Office

Property Market Overview

INDIA
QUARTERLY UPDATE | APRIL | 2012

Accelerating success.
1Q 2012 | THE KNOWLEDGE

Research
SYDNEY CENTRAL
& forecast
BUSINESS
report
DISTRICT

research
India office
& forecast
market Report

MACRO ECONOMIC OVERVIEW

ECONOMIC INDICATORS
• During 4Q 2011 GDP grew at 6.9 percent in
real terms suggesting a moderation in growth Gross Domestic Product at factor cost
in comparison to preceding two quarters. The 10.0%
9.0%
finance minister presented India’s Union 8.0%

Budget 2012 -13 this quarter projecting a GDP 7.0%

6.0%
growth rate of 7.6% for 2012-13. 5.0%
4.0%
3.0%
• The headline inflation figure moderated from 2.0%

8.3 percent in December 2011 to 6.6 and 1.0%

0.0%
6.95% in January and February 2012,

Jan - Mar 09

Apr - Jun 09

Jul - Sep 09

Oct - Dec 09

Jan - Mar 10

Apr - Jun 10

Jul - Sep 10

Oct - Dec 10

Jan - Mar 11

Apr - Jun 11

Jul - Sep 11

Jan - Dec 11
ECONOMIC BAROMETER respectively. Keeping in view the moderation
in inflation rate the Reserve Bank of India
Mar-11 Mar-12
(RBI) has softened monetary policy for the
FDI in Real Estate
first time since one and a half year . This has 16,000
REPO RATE 6.50% 8.50%
been done by reducing CRR (Cash Reserve 14,000

Ratio) by 50 basis points in January and a

12,000
REVERSE REPO RATE 5.50% 7.50% 10,000
further reduction of 75 basis point in March 8,000

CRR 6.00% 4.75% 2012. The current CRR rate is 4.75%. 6,000

4,000
INR Crore

INFLATION 9.68% 6.89% • The Budget remained silent on most of the

2,000

0
major real estate related issues. It did however
2005 - 06

2006 - 07

2007 - 08

2008 - 09

2009 - 10

2010 - 11

April - Jan 2012

PRIME
8.25% - 9.50% 10.00% - 10.75%
LENDING Rate mentioned that efforts are on to arrive at a
DEPOSIT RATE political consensus on the issue of allowing
7.75% - 9.50% 8.50% - 9.25%
(>1 YEAR) 51% Foreign Direct Investment (FDI) in multi-
Foreign Exchange brand retailing. 160
BSE Sensex & Realty Index

45.02 50.39 150

INR - USD
140
• The Budget aims to provide impetus to 130
INR- Euro 59.12 65.89 affordable housing by providing various 120
110
incentives to both developers and end users. 100

For example the external Commercial 90

Return on Alternative Investments Borrowings (ECB) is allowed for low cost

80
70

affordable housing projects which would help

2-Jan-12

11-Jan-12

20-Jan-12

29-Jan-12

7-Feb-12

16-Feb-12

25-Feb-12

5-Mar-12

14-Mar-12

23-Mar-12

1-Apr-12

Mar-11 Mar-12 YoY %

developers to raise debt at lower cost.
Change * Rebase to 100 BSE Sensex Realty Index

Note: As of 1st August 2011

Gold 20,730 27,300 31.69% • From an end user perspective, the budget
provides few incentives including, Service tax 110
Exchange Rates

SILVER 52,450 56,014 6.80% exemption for construction service related to 105

EQUITY (BSE residential dwelling and low cost mass 100

housing up to an area of 60 sq mtr under the 95

SENSEX) 18167.64 17,675.85 -2.71%
scheme of affordable housing. The existing 90

REALTY INDEX 2053.69 1821.35 -11.31% scheme of interest subvention of 1% for 85

housing loans up to INRs 15 lakh (where the

80

75
cost of the house does not exceed INR 25
2-Jan-12

11-Jan-12

20-Jan-12

29-Jan-12

7-Feb-12

16-Feb-12

25-Feb-12

5-Mar-12

14-Mar-12

23-Mar-12

1-Apr-12

lakhs), was extended by one more year.

US$ Euro
* Rebase to 100
Note: As of 1st August 2011

Source: Colliers International India Research

www.colliers.com
 THE KNOWLEDGE | 1Q 2012 | OFFICE | Mumbai

MUMBAI
AVAILABLE Supply in Prime Areas

• In Mumbai, approximately 10 million sq ft of

grade ‘A’ office space was available for lease Goregoan / JVLR 8%
Kalina 1%
in 1Q 2012. Out of the total available supply
Navi Mumbai 6%
Powai 5%

around 64% was IT/ITeS office space mostly Worli / Prabhadevi 1%

Thane / LBS 21%
concentrated in the Lower Parel and Thane
Malad 5%
micro-markets.
CBD 1%

• Project launched during this quarter was

“Equinox Business Park-Tower IV” by Equinox Lower Parel 20%

Realty & Infrastructure Private Limited. The Andheri East 24%

project has a gross leasable area of BKC 8%

approximately 0.5 million sq ft and is located

off BKC. Another mixed use project “Island
City Centre” was also launched by Wadia
MUMBAI Group’s real estate venture Bombay Realty
1Q 2012 GRADE ‘A’ AND GRADE ’B’
spreading over 45 acres of land at Dadar. RENTAL VALUES

CITY OFFICE BAROMETER • Following the previous quarter trend 300

construction activities remained slow, no new 250

4Q 2011 1Q 2012 grade ‘A’ office space was added to the city’s 200

total inventory this quarter.

INR Per Sq ft Per Month

150

VACANCY
• Occupier demand remained steady in almost
100

ABSORPTION all of the micro markets and few large space 50

commercial leases were signed during the 0

CBD

Andheri East
BKC
Lower Parel
Malad

Navi Mumbai
Powai
Worli/Prabhdevi

Goregaon / JVLR

Kalina
Thane / LBS

Andheri East (IT)

Lower Parel (IT)

Malad (IT)

Navi Mumbai (IT)

Powai (IT)
Goregaon / JVLR (IT)

Thane / LBS (IT)

CONSTRUCTION quarter. Rental values for grade ‘A’ office
space remained stable across Mumbai baring
RENTAL VALUE
Nariman Point, the CBD of Mumbai, as Grade A Grade B

occupiers are gradually shifting towards newly

developed areas like Lower Parel, Bandra
Kurla Complex (BKC) and Andheri due to
better accessibility and state of an art
GRADE ‘A’ AVERAGE RENTAL VALUE prime office space rental trend
infrastructure.

245
Forecast
• Looking ahead demand is likely to be remained 420

210 moderate, however due to limited supply 370

rentals are expected to remain stable.

320
175 270
INR per Sq ft per Month

220
140
• As part of the State Government’s plan to 170

105 120
make Wadala a business hub in lines of the
INR per Sq ft per Month

70
70
BKC; MMRDA has invited consultants to 20
1Q2008

2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011
35 1Q2012
prepare a detailed development plan for
approximately 110 hectares of land.
0 CBD Andheri East Malad BKC
1Q2008
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012F
3Q2012F
4Q2012F
1Q2013F

Lower Parel Navi Mumbai Powai Worli /

Prabhadevi
Goregaon Kalina Thane / LBS
/ JVLR

MARKET TRANSaCTIONS
CLIENT building name AREA LOCATION TRANSACTION TYPE
(Sq. Ft.)

Altisource Vishwaroop IT Park 137,000 Vashi Lease

ANZ Bank Boomerang 6,000 Andheri Lease

Liberty Insurance Peninsula Business Park 30,000 Lower Parel Lease

L’Oreal Marathon Futurex 71,000 Lower Parel Lease

Naaptol.com Sigma IT Park 32,000 Navi Mumbai Lease

Star Union Dai-ichi Life Insurance Vishwaroop IT Park 67,000 Vashi Lease

Source: Colliers International India Research

Colliers International | p. 3
THE KNOWLEDGE | 1Q 2012 | OFFICE | delhi

DELHI
AVAILABLE Supply in Prime Areas

• More than 1 million sq ft of grade ‘A’ office

space was available for lease in Delhi in Connaught Place 2%

1Q 2012. Most of this available supply was Nehru Place 10%

concentrated in Jasola and Saket.

• No new supply was added to the city’s grade Saket 29%

‘A’ inventory. Similarly, no new grade ‘A’ office

projects was launched during this quarter.
Jasola 59%

• Absorption remained relatively subdued as

only a few small office spaces leases were
signed in locations such as Connaught Place,
Saket and Nehru Place. This can primarily be
attributed to the shift in demand from the CBD
delhi and SBD to areas in as Gurgaon and NOIDA
1Q 2012 GRADE ‘A’ AND GRADE ’B’
on account of better quality office and lower RENTAL VALUES
real estate cost.
CITY OFFICE BAROMETER 400

• Rental values witnessed marginal pressure 350

300
4Q 2011 1Q 2012 across the micro markets and a decrease in 250
the range of 1 to 4% was observed for grade 200
VACANCY ‘A’ office space.

INR per Sq Ft per Month

150

100
ABSORPTION
• In mid term rentals are expected to remained 50

CONSTRUCTION under pressure on account of lesser demand. 0

Nehru Place

Jasola

Saket
Netaji Subhash
Place
Connaught
RENTAL VALUE • To encourage development of non polluting
small and medium scale industries in the Grade A Grade B

city Delhi State Industrial and Infrastructure

Development Corporation (DSIIDC) is
planning to set up a multi level manufacturing
GRADE ‘A’ AVERAGE RENTAL VALUE
hub in Rani Khera in north west Delhi with an prime office space rental trend
estimated cost of INR 3100 crore. The work
on another knowledge based industrial park
280
Forecast
in Baprola has already started. 450

400
245
350
210 • In an another infrastructure related intiative 300
175 the Delhi Development Authority(DDA) has 250

140 planned to develop three Urban Extension 200

INR per Sq ft per Month

105 Roads (UERs). These link roads will facilitate 150

INR per Sq ft per Month

70 smooth travelling between two States — 100

35 Delhi and Haryana — Dwarka-Palam Vihar, 50

0
Najafgarh-Dhansa and Nelson Mandela Road-
2Q2008

3Q2008

4Q2008

1Q2008

2Q2009

3Q2009

4Q2009

1Q2009

2Q2010

3Q2010

4Q2010

1Q2010

2Q2011

3Q2011

4Q2011

1Q2012

MG Road.
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
2Q2010

3Q2010
4Q2010
1Q2011
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012F

3Q2012F
4Q2012F
1Q2013F

Nehru Place Jasola Cannaught Saket

place
Netaji Subhash

MARKET TRANSaCTIONS
CLIENT building name AREA LOCATION TRANSACTION TYPE
(Sq. Ft.)

Hitachi Eros Corporate Tower 3,000 Nehru Place Lease

Mizuho Bank DLF Capitol Point 16,000 C.P. Lease

Pragati Equity Advisors Southern Park 1,500 Saket Lease

Snap Deal Southern Park 22,000 Okhla-III Lease

Source: Colliers International India Research

p. 4 | Colliers International
 THE KNOWLEDGE | 1Q 2012 | Office | Gurgaon

GURGAON
AVAILABLE Supply in Prime Areas

• More than 7 million sq ft of grade `A’ office

space supply was available for fit-out in 1Q
2012. Most of this available supply was Manesar 35%

concentrated in Udyog Vihar and along

National Highway 8 up to Manesar.

• Several projects were launched during 1Q NH8/ Udyog

Vihar 36%

2012 including “One Horizon Centre” by

Hines India at Golf Course Road and “Athena” Institutional Sectors /
Sushant Lok
16%
by Brahma-Bestech at NH-8. Both of these MG Road 5%

project are expected to be completed by the DLF Cyber City 8%

first half of 2015 and will add around 1.2

million sq ft of grade `A’ office space to the
city’s total inventory.
gurgaon 1Q 2012 GRADE ‘A’ AND GRADE ’B’
• No major grade `A’ project/phase of the RENTAL VALUES
project was completed in this quarter.
CITY OFFICE BAROMETER 140

• Absorption remained optimistic and a number 120

100
4Q 2011 1Q 2012 of large format leases were signed during 80

the quarter including a few pre-commitment

INR per sq ft per month

60
VACANCY leases in under- construction buildings. The 40

investor market also remained active during 20

ABSORPTION
the quarter and a few deals were concluded 0

NH8/Udyog Vihar

Manesar

DLF Cyber City

NH8/Udyog Vihar

Manesar
MG Road

Golf Course Road

/Ext /Sohna Road

Institutional Sectors /
Sushant Lok

Sohna Road
CONSTRUCTION such as the BPTP buyout of 49% of the Merrill
Lynch stake in the grade `A’ office project
RENTAL VALUE `C“Crest”. M3M bought a 28-acre land parcel
Grade A Grade B
from DLF located at sector 70A.

• Rental values for grade `A’ properties

increased in the range of 2 to 6% in almost
GRADE ‘A’ AVERAGE RENTAL VALUE all the major micro-markets barring Udyog prime office space rental trend
Vihar / NH-8 and DLF Cyber City where rental
120
values remained stable. 180
Forecast
110 160
100
90
• In near future rentals are expected to remain 140

120
80 stable for both IT/ITES and commercial office 100
70
INR per sq ft per month

60
space. 80

50 60
INR per Sq ft per Month

40 40

30
• In 1Q 2012 the state government approved 20

infrastructure projects valued at INR1,394

2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

20 1Q2012
10
0 crore for strengthening of roads, water supply MG Road DLF Cyber City (IT)

and sewage systems in newly developing

Golf Course Road/Ext /Sohna Road Golf Course Road/
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012F
3Q2012F
4Q2012F
1Q2013F

Ext /Sohna Road (IT)

Institutional Sectors /Sushant Lok
Manesar

sectors 77 to 114.
NH8/Udyog Vihar (IT) NH8/Udyog Vihar
Manesar (IT)

MARKET TRANSaCTIONS
CLIENT building name AREA LOCATION TRANSACTION TYPE
(Sq. Ft.)

Bausch & Lomb First India Place 16,000 M.G. Road Lease

DHR Holdings Plot 121 20,700 Udyog Vihar Lease

Expedia DLF Building No 5C 50,000 DLF Cyber City Lease

Google Signature Tower-II 175,000 Sector 15 Lease

Ingersoll Rand DLF Building No 5A 49,000 DLF Cyber City Lease

Rio Tinto DLF Building No 5A 40,600 DLF Cyber City Lease

Source: Colliers International India Research

Colliers International | p. 5
THE KNOWLEDGE | 1Q 2012 | office | Noida

NOIDA
AVAILABLE Supply in Prime Areas

• More than 5 million sq ft of office space supply

was available for fit out in NOIDA this quarter.
More than 85% of this available office space
was in the form of IT/ITeS. Grade ‘A’ IT/ITeS
office space was concentrated in sector 16A, Commercial Sectors

62 and sectors 125 to 143 along the NOIDA (Sec 18) 2%

Express-way, while IT/ITeS office space

available in industrial sectors was primarily Institutional Sectors Industrial Sectors (Sec.
grade ‘B’ office space. (Sec.16A, 62, 125-142)
86%
1-9, 57-60, 63-65)
(Grade B)
12%

• Projects launched during this quarter were

“Jaypee Chambers” by Jaypee Group in
Sector 129, “Wave City Centre” by Wave Group
and “Logix City Centre” by Logix Group both
noida located at sector 32. All of these projects
1Q 2012 GRADE ‘A’ AND GRADE ’B’
together are expected to contribute around RENTAL VALUES
2.1 million sq ft of grade ‘A’ office space to the
CITY OFFICE BAROMETER city’s total inventory by the end of 2015. 100
90
80

4Q 2011 1Q 2012 • In 1Q 2012 construction activities slowed 70

60
down due to state elections, thus no projects/ 50

INR Per SqFt Per Month

VACANCY phases of the project were completed during 40
30

the quarter. 20
ABSORPTION 10
0

• A few large office space leases were

Commercial Sectors
(Sec 18)
Institutional
Sectors (Sec.16A,62,
125-142 )

Institutional Sectors
(Sec 16A,62 ,125-
142) (IT)
Industrial Sectors
(Sec 1-9,57 -60,
63 -65)
CONSTRUCTION
concluded during the quarter. Demand was
RENTAL VALUE largely driven by the IT/ITeS sector.
Grade A Grade B

• In one of the private equity exit, Kotak Realty

Fund has sold its stake back to promoters in
3C company’s information technology park
GRADE ‘A’ AVERAGE RENTAL VALUE project in NOIDA. prime office space rental trend

80
• The rental values for non IT office space 140

70
Forecast
remained stable because of limited supply 120

60
however, rental values for IT/ITeS office space 100

50
witnessed marginal pressure on account of 80

large available supply. Similar rental trends

INR Per SqFt Per Month

60
40

can be anticipated in near future. 40

INR per Sq ft per Month

30
20
20
0
10
1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

0
1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

2Q2012F

3Q2012F

4Q2012F

1Q2013F

Industrial Sector Institutional Sectors (IT)

Commercial Sectors Institutional Sectors (Non IT)

MARKET TRANSaCTIONS
CLIENT building name AREA LOCATION TRANSACTION TYPE
(Sq. Ft.)

Barclays shared services Individual Building 25,000 Sector 62 Lease

Halcrow B-1D 52,000 Sector 10 Lease

Hewitt 3C’s Building Tower-A 100,000 Sector 127 Lease

Oracle 3C’s Building Tower-B 170,000 Sector 127 Lease

Source: Colliers International India Research

p. 6 | Colliers International
 THE KNOWLEDGE | 1Q 2012 | office | chennai

CHENNAI
AVAILABLE Supply in Prime Areas

• Over 13 million sq ft of grade ‘A’ office space

supply was available for lease in 1Q 2012.
More than 90% of this stock was IT/ITeS office OMR (IT Corridor) 51%

space primarily located at OMR and Ambattur

while non IT office space was mostly available
GST Rd 3%
in the CBD area, Vadapalani and Velachery. Velachery 1%
Vadapalini 1%

• No new grade “A” commercial projects were

CBD
completed this quarter in Chennai. 14%

Ambattur 24%
Guindy (SBD) 5%
• Project launched during this quarter included
“ASV Chandilya” admeasuring approximately
0.04 million sq ft by ASV Constructions.
The project is located at Thoraipakkam and
chennai estimates to be completed by 2Q 2013.
1Q 2012 GRADE ‘A’ IT AND NON IT
Rental values
• Demand was primarily concentrated in Guindy,
CITY OFFICE BAROMETER Ambattur and OMR as companies were 80

preferring these micro markets for relocation 70

4Q 2011 1Q 2012 and expansion considering accessibility and

60

50
state-of-an-art facilities. The market seems

INR per sq ft per month

40
VACANCY to be well segmented such as KPO’s and 30

BPO’s preferring looking spaces at cheaper 20

ABSORPTION
rentals and ready to go at the far away end of 10

CONSTRUCTION OMR while other corporate were ready to pay 0

Ambattur
Guindy (SBD)

OMR (IT Corridor)

GST road
CBD
higher rentals and preferring initial stretch of
RENTAL value OMR, Guindy and Ambattur.
IT NON IT

• Rental values in 1Q 2012 remained stable

across all micro markets. Absorption was
comparatively lesser as the occupiers
GRADE ‘A’ AVERAGE RENTAL VALUE remained cautious on the backdrop of the prime office space rental trend
current economic scenario. In near future
60
rentals are likely to remain stable on account
Forecast 90
55 of the limited supply scheduled for completion
50 80
45 in 2012. 70
40
35 60
INR per sq ft per month

30 • Under the “Mega City” programme the Chennai 50

25
Corporation has laid out 360 integrated roads
INR per Sq ft per Month

40
20
15 at an estimated cost of INR 800 crore, covering 30
10
an area of 176 km. The state government had 20
5
allotted INR 333 crore last year for the same.
1Q2008

2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

0
1Q2008
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012F
3Q2012F
4Q2012F
1Q2013F

Ambattur GST road CBD Guindy (SBD)

OMR (IT Corridor)

MARKET TRANSaCTIONS
CLIENT building name AREA LOCATION TRANSACTION TYPE
(Sq. Ft.)

Bank of New York Mellon DLF IT Park 50,000 Manapakkam Lease

Barclays DLF IT Park 63,000 Manapakkam Lease

Cambridge Technologies Agnitio Park 60,000 Kandhanchavady Lease

Emerson Ascendas 18,000 Taramani Lease

Mindtree Ramanujam IT Park 100,000 Taramani Lease

Shriram Value Servies Individual Building 18,000 Mylapore Sale

Source: Colliers International India Research

Colliers International | p. 7
THE KNOWLEDGE | 1Q 2012 | office | Bengaluru

BENGALURU (BANGALORE)
AVAILABLE Supply in Prime Areas

• Approximately 9 million sq ft of grade ‘A’

supply was available for lease during 1Q Electronic City 4%

2012. Micro markets such as the EPIP Zone, Bannerghatta Road 3%

Whitefield, Outer Ring Road and the CBD

account for about 88% of this total available
Outer Ring Road 15%
supply.

• New supply of commercial grade ‘A’ office CBD 8%

space for 1Q 2012 accounts for approximately

0.60 million sq ft. Projects/ phases of the EPIP Zone/ Whitefield 65% Hosur Rd 5%

projects contributing to this new supply were

“Mantri Commercio” developed by Mantri
Group at Outer Ring Road (ORR) and “Equinox
Tech Park - North Block” by Essar Group at
bengaluru
Electronic City.
1Q 2012 GRADE ‘A’ AND GRADE ’B’
• During 1Q 2012, a number of new projects Rental values

CITY OFFICE BAROMETER were launched in peripheral business area 90

in Bengaluru, including “Prestige Tech Park 80

III” by Prestige Group in Outer Ring Road 70

4Q 2011 1Q 2012
(ORR), “RMZ Galleria” and “RMZ Latitude”
60

50

VACANCY
by RMZ Corp at Yelahankha and Bellary Road,

INR Per SqFt Per Month

40

respectively, “Golden Supreme Tech Park” 30

ABSORPTION and “Maruthi Concord” by local developers in 20

10
Electronic City. Further, Bagmane Group also 0
CONSTRUCTION launched a new tower in its Special Economic

CBD

Hosur Road

Electronic
City(IT)

Bannerghatta Road

Outer Ring Road

EPIP Zone/
Whitefield
zone (SEZ) “World Trade Centre 4” located at
RENTAL value
ORR. All these Projects altogether will add Grade A Grade B

approximately 2.5 million sq ft of grade ‘A’

office space to the city’s total inventory by the
end of 2013.

GRADE ‘A’ AVERAGE RENTAL VALUE • Occupier demand was relatively less during prime office space rental trend
the quarter as compared to previous 2-3
50 Forecast
quarters, primarily due to cautious occupier’s 100
90

45
sentiments. In terms of absorption micro 80

markets such as CBD, Whitefield and EPIP 70

60
zone remained active due to lesser availability
40
50
INR Per SqFt Per Month

35
of grade ‘A’ office space in other preferred 40
30
30
areas such as Outer Ring Road. 20
INR per Sq ft per Month

10
25
0
• Average rental values for grade ‘A’ office space
1Q2008

2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012
20
remain stable quarter on quarter across all of
15
the micro markets. CBD Bannerghatta Road
1Q2008

4Q2012F
1Q2013F
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q2011
3Q2011
4Q2011
1Q2012

3Q2012F
2Q2012F

Hosur Road Electronic City

EPIP Zone / Whitefield Outer Ring Road

• Due to limited supply in the market, rentals are
expected to increase marginally in mid term.

MARKET TRANSaCTIONS
CLIENT building name AREA LOCATION TRANSACTION TYPE
(Sq. Ft.)

Atos Origin India Gopalan Millennium Tower 125,000 Whitefield Lease

Ericsson Umyia Business Bay 22,500 Outer Ring Road Lease

Intersil RMZ Centinnial 17,000 Whitefield Lease

Just dial Embassy Star 10,962 Vasanth Nagar Lease

Meru Networks Salarpuria Adonis 35,133 Old Madras Road Lease

Tejas Networks JP IT Park 90,000 Electronic City Lease

Source: Colliers International India Research

p. 8 | Colliers International
 THE KNOWLEDGE | 1Q 2012 | office | Kolkata

KOLKATA
NEW SUPPLY IN PRIME AREAS

• In 1Q 2012, approximately 0.08 million sq ft

has been added to grade ‘A’ office space supply
in the PBD area. The project / phases of the
project which contributed to this new supply
was “Rishi Tech Park” developed by Nathvar
Tracon Pvt. Ltd. located at New Town.

• A number of commercial projects were

launched during the quarter including “Ideal PBD (New Town,

Unique Centre” by Ideal Group at EM Bypass,

Rajarhat)
100%

“Woodburn Central” by Belani Projects at Elgin

Road, “DN 21” by Midwest Holding Private Ltd
(Chatterjee Group) and “Pentagon” by Team
Tarus both at Sector 5. All of these projects
kolkata will together contribute approximately 2
1Q 2012 GRADE ‘A’ AND GRADE ’B’
million sq ft of grade A office space to the Rental values
city’s inventory by the end of 2014.
CITY OFFICE BAROMETER 140

120
• Absorption remained subdued during the
100
4Q 2011 1Q 2012 quarter and only few small commercial leases 80
were signed during the quarter. Rental values

INR per sq ft per month

60
VACANCY for grade ‘A’ office space in 1Q 2012 remained 40

stable across all of the major micro markets 20

ABSORPTION
due to ample stock availability in major 0

Ballygunge
-Circular RD

PBD (New
Town, Rajarhat
East Kolkata
CBD (Park St, Camac
St,AJC Bose Rd)

Sector-5

Sector-5
(IT)

PBD New Town,

Rajarhat (IT)
CONSTRUCTION commercial hubs such as Rajarhat, New Town
and Sector 5.
RENTAL value
Grade A Grade B
• Going forward rentals are expected to be
under pressure due to prevailing uncertainties
in land policies and lesser demand.

GRADE ‘A’ AVERAGE RENTAL VALUE • In a major decision the state government of prime office space rental trend
West Bengal has ruled out SEZ status for
Infosys. The decision was taken to protect 160
90
Forecast
the rights of farmers and farm land by not 140
80

70
relaxing the urban ceiling laws for Special 120

60 Economic Zones (SEZs). 100

INR per sq ft per month

80
50

• The Airports Authority of India (AAI) is

60
40
INR per Sq ft per Month

planning to develop commercial space in the

30 40

20 20
vicinity of Kolkata airport. The authority has
1Q2008

2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012
10

0
identified approximately 45 acres of land for CBD (Park St,Camac St, East Kolkatta

commercial development. The project would

1Q2008
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012F
3Q2012F
4Q2012F
1Q2013F

AJC Bose Rd)

Ballygunge Circular Rd Sector 5

be developed by floating a public tender and PBD (New Town, Rajarhat

funded through public-private partnership.

MARKET TRANSaCTIONS
CLIENT building name AREA LOCATION TRANSACTION TYPE
(Sq. Ft.)

Bajaj Allianz Mani Square 9,000 Sector 5 Lease

Dhanalaxmi Bank Chitrakut building 2,000 AJC Bose Road Lease

Magma Finance Eco Space 17,000 New Town Lease

Rax Omega Infinity Think Tank 4,500 Sector 5 Lease

Recon Infinity Benchmark 30,000 Sector 5 Lease

Sardha Group Crystal Globsyn 33,000 Sector 5 Lease

Source: Colliers International India Research

Colliers International | p. 9
THE KNOWLEDGE | 1Q 2012 | OFFICE | Pune

PUNE
Supply in Prime Areas

• In 1Q 2012 more than 9.7 million sq ft of

grade ‘A’ office space was available for fit- Kharadi 23%
out in Pune. Most of this supply was located Hadapsar/Fursungi 12%

in Hinjewadi, Kharadi, Hadapsar, Fursungi and

Nagar Road. Baner 5%

Bund Garden 2%

Airport road/
• Approximately 1 million of SEZ space was pune station 6%

added in the existing SEZ projects in Pune. Aundh 3%

Senapati Bapat Road 1%

more than 60% of this space was swiftly Bavdhan 4%

absorbed as spaces were pre-committed Hinjewadi 28% Kalyani Nagar 4%

by the existing tenants. In addition to Pune Nagar Road 12%

commercial grade ‘A’ office space witnessed

an infusion of approximately 0.12 million sq
ft new supply during the quarter. Project/
pune phases of project contributing to this new
1Q 2012 GRADE ‘A’ IT AND NON IT
supply was “Blue Chip” developed by K Raheja Rental values
at Hinjewadi.
CITY OFFICE BAROMETER 90

• Rental values for grade ‘A’ office space 80

70
4Q 2011 1Q 2012 increased in the range of 2 to 5% specifically 60

in SEZs in almost all of the micro markets. 50

INR Per SqFt Per Month

VACANCY A few markets such as Viman Nagar and
40
30

Kharadi also witnessed demand for outright 20

ABSORPTION
purchases.
10
0

Baner

Kalyani Nagar
Bund Garden

Airport road/
pune station

Aundh

Senapati Bapat Road

Bavdhan

Nagar Road

Hinjewadi

Hadapsar/Fursungi

Kharadi
CONSTRUCTION
• Going forward rentals are expected to remain
RENTAL value stable on account of large available supply,
IT Non IT
baring eastern corridor where the rental may
witnessed an increase of 7 to 10% in next 2-3
quarters.

GRADE ‘A’ AVERAGE RENTAL VALUE • This quarter the ready reckoner rate has been prime office space rental trend
increased in the range of 10 to 30% across
Pune. This will help in the improvement of 130
70 Forecast
transparency in real estate transaction in the
120
110
60
long term. 100
90
50
80
INR Per SqFt Per Month

70
40
• An overhead bridge connecting Wakdewadi 60

30
(central Corridor) to Nagar Road/Yerwada 50
INR per Sq ft per Month

40
20 (Eastern corridor), road connecting Chakan, 30
20
Bhosari and Dighii another road connecting
1Q2008

2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011
10 1Q2012

0 between Baner Road and Pimple Nilkah to Bavdhan Aundh Airport road/pune station
1Q2008
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012F
3Q2012F
4Q2012F
1Q2013F

Pimple Saudagar became operational. This Bund Garden Nagar Road Baner
Kalyani Nagar Senapati Bapat Rd Khardi
will give an impetus to the real estate activities Hinjewadi / Hadapsar/Fursungi

in the nearby areas.

MARKET TRANSaCTIONS
CLIENT building name AREA LOCATION TRANSACTION TYPE
(Sq. Ft.)

Amdocs Magarpatta SEZ 88,000 Hadapsar Lease

Bekaert Amar Paradigm 40,000 Baner Lease

CCRT Pride Kumar Senate 1,700 S B Road Lease

DVS Tara Icon 1,700 Wakdewadi Lease

Exl Magapatta SEZ 88,000 Hadapsar Lease

HCL Maragatta SEZ 44,000 Hadapsar Lease

Source: Colliers International India Research

p. 10 | Colliers International
 THE KNOWLEDGE | 1Q 2012 | OFFICEubmarkets

OFFICE SUBMARKETS

Mumbai
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 submarkets.

Delhi
The 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 .

Gurgaon
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 city’s new office destination.

NOIDA
NOIDA 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.

Chennai
Prime 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.

Pune
The prime office sub-markets of Pune include Deccan Gymkhana, Senapati Bapat Road & Camp (SBD), while the PBD includes Aundh, Bund Garden,
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.

Kolkata
The 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.

City Barometer

Increasing as compared to previous quarter

Decreasing as compared to previous quarter

Remained stable from previous quarter

Colliers International | p. 11
 THE KNOWLEDGE | 1Q 2012

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 522 offices in 62 countries on 6 continents
clients via our property Investment and Occupier service lines. These service lines include - Office
Services, Facility Management, Project Management, Residential Services, Investment Services United States: 147
Canada: 37
and Valuation & Advisory Services.
Latin America: 19
www.colliers.com/india Asia Pacific: 201
EMEA: 118
For national offices services related queries please contact: $1.8 billion in annual revenue
George Mckay, South Asia Director Vikas Kalia, National Director 2.55 billion square feet under management
Office & Integrated Services Office Services
George.mckay@colliers.com Vikas.kalia@colliers.com Over 12,300 + professionals
Tel: +91 22 4050 4553 Tel: +91 124 456 7531

Mumbai : Prabhu Raghavendra, Office Director

Prabhu.raghavendra@colliers.com AUTHORS
31/A, 3rd floor, Film Center, 68, Tardeo Road, Mumbai, India - 400 034.
Tel : +91 22 4050 4500, fax : +91 22 2351 4272 Amit Oberoi MRICS
National Director, Valuation & Advisory; Research
Delhi NCR : Ajay Rakheja, Office Director Email: Amit.oberoi@colliers.com
Ajay.rakheja@colliers.com
Surabhi Arora MRICS
New Delhi : Statesman House, 4th Floor, Barakhamba Road, Connaught Place, Associate Director, Research
New Delhi, India - 110001 Email: Surabhi.arora@colliers.com
Tel : +91 11 4360 7500 - 23, fax : +91 11 2335 6624
Sachin Sharma
Gurgaon : Technopolis Building, 1st floor, DLF Golf Course Main Road, Sector 54, Gurgaon, Assistant Manager, Research
India - 122002 Email: Sachin.sharma@colliers.com
Tel : +91 124 437 5807, fax : +91 124 437 5806
Heliana Mano
Assistant Manager,Valuation & Advisory
Bengaluru : Goutam Chakraborthy, Office Director
Email: Heliana.mano@colliers.com
Goutam.chakraborthy@colliers.com
Prestige Garnet, Level 2, Unit No.201/202, 36 Ulsoor Road, Bengaluru,
For general queries and feedback :
India - 560 042
India.Research@colliers.com
Tel : +91 80 4079 5500, fax : +91 80 4112 3131 Tel: +91 124 456 7580
Pune : Suresh Castellino, Office Director
Suresh.castellino@colliers.com
Hotel Le Meridian, 101, R.B.M. Road, Pune, India - 411 001
Tel : +91 20 4120 6438, fax : +91 20 4120 6434 This report and other research materials may be found on
our website at www.colliers.com/India. Questions related
Chennai : Kaushik Reddy, Office Director to information herein should be directed to the Research
Department at the number indicated above. This document
Kaushik.reddy@colliers.com has been prepared by Colliers International for advertising
Heavitree Complex, Unit 1C, 1st floor, 23,Spurtank Road, Chetpet, Chennai, and general information only. Colliers International makes
no guarantees, representations or warranties of any kind,
India - 600 031 expressed or implied, regarding the information including,
Tel : +91 44 2836 1064, fax: +91 44 2836 1377 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.
Kolkata : Soumya Mukherjee , Office Director Colliers International excludes unequivocally all inferred
Soumya.mukherjee@colliers.com or implied terms, conditions and warranties arising out
of this document and excludes all liability for loss and
Infinity Business Centre, Infinity Benchmark, Room No 13, Level 18, Plot G - 1, damages arising there from.
Block EP & GP, Salt Lake Sector V, Kolkata - 700 091 West Bengal, India
Tel : +91 33 2357 6501 Extn : 206 , fax +91 33 2357 6502
© Copyright 2012 - 2013 All Rights Reserved.

Recent Reports :
SECOND HALF 2011 | INDUSTRIAL SECOND HALF 2011 | OFFICE Q1 2012 | RESEARCH

GLOBAL INDUSTRIAL GLOBAL OFFICE A SNEAK PREVIEW

HIGHLIGHTS HIGHLIGHTS

UNION BUDGET 2012 -13

Global Warehouse Demand Shows Global Office Demand Growth
Budget Highlights | Real Estate
Consistent Growth Slow and Steady MARKET REACTION TO BUDGET
JAMES COOK Director of Research | USA Company Change (%) Finance Minister Pranab Mukherjee started his budget speech 2012-13 in the
JAMES COOK Director of Research | USA we expect overall warehouse rents in the São BSE SENSEX -1.19 backdrop of challenging macroeconomic scenario. The finance minister projects
Paulo region to rise by as much as four percent in Global Office Trend Forecast
c Global office vacancies will continue their decline, due to steady demand and low levels of new construction in North Realty Index -1.26 the economy to grow by 7.6% in the next fiscal up from 6.9% in 2011-12. He
Global Industrial Trend Forecast the coming year.
GLOBAL INDUSTRIAL America and Europe. Anant Raj Inds -6.04
CAPITALIZATION RATES
c Growing global trade will steady demand for mentioned that due to adverse global economic sentiments there has been a
(Prime Yield/Percent) quality warehouse space in many regions. Mexico City saw a three percent decrease in its GLOBAL CAPITALIZATION RATES / c The “flight to quality” trend will continue in many major markets, with occupiers trading up to higher-quality space or a D B Realty -2.02
industrial vacancy rate in the second half of 2011, better location as their leases expire.
slowdown in the Indian Economy but the fact is India still remains among the
c Industrial vacancy rates will further drop in PRIME YIELDS: 10 LOWEST CITIES
MARKET DEC DEC DLF 0.15 front runners in the economic growth in any cross country comparison. The
(Select Markets) REGION 2011 2010 most markets. down to 4.8 percent. Mexico was more negatively c The European sovereign debt crisis will likely push the Eurozone into a mild recession in early 2012. This contraction
affected by the recession than most countries in CBD CAP RATE (%) will be felt most profoundly in a handful of commercial property markets within the most troubled nations. Godrej Properties -2.82 budget aims at faster, sustainable and more inclusive growth across sectors
Hong Kong Asia Pacific �.�� �.�� c Some markets, U.S. and Australia among them, MARKET
North America, and its economic future is largely HDIL -5.21
Singapore Asia Pacific �.�� �.�� will experience a lack of new supply in the face tied to that of its key trading partner, the United
(Ranked by DEC JUNE DEC Economic prospects in the Eurozone have slightly reduced overall positive global expectations for market performance in emphasizing on five focus areas including revival of domestic consumption,
London (Heathrow) EMEA �.�� �.�� Dec 2011) 2011 2011 2010 2012. We expect continuing modest demand for office space, with most cities seeing a drop in vacancy rates. But global
of growing demand. States. But with U.S. growth on the upswing, Hubtown Ltd. -4.13 rapid revival of high growth in private investment, removal of supply bottlenecks,
Tokyo Asia Pacific �.�� �.�� c Prime warehouse rents will climb in most Asia Taipei �.�� �.�� �.�� averages do not speak to the nuances of individual markets, and—while we expect positive absorption due to business
Los Angeles – Mexico too is poised to grow at a modest rate and growth and expansion in the United States, China and Australia—some Eurozone countries may see negative absorption Indiabulls Real Estate -1.95 addressing malnutrition in 200 high burden districts and expedite improvement
NA �.�� �.�� Pacific markets, remain stable in EMEA and we expect that vacancies could make further Hong Kong �.�� �.�� �.�� and increased vacancy as the region enters a mild recession.
Inland Empire, CA Mahindra Lifespaces -0.72 in delivery system, governance and transparency.
LATAM, and continue to strengthen in North drops in the country. �.�� �.�� �.��
Chicago, IL NA �.�� �.�� Vienna
American markets. Latin America Boasts the Tightest Office Markets each has shown apparent decline in rents between June Orbit Corp. -3.37
Paris EMEA �.�� �.�� London – West End �.�� �.�� �.��
Citing deteriorating financial conditions and Some of the world’s lowest office vacancy rates are found and December of 2011, when quoted in U.S. dollars. From a real estate perspective, the budget remained silent on most of the major
Munich EMEA �.�� �.�� Steady Demand in North America Parsvnath Developers -4.04
Zurich �.�� �.�� �.�� in Latin American cities. Santiago, Chile; Rio de Janeiro, Substantial declines, in fact: led by a $10.87 USD drop in
Vancouver, BC NA �.�� �.�� dimming growth prospect, the International Since peaking in 2010, growth in the manufacturing Brazil; São Paulo, Brazil; and Lima, Peru all have vacancy Parisian Class A rents. Peninsula Land -3.18 issues including status of STPIs (Software Technology Parks of India), Real
Marseilles EMEA �.�� �.�� Monetary Fund’s (IMF) revised its September 2011 and distribution industry has kept the U.S. vacancy Singapore �.�� �.�� �.�� Estate Regulatory Bill, Land Bill etc. however, it mentioned that efforts are on to
rates below three percent, resulting in a market that
New Jersey – Northern NA �.�� �.�� World Economic Outlook growth projections rate dropping in a mostly regular fashion. Vacancy �.�� �.�� �.�� But how significant are these figures? The change in Phoenix Mills -2.65
Geneva strongly favors landlords, prompts new construction and
London and Paris rents is due to the strengthening dollar
arrive at a political consensus on the issue of allowing 51% Foreign Direct
Dallas-Ft. Worth, TX NA �.�� �.�� downward in January 2012. However, the IMF still dropped to 9.72 percent in Q4 2011. With might squeeze some tenants that desire to expand. For the Sobha Developers 3.04
Beijing �.�� �.�� �.�� relative to the euro and pound sterling. In local currency, Investment (FDI) in multi-brand retail.
Shanghai Asia Pacific �.�� �.�� forecasts that global trade volume will rise by 3.8 construction proceeding at low levels, we expect most part, we expect the strength of these markets to
Seoul Asia Pacific �.�� �.�� Paris �.�� �.�� �.�� prime rents in these markets are holding ground. Although Sunteck Realty -1.13
percent in 2012 and 5.4 percent in 2013; as global vacancies to continue to drop at a measured rate persist. While decreases in European demand for its
Madrid EMEA �.�� �.�� �.�� �.�� �.�� commodities will likely hurt Latin America, this will be smaller, the decline in Hong Kong of $7.56 USD ($5.10 HKD) Unitech -1.68 THE KEY HIGHLIGHTS OF THE BUDGET WHICH MAY IMPACT REAL ESTATE
trade rises, so too will demand for warehouse into 2013. Munich
per square foot may be a more important indicator of things

Residential Property
Sydney Asia Pacific �.�� �.�� tempered by continued demand from China. In São Paolo, SECTOR ARE AS FOLLOWS:

OFFICE
space. Tokyo �.�� �.�� �.�� to come, as demand from the banking and financial sector Source: www.bseindia.com | Mar 16, 2012
Mexico City LATAM �.�� �.�� heightened demand has spurred the highest rates of new
Toronto, Canada’s biggest industrial market, saw continue to weaken. - External Commercial Borrowings (ECB) for low cost affordable housing
Prague EMEA �.�� �.�� development in the region, which will eventually put
While warehouse rents have stabilized in most 13.7 million square feet of industrial space
Athens EMEA �.�� �.�� downward pressure on asking rents. EMEA and Asia Pacific Lead Global Construction projects. Impact: Real estate companies developing large affordable housing
EMEA and Latin American markets, prime absorbed in 2011, and the city’s prime warehouse
Bucharest EMEA ��.�� ��.�� GLOBAL OFFICE OCCUPANCY COSTS: A significant percentage of the office space under
warehouse rents quoted in local currencies rents grew by 7.1 percent in the second half of TOP 10 CITIES Select Asia Pacific Markets See Big Vacancy Drops projects with large fund requirements will benefit the most from the easing of
increased in the majority of Asia Pacific and North The global trend in dropping vacancy rates should be evi- construction is in Europe, the Middle East and Africa

Market Overview
2011. external commercial borrowing (ECB) norms as interest rate charged is lower in

PROPERTY MARKET OVERVIEW

dent in Asia and continue through 2012. Markets that saw (EMEA), and much of that is occurring in Moscow and

ASIA PACIFIC
GLOBAL TOP TEN INDUSTRIAL American markets in 2011 over the previous year. CLASS A / NET RENT (USD/SQ FT)
WAREHOUSE RENTS We expect this trend to continue, with prime a drop in vacancy in the second half of 2011 outnumbered Dubai. While both of these markets should expect strong case of external borrowings in comparison to rates charged by domestic
Dropping Vacancies in Most Asian Markets
MARKET by a two-to-one margin those where vacancy increased. economic growth in 2012, the fact that Dubai—with a
RENT warehouse rents climbing in most Asia Pacific and Asia Pacific saw dropping vacancies in nearly (Ranked by DEC JUNE DEC vacancy rate of 50 percent—is constructing at such a pace institutions.
North American markets in the next year. every market. Prime warehouse rents grew in 2011 2011 2010 Of the world’s most populous markets, those with the most leads us to expect that supply will continue to outpace

INDUSTRIAL MARKET OVERVIEW

(USD/ 6-MONTH Dec 2011)
MARKET REGION PSF/Year) CHANGE* more than half of the markets, and observers in significant declines in six-month vacancy rates were nearly demand in that market.
Tokyo Asia Pacific ��.�� -�.�% Latin American Rents Poised to Stabilize more than half of those markets expect that
Hong Kong ���.�� ���.�� ���.�� all in the Asia Pacific region. Chengdu, propelled by its - Increase in provision under Rural Housing Fund to INR 4,000 crore from the
INDIA INDIA London (Heathrow)
Hong Kong
EMEA
Asia Pacific
��.��
��.��
�.�%
�.�%
In Latin America, prime warehouse rental rates
took a fall. In 71.4 percent of the markets we track,
warehouse rents will continue to climb over the London – West End ���.��
��.��
���.��
���.��
���.��
��.��
strong manufacturing sector, saw its vacancy rate drop by The other two top markets for office construction are in the
7.8 percent in the period, and Shanghai saw a 3.2 percent Asia Pacific region. Guangzhou—China’s leading existing INR 3,000 crore.Impact: It will provide housing finance to targeted
next six months. Paris commercial port city—and Tokyo have 19.6 and 15.6 million groups in rural areas at competitive rates.
drop in vacancy.
Singapore Asia Pacific ��.�� �.�% year-end rents decreased in 2011 from a year Rio de Janeiro ��.�� ��.�� ��.�� square feet under construction respectively. Asian economic
Zurich EMEA ��.�� �.�% earlier. However, we expect warehouse rents in Australian industrial has been especially strong in Two other large Asian markets saw vacancy rates drop by growth rates will remain strong in the coming months, with
QUARTERLY UPDATE | JANUARY | 2012 QUARTERLY UPDATE | FEBRUARY | 2012 December 2011 Oslo EMEA ��.�� �.�% Latin America to stabilize in the coming year. most major markets. Retail purchases, made more
Moscow ��.�� ��.�� ��.�� 1.5 percent or more: Jakarta, which has also seen China and India leading the pack. Rents are on the rise in - Extension of the existing scheme of interest subvention of 1% on housing
Moscow EMEA ��.�� �.�% London – City ��.�� ��.�� ��.�� sustained growth in CBD rental rates and renewed global most cities in the region. However, dropping rents in Seoul
Geneva EMEA ��.�� -�.�%
attractive by the relatively strong Australian dollar,
investor interest; and Singapore, where occupancies are and Hong Kong are a potential indicator of global economic
loans up to INR 15 lakh where the cost of the house does not exceed INR 25
São Paulo saw a 12.4 percent drop in warehouse have pushed up demand for large warehouse Perth ��.�� ��.�� ��.��
São Paulo LATAM ��.�� -��.�%
rents in local currency, due to increased supply. space in several port markets. While there is
expected to stabilize. uncertainty. In Tokyo, where new supply has been increasing lakh for another year. Impact: This will boost the affordable housing segment
Helsinki EMEA ��.�� �.�% Singapore ��.�� ��.�� ��.�� for the past three years, we expect construction to peak and
However, with absorption set to outpace supply, growing demand for large modern warehouse Marquee Markets See Rent Decline by providing cheaper loan to the end users.
Marseilles EMEA ��.�� �.�% Geneva ��.�� ��.�� ��.�� begin to decline in the coming year.
Paris EMEA ��.�� �.�% Continued on page 8 While Hong Kong, London’s West End and Paris command
Accelerating success. Accelerating success.
São Paulo ��.�� ��.�� ��.�� the top three highest asking rents for Class A office space,
Accelerating success. *Local currency P. 1 | COLLIERS INTERNATIONAL

WWW.COLLIERS.COM WWW.COLLIERS.COM www.colliers.com/india

This book is printed on 100% Recyclable paper Accelerating success.

Accelerating success.