CITY REPORT

DELHI OFFICE MARKET

Q2 2012

CITY REPORT - DELHI OFFICE MARKET - Q2 2012

SUMMARY
Rentals Stagnate as Demand Dips Cautious sentiment displayed by occupiers has led to a dip in demand in Q2 compared to previous quarter. Restrained precommitments have also limited introduction of fresh supply in the market, as developers wait for rentals to increase to adequate levels. The scenario in the office space segment has been driven largely by the overall economic climate, with all stakeholders adopting a wait and watch policy. Rentals have consequently remained stable throughout the first half of 2012 and are not expected to register growth until the end of the year. Office space demand in NCR continues to be driven by the IT/ITeS industry and is focused primarily in Gurgaon (southern suburb), with developers in Noida (eastern suburb) holding back fresh supply. In view of the quantum of expected supply to be introduced, lease rentals are likely to remain at rationalized levels for the foreseeable future.

CITY REPORT - DELHI OFFICE MARKET - Q2 2012

CRR & SLR

30 25

MACROECONOMIC CONTEXT
Domestic growth decelerated on the back of global and domestic factors
The domestic GDP growth declined sharply to 6.5% during 2011-12 from 8.4% in the previous year. The quarterly growth rates have been showing a declining trend for the preceding four quarters with the fourth quarter GDP growth rate slowing to 5.3% the lowest quarterly growth rate in last 7 years. The growth faces increased pressure from moderation in investment demand, domestic cyclical and structural factors and an uncertain global environment. Business confidence, as measured by the business expectations indices of the Reserve Bank's industrial outlook survey, showed a pick-up in the business sentiment in Q4 of 2011-12, but a marginal moderation in Q1 of 2012-13. The inflation during June 2012 has moderately slowed down to 7.25%, the lowest level in past five months. The inflation has declined largely on account of transitory factors including a favorable base effect and seasonal decline in vegetable prices. The moderation was initially driven by softening of food prices and then by a decline in non-food manufactured products (core) inflation. Notwithstanding the recent moderation in global crude oil prices and domestic price pressures in manufactured products, upside risks to inflation remain. Transitory factors have helped moderate inflation, but inflation is likely to turn sticky in FY 2012-13. The likely trends in global crude oil prices, going ahead, remain uncertain. Moreover, the impact of the lagged pass-through of rupee depreciation, suppressed inflation in energy and fertilizers and possible fiscal slippage continue to pose a significant threat. The bank rate has been reduced marginally from 9.50% in Q1 2012 to 9% in Q2 2012. The Reserve Bank of India had announced a reduction of 50 basis points in the repo rate this quarter on April 17, 2012; this reduction has taken place for the first time in past 3 years. The repo and reverse repo rate are at 8% and 7% respectively. The Cash Reserve Ratio (CRR) has been retained at 4.75% of their NDTL this quarter ending June. The Statutory Liquidity Ratio (SLR) also remained at 24% since past two years. Though there has been a marginal decline in both inflation and bank rate, the Real Estate sector continues to be under pressure, due to high cost of borrowing. The risks to health of the corporate sector in the economy remain elevated in Q2 2012. The recent corporate results point to falling profitability due to rise in input costs, including interest costs, and moderation of external and domestic demand.

Percent

20 15 10

Dec-09

Feb-11

Jun-11

Dec-11

Feb-12

Apr-11

Aug-11

SLR

CRR

Repo & Reverse Repo Rate

9 8 7

Percent

6 5 4 3 2 1 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Repo Reverse Repo 0

Gross Domestic Product (GDP)

12 10
9.80% 9.40% 8.30%

Dec-10

Aug-10

Feb-10

Apr-10

Percent

8
7.40%

8.50% 7.60% 7.80%

7.70% 6.60% 6.90% 6.10%

6 4 2 0

5.30%

Q3 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012* Source: RBI, CSO * Latest Round Projection by Survey of Professional Forecasters conducted by RBI

Apr-12

Jun-10

Jun-12

Oct-10

Oct-11

Major Real Estate Companies in India DLF Limited Unitech India Bulls Sobha Developers Peninsula Land Parsvnath Developers Pheonix Omaxe Limited Mahindra Lifespace

Sales (In INR / In million) Q1 2012 26,168 7,161 4,452 4,769 2,771 2,192 531 6,036 1,400 654 628 3,253 Q4 2011 20,344 5,139 3,565 3,137 454 2,396 505 4,518 1,538 922 1,469 2,262

Profits (In INR / In million) Q4 2011 2,495 575 408 401 105 248 269 193 395 339 298 -213 Q on Q Change % -25% -94% 42% 122% 687% -196% 2% 23% -19% -64% -157% 3%

Q on Q Q1 2012 Change % 29% 39% 25% 52% 510% -9% 5% 34% -9% -29% -57% 44% 1,861 33 578 890 828 -237 273 273 321 123 -171 -219

Wholesale Price Index (WPI)

12 10

Percent

8 6 4
2
Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sept-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sept-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12

Anantraj Hubtown Ansal Properties

Source: Confederation of Indian Industries

CITY REPORT - DELHI OFFICE MARKET - Q2 2012

DELHI MAP

pur Rd Sharan

nk Rd

h digar Chan

St. Nagar Marg

Bag hp at

Rd

Gran

d Tru

Major Roads Metro

Water Bodies Green Area

10
d dl iR
Swarna Jayanthi Park

Dr. K

Rd nk ru dT an Gr

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Ba

dew

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Railway Line
arg

Rd

rR

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Airport
Kar nal Rd
Yamuna River

12
Ri
NH-10

Rohtak

NH-10

ng

Rd

North Delhi Ridge Forest

Ghaziabad Vive kana nd M arg

Raj Bagh

NH-58 Rajendra Nagar

M
Ran

Shahdara

r Rin g Rd

ja Na

fga

rh

Rd

Vishnu Garden

Ghaz ipu

Raja Garden Rajouri Garden

Rd

4 2 9
g Road
Pursa Forest Gol Market

Chandni Chowk

r Rd

DDA Park Nihal Vihar

Pa t

el

Gra nd Tr unk Rd

11
nM

Grand Trunk Rd Link Rd rg Ma ya lvi Ma an Shahibabad oh

NH-

24

Gr

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2 1 5 4 6

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NH-24

Hapur Bypass

Shivaji M

arg

1
Jail Rd

Central Ridge Reserved Forest

3(d) 3(e)
No

3(c)

Rin

8 7

Upp er

Indraprasth

Car
Mehra
-8

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Africa Ave

Dwarka

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Indira Gandhi International Airport

Mehra uli N ajafga rh Rd

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Palam

Domestic Airport

Rd

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20

M 5D iR

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Delhi Golf Course Lodhi Rd

NOIDA
3
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DELHI

nR

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3 5

Hauz Khas Deer Park

2
Roa dN o. 1 3A

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Dodri Rd
Gr ea

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7
ga rh

at Marg

Gu

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5
Yamuna River Badarpur

Qutub Minar

Pal a

An uv r

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Jahanpanah City Forest

3(a)

af

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ao

1(a)
Me h

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Gu

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Gur

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Rd

gao

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Mathura Rd

Rajpur Khurd

lh

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1(d)
li R d
Leisure Valley

GURGAON
Basai Rd

De

1(c) 1(b)
DLF Golf Course

1
Rd

Me

u hra

Main C hhata rpur Rd

Pa

di tau

Manesar 2

ur

NH

Jai p

1(f) 6

Dera

Central Business District

1. Barakhamba Road 2. Connaught Place 3. ITO 4. Janpath 5. Kasturba Gandhi Marg 6. Khan Market 7. Parliament Street 8. Tolstoy Marg

Alternate Central Business District

1. Bikajicama Place 2. Jasola Vihar 3. Munirka 4. Nehru Place 5. Qutub Institutional Area 6. Saket 7. Vasant Kunj

Secondary Business District

1. Janakpuri 2. Jhandewalan 3. Karkar Duma 4. Karol bagh 5. Okhla Industrial Estate 6. Okhla Industrial Area-I 7. Okhla Industrial Area-II 8. Pitam Pura 9. Rajendra nagar new 10. Rohini 11. Shahdara 12. Wazirpur Industrial Area

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 Road 2. Manesar

ar

Rd

Rajokri

Mehra uli B ad

arpur Rd

Greater Noida
Ag ra

Rd

1(e)

Periphery Business District

3. Noida 3 (a). Expressway 3 (b). Sector 58 3 (c). Sector 62 3 (d). Sector 63 3 (e). Sector 64 4. Faridabad 5. Ghaziabad

ee
Lon
i Jhan
iR
si Marg

ru
NH-91

Upper Ground Floor, Unit No.7, Mercantile House, 15 KG Marg

t
h ar ig Al
te rN oi da

Hindan Airbase

ut e

Ma

and hatma G

Ring Rd

hi Marg

ida Lin kR d

uli N ajafg arh R d

Jai nR d

Ma th ur aR d
Ma

ma da an An
yee M ar

Rail way Rd

Old Sh

Faridabad

er Shah Rd

Agra

CITY REPORT - DELHI OFFICE MARKET - Q2 2012

CENTRAL BUSINESS DISTRICT (CBD)

Rentals continue to witness growth
The CBD continues to buck the trend witnessed across the National Capital Region. With limited space to offer, the region maintains a steady growth in lease rental.

Rental Values (INR / sq.ft / month)

360 340 320 300 280 260

The micro-market maintains its preeminent position as a favored destination for BFSI and other corporate sector companies. Although no new fresh supply is expected in the near future, the micro-market is expected to witness sustained demand for investment grade office space.

The average rentals & capital values for the last 6 quarters are as follows:-

AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH)

240 Q1 2011 Q2 2011 CBD Q3 2011 Q4 2011 Q1 2012 Q2 2012 CBD Q1 2011 300 Q2 2011 300 Q3 2011 300 Q4 2011 320 Q1 2012 325 Q2 2012 350

Source: BNP Paribas Real Estate - Research, India

Capital Values (INR / sq.ft)

36,000 35,000 34,000 33,000 32,000 31,000 30,000 29,000 28,000 27,000 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 CBD

AVERAGE CAPITAL VALUES (INR / SQ.FT)

Q1 2011 35,000 Q2 2011 35,000 Q3 2011 35,000 Q4 2011 35,000 Q1 2012 35,000 Q2 2012 35,000

CBD

Source: BNP Paribas Real Estate - Research, India

CITY REPORT - DELHI OFFICE MARKET - Q2 2012

ALTERNATE CENTRAL BUSINESS DISTRICT (ALTERNATE CBD)

Stabilized Rentals
With limited transaction activity across the Alternate CBD, rentals have largely remained stable over the last year. These micro-markets continue to leverage their positioning as compared to established hubs in Delhi's satellite towns and offering competitive rentals vis-vis the CBD.

Rental Values (INR / sq.ft / month)

220 200 180 160 140 120 100 80 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Bikaji Cama Place Jasola Vihar Munirka Nehru Place Qutub Institutional Area Saket Vasant Kunj The average rentals & capital values for the last 6 quarters are as follows:-

AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH)

Q1 2011 137 116 157 185 110 158 157 Q2 2011 137 116 157 185 110 158 157 Q3 2011 137 116 157 185 110 158 157 Q4 2011 137 116 157 185 110 158 157 Q1 2012 137 120 160 190 115 165 160 Q2 2012 137 120 160 200 115 165 160

Nehru Place Vasant Kunj Saket Munirka

Jasola Vihar Bikaji Cama Place Qutub Institutional Area

Source: BNP Paribas Real Estate - Research, India

24,000

Capital Values (INR / sq.ft)

22,000 20,000 18,000 16,000 14,000 12,000 10,000 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

AVERAGE CAPITAL VALUES (INR / SQ.FT)

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

Bikaji Cama Place 12,500 12,500 12,500 12,500 12,500 12,500 Jasola Vihar Munirka Nehru Place 14,500 14,500 14,500 16,000 16,000 16,000 15,500 15,500 15,500 15,500 15,500 15,500 20,300 20,300 20,300 20,300 20,300 20,300

Nehru Place Vasant Kunj Saket Munirka

Jasola Vihar Bikaji Cama Place Qutub Institutional Area

Qutab 12,500 12,500 12,500 12,500 12,500 12,500 Institutional Area Saket Vasant Kunj 20,500 20,500 20,500 23,000 23,000 23,000 20,500 20,500 20,500 20,500 20,500 20,500

Source: BNP Paribas Real Estate - Research, India

CITY REPORT - DELHI OFFICE MARKET - Q2 2012

SECONDARY BUSINESS DISTRICT (SBD)

Flat Growth Chart across SBD
The secondary business districts of NCR have charted a largely flat growth path over the last year. Traffic congestion, smaller formats and lack of investment grade supply are a few factors which have contributed to the stagnant rentals across these markets. With no fresh supply expected in the near future, these micro-markets are expected to attract clients primarily on their location attractiveness from regional offices of major corporates in addition to small to medium local businesses.

Rental Values (INR / sq.ft / month)

75 70 65 60 55 50 45 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Janak Puri Mathura Industrial Area Okhla Pitampura Shahdara The average rentals & capital values for the last 6 quarters are as follows:-

AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH)

Q1 2011 53 52 64 52 53 Q2 2011 53 52 64 52 53 Q3 2011 53 52 64 52 53 Q4 2011 53 52 64 52 53 Q1 2012 55 55 70 55 55 Q2 2012 55 55 70 55 55

Janak Puri Mathura Industrial Area Okhla

Pitampura Shahdara

Source: BNP Paribas Real Estate - Research, India

8,000

Capital Values (INR / sq.ft)

7,500 7,000 6,500 6,000 5,500 5,000 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Janak Puri Mathura Industrial Area Okhla Pitampura Shahdara

AVERAGE CAPITAL VALUES (INR / SQ.FT)

Q1 2011 7,500 6,000 6,000 5,500 5,500 Q2 2011 7,500 6,000 6,000 5,500 5,500 Q3 2011 7,500 6,000 6,000 5,500 5,500 Q4 2011 7,500 6,000 6,000 5,500 5,500 Q1 2012 7,500 6,000 6,000 5,500 5,500 Q2 2012 7,500 6,000 6,000 5,500 5,500

Janak Puri Mathura Industrial Area Okhla

Pitampura Shahdara

Source: BNP Paribas Real Estate - Research, India

CITY REPORT - DELHI OFFICE MARKET - Q2 2012

PERIPHERY BUSINESS DISTRICT (PBD)

Rental stabilize in face of reduced space off-take
Rental across different micro markets of the PBD have remained stable in the second quarter of 2012. With prospective tenants delaying decisions on leasing office space and sizeable vacant inventory in the market, capital markets too have stabilized in Q2. The overall economic sentiment has pushed back decisions for many IT/ITeS companies, a mainstay of demand in the PBD. However, Gurgaon has witnessed an increase in demand for investment grade office space, while Noida has witnessed a decline over the previous quarter. Constrained demand and high vacancy levels in Noida have also compelled developers to delay introduction of fresh supply. Leasing activity is expected to gain momentum in the latter half of the year, with a consequent positive impact on the lease rentals in the PBD. The average rentals & capital values for the last 6 quarters are as follows:-

Rental Values (INR / sq.ft / month)

120 100 80 60 40 20 0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

AVERAGE RENTAL VALUES (INR / SQ.FT / MONTH)

Q1 2011 Gurgaon DLF Cyber City Golf Course Rd MG Road NH8 / Udyog Vihar Sohna Rd Manesar Manesar Noida Expressway Sector 58 Sector 62 65 95 97 45 50 35 55 32 35 30 70 100 100 50 56 35 58 35 37 35 70 100 100 50 56 35 58 35 37 35 70 100 100 50 56 35 58 35 37 35 75 100 110 50 56 35 60 35 40 35 75 100 110 50 56 35 60 35 40 35 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

M G Road - Gurgaon Golf Course Rd Gurgaon DLF Cyber City Sohna Road Gurgaon Expressway - Noida

NH 8 / Udyog Vihar - Gurgaon Sector 62, Noida Manesar - Gurgaon Sector 58, Noida Sector 63/64, Noida

18,000

Sector 63/64

Capital Values (INR / sq.ft)

16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

Source: BNP Paribas Real Estate - Research, India

AVERAGE CAPITAL VALUES (INR / SQ.FT)

Q1 2011 Gurgaon Golf Course Rd MG Road NH8 / Udyog Vihar Sohna Rd Manesar Manesar Noida Expressway Sector 58 Sector 62 Sector 63/64 13,000 13,000 13,000 16,000 17,000 17,000 13,000 13,000 13,000 16,000 17,000 17,000 8,000 7,500 4,500 7,300 4,300 4,700 4,000 8,000 7,500 4,500 7,300 4,300 4,700 4,000 8,000 7,500 4,500 7,300 4,300 4,700 4,000 8,000 8,000 4,500 7,300 4,300 4,700 4,000 8,000 8,000 4,500 7,300 4,300 4,700 4,000 8,000 8,000 4,500 7,300 4,300 4,700 4,000 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

M G Road - Gurgaon Golf Course Rd Gurgaon Sohna Road Gurgaon Expressway - Noida Sector 62, Noida

NH 8 / Udyog Vihar - Gurgaon Manesar - Gurgaon Sector 58, Noida Sector 63/64, Noida

Source: BNP Paribas Real Estate - Research, India

CITY REPORT - DELHI OFFICE MARKET - Q2 2012

RENTAL VALUES FOR Q2 2012

Region
CBD

CAPITAL VALUES FOR Q2 2012

CBD Q on Q Change
8%

CBD Rent INR / sq.ft

350

Region
CBD

INR / sq.ft
35,000

Q on Q Change
0%

Region
Bikaji Cama Place Jasola Vihar Munirka Nehru Place Qutab Institutional Area Saket Vasant Kunj

Alternate CBD Rent INR / sq.ft

137 120 160 200 115 165 160

Alternate CBD Q on Q Change

0% 0% 0% 5% 0% 0% 0%

Region
Bikaji Cama Place Jasola Vihar Munirka Nehru Place Qutab Institutional Area Saket Vasant Kunj

INR / sq.ft
12,500 16,000 15,500 20,300 12,500 23,000 20,500

Q on Q Change
0% 0% 0% 0% 0%

0%
0%

Region
Janak Puri Mathura Industrial Area Okhla Pitampura Shahdara

SBD Rent INR / sq.ft

55 55 70 55 55

SBD Q on Q Change
0% 0% 0% 0% 0%

Region
Janak Puri Mathura Industrial Area Okhla Pitampura Shahdara

INR / sq.ft
7,500 6,000 6,000 5,500 5,500

Q on Q Change
0% 0% 0% 0% 0%

Region
Gurgaon DLF Cyber City Golf Course Rd MG Road NH8 / Udyog vihar Sohna Rd Manesar Manesar Noida Expressway Sector 58 Sector 62 Sector 63/64

PBD Rent INR / sq.ft

75 100 110 50 56 35 60 35 40 35

PBD Q on Q Change
0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Region
Gurgaon Golf Course Rd MG Road NH8 / Udyog vihar Sohna Rd Manesar Manesar Noida Expressway Sector 58 Sector 62 Sector 63/64

INR / sq.ft
17,000 17,000 8,000 8,000 4,500 7,300 4,300 4,700 4,000

Q on Q Change
0% 0% 0% 0% 0% 0% 0% 0% 0%

Source: BNP Paribas Real Estate - Research, India

Source: BNP Paribas Real Estate - Research, India

CITY REPORT - DELHI OFFICE MARKET - Q2 2012

10

KEY TRANSACTIONS
Q2 2012 Property
Konnectus Konnectus DLF South Court Spazedge Tower-B JMD Megapolis Orchid Business Park Unitech Cyber Park Assotech One Time Tower A-31 Fortune Towers Spaze IT Park Spaze IT Park Advant Navis Unitech Infospace, Tower-2

Occupiers
Hitachi National Insurance GAP Big Bazaar Convergys Volkswogan E Value Serve Denave Software India Pvt Ltd Mercedes Benz Tata Motors NA Capgemini Aircel IBM Artech India

Space (sq.ft)
21,000 23,000 47,000 40,000 100,000 20,000 25,000 12,000 3,100 52,000 9,000 36,000 25,000 30,000 20,000

Micro Market
CBD CBD Alternate CBD PBD PBD PBD PBD PBD PBD PBD PBD PBD PBD PBD PBD

Location
New Delhi New Delhi New Delhi Gurgaon Gurgaon Gurgaon Gurgaon Noida Gurgaon Noida Gurgaon Gurgaon Gurgaon Noida Noida

Source: BNP Paribas Real Estate - Research, India

CITY REPORT - DELHI OFFICE MARKET - Q2 2012

11

KEY PROJECTS
New Supply - Year 2012 Building
Konnectus DLF Capitol Point Universal Business Park Vatika Professional Point Bestech Park View Business Tower Matrix Tower Ansal Corporate Park Plot No.12A Lago Vista Arihant IT Park Cyberwalk (Eco Tower) Paras Trade Centre Suncity Trade Tower
Source: BNP Paribas Real Estate - Research, India

Location
New Delhi New Delhi Golf course extension Golf course extension Sohna Road Noida Noida Noida Noida Noida Manesar Gurgaon-Faridabad Road Sector-21,Gurgaon

Micro Market
CBD CBD PBD PBD PBD PBD PBD PBD PBD PBD PBD PBD PBD

Space in sq.ft
200,000 80,000 300,000 160,000 650,000 215,000 150,000 80,000 150,000 80,000 250,000 250,000 175,000

Completion date (expected)

Q3 2012 Ready Ready Ready Q3 2012 Ready Q3 2012 Ready Ready Ready Q3 2012 Q3 2012 Q3 2012

CITY REPORT - DELHI OFFICE MARKET - Q2 2012

12

GLOSSARY
Q2: Quarter 1 of the financial year (April - May - June) Absorption: Occupied Stock (n) Occupied Stock (n-1); Where n is the specified period (quarter, year etc.) Bare Shell: Premises consisting of basic structure with lifts, power supply to junction box, water supply line, toilets BPO: Business Process Outsourcing BUA: Built up area Super Built-up Area (SBUA): Built-up area + common area including lifts area, common passages, utilities, terrace etc. & varies from building to building. Carpet Area: Actual usable area, and does not include any common areas, area occupied by walls etc. Completed Stock: Either the building has received occupancy certificate or the client has moved in and occupied space and started working in a particular premises DU: Dwelling Unit EPIP: Export Promotion Industrial Park FAR: Floor Area Ratio (BUA/ Plot Area) Grade A Space: 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 Ground Coverage: It is the total covered area on ground by the built component and is expressed as a percentage of the plot area Hard Option: Real estate space reserved by the lessee for future occupation within a particular time frame and at a pre-decided rental INR: Indian National Rupees Pre-lease: Space committed for lease before completion of construction Speculative Stock: The stock which can be leased and excludes Built-to-Suit (BTS) and Campus facilities. Stock: Cumulative Supply Supply: New construction in a particular specified period Transaction Volumes: Total number of transaction in a particular specified period Vacancy: Total vacant space in the completed stock Warm Shell: Premises consisting of power backup, high side A.C., common area fit outs and fitted out toilets Q on Q: Quarter on Quarter y-o-y: year-on-year (All growth figures in this report are y-o-y unless otherwise mentioned IT: Information Technology ITES: 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) Repo Rate: 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 Reverse Repo Rate: Interest rate that a bank earns for lending money to the Reserve Bank of India in exchange for government securities SEC A, B, C & D Socio: Economic Classification; SEC A represents the highest propensity to spend and SEC D represents the lowest propensity to spend. Sq.ft: Square Feet Sq.mt: Square Meter Mn: Million Stamp Duty: Form of tax charged on instruments (written documents) requiring a physical stamp (for government legality) to be attached to or impressed. New: Building built within the last 5 years. Recent: Building less than 10 years old. NCR: National Capital Region (Includes urban agglomeration of Delhi, Gurgaon, Faridabad, Noida, Gaziabad etc) SEZ: Special Economic Zone having special tax exemptions / incentives to corporate occupiers BFSI: Banking & Financial Services Industry SLR: Statutory Liquidity Ratio FSI: Floor Space Index CRR: Cash Reserve Ratio Major Refurbishment: Building which has undergone structural alteration less than 5 years ago, subject to planning permission. Renovated: Building which has undergone renovation work not requiring for planning permission less than 5 years ago. Modern: High-performance building over 10 years old. Old: Low-performance building over 10 years old. CCI (Cost of construction index): 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. Demand: A search for premises expressed to BNP Paribas Real Estate. The analysis pertains only to the flow of new demand expressed. For the occupier: Operation undertaken by an occupier for its own purposes. New Supply: Any new building and/or heavily refurbished building that adds to the existing stocks. These are analysed according to progress. Completed new supply: Buildings on which construction work is finished. Under construction: Buildings on which construction has effectively begun. Prior demolition work is not taken into account. Planning permission granted: Authorisation to build obtained, generally booked after settlement of third party claims. Planning permission submitted: Planning permission requested, being processed. Pre-letting: Transaction by an occupier more than 6 months before the delivery of the building. Headline rent: 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. Average headline rent: 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.. Underlying rent: Annual rent per square meter expressed free of tax and charges and excluding advantages agreed by the owners (rent incentive building works, etc). Prime rents: 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. Top rent: Represents the top headline rent for an office unit. It is not necessarily a prime rent. Second hand premises: Premises that have been previously occupied by an occupier for vacant for more than 5 years. Very good condition: High-performance premises of high quality. Existing state of repair: Low-performance premises that can be rented as they are. To be renovated: Low performance premises that need renovation. 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 and second hand supply that will be vacated definitively (notable terminated leases). Take-up: 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. Vacancy rate: Ratio measuring the relationship between the supply immediately available and the existing stock. Disclaimer: 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.

USA

INDIA
BNP PARIBAS REAL ESTATE & INFRASTRUCTURE ADVISORY SERVICES PVT. LTD. MUMBAI 21, 2nd Floor, 1 North Avenue, Maker Maxity, Bandra (E), Mumbai - 400 051 Tel: +91 22 3370 4162 Fax: +91 22 3370 4166 DELHI Upper ground floor, Unit No 7, Mercantile House, 15 KG Marg, New Delhi 110 001 Tel: +91 11 4959 8800 Fax: +91 11 4959 8818 BANGALORE 704, Level 7, Raheja Paramount, #138, Residency Road, Bangalore 560 025 Tel: +91 80 3324 0300 Fax: +91 80 3324 0333 CHENNAI Regus Citi Centre Level 6, Chennai Citi Centre, 10/11, Dr. Radhakrishnan Salai, Chennai - 600 004 Tel: +91 44 4221 8651 Fax: +91 44 4221 8222

MAIN LOCATIONS
ABU DHABI Al Bateen Area Plot No. 144, W-11 New Al Bateen Municipality Street No. 32 P.O. Box No. 2742 Abu Dhabi, UAE Tel.: +971 505 573 055 Fax: +971 44 257 817 BELGIUM Boulevard Louis Schmidtlaan 2 B3 1040 Brussels Tel: +32 2 290 59 59 Fax: +32 2 290 59 69 CZECH REPUBLIC Pobeni 3 186 00 Prague 8 Tel.: +420 224 835 000 Fax: +420 222 323 723 DUBAI Emaar Square Building No. 1, 7th Floor P.O. Box 7233 Tel: +971 44 28 505 573 055 Fax: +971 44 257 817 FRANCE 167, Quai de la Bataille de Stalingrad 92867 Issy-les-Moulineaux Tel: +33 1 55 65 20 04 Fax: +33 1 55 65 20 00 GERMANY Goetheplatz 4 60311 Frankfurt Tel.: +49 69 2 98 99 0 Fax: +49 69 2 92 91 4 HUNGARY Alkotas u. 53. H-1123 Budapest, Tel.: +36 1 487 5501 Fax: +36 1 487 5542 IRELAND 20 Merrion Road, Ballsbridge, Dublin 4 Tel: +353 1 66 11 233 Fax: +353 1 67 89 981 ITALY Corso Italia, 15/A 20122 Milan Tel: +39 02 58 33 141 Fax: +39 02 58 33 14 25 JERSEY 3 Floor, Dialogue House 2-6 Anley Street St Helier, Jersey JE4 8RD Tel.: +44 (0)1 534 629 001 Fax: +44 (0)1 534 629 011 LUXEMBOURG Axento Building Avenue J.F. Kennedy 44 1855 Luxembourg Tel.: +352 34 94 84 Fax: +352 34 94 73 POLAND Al. Jana Pawla II 25 00-854 Warsaw Tel.: +48 22 653 44 00 Fax: +48 22 653 44 01 ROMANIA Union International Center 11 Ion Campineanu Street 6th floor, 1st district Bucharest 010031 Tel: +40 21 312 7000 Fax: +40 21 312 7001 SPAIN Mara de Molina, 54 28006 Madrid Tel: +34 91 454 96 00 Fax: +34 91 454 97 65 UNITED KINGDOM 5 Aldermanbury Square London EC2V 8HR Tel.: +44 20 7338 4000 Fax: +44 20 7430 2628

OTHER LOCATIONS
ALBANIA AUSTRIA BULGARIA CYPRUS GREECE JAPAN NETHERLANDS NORTHERN IRELAND RUSSIA SERBIA SLOVAKIA SWITZERLAND TURKEY UKRAINE USA

For Queries / Comments email at: info.india@bnpparibas.com

www.realestate.bnpparibas.co.in

Non contractual document - Research department March 2012. Photo courtesy : Vighneshwara Developers. BNP Paribas Real Estate : Simplified joint stock company with capital of 329 196 608 - 692 012 180 RCS Nanterre - Code NAF 4110B - CE identification number : FR 666 920 121 80 Headquarters: 167, Quai de la Bataille de Stalingrad - 92867 Issy Les Moulineaux Cedex - BNP Paribas Real Estate is part of the BNP Paribas Banking Group.