-markets, resulting in an overall average increase of around 5 % QoQ.
COLLIERS VIEW : Absorption levels are likely to improve as a number of transactions, which are in negotiation, are expected to close in coming quarters. We anticipate a stable rent scenario with upward bias in select premium projects in the CBD and SBD micro-markets.
Bavdhan 3%
Kalyani Nagar 9%
Senapati Bapat Road 3%
Aundh 2%
Baner 9%
Bund Garden 4%
Airport road/pune station
20%
Hinjewadi 20%
Nagar Road 10%
Kharadi 16%
Hadapsar/fursungi 4%
CITY OffICE BAROMETER
AVAIlABlE supplY IN pRIME AREAs
Micro Market Rental Values
% Change
QoQ YoYBaner 45 - 55 0% 11%
Bund Garden 60 - 70 0% 8%
Airport Rd. /Pune station 47 - 60 9% 11%
Aundh 45 - 51 9% 24%
Senapati Bapat 65 - 90 0% 3%
Bavdhan 38 - 44 -2% 7%
Kalyani Nagar 45 - 60 0% 0%
Nagar Rd. 40 - 50 6% 12%
Hinjewadi 32 - 40 7% 40%
Hadapsar/fursungi 32 - 45 6% 17%
Kharadi 32 - 50 6% 16%
Bund
Gar
den
Airp
ort r
oad/
pune
sta
tion
Aund
h
Sena
pati
Bapa
t Roa
d
Bavd
han
Kaly
ani N
agar
Naga
r Ro
ad
Hin
jew
adi
Had
apsa
r/fu
rsun
gi
Khar
adi
Bane
r
0
2,000
4,000
6,000
8,000
10,000
12,000
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
20
10 1,000
0 0
30 3,000
2,000
40
5,000
4,000
70
60
50
6,000
80 8,000
7,000
forecast
Rent
al V
alue
s -IN
R Pe
r Sq
.ft. P
er M
onth
Capi
tal V
alue
s -IN
R Pe
r Sq
.ft.
KEY uNDER CONsTRuCTION pROJECTs
BUILDING NAME DEVELOPER AREA (SQ. fT.) LOCATION ExPECTED COMPLETION
Business Bay Tower D Panchshil 800,000 Yerwada 2013
Marvel Edge Marvel Realtor 1,000,000 Viman Nagar 2013
Nyati Corporate Nyati Group 350,000 Yerwada 2014
KEY MARKET TRANsACTIONs
CLIENT BUILDING NAME AREA (SQ. fT.) LOCATION TRANSCATION TYPE
Amdocs Magarpatta 44,000 Hadapsar Lease
Barclays EON 40,000 Kharadi Lease
CDAC Western 78,000 Aundh Lease
Cummins Panchshil 345,000 Balewadi Lease
Kohler Magarpatta 30,000 Hadapsar Lease
Posco WTC 30,000 Kharadi Sale
GRADE A CApITAl VAluEs
AVERAGE RENTAl AND CApITAl VAluE TREND
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 Rental Trends: Average market rental values for Grade A properties.
PUNE
Note: All the rentals shown above are indicative Grade A rentals in INR per sq ft per month.
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
1Q20
08
4Q20
08
4Q20
09
4Q20
10
4Q20
13f
4Q20
14f
4Q20
12
4Q20
11
MumbaiThe 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.
DelhiThe 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 .
GurgaonThe 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.
NOIDANOIDA 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.
ChennaiPrime 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.
PuneThe 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.
KolkataThe 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
COllIERs INTERNATIONAl | p. 11
iNDia | 2Q 2013 | OFFICE
CITY BAROMETER
Increasing as compared to previous quarter
Decreasing as compared to previous quarter
Remained stable from previous quarter
Accelerating success.
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 clients via our property Investment and Occupier service lines. These service lines include - Office Services, facility Management, Project Management, Residential Services, Investment Services and Valuation & Advisory Services.
www.colliers.com/india
for national offices services related queries please contact:
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INDIA OffICE INDIA RESIDENTIAL APAC OffICE GLOBAL OffICE GLOBAL INDUSTRIAL INDIA BUDGET INDIAN REAL ESTATE UNPLUGGED
Mumbai : Vaibhav Kumar, Office Director [email protected] IndiaBulls finance Centre, 1701-A, 17th floor, Tower 3, Elphinstone Mills, Senapati Bapat Marg, Mumbai- 400 013. Tel : +91 22 4050 4527, fax : +91 22 2351 4272
Delhi NCR : Ajay Rakheja, Office Director [email protected]
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 [email protected] 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 [email protected] 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 [email protected] 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 [email protected] 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 :
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iNDia | 2Q 2013 | OFFICE
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AUTHORS
Amit Oberoi MRICSNational Director, Valuation & Advisory; ResearchEmail: [email protected]
Surabhi Arora MRICSAssociate Director, ResearchEmail: [email protected]
Sachin SharmaAssistant Manager, ResearchEmail: [email protected]
Heliana ManoAssistant Manager,Valuation & Advisory Email: [email protected]
for general queries and feedback :[email protected] 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.
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United States: 140 Canada: 42 Latin America: 20 Asia Pacific: 195EMEA: 85
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Over 13,500 + professionals
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INDIA
QUARTERLY UPDATE | MAY | 2013
Residential Property Market Overview ASIA PACIFIC
OFFICE MARKET OVERVIEW1Q 2013
Accelerating success.
2013 OUTLOOKGLOBAL OFFICE
WWW.COLLIERS.COM
2012 | OFFICE
The global economy has seen recent headwinds from the smoldering eurozone debt crisis, slowing growth in China’s economy and the forecasted American fiscal cliff. Yet our overall global view of office real estate is moderately positive. While many large occupiers have taken a wait-and-see attitude toward the global economy, others are leasing up much-needed space to accommodate expanding operations. Quality office buildings in major global cities are seeing consistent demand from both occupiers and investors.
U.S. is showing gradually lowering vacancy rates. Canada’s office market continues to perform well and is seeing notable development activity in major markets. Office absorption has been largely driven by Intellectual Capital, Energy and Education (ICEE) sectors.
Mexico and Brazil report slightly higher vacancies, due to a combination of speculative construction and slackening economic growth. Yet São Paulo still boasts the ultra-low vacancy rate of 3.3%.
Average Central Business District (CBD) office rents remained broadly unchanged across key EMEA markets, but this has been a result of limited supply more than increased demand. Business confidence across Europe is firmly negative, which does not bode well for the next year of activity.
China’s slowing growth has dampened office demand in some Asian markets. Beijing’s office market remains healthy, but appeared lackluster when compared to an extremely active 2011.
GLOBAL OFFICE MARKETS SHOW STABILITY IN THE FACE OF HEADWINDS
GLOBAL CAPITALIZATION RATES /PRIME YIELDS: 10 LOWEST CITIES
MARKET (Ranked byJune 2012)
JUNE 2012
DEC 2011
JUNE 2011
Taipei �.�� �.�� �.�� Hong Kong �.�� �.�� �.�� Vienna �.�� �.�� �.�� Singapore �.�� �.�� �.�� London - West End �.�� �.�� �.�� Zurich �.�� �.�� �.�� Geneva �.�� �.�� �.�� Beijing �.�� �.�� �.�� Paris �.�� �.�� �.�� Munich �.�� �.�� �.�� Tokyo �.�� �.�� �.��
GLOBAL OFFICE OCCUPANCY COSTS:TOP 10 CITIES
MARKET (Ranked byJune 2012)
JUNE2012
DEC 2011
JUNE 2011
Hong Kong ���.�� ���.�� ���.�� London – West End ���.�� ���.�� ���.�� Tokyo* ���.�� ���.�� ���.��Rio de Janeiro ��.�� ��.�� ��.��Paris ��.�� ��.�� ��.��Moscow ��.�� ��.�� ��.��London – City ��.�� ��.�� ��.��Perth ��.�� ��.�� ��.��Geneva ��.�� ��.�� ��.��São Paulo ��.�� ��.�� ��.��
CBD CAP RATE (%)
CLASS A / NET RENT (USD/SF/YR)
10.25
9.00
9.00
4.90
4.75
4.70
4.00
4.00
3.90
3.50
2.67
2.50
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0
Rio de Janeiro
Mexico City
Buenos Aires
New York, NY - Midtown South Manhattan
Vancouver, BC
New York, NY - Midtown Manhattan
London - West End
Zurich
Singapore
Vienna
Hong Kong
Taipei
Asia Pacific
EMEA
North America
Latin America
TOP THREE MARKETS BY REGION: JUNE 2012 CAP RATE (%)
*Tokyo rents listed are gross rents.
Trade Flows Bolster Industrial Demand in Asia and the Americas> Despite anemic U.S. job growth, demand for North American industrial
warehouse space and modern distribution centers remains strong. In Q1 2013, the North American vacancy rate declined for the eighth straight quarter, down 20 basis points to 8.20%. Canada’s vacancy rate stands at 4.13%.
> Thanks in part to a recent drop in exports to the United States, Mexico has seen slowing economic growth. In Q1 2013, several Mexico City industrial warehouses were vacated, slightly increasing the vacancy rate to 3.49%.
> While occupier demand for industrial property in Brazil remains strong, the market now appears to have stabilized into a more rational mode of sustained growth. São Paulo has seen positive net absorption, in spite of the final tally in 2012 showing a 23% decrease over the previous year.
> Demand for Beijing’s logistics properties remained as strong as it has been since 2011. Rents grew by 11.41% year-over-year as of the end of Q1 2013. Shanghai’s industrial sector remained stable, with average asking rents for ground floor premises of high quality facilities in both the logistics and workshop sectors unchanged.
> In Hong Kong, high quality warehouse buildings are nearly fully occupied. Those users seeking to expand or rationalize their real estate costs have had to consider the option of split operations in lower quality buildings.
> Indian economic growth remained sluggish through the end of 2012, however we expect industrial activity to improve, thanks to recent government actions. These include the government-proposed National Investment and Manufacturing Zones and the newly approved 51% foreign direct investment in multi-brand retail trading.
Global | Industrial | Midyear 2013HIGHLIGHTS
* December 2013 Rent (USD/PSF/YR)** Local currency
Global Top 10 Industrial Warehouse Rents*
6-Month Change in Rent**
LONDON (HEATHROW)
HONG KONG
SINGAPORE
TOKYO
OSLO
GENEVA
PARIS
HELSINKI
MINSK
SYDNEY
21.95
21.83
21.02
20.61
20.04
16.20
14.70
14.70
13.23
13.23
MINSK
OSLOSINGAPORE
SYDNEY
11.1%
3.9%
2.2%
12.5%
PARIS
HELSINKI
GENEVA
TOKYO
HONG KONG
LONDON - (HEATHROW)
LEGEND
EMEA
APAC
THE INTERNATIONAL INDIAN May - June 201344
CONTENTS
45 Indian Real Estate Unplugged
46 Gurgaon
48 NOIDA
52 Mumbai
53 Pune
54 Bengaluru
55 Chennai
56 Hyderabad
56 Kochi
57 Maisuru
57 Thiruvananthapuram
58 Current Market Prices
61 Do’s and Don’ts of Real Estate Investments
62 Dubai Residential Market Hots up Th
e Sp
ring-
Sum
mer
REA
L ES
TATE
FO
CU
S
OFFICE PROPERTY MARKET OVERVIEW INDIA
QUARTERLY UPDATE | APRIL | 2013
Accelerating success.