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INDIA
April - 2015
Contents
10
12
14
16
18
Research &
Forecast Report
India | Office
April 2015
Colliers View
With an expanding economy, improving business sentiment
and increasing job creations, the momentum in demand for
office real estate is expected to stay. In response to tenant
demand, the strongest markets (namely Bengaluru and
Gurgaon) will witness development of new stock. However,
developer sentiment towards speculative construction of
office buildings is expected to remain cautious, and this in
turn will limit the risk of further overbuilding.
Economic Barometer
Indicators
4Q 2014
1Q 2015
7.50%
7.80%1
56.20%
56.40%
Repo Rate
8.00%
7.50%
7.00%
6.50%
4.00%
4.00%
0.11%
-2.06%
10.00% - 10.30%
10.00% - 10.25%
8.00% - 9.05%
8.00% - 8.75%
4Q 2014
1Q 2015
INR - USD
63.33
62.36
INR - EURO
77.00
66.48
Gross Domestic
Product
Business
Confidence Index
Ination (WPI)
1Q 2015
QoQ
CHANGE
Gold
26,507
26,232
-1.04%
Silver
35,999
36,983
2.73%
Equity
(BSE Sensex)
27,499
27,957
1.67%
1,555
1,692
8.77%
Parameters
Realty Index
Note:
Estimates as per International Monetary Fund
Wholesale Price Index (WPI)
SBI interest rate < INR 1 crore Term Deposits for 1 Year
Research &
Forecast Report
Mumbai | Office
April 2015
Increasing demand
trend led by IT/
ITeS occupiers
Office absorption in Mumbai increased by 9% QoQ, from
1.22 million sq ft in 4Q 2014 to 1.33 million sq ft in 1Q 2015.
The IT/ITeS sector dominated the citys office absorption
with over 57% (0.75 million sq ft) of the total absorption,
followed by BFSI with 0.38 million sq ft (28%) and pharma
with 0.07 million sq ft (5%). The maximum number of office
transactions were concluded in the western suburbs (0.54
million sq ft) including BKC, Andheri, Malad and Goregaon,
followed byNavi Mumbai (0.39 million sq ft), and the central
suburbs (0.25 million sq ft) including Vikhroli, Powai and
Kanjurmarg. This rise in demand is largely attributed to an
increase in the confidence of occupiers regarding overall
business growth in India and abroad.
In major office transactions during the quarter, E-clerx
took about 0.2 million sq ft in Mindspace SEZ by K Raheja
Corp located in Navi Mumbai. Other major deals included,
Housing.com and Edelweiss, took up 0.13 and 0.10 million
sq.ft. at Nomura by Hiranandani at Powai and Kohinoor City
by Kohinoor Group at Kurla, respectively.
1Q 2015 witnessed new supply of 0.6 million sq ft. The
projects accounting for this new supply were 0.2 million sq
ft of Lodha Supremus (located in I-Think Campus) by Lodha
Group; and 0.4 million sq ft of Century Greenspan (located
in Worli) developed by Century, an Aditya Birla Group
company. No new project was launched during the quarter
as developers were focusing to complete their existing
ventures, about 7.7 million sq ft of Grade A office supply is
available for fitout in Mumbai, among which majority of the
supply is located in the western suburbs (47%) including
BKC, Andheri (E), Malad and Goregaon/JVLR, followed by
Central Mumbai (16%) including Worli, Prabhadevi and
Lower Parel.
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
CBD**
200 - 230
5%
-7%
Worli/Prabhadevi
185 - 225
0%
2%
Lower Parel
145 - 190
0%
4%
BKC
225 - 320
0%
0%
Kalina
150 - 200
0%
-9%
Goregaon / JVLR
100 - 110
0%
10%
Andheri East
80 - 130
0%
-3%
Malad
80 - 100
0%
5%
Powai
120 - 130
4%
13%
Navi Mumbai
60 - 100
0%
22%
Thane / LBS
60 - 110
0%
13%
2.50
2.00
1.50
1.00
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
Forecast
250
25,000
200
20,000
150
15,000
100
10,000
50
5,000
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
1Q 2010
0
1Q 2008
BUILDING NAME
E-clerx
Mindspace SEZ
Housing.com
AREA (SF)
LOCATION
LEASE / SALE
200,000
Navi Mumbai
Lease
Nomura
130,000
Powai
Lease
Edelweiss
Kohinoor City
100,000
Kurla
Sale
L&T infotech
Mindspace SEZ
90,000
Navi Mumbai
Lease
Capegemini
Gigaplex
85,000
Navi Mumbai
Lease
AREA (SF)
LOCATION
POSSESSION
DEVELOPER
L & T Infrastructure
1,350,000
Navi Mumbai
2015
Godrej BKC
Godrej Group
1,200,000
BKC
2015
Kohinoor Square
Kohinoor Group
800,000
Dadar
2015
Notes:
1. Office Market: The 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 submakets.
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.
300
Rental Values INR Per SF Per Month
4Q 2013
Colliers View
3Q 2013
1Q 2013
0.00
2Q 2013
0.50
1Q 2009
Million Sq.ft
Research &
Forecast Report
Delhi | Office
April 2015
Absorption
declined due
to shrink in
transaction size
Delhi grade A office leasing market in 1Q 2015 saw an
absorption of only 0.11 million sq. ft. Manufacturing sector
companies took about 34% (0.03 million sq ft) of this total
absorption followed by BFSI 19% and IT/ITeS 18%. Majority
of the transactions were concluded in CBD (Connaught
Place) (0.03 million sq ft) followed by Saket (0.02 million sq
ft) and Jasola (0.01 million sq ft).
There was also demand from Government and media sector
for small office space primarily in Central Delhi micro
markets. Major transactions during the quarter include the
lease of 14,000 sq ft office space by Anchor in TDI Tower at
Jasola, 13,000 sq ft by SMCC Construction in Salcon Rasvilas
at Saket and the lease of 10,000 sq. ft. by Motilal Oswal in
Tolstoy House located at Connaught Place.
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
CBD**
185 - 450
0%
2%
Nehru Place
180 - 225
1%
1%
Saket
140 - 190
0%
-6%
Jasola
95 - 130
0%
0%
NSP***
65 - 75
0%
0%
1Q 2014
0.60
0.40
0.30
0.20
1Q 2015
4Q 2015
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013
0.00
2Q 2013
0.10
1Q 2013
Colliers View
0.50
Forecast
30,000
200
25,000
150
20,000
15,000
100
10,000
50
5,000
35,000
250
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
1Q 2010
1Q 2009
0
1Q 2008
300
BUILDING NAME
Anchor
TDI Tower
SMCC Construction
AREA (SF)
LOCATION
LEASE / SALE
14,000
Jasola
Lease
Salcon Rasvilas
12,500
Saket
Lease
Motilal Oswal
Tolstoy House
10,000
Connaught Place
Lease
JDSU
Infotech Park
9,348
Dundahera
Lease
8,250
Connaught Place
Lease
DEVELOPER
AREA (SF)
LOCATION
POSSESSION
RPS Infinia
RPS Developer
1,000,000
Mathura Road
2015
NBCC Plaza
NBCC Ltd.
350,000
Okhla
2015
Caddie Hotel
100,000
Aerocity
2015
Notes:
1. Office Market: The commercial areas in New Delhi can be broadly classified into the CBD (Connaught Place), SBD Nehru Place, Bhikaji Cama Place, Netaji Subhash Place, Jasola
and Saket .
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.
Research &
Forecast Report
Gurgaon | Office
April 2015
Absorption dips
marginally by 6%
QoQ but solid
pipeline for 2Q
Gurgaon commercial real estate market remained active
in the first quarter of 2015. The citys office absorption
was recorded at approximately 1.12 million sq ft, which is
about 6% lower than that of the previous quarter. IT/ITeS
and BFSI with 47% and 25% share, respectively were the
prime contributors to this demand. Apart from this, media
and entertainment, manufacturing, pharma, FMCG and
engineering sectors also leased large office spaces during
the quarter. A few notable transactions this quarter were the
0.12 million sq ft office lease by Ernst & Young in Unitech
Cyber Park located at Sector 39, 0.10 million sq ft by Arvato
in JMD Megapolis located at Sector 48 and 0.08 million sq ft
by Boston Consulting in Bestech Business Park located on
Sohna Road.
At the end of the quarter, the total available office supply
stood at 16 million sq ft. Areas with the highest available
supply were Golf Course Road Ext / Sohna Road (30%),
Manesar (25%), National Highway 8 (15%), Udyog Vihar
and Industrial Sectors (14%) and Golf Course Road (9%).
The city witnessed the completion of three small projects
this quarter, namely, Spaze Palazo (0.25 million sq ft) by
Spaze Group at Sector 69, JMD Empire (0.18 million sq ft)
by JMD Group at Golf Course Extension Road and Legends
Heights (0.25 million sq ft) by ILD at National Highway
8. Given the large vacant stock, developers continued to
refrain from adding speculative supply. Only Earth Group in
collaboration with AMB Group launched Earth SKY GATE at
Sector 88. It is a mixed-use development project of about 1.5
million sq ft, which will have retail, commercial, bank space
and restaurant components.
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
MG Road
100 - 145
0%
7%
90 - 100
0%
20%
55 - 80
0%
17%
55 - 95
0%
20%
55 - 80
0%
17%
National Highway 8
50 - 150
0%
14%
30 - 45
0%
-12%
Manesar
40 - 45
0%
4%
Institutional Sectors
(Sec 44, 32, 18)
Golf Course Road
Ext./Sohna Road
2.00
1.60
1.20
0.80
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013
Forecast
120
12,000
100
10,000
80
8,000
60
6,000
40
4,000
20
2,000
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
1Q 2010
0
1Q 2008
140
Rental Values INR Per SF Per Month
1Q 2013
0.00
Colliers View
2Q 2013
0.40
1Q 2009
Million Sq.ft
BUILDING NAME
AREA (SF)
LOCATION
LEASE / SALE
125,000
Sector 39
Lease
Boston Consulting
80,000
Sohna Road
Lease
Nagarro
Tower of Arc
70,000
Udyog Vihar
Lease
HSBC
Plot No. 80
67,000
Udyog Vihar
Lease
TCS
62,000
Sohna Road
Lease
AREA (SF)
LOCATION
POSSESSION
DEVELOPER
Business Club
AIPL
700,000
2015
Parsvnath Developers
695,000
Sohna Road
2015
Unitech
450,000
NH-8
2015
Notes:
1. Office Market: The 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 citys new office destination.
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.
Research &
Forecast Report
NOIDA | Office
April 2015
Absorption
declined in 1Q
2015, despite few
large transactions
The NOIDA office market witnessed a major downturn
this quarter, in terms of absorption. The office market
witnessed about 0.5 million sq ft of office absorption, which
is almost half of 4Q 2014s absorption figure of 1 million
sq ft. Expansion and relocation were the primary demand
drivers this quarter. IT / ITeS continued to be the dominant
sector leasing office space in NOIDA. There was also some
demand from manufacturing companies who leased smaller
office spaces in locations like Sector 62 and 59. The most
significant leasing transaction for 1Q 2015 took place in
Institutional Sector 62, with Kronos leasing 70,000 sq ft in
Okaya Blue. Jubilant Industries signed a 67,000-sq ft lease
at Logix Technopark and Lava Mobile took 60,000 sq ft in a
stand-alone building in Sector 58.
The construction scenario showed signs of improvement,
and the city witnessed the completion of over 1.3 million sq
ft of prime office space. The projects that were completed
this quarter include World Trade Tower by Sapphire Group
measuring over 1 million sq ft and located in Sector 16 and
Stellar Business Park (0.24 million sq ft) by Stellar Group
located in Sector 135 (Expressway).
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
Commercial
Sectors**
Institutional
Sectors (Non IT)***
Institutional
Sectors (IT)***
Industrial Sector
(IT)****
RENTAL
VALUE*
% CHANGE
QoQ
YoY
90 - 110
-2%
3%
55 - 110
3%
18%
45 - 65
5%
5%
35 - 55
5%
15%
1.20
1.00
0.80
0.60
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
0.00
4Q 2013
3Q 2013
0.20
1Q 2013
Colliers View
2Q 2013
0.40
Forecast
10,000
60
50
8,000
40
6,000
30
4,000
20
2,000
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
10
12,000
70
1Q 2010
90
80
1Q 2009
Million Sq.ft.
BUILDING NAME
AREA (SF)
LOCATION
LEASE / SALE
Kronos
Okaya Blue
70,000
Sector 62
Lease
Jubilant Industries
67,000
Expressway
Lease
Lava Mobile
Individual Building
60,000
Sector 58
Lease
Genpact
Stellar 135
60,000
Expressway
Lease
Oxford
Stellar IT Park
20,000
Sector 62
Lease
DEVELOPER
AREA (SF)
LOCATION
POSSESSION
Delhi One
The 3C Company
2,000,000
DND Flyway
2015
Mist Avenue
Bhasin Group
1,000,000
Sector 143
2015
Assotech
500,000
Sector 135
2015
Notes:
1. Office Market: NOIDA market is comprised of sectors broadly classified as institutional, industrial and commercial sectors. Institutional sectors include sec 16A, 62 and125-142,
industrial sectors include Sec 1-9, 57-60 and 63- 65 while sector 18 is the most developed commercial sector.
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.
Research &
Forecast Report
Chennai | Office
April 2015
IT/ITeS remains
the prime driver
with 53% of total
absorption
Chennai 1Q 2015 absorption stood at 0.8 million sq ft as
compared to the previous quarters 1.33 million sq ft. The
IT/ITES sector accounted for 53% of the total absorption
followed by manufacturing at 17% and pharma at 16%.
The BFSI, engineering, FMCG, media & entertainment and
logistics sectors were also represented in the deals closed
during the period. Approximately 50% of total absorption
was in the CBD followed by OMR (16%) and Ambattur
(11%). Notable transactions include the Income Tax
Department taking the entire BSNL Building of 0.19 million
sq ft located in the CBD. Apart from this, Ford took 0.06
million sq ft in SP Infocity at OMR and Bank Bazaar took
0.05 million sq ft in India Bulls located at Ambattur.
Cautious market sentiments restricted the new supply to
only 0.40 million sq ft. Projects contributing this supply
were Lalah Tower (0.28 million sq ft) by Ramaniyam on
Nelson Manickam Road; Sri Balaji Complex (0.06 million
sq ft) by Shanthi Builders at Royapettah; and AGR Platina
(0.05 million sq ft) by an independent developer at
Ekkaduthangal. The total available supply for lease / fitout stood at 10.7 million sq ft. By micro-market, OMR (IT
corridor) accounted for 34% of this total available supply,
followed by Ambattur 28% and the CBD 27%. No new
projects / parts of projects were launched in Chennai during
the quarter. Lack of new completed supply has led to a
decline in vacancy rates especially on the OMR stretch.
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
CBD
60 - 80
0%
0%
Guindy
50 - 60
0%
4%
Ambattur
20 - 30
0%
0%
OMR I**
45 - 60
-1%
1%
25 - 45
0%
0%
GST Road
35 - 40
0%
0%
2.4
2.0
1.6
1.2
0.8
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013
Forecast
30
3,000
15
1,500
1Q 2017F
4,500
1Q 2016F
45
1Q 2015
6,000
1Q 2014
60
1Q 2013
7,500
1Q 2012
75
1Q 2011
9,000
1Q 2010
90
105
1Q 2008
1Q 2013
Colliers View
2Q 2013
0.4
1Q 2009
Million Sq.ft
BUILDING NAME
BSNL Buidling
Ford
AREA (SF)
LOCATION
LEASE / SALE
197,000
CBD
Lease
SP Infocity
69,000
Old Mahabalipuram
Road
Lease
Bank Bazaar
India Bulls
50,000
Ambattur
Lease
Citi Bank
TRIL
44,000
Old Mahabalipuram
Road
Lease
Harini Towers
40,000
CBD
Lease
DEVELOPER
AREA (SF)
1,200,000
1,100,000
Estancia Block B2
469,000
LOCATION
Old Mahabalipuram
Road
Old Mahabalipuram
Road
GST Road
POSSESSION
2015
2015
2015
Notes:
1. Office Market: Prime office properties in Chennai are located in four principal sub-markets: the CBD, SBD (Guindy, Manpakkam,Velachery) and the PBD (Old Mahaballipuram
Road (OMR).
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.
Research &
Forecast Report
Bengaluru | Office
April 2015
Momentum
continues with
over 2.3 million
sq ft of office
absorption
It was another solid performance for the Bengaluru office
market in 1Q 2015, with office absorption totalling 2.31
million sq ft. Apart from this, about 1.74 million sq ft of
office space was pre-committed for build to suit by MNCs
like Amazon, Wells Fargo, Arista Networks and WSP
Consultants. IT / ITeS commanded the absorption with
about 69% (1.6 million sq ft), followed by BFSI sector 14%
and Retail 6%. SBD locations, such as Bannerghatta Road,
Koramangala, Malleswaram, Yamalur, J P Nagar and Outer
Ring Road - Marathahalli to KR Puram, saw maximum
traction with about 1.4 million sq ft office absorption, trailed
by PBD locations like Whitefield, Hosur Road and Outer
Ring Road - KR Puram to Hebbal, where more than 0.45
million sq ft was leased during the quarter.
Bengaluru recorded new supply of over 2.1 million sq ft
in 1Q 2015, 23% higher than that of the previous quarter.
Projects constituting this supply were Purva Gainz by
Purvankara Projects and Prestige Trinity Center by Prestige
Group both located at Hosur Road, Divyasree Technopolis
- Block by Divyasree at Yamalur, Global Village SEZ by
Tanglin Group at Mysore Road and Pritech - Block 14 by
Primal Group at ORR Marathahalli Sarjapur Road.
The total available stock for fit-outs was approximately 11
million sq ft. EPIP Zone / Whitefield accounted for 39%
of the total stock, followed by Outer Ring Road (24%) and
Electronic City (18%).
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
CBD
90 - 130
0%
16%
55 - 63
0%
7%
53 - 60
0%
0%
Bannerghatta Road
50 - 60
0%
0%
EPIP Zone/
Whitefield
28 - 36
0%
0%
Hosur Road
25 - 40
0%
8%
Electronic City
26 - 33
0%
7%
4
3
2
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013
1Q 2013
2Q 2013
60
12,000
10,000
50
8,000
40
6,000
30
4,000
20
2,000
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
10
70
1Q 2010
1Q 2009
Colliers View
1Q 2008
Million Sq.ft
BUILDING NAME
Amazon
Constellation Business
Park
Misys
AREA (SF)
LOCATION
LEASE / SALE
500,000
Lease
150,000
Lease
Nokia
131,640
Lease
Epsilon
131,640
Lease
131,211
Lease
LOCATION
POSSESSION
900,000
2015
800,000
2015
800,000
Sarjapur Road
2015
DEVELOPER
Adamas Builder
Primal Realty
AREA (SF)
Notes:
1. Office Market: Prime office properties in Bengaluru can be divided into three principal sub-market CBD/O CBD (MG Road, Millers Road, Vittal Mallya Road etc.) the SBD
(Banerghatta Road & Outer Ring Road (ORR)) and PBD (Hosur Road, EPIP Zone, Electronic City and Whitefield).
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.
Research &
Forecast Report
Kolkata | Office
April 2015
Transaction
volumes picks up
in 1Q 2015
During 1Q 2015, Kolkata office market showed signs of
improvement with over 0.22 million sq ft of absorption
compared to the previous quarters absorption of only 0.15
million sq ft. IT / ITeS occupiers topped the chart with over
36% of the total, followed by manufacturing 29% and BFSI
13%. Major transactions during the quarter included the
lease of 0.05 million sq ft office space by Siemens VAI in
Godrej Water Side and the lease of 0.02 million sq ft by NIIT
in Eco Space. Sector V / New Town remained the preferred
micro market among occupiers, with 79% share in the total
absorption. A few small deals were also concluded in the
CBD and SBD micro markets. Developers continued to
remain watchful in launching new projects because many
of the large office spaces are currently struggling with leases
/ sales due to the limited new entrants and the absence of
expansion plans of existing occupiers.
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
CBD**
85 - 115
0%
-7%
SBD***
65 - 75
0%
-7%
Sector V
40 - 45
-8%
-11%
PBD****
34 - 35
0%
-3%
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
3Q 2013
2Q 2013
4Q 2013
0.10
0.00
1Q 2013
Million Sq.ft
Colliers View
Forecast
12,000
100
10,000
80
8,000
60
6,000
40
4,000
20
2,000
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
1Q 2010
1Q 2009
120
1Q 2008
BUILDING NAME
AREA (SF)
LOCATION
LEASE / SALE
Siemens VAI
46,769
Sector V
Lease
NIIT
Eco Space
18,000
New Town
Lease
PWC
13,777
Sector V
Lease
Religare
PS Arcadia Central
10,000
Camac Street
Lease
Honda Motors
Eco Space
9,167
New Town
Lease
DEVELOPER
AREA (SF)
LOCATION
POSSESSION
Mani Twin
Mani Group
1,800,000
Rajarhat
2015
Technopolis 2
Forum Projects
1,200,000
Bantala
2015
Magnacon
Infinity Group
Salt Lake
2015
740,000
Notes:
1. Office Market: The major business locations in Kolkata are CBD (Park Street, Camac Street, Chowranghee Rd, AJC Bose Rd), East Kolkata (EM Bypass, Topsia, Ruby), Salt Lake/
Sector V and New Town / Rajarhat.
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.
Research &
Forecast Report
Pune | Office
April 2015
IT / ITeS driving
the city office real
estate
Renewals and expansions by IT / ITeS companies continued
to drive the Pune office market in 1Q 2015. However, the
citys office absorption was recorded at approximately
0.89 million sq ft, which is 40% lower than the previous
quarters absorption. Nagar Road and Airport Road /
Pune Station continued to remain as the most preferred
locations by major occupants, each with about 24% of the
total absorption, followed by Hinjewadi and Hadapsar /
Fursungi, each with about 16%.
Occupiers from the IT / ITeS sector were the primary
contributors to this demand, taking up more than 90% of
the total absorption. This was followed by other sectors like
Logistics, Pharma and Manufacturing, accounting for over
7% of the total absorption. A number of large-floor plate
deals were concluded this quarter, like the 0.13 million sq
ft lease by Vodafone India in Business @ Mantri located
on Nagar Road. In addition, Amdocs took 0.08 million sq
ft in Magarpatta Cybercity Tower 3, and more than 0.05
million sq ft each was taken by Rockwell Automation and
Access Health Services in Embassy - Mississippi located at
Hinjewadi.
About 4 million sq ft was available for lease in Pune market,
of which 24% was located on the Airport Road / Pune
Station, 18% Nagar Road and 16% in Hinjewadi. The city
witnessed limited new supply, and only about 0.64 million
sq ft of Grade A supply was added to the citys Grade A
inventory. Projects that contributed to this new supply were
Marvel Alaina and Marvel Edge, both by Marvel Group, at
Koregaon Park and Viman Nagar, respectively.
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
Baner
45 - 55
0%
0%
Bund Garden
50 - 65
0%
0%
Airport road/pune
station
45 - 75
0%
7%
Aundh
45 - 60
0%
0%
Senapati Bapat
Road
55 - 85
0%
0%
Bavdhan
35 - 45
0%
0%
Kalyani Nagar
45 - 60
0%
0%
Nagar Road
40 - 60
0%
0%
Hinjewadi
34 - 45
3%
3%
Hadapsar/Fursungi
38 - 65
0%
7%
Kharadi
34 - 65
2%
2%
1.80
1.50
1.20
0.90
0.60
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013
Forecast
70
7,000
60
6,000
1Q 2017F
1,000
1Q 2016F
10
1Q 2015
2,000
1Q 2014
3,000
20
1Q 2013
30
1Q 2012
4,000
1Q 2011
5,000
1Q 2010
50
40
80
1Q 2008
2Q 2013
0.00
Colliers View
1Q 2013
0.30
1Q 2009
Million Sq.ft
BUILDING NAME
AREA (SF)
LOCATION
LEASE / SALE
Vodafone India
Business @ Mantri
133,379
Nagar Road
Lease
Amdocs
Magarpatta Cybercity
Tower-3
88,000
Hadapsar
Lease
Rockwell Automation
Embassy - Mississippi
51,516
Hinjewadi
Lease
Embassy - Mississippi
51,116
Hinjewadi
Lease
HCL
Business Bay
46,000
Yerwada
Lease
AREA (SF)
LOCATION
POSSESSION
DEVELOPER
SP Infocity Building 5
800,000
Phursungi
2015
Commerzone Building 8
K Raheja Corp
420,000
Yerwada
2015
Acendas Phase II
Acendas
615,000
Hinjewadi
2015
Notes:
1. Office Market: The prime office sub-markets of Pune include CBD (Deccan Gymkhana, Bund Garden Road, Senapati Bapat Road & Camp), O CBD (Aundh, Airport Road and
Kalyani Nagar) and the eastern corridor, along with Nagar Road and Kharadi, which have emerged as a preferred location for financial and IT/ITES companies.
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.
Primary Authors:
502
67 countries on
6 continents
United States: 140
Canada: 31
Latin America: 24
199
EMEA: 108
Surabhi Arora
Associate Director | Research
+91 124 456 7500
surabhi.arora@colliers.com
Sachin Sharma
Manager | Research
Amit Oberoi I National Director
Valuation & Advisory Services & Research
For Oce Services:
Mumbai: George Mckay I South Asia Director
george.mckay@colliers.com
Delhi / NCR: Vikas Kalia | National Director
vikas.kalia@colliers.com
$2.3
billion in
annual revenue
1.7
16,300
professionals
colliers.com
2015