Office property market overview India- Q1 2016

Table of Contents
INDIA
Occupiers’ expansion plans point to continued momentum in the
year ahead for office market 3
MUMBAI
Mumbai office absorption doubles on QOQ basis 5
DELHI
Delhi office absorption picked up in Q1 2016 7
GURGAON
Gurgaon witnessed increased uptake of office space in Q1 2016 9
NOIDA
Market recovery continues in Q1 2016 11
BENGALURU
Office sector demand up by 13% QOQ; supply witnesses a rebound 13
CHENNAI
Chennai office sector absorption drops significantly on a QOQ basis 15
PUNE
Pune continued its progression towards a dominant IT-ITeS destination 17
HYDERABAD
Demand revival for office sector; nearly 1.27 million sq ft absorbed in Q1 2016 19
KOLKATA
No Show for Kolkata office market in Q1 2016 21

4 Research & Forecast Report | September 2014 | Colliers International
Return on Alternative Investments
Economic Barometer
Note:
1 Estimates as per International Monetary Fund
2 Wholesale Price Index (WPI), Latest estimates for Feb 2016
3 SBI interest rate < INR 1 crore Term Deposits for≤ 1 Year
Exchange Rates
INR - USD 62.36 67.60
INR - EURO 66.48 74.35
Parameters Q1 2015 Q1 2016
QOQ %
Change
Gold 26,232 27,583 5.15%
Silver 36,983 35,403 -4.27%
Equity
(BSE Sensex)
27,957 24,346 -12.92%
Realty Index 1,692 1,176 -30.50%
Research &
Forecast Report
India | Office
April 2016
Occupiers’ expansion
plans point to continued
momentum in the year
ahead for office market
Q1 witnessed over 8 million sq ft of total office
update across 9 major cities – Bengaluru,
NCR, Pune and Hyderabad emerged as key
contributors
For office sector, year 2016 kick started on a positive note
with office absorption totaling over 8.8 million sq ft across
9 major cities. This includes pre-commitments of about 0.8
million sq ft. This was about 11% up from the previous quarter.
Strong positive absorption from technology firms helped
further gains in occupancy in almost all the cities. The sector
was well supported by positive economic sentiments; business
confidence index was up by 5% in Jan 2016 and the GDP was
forecasted at about 7.5%. Further, inflation measured via WPI
(Wholesale Price Index) continued to remain in the negative
territory at -0.91% in February 2016.
Bengaluru with 33% share remained the top contributor of
the demand, followed by NCR (Delhi, Gurgaon and NOIDA),
Hyderabad, Pune and Mumbai. Sector wise, tech firms
continued to share the significant part of the overall demand.
Few notable transactions concluded this quarter including the
620,000 sq ft lease by “Infosys” in Pune, 500,000 sq ft lease
by “HP” in Bangalore and 150,000 sq ft lease by “EXL” in
NOIDA. Besides this, in a major asset acquisition this quarter,
RMZ Corp has acquired Essar’s Group “Equinox Business
Park” located at BKC, Mumbai for approximately INR 2,400
crores.
With its affordable rents, Hyderabad managed to attract major
IT, digital and e-commerce companies which announced their
plans for huge investments to bolster their expanding network
Indicators Q1 2015 Q1 2016
Gross Domestic
Product
7.80% 7.50%
Business Confidence
Index
53.70% 56.40%
Repo Rate 7.50% 6.75%
Reverse Repo Rate 6.50% 5.75%
Cash Reserve Ratio 4.00% 4.00%
Inflation (WPI)
2
-2.06% -0.91%
Prime Lending Rate 10% - 10.25% 9.70% - 10%
Deposit Rate
3
8% - 8.75% 7.75% - 8%
Source: Government of India, Colliers International India Research

5 Research & Forecast Report | April 2016 | <<India>> | Colliers International
0
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Apr-14
FDI in Real Estate
Gross Domestic Product at Factor Cost
Business Confidence Index
of technology development centers and facilities in the
city. Leading e-commerce player, Amazon committed huge
investments to set up its largest facility outside United States
and leased approximately 350,000 sq ft in Raheja Mindspace
in HITEC City. Apple, Inc. is also opening its first technology
development center in India and has leased 250,000 sq ft.
Grade A asking rents remained stable in both CBD and SBD
areas across the cities. The largest gains from last quarter
were seen in Bengaluru’s, Outer Ring Road micro market,
Hadapsar/Fursungi in Pune and Golf course Road in Gurgaon,
where competition for space remains fierce.
With limited new launches in the market, the office
construction pipeline increased slightly from Q4. Vacancy
levels reduced in almost all the cities due to limited new
supply addition.
Colliers View
We anticipate positive momentum in the coming quarter
as the overall office leasing pipeline seems strong and is
steadily growing. Positive economic growth coupled with
increasing business confidence index due to government’s
proactive policy initiatives will be the few factors influencing
the demand for office space in the coming quarter. The
majority of markets are enjoying this growth and overall
office market sentiments are optimistic.
The office market sentiments were further boosted due
to some key policy announcements in this quarter. In
the union budget 2016, The govt. announced removal of
Dividend Distribution tax (DDT) for REITs and InvITs.
Institutional investors, both domestic and overseas, are
demonstrating an increased appetite and willingness to
engage in the Indian real estate commercial market. With
removal of DDT, we can see listing of REITs in the Indian
market soon. Besides this, recently, the govt. has also
allowed 100% FDI for e-commerce companies which will
help to improve demand for office space in medium to
long term. Looking further ahead in 2016, high-growth tech
companies including e-commerce will continue to create
voracious demand.
Colliers anticipates further decline in vacancy with an uptick
in asking rents for the selected Grade A buildings in the next
several quarters. Bengaluru will continue to lead the overall
leasing volumes. However, cities such as Hyderabad, NOIDA
and Pune will continue to outpace many top-tier markets
due to affordable rents.
0%
2%
4%
6%
8%
10%
12%
Q12005
Q32005
Q12006
Q32006
Q12007
Q32007
Q12008
Q32008
Q12009
Q32009
Q12010
Q32010
Q12011
Q32011
Q12012
Q32012
Q12013
Q32013
Q12014
Q32014
Q12015
Q32015
Percentage(%)
0
5000
10000
15000
20000
25000
30000
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Apr-Dec15
INRCrore

*Indicative Grade A rents in INR per sq ft per month
**Nariman Point, Ballard Estate & Fort
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QOQ YOY
CBD** 200 - 250 0% 0%
Worli/Prabhadevi 180 - 210 0% -5%
Lower Parel 145 - 190 0% 0%
BKC 225 - 320 0% 0%
Kalina 150 - 200 0% 0%
Goregaon / JVLR 100 - 110 0% 0%
Andheri East 90 - 130 0% 5%
Malad 80 – 100 0% 0%
Powai 120 - 130 0% 4%
Navi Mumbai 70 - 100 0% 6%
Thane / LBS 60 - 75 0% 0%
Rental Values
Mumbai oﬃce
absorption doubles
on QOQ basis
IT-ITeS occupiers strengthen Mumbai’s oﬃce
absorption
The year started with a good note as the office absorption
doubled in Mumbai, from 0.49 million sq ft in Q4 2015 to
0.93 million sq ft in Q1 2016. The Information Technology-
Information Technology enabled Services (IT-ITeS) sector
dominated the city’s office absorption with over 38%
(0.35 million sq ft) of the total absorption, followed by
Banking, Financial Services and Insurance (BFSI) with
0.15 million sq ft (16%), Pharma with 0.14 million sq ft
(15%) and Manufacturing with 0.13 million sq ft (14%). The
maximum number of office transactions were concluded
in the western suburbs (0.32 million sq ft), including BKC,
Andheri, Malad and Goregaon, followed by Central Mumbai
(0.18 million sq ft) including Lower Parel, Worli and
Elphinstone West and the Central Suburbs (0.17 million sq
ft) including Vikhroli, Powai and Kanjurmarg.
A number of small and mid-sized transactions, averaging
to 22,000 sq ft took place in Q1 2016. In major office
transactions, “NCR Corporation” took about 90,000 sq
ft in Mindspace SEZ located in Navi Mumbai. Another
transaction was concluded by “Quintiles Research India”
and “Transunion Software”, which took more than 70,000
sq ft at G-Corp at Thane and One IndiaBulls at Lower Parel,
respectively.
During Q1 2016, no major project was added into the city
inventory. However, a few new projects were launched
including; “Adani Inspire (0.8 million sq ft)” by Adani
Realty at BKC and “K-Raheja Platinum “(0.3 million sq ft)”
Source: Colliers International India Research
Research &
Forecast Report
Mumbai | Office
April 2016
INDICATORS Q3 2015 Q4 2015 Q1 2016 Q2 2016F
Vacancy
Absorption
Construction
Rental Value
Capital Value
City Office Barometer

Key under construction projects
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 2016.
CLIENT BUILDING NAME AREA (sq ft) LOCATION LEASE / SALE
NCR Corporation Mindspace 90,000 Airoli Lease
Quintiles Research India Pvt Ltd G-Corp 74,000 Thane Lease
Transunion Software One India Bulls 70,000 Lower Parel Lease
Deloitte Lotus Corporate Park 60,000 Goregaon East Lease
Siemens Birla Aurora 50,000 Worli Lease
BUILDING NAME DEVELOPER AREA (sq ft) LOCATION POSSESSION
Seawood Grand Central Tower I & II L & T Infrastructure 1,350,000 Navi Mumbai 2016
Godrej BKC Godrej Group 1,200,000 BKC 2016
Kohinoor Square Kohinoor Group 800,000 Dadar 2016
Top 5 Transactions of Q1 2016
by K-Raheja Group at Andheri (East); these projects are
expected to be complete by early 2017. Currently, about 7
million sq ft of Grade A office supply is available for fit out
in Mumbai, among which majority of the supply is located
in the western suburbs (56%) including BKC, Andheri (E),
Malad and Goregaon / JVLR, followed by Central Mumbai
(29%) and rest 15% in Navi Mumbai and CBD locations.
Despite an increase in demand, the rents and capital values
remained unchanged in all of the micro markets.
In a major acquisition this quarter, RMZ Corp has acquired
Essar Group’s “Equinox Business Park” located at BKC
for approximately INR 2,400 crores. The 1.25 million sq ft
business park consists of four towers out of which three
are already leased out to tenants including Nissan Motors,
Acropolis, Crompton Greaves and Lafarge, besides the
offices of Essar and the newly constructed fourth tower of
about 50,000 sq ft is ready for fit-outs.
Colliers View
We anticipate an increase in absorption momentum in the
coming quarters, and the demand will largely be driven by
sectors like IT-ITeS and BFSI. Developers will continue to
focus on project completions, resulting in substantial new
supply in the coming quarter in areas such as the western
suburbs and Navi Mumbai. Rents for select premium
projects in various micro markets will continue to demand
premium in the medium term and will thus result in
marginal increase in overall rental values in Central and
South Mumbai locations.
Quarter Wise Absorption
Average Rental And Capital Value Trend
250
300 30,000
25,000
20,000
15,000
10,000
5,000
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0
2010 2011
Q4 Q3 Q2 Q1
2012 2013 2014 2015 2016
MillionSq.ftRentalValuesINRPerSFPerMonth
CaptialValuesINRPerSF
Forecast
Q12008
Q12009
Q12010
Q12011
Q12012
Q12013
Q12014
Q12015
Q12016
Q12017F
Q12018F

Delhi oﬃce
absorption picked
up in Q1 2016,
BFSI top
contributor
BFSI & IT-ITeS occupiers strengthen the oﬃce
absorption
A confident approach from occupiers resulted in absorption
of 0.34 million sq ft in Q1 2016, which is more than double,
compared to last year’s same period of only 0.10 million
sq ft. BFSI (72%) and IT-ITeS (21%) were the primary
contributors of this demand, followed by Manufacturing
(7%) and other sectors (1%). Connaught Place remained
the most preferred micro market among occupiers; metro
connectivity and proximity to government offices continue
to trade well for this location. Besides, a few deals were
concluded in emerging office market Aerocity, near the
airport.
In this quarter, a trend was seen, where occupiers who are
looking to expand within Delhi were acquiescent on the
Grade B office spaces, where occupiers can avail bigger
office spaces at low rentals. Various small ticket size deals
averaging about 9,300 sq ft, kept the overall lease market
alive, of which a few notable office deals were, lease of
150,000 sq ft by HDFC Bank in Ambience Corporate Tower
Rohini at Rohini; 20,000 sq ft by Transaction Solution
International in DLF Prime Tower located at Okhla; 19,000
sq ft lease by IDFC in Express Tower at ITO and another
16,000 sq ft lease by ICICI Lombard in Redfort Capital
Towers by Parsvanath Group located at Connaught Place.
Research &
Forecast Report
Delhi | Office
April 2016
Rental Values
*Indicative Grade A rentals in INR per sq ft per month
**Connaught Place
***Netaji Subhash Place
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QOQ YOY
CBD** 180 - 450 0% -1%
Nehru Place 180 - 250 0% 6%
Saket 130 - 200 -7% 0%
Jasola 90 - 130 0% -2%
NSP*** 70 - 120 0% 0%
Okhla 30 - 100 -4% 0%
Vacancy
Absorption
Construction
Rental Value
Capital Value

During the quarter, no new project/ parts of the project were
completed or launched. In Delhi, more than 1.3 million sq
ft of vacant office space was available for fit-outs, of which
32% was located in Netaji Subhash Place; 23% in Saket; 18%
in Jasola; 14% in Nehru Place and 13% in CBD. Also there
are two ongoing projects by Parsvanath Developer at Tolstoy
Lane and K G Marg. These projects are expected to be ready
by the end 2016.
Rents in Delhied remained stable in Q1 2016 across all the
micro markets except, Saket and Okhla where rents decline
on average by 5% QOQ. Similarly, capital values remained
stable across all the micro markets.
Colliers View
We expect similar momentum to continue in coming
quarters; however the city has a very limited new supply
in the pipeline, which will directly pull down the vacancy
levels. Occupiers looking for expansion within Delhi limits
will keep eyeing for options in the peripheral areas at low
rents and longer lease period. Overall rents are expected to
remain on the same levels in near term; however, few micro
markets like Connaught Place, Jasola and Ohkla may see
marginal appreciation due to limited supply.
0.20
0.40
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0.80
1.00
1.20
1.40
0.00
MillionSq.ft
2010 2011
Q4 Q3 Q2 Q1
2012 2013 2014 2015 2016
250
300
30,000
35,000
40,000
25,000
20,000
15,000
10,000
5,000
0
200
150
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50
0
RentalValuesINRPerSFPerMonth
Forecast
Q12008
Q12009
Q12010
Q12011
Q12012
Q12013
Q12014
Q12015
Q12016
Q12017F
Q12018F
HDFC Bank
Ambience Corporate
Tower Rohini
150,000 Rohini Lease
Transaction Solution International DLF Prime Tower 20,000 Okhla Lease
IDFC Express Tower 19,000 ITO Lease
ICICI Lombard Redfort Capital Tower 16,000 Connaught Place Lease
Bhushan Auto Finance Videocon Tower 15,310 Jhandewalan Lease
NBCC Plaza NBCC Ltd. 1,300,000 Kidwai Nagar 2016
RPS Infinia RPS Developer 1,200,000 Mathura Road 2016
Skipper House Govt. Trust 160,000 Barakhamba Road 2016
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 .

Gurgaon witnessed
increased uptake
of oﬃce space in
Q1 2016
Controlled supply kept rents stable in most of the
markets
Gurgaon’s commercial real estate market recorded about
0.70 million sq ft of office space uptake in the first quarter of
2016 as compared to 0.45 million sq ft in previous quarter
but about 30% less from the figures in Q1 2015. IT-ITeS and
BFSI with 59% and 17% share, respectively, remained the
prime sectors contributing to this demand. Apart from this,
manufacturing and pharma sectors also leased smaller
office spaces during the quarter. A few notable transactions
this quarter were the 140,000 sq ft office lease by “Grey
Orange” in Bestech Business Park located at NH8, 90,000 sq
ft by “Markit” in Ambience Tower located at DLF Phase III
and 60,000 sq ft by “Pernord Ricard” in DLF Building No. 8
located in DLF Cyber City.
This quarter saw total available vacant stock of 9.6 million
sq ft ready for fit outs. The areas that have majority of this
vacant stock were Udyog Vihar and Industrial Sectors (33%),
National Highway (NH) 8 (19%), Golf Course Road Ext /
Sohna Road (15%) and Manesar (11%). Golf Course Road,
MG Road, DLF Cyber City and Institutional Sectors are left
with very limited supply and altogether contribute about
20% of the total vacant stock. The city witnessed completion
of “Eros Corporate Square” (0.12 million sq ft) by Eros Group
at Sector 69. New projects launched in this quarter include
“DLF New Project” (0.70 million sq ft) by DLF Group at
NH-8, “City Escape” (0.25 million sq ft) by Capital Group
Research &
Forecast Report
Gurgaon | Office
April 2016
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QOQ YOY
MG Road 110 - 140 0% 2%
DLF Cyber City (IT) 100-110 0% 11%
Golf Course Road 100-190 4% 18%
Institutional Sectors
(Sec 44, 32, 18)
60-90 0% 0%
Golf Course Road Ext./
Sohna Road
60-75 0% 0%
National Highway 8 50-130 0% -10%
Udyog Vihar & Industrial
Sectors
30-45 7% 0%
Manesar 38-45 0% -2%
Rental Values
Vacancy
Absorption
Construction
Rental Value
Capital Value

at Sector 66 and two small scaled projects measuring 0.10
and 0.06 million sq ft by a local developer and Landmark
Group respectively, both at Udyog Vihar. These projects are
expected to be completed by early 2017.
Rents remained stable in Q1 2016 in most of the micro
markets, except Golf Course Road and Udyog Vihar and
Industrial Sectors, where rents increased at an average of
5% QOQ. This is primarily due to a few large transactions
closed in 2015 in select commercial buildings that have
started asking a premium price over others, pushing up the
base rental values of these micro markets. Capital values
remained stable across all the micro markets.
Colliers View
Going forward, we anticipate an increase in office
absorption with clients looking to consolidate their various
offices under one roof. Also, the occupiers based in Cyber
City and M G Road are evaluating to renew their existing
lease or relocating to other inexpensive locations such as
Sohna Road and along NH8. Micro markets like Udyog Vihar
and Institutional Sectors will continue to remain the most
preferred office locations, due to location advantages and
rents. Rents are expected to remain on the same levels due
to the decent vacancy levels and robust under-construction
developments in the pipeline, especially in micro markets,
such as the NH-8, Southern Peripheral Road and Golf
Course Extension Road.
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2
3
4
6
5
0
MillionSq.ft
2010 2011
Q4 Q3 Q2 Q1
2012 2013 2014 2015 2016
100
120
140
8,000
10,000
40,000
12,000
6,000
4,000
2,000
0
80
60
40
20
0
Forecast
Q12008
Q12009
Q12010
Q12011
Q12012
Q12013
Q12014
Q12015
Q12016
Q12017F
Q12018F
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 city’s new office destination.
Grey Orange Bestech Business Park 140,000 NH-8 Lease
Markit Ambience Corporate Tower 90,000 DLF Phase 3 Lease
Pernord Ricard DLF Building No. 8 60,000 DLF Cybercity Lease
Paytm Plot No 109 50,000 Udyog Vihar Lease
Ibibo Group Unitech Business Zone 40,000
Golf Course Road
Extension
Lease
ASF Insignia Phase II ASF Infrastructure 1,400,000 Gwal Pahari 2016
Reach Commercia Reach Promoters 550,000 Sohna Road 2016
Unitech Infospace - Tower V Unitech Ltd. 500,000 NH 8 2016

Market recovery
continues in Q1
2016
IT-ITeS sector contributed over 80% in the total
oﬃce absorption
The NOIDA office market continued to be on its recovery
trajectory on the back of IT-ITeS sector with office
absorption ticking over 0.38 million sq ft in 1Q 2016.
However, overall transaction volumes were 17% less QoQ
basis. Expansion and relocation by IT-ITeS companies were
the primary demand drivers, which continued to be the
dominant sector of leasing office space in NOIDA during
this quarter. There was also some demand from publishing
and manufacturing companies who leased smaller office
spaces in Institutional Sectors. Location wise, about 54%
of transactions were concluded in sectors along NOIDA
Expressway, followed by 43% in Institutional Sectors and
3% in commercial sectors. The most significant leasing
transaction for Q1 2016 took place at NOIDA Expressway
- Sector 143, with “EXL” leasing 150,000 sq ft in Blackstone
SEZ. Apart from this, “Oxford University Press” signed
a 51,000 sq ft lease at World Trade Tower and “Tavant
Technologies” took 50,000 sq ft in Okaya Blue Silicon Cyber
Park in Sector 62.
Developers refrained from launching any new project, also
no new project/ parts of the project were completed during
the quarter. Contrasting this trend, the NOIDA authority
has advanced its plan for 25 acres mixed use project in
Sector 94, with an aim to transform NOIDA into the main
business and entertainment hub. This project will house
commercial spaces, entertainment zones, a habitat centre
and residential high-rises.
In Q1 2016, more than 11 million sq ft of vacant office
Research &
Forecast Report
NOIDA | Office
April 2016
Indicative Grade A rentals in INR per sq ft per month
*Sector 18
**Sector 16A, 62, 125-142
***Sector 124, 57-60, 63-75
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QOQ YOY
Commercial Sectors* 70 - 110 -5% -10%
(Non IT)**
80 - 100 0% 9%
(IT)**
45-60 0% -5%
Industrial Sector (IT)*** 35-55 0% 0%
Rental Values
Vacancy
Absorption
Construction
Rental Value
Capital Value

space was available for fit-out, of which 84% was located
in Industrial Sectors like Sector 1 to 9, 57 to 60 and 63 to
65, rest 16% was located in Institutional Sectors, including
locations like Sector 16A, Sector 62 and Sectors 125 to
142. Vacancy levels posted a marginal decline as no new
commercial/IT-ITeS office space was added during the
quarter.
In Q1 2016, rents in most of the micro markets remained
stable, except Commercial Sectors where rents declined by
5% QOQ. Similarly capital values remained largely stable
across the city during the quarter.
Colliers View
With number of infrastructure projects in advance stages
and metro corridor work along NOIDA Expressway picking
up, NOIDA will continue to attract occupiers looking for
affordable rents. IT-ITeS sector is likely to drive the demand
in the coming quarter. Mid-scale companies will continue
to prefer Institutional Sectors due to affordable rents while
large corporates and MNCs will prefer NOIDA expressway.
An upward pressure on rents is expected in the Institutional
Sectors due to limited supply addition. Meanwhile, other
micro markets are expected to remain stable.
70
80
90
8,000
10,000
12,000
14,000
6,000
4,000
2,000
0
60
50
40
30
10
20
0
1.00
0.50
1.50
2.00
2.50
3.50
3.00
0.00
Forecast
2010 2011 2012 2013 2014 2015 2016
Q4 Q3 Q2 Q1
Q12008
Q12009
Q12010
Q12011
Q12012
Q12013
Q12014
Q12015
Q12016
Q12017F
Q12018F
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.
EXL Blackstone SEZ 150,000 Sector 143 Lease
Oxford University Press World Trade Tower 51,000 Sector 16B Lease
Tavant Technologies
Okaya Blue Silicon Cyber
Park
50,000 Sector 62 Lease
Tolexo
Okaya Blue Silicon Cyber
Park
25,000 Sector 62 Lease
Radiate e Service Independent Building 19,000 Sector 58 Lease
Wave One Wave Infratech 1,000,000 Sector 18 2016
I Thum Beaver International 500,000 Sector 62 2016
Cosmic Corporate Park III Cosmic Group 500,000 Sector 154 2016

Oﬃce sector
demand up by
13% QOQ; supply
witnesses a
rebound
IT-ITeS and technology companies strong demand
drivers
During the first quarter of 2016, Bengaluru witnessed
total office sector absorption of 2.65 million sq ft noting a
13% quarterly uptick over the last quarter. IT-ITeS, (also
comprising of technology start-ups and e-commerce
companies) continued to remain the leading sector driving
office sector demand with 88% share in overall absorption.
Apart from this, BFSI comprised 6% share in total deal
volume.
Notable transactions during this quarter were HP leasing
nearly 500,000 sq ft in Maruthi Concorde Tower on Hosur
Road - Electronic City and JP Morgan taking up 200,000 sq ft
in Embassy Golf Links Business Park on Intermediate Ring
Road. Of the total deals transacted in this quarter, nearly
62% is attributed to pure expansions, while another 35% is
accounted for by relocation and consolidation activity in the
market.
Due to some large sized ticket transactions, Hosur Road-
Electronic City accounted for 25% of total gross absorption,
followed by EPIP Zone/Whitefield and Outer Ring Road –
Marathahalli to Sarjapur Road, each of which comprised a
14% and 13% share, respectively. Limited supply availability
at Outer Ring Road resulted in demand spillover to above
mentioned areas.
Research &
Forecast Report
Bengaluru | Office
April 2016
**Northern part of ORR - KR Puram till Hebbal
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QOQ YOY
CBD 90 - 130 0% 0%
Outer Ring Road
(Marathahalli -
Sarjapur)
68 - 75 8% 21%
Outer Ring Road
(North)**
60 - 70 2% 15%
Bannerghatta Road 55 - 65 0% 9%
Hosur Road 25 - 40 0% 0%
EPIP Zone/ Whitefield 28 - 36 0% 0%
Electronic City 28 - 36 0% 8%
Rental Values
Vacancy
Absorption
Construction
Rental Value
Capital Value

New supply more than quadrupled on a quarter on quarter
basis and stood at about 1.96 million sq ft. Of the total
completions, most significant was the completion of RGA
Tech Park admeasuring 1.0 million sq ft which became
operational on Sarjapur Road. Other locations which
witnessed the remainder supply included Whitefield,
Bannerghatta Road, Electronic City, Hosur Road, Jayanagar
and Kanakpura Road.
New project launches during this quarter stood at nearly
2.19 million sq ft comprising upcoming developments from
Fern & Prestige, RMZ Corp and Bonsai, all of which are set
for completion next year. Nearly 60% of new projects were
launched on Outer Ring Road.
Rents and capital values largely remained stable across
micro markets. However, office rentals on Outer Ring Road
(Marathahalli - Sarjapur) appreciated by 8% due to low
vacancy and continually high demand. Outer Ring Road
(North) office rentals too, saw a 2% uptick due to demand
spillover from other micro markets.
Colliers View
Going forward, the growth of new sectors such as
e-commerce, technology giants and entrepreneurial
ventures will drive strong office sector demand in the city.
New space take-ups, for both small and large office formats
will push the vacancy downwards for most micro markets,
mainly EPIP Zone/Whitefield and Electronic City, amongst
others. Rents are likely to witness an upswing in Outer Ring
Road – Marathahalli- Sarjapur Road and CBD due to limited
availabilities.
10,000
12,000
8,000
6,000
4,000
2,00
0
70
60
50
40
30
10
20
0
4
2
6
8
10
12
14
16
0
Forecast
2010 2011 2012 2013 2014 2015 2016
Q4 Q3 Q2 Q1
Q12008
Q12009
Q12010
Q12011
Q12012
Q12013
Q12014
Q12015
Q12016
Q12017F
Q12018F
Notes:
1. Office Market: Prime office properties in Bengaluru can be divided into three principal sub-market— CBD/Oﬀ 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).
HP Maruthi Concorde Towwer 500,000 Electronic City Lease
JP Morgan Embassy Golf Links 220,000 Intermediate Ring Road Lease
Arris India Pvt. Ltd. Senate 187,000 Ulsoor Road Lease
GE Prestige Shantiniketan 185,000 Whitefield Lease
Infosys Confident Octans 150,200 Electronics City Lease
Embassy Tech Village - 7B Block Embassy Group 800,000 Outer Ring Road 2016
Mantri Cornerstone A&C Mantri Developer 700,000 Indiranagar 2016
Brigade Lakeshore Brigade Group 600,000 Whitefield 2016

Chennai oﬃce
sector absorption
drops significantly
on a QOQ basis
IT-ITeS continues to drive demand for expansion
and new occupiers
Even though Chennai’s office sector continued to witness
interest from corporate occupiers for expansion and entry
of new players, absorption levels dipped by nearly 34% over
the previous quarter as a number of transactions are still in
execution stages. The first quarter of 2016 recorded nearly
0.77 million sq ft absorption volume, out of which 86% is
attributed to the IT-ITeS sector. Other sectors such as BFSI
and Consulting, too, accounted for nearly 7% and 4% share
each in the total transaction volume.
Despite moderate absorption recorded in this quarter,
expansions by existing corporates accounted for nearly
66% of entire leasing volume, while entry of new corporates
was noted nearly at 7%. Relocations by existing corporates
within different micro markets accounted for the remainder
of transaction volume.
Renault Nissan Technology Business Centre (RNTBCI)
(180,000 sq ft), Citibank (48,000 sq ft), Lennox (38,000 sq
ft) and Barry Wehmiller International (38,000 sq ft) were
amongst some prominent corporate occupiers that leased
spaces on GST Road, Old Mahabalipuram Road (OMR -Pre
Toll) and Guindy micro markets respectively.
Approximately 33% of total absorption in this quarter was
concentrated in OMR-Pre Toll corridor as this remains a
preferred location for occupiers to consolidate and expand
Research &
Forecast Report
Chennai | Office
April 2016
**OMR I (Madhya Kailash – Perungudi- Toll gate I)
***OMR II (Thoraipakkam to Sholinganallur)
& OMR III (Semmencherry to Siruseri)
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QOQ YOY
CBD 65-85 3% 7%
Oﬀ CBD 50-65 5% 5%
Ambattur 30-38 0% 17%
OMR (Pre Toll)** 55-62 7% 12%
OMR (Post Toll)*** 25-40 7% 7%
Mount-Poonamallee
Road
50-60 0% 0%
GST Road 35-45 0% 7%
Rental Values
Vacancy
Absorption
Construction
Rental Value
Capital Value

operations. GST Road (23%) and OMR – Post Toll (12%) too
accounted for substantial share of leasing in this quarter due
to availability of vacant stock comprising large floor plates.
Only 200,000 sq ft new supply became operational during
this quarter, of which 71% came up in OMR – Pre Toll in
the form of non-IT space. Off-CBD witnessed the influx of
remainder 55,000 sq ft non-IT space on Nelson Manickam
Road.
Rents across some micro markets increased slightly. OMR
- Pre Toll noted a 7% quarterly uptick due to persistent
high demand coupled with low supply infusion. CBD and
Off CBD, too, witnessed 3-5% rental appreciation due to
preference for inner city areas.
Colliers View
Expansion and consolidation plans by corporate occupiers,
mainly in the IT-ITeS, BFSI and technology sectors coupled
with the entry of new companies may lead to stronger
office sector absorption in the upcoming quarter. Paucity
of new supply coupled with lower vacancy may put upward
pressure on office rents in micro markets such as OMR-Pre
Toll, CBD and Mount Poonamallee Road. Overall vacancy
in Chennai may further dip from the current 11% levels
to single digit owing to steadily improving office sector
demand and continual supply crunch.
1.00
2.00
3.00
4.00
5.00
6.00
0.00
MillionSq.ft
2010 2011 2012 2013 2014 2015 2016
Q4 Q3 Q2 Q1
105
9,000
10,500
7,500
6,000
4,500
3,000
1,500
0
90
75
60
45
15
30
0
Forecast
Q12008
Q12009
Q12010
Q12011
Q12012
Q12013
Q12014
Q12015
Q12016
Q12017F
Q12018F
Notes:
1. Office Market: Prime office properties in Chennai are located in seven principal sub markets: CBD, Oﬀ CBD, Ambattur, OMR I, II & III, Mount-Poonamallee Road, GST Road.
RNTBCI Ascendas Cybervale 180,000 GST Road Lease
Citibank Ramanujan IT City 48,000 OMR Lease
Lennox
Ascendas International
Technology Park
38,000 OMR Lease
Barry Wehmiller International Tamarai Tech Park 38,000 OMR Lease
Virtusa AKDR Tech Park 34,000 OMR Lease
Chennai One SEZ – South Block IG3 infra Ltd 1,200,000
Pallavaram
Thoraipakkam Road
2016
Ramanujan IT City -
Cambridge Block
TRIL 800,000 OMR 2016
Ramanujan IT City - Infinity Block TRIL 450,000 Rajiv Gandhi Salai 2016

Pune continued
its progression
towards a
dominant IT-ITeS
destination
About 1.15 million sq ft of oﬃce space leased in
Q1 2016
Pune witnessed healthy demand from the IT-ITeS sector as
the market experienced over 1.15 million sq ft of absorption
in Q1 2016. The overall absorption in this quarter is 16%
lower than the previous quarter. Hinjewadi and Airport
Road / Pune Station continued to remain as the most
preferred locations by major occupants with about 56% and
26% share respectively, in the total absorption, followed by
CBD (7%), Nagar Road (5%), Hadapsar / Fursungi (4%) and
Kalyani Nagar and Bavdhan (2%). Occupiers from the IT-
ITeS sector were the primary contributors to this demand,
sharing a whopping 94% of the total absorption. The average
deal size was about 45,000 sq ft which is 36% more than
the previous quarter. Few notable transactions concluded
this quarter include the 620,000 sq ft lease by “Infosys”
in Ascendas Phase II (ITTP) - Juniper building located at
Hinjewadi Phase 3.In another major transaction, Northern
Trust Bank has pre-committed nearly 250,000 sq ft at EON
Free Zone - Phase II which is currently under construction.
Over 4 million sq ft was available for fit outs in Pune office
market, of which 24% was located in Hinjewadi. The city
witnessed new supply of about 0.64 million sq ft, in the form
of few small projects, at Baner, Phugewadi, Chinchwad,
Research &
Forecast Report
Pune | Office
April 2016
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QOQ YOY
Baner 49 - 58 2% 7%
Bund Garden 52 - 65 2% 2%
Airport road/pune sta-
tion
55 - 85 0% 17%
Aundh 48 - 62 5% 5%
Senapati Bapat Road 65 - 100 6% 18%
Bavdhan 38 - 48 8% 8%
Kalyani Nagar 48 - 65 6% 8%
Nagar Road 50 - 62 7% 12%
Hinjewadi 40 - 52 5% 16%
Hadapsar/Fursungi 45 - 72 9% 14%
Kharadi 45 - 85 7% 19%
Rental Values
Vacancy
Absorption
Construction
Rental Value
Capital Value

Bhosari and Bavdhan locations.
Occupier interest led various developers to launch many
small and mid sized projects admeasuring over 1 million sq
ft. Major projects includes, “Nandan Probiz” (0.3 million sq
ft), “Prestige Point” (0.15 million sq ft) and “Gravity”. These
projects are currently in various phases of construction and
are expected to be completed in next two years.
During the quarter, the rents for prime office property
increased in the range of 2 – 8% QOQ across all the micro
markets, except Airport road/Pune station, where rents
remain unchanged. Capital values also increased on an
average by 7% QOQ across Pune.
Reportedly, Prestige Group is under talks with B U Bhandary
Builders to set up an 800,000 sq ft IT park on a six acre land
parcel in Pune.
Colliers View
The commercial supply will remain restricted in short term,
thus rents may go up marginally in most of the markets.
Moreover, new buildings with better amenities will continue
to charge premium and push the average rents upwards.
Vacancy levels are on the decreasing trend since last eight
quarters and continue to remain so due to limited new
completion in the coming quarters. However, the increased
tenant demand will now start to trigger the new launches in
the city.
6,000
7,000
8,000
5,000
4,000
3,000
2,000
1,000
0
80
70
60
50
20
10
40
30
0
1
2
3
4
5
6
0
Forecast
2010 2011 2012 2013 2014 2015 2016
Q4 Q3 Q2 Q1
Q12008
Q12009
Q12010
Q12011
Q12012
Q12013
Q12014
Q12015
Q12016
Q12017F
Q12018F
Notes:
1. Office Market: The prime office sub-markets of Pune include CBD (Deccan Gymkhana, Bund Garden Road, Senapati Bapat Road & Camp), Oﬀ 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.
Infosys
Ascendas Phase II (ITTP)-
Juniper Tower
620,750 Hinjewadi Phase III Lease
Concentrix Tech Park One Tower D 60,000 Yerwada Lease
Vodafone Business @ Mantri 47,330 Nagar Road Lease
Qlogic Tech Park One Tower C 40,000 Yerwada Lease
Tata Consultancy Services Suzlon Sun Lounge 31,000 Hadapsar Lease
Acendas Phase II Acendas 615,000 Hinjewadi 2016
Nandan Probiz Nandan Buildcon 300,000 Balewadi 2017
Prestige Point Amba Group 150,000 Bajirao Road 2018

Demand revival
for oﬃce sector;
nearly 1.27 million
sq ft absorbed in
Q1 2016
Expansion by technology companies attracts more
occupiers
Hyderabad witnessed robust demand from corporate
occupiers in the first quarter of 2016 as gross leasing
volume of 1.27 million sq ft was noted in the city. Though
this represents a quarterly decline of 15%, major IT,
digital and e-commerce companies announced plans
for huge investments to bolster their expanding network
of technology development centers and facilities in
Hyderabad. IT-ITeS sector accounted for 82% of cumulative
deal volume.
Leading e-commerce player, Amazon committed huge
investments to set up its largest facility outside United States
and leased approximately 350,000 sq ft in Raheja Mindspace
in HITEC City. Apple, Inc. is opening its first technology
development center in India and has leased 250,000 sq ft in
WaveRock facility in Nanakramguda.
Despite a dip in absorption, it is evident that the state
government’s measures to attract leading global players are
paying off as expansions by existing tenants accounted for as
much as 37% of total deal volume. New entrants to the city
accounted for more than a third of the total leasing volume
in this quarter.
Availability of large floor plates and quality office spaces
Research &
Forecast Report
Hyderabad | Office
April 2016
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QOQ YOY
CBD 45-55 0% 0%
Oﬀ CBD 50-60 0% 0%
SBD 45-50 0% 12%
PBD 25-30 0% 0%
Rental Values
INDICATORS Q1 2016 Q2 2016F
Vacancy
Absorption
Construction
Rental Value
Capital Value

at competitive rents led to 76% gross absorption being
concentrated in Suburban Business District (SBD).
Nanakramguda with 40% and HITEC City with 32% share
respectively, have emerged as the two most sought after
locations by corporate occupiers in this micro market.
New supply influx of 0.93 million sq ft was noted as two
blocks of an IT-Special Economic Zone (IT-SEZ), Phoenix
Avance Business Hub in HITEC City were completed in this
quarter. However, no new projects were launched in this
quarter as developers concentrated on completing existing
projects.
Rents and capital values remained stable across micro
markets.
Colliers View
With a change in occupier sentiment and large scale
developments coming up, transaction activity is expected to
further firm up in the upcoming quarter. A strong demand
and supply scenario is expected to prevail in the city going
forward. Locations such as Gachibowli, Madhapur, IT
corridor of HITEC City, Kondapur, Nanakramguda will
continue to witness strong demand as the city emerges as a
preferred location for technology firms due to comparatively
cheaper rents. While rents will largely remain stable, large
scale space take up in SBD may put an upward pressure
on rents in the short term. Vacancy levels may increase in
medium to long term due to substantial new supply influx.
35
40
5000
7000
6000
8000
9000
4000
3000
2000
1000
0
30
25
20
15
5
10
0
MillionSq.ft
2013 2014 2015 2016
Q4 Q3 Q2 Q1
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016F
Q32016F
Q42016F
Q12017F
1.00
1.50
2.00
2.50
3.00
5.00
3.50
4.00
4.50
0.50
0.00
Notes:
1. Office Market: The prime office sub markets of Hyderabad include CBD (Banjara Hills Road No. 1,2, 10 and 12), Oﬀ CBD (Begumpet, Somajiguda, Raj Bhavan Road,
S.P. Road, Himayath Nagar, Oﬀ Banjara Hills and Jubilee Hills), SBD (Madhapur, Gachibowli, Manikonda, Kondapur, Nanakramguda) and PBD (Pocharam, Uppal and
Shamshabad)
Amazon Raheja Mind Space 350,000 HITEC City Lease
Apple WaveRock 250,000 Nanakramguda Lease
Development Bank of Singapore WaveRock 200,000 Nanakramguda Lease
Incessant Technologies Q City 60,000 Nanakramguda Lease
Deloitte DivyaSree Trinity 32,000 HITEC City Lease
Knowledge City Salarpuria Sattva 1,540,000 Raidurg 2016
Meenakshi IT Campus Meenakshi Group 1,300,000 Gachibowli 2017
Amsri Brain Storm Amsri Builders 900,000 Gachibowli 2017
45
50
Forecast

No show for
Kolkata oﬃce
market in Q1 2016
Only 170,000 sq ft of Grade A oﬃce space
absorbed
In Q1 2016, Kolkata office absorption remained weak due
to gloomy response from the occupiers and only 170,000
sq ft of absorption was witnessed, which is 32% less than as
compared to the previous quarter’s absorption of 250,000
sq ft. IT-ITeS occupiers topped the chart with over 37% of
the total, followed by FMCG with 16% and pharmaceuticals
with 14%. Major transactions during the quarter included
the lease of 30,000 sq ft office space by “Fosma Meritime”
in Godrej Water Side and the lease of 26,000 sq ft by “ICFAI
Business School” in an Individual Building. Micro market
wise, Sector V / New Town remained the preferred micro
market among occupiers, with 95% share in the total
absorption. A few small deals were also concluded in the
CBD 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.
This quarter, the city witnessed completion of “Srijan
Corporate Park II” by Srijan Group admeasuring 0.92 million
sq ft, located at Sector V. In Kolkata, more than 3.8 million
sq ft of vacant office space was available for fit-out, of which
46% was located in PBD, which includes micro markets like
New Town and Rajarhat, 45% was located in Sector V and
rest 8% was located in CBD, SBD and other peripheral areas
like Narendrapur, Sonarpur and Madhyamgram.
Rents across Kolkata remained stable during the quarter,
except SBD which recorded a 4% quarterly decline due to
Research &
Forecast Report
Kolkata | Office
April 2016
**Park Street, Camac Street, Chowranghee Road, AJC Bose Road
*EM Bypass, Topsia, Ruby
****Rajarhat
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QOQ YOY
CBD** 85 - 115 0% 0%
SBD*** 62 - 72 -4% -4%
Sector V 40 - 48 0% 4%
PBD **** 34 - 35 0% 0%
Rental Values
Vacancy
Absorption
Construction
Rental Value
Capital Value

limited demand. Similarly, capital values remained stable
across all the micro markets.
On the investment front, Chennai-based Shriram Group
is planning to invest INR 10,000 crores for developing a
mixed-use project at Uttarpara, Hooghly. The project will
consist of affordable housing ranging from INR 12 lakh
to INR 30 lakh and IT complex, hospital and educational
institutions. The first phase of the project is likely to start in
the second quarter of 2016.
Colliers View
The overall market sentiment remained dull in the first
quarter. However, developers are optimistic about the
upward absorption trend in the coming quarters. The city is
expected to witness only a few new launches, as developers
are more focused on finishing their existing ventures. On the
infrastructure front, with the current pace of construction
work of Metro line 2 & 3, it is likely to be operational by
end of 2018, with which the real estate activities between
Howrah Maidan to Salt Lake, Sector V and Diamond Park
to Mahakaran will improve further. In the mid-term, rents
are expected to remain stable in across Kolkata, primarily
because of existing vacancy and low absorption base.
8,000
10,000
12,000
6,000
4,000
2,000
0
120
100
80
60
20
40
0
0.80
0.60
0.40
0.20
1.00
1.20
1.40
1.60
1.80
0.00
2010 2011 2012 2013 2014 2015 2016
Q4 Q3 Q2 Q1
Q12008
Q12009
Q12010
Q12011
Q12012
Q12013
Q12014
Q12015
Q12016
Q12017F
Q12018F
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.
Fosma Meritime Godrej Waterside 30,350 Sector V Sale
ICFAI Business School Plot no. Y1 26,000 Sector V Lease
Nestle DLF IT Park 16,000 Rajarhat Lease
Pantaloons Megatherm 10,000 Sector V Lease
Oracle Martin Burn 9,000 Sector V Lease
Technopolis 2, Forum Projects 1,200,000 Bantala 2016
PS Srijan Tech Park II PS Group & Srijan 925,000 Sector V 2016
Primac Tower Primac Group 47,000 Sector V 2016
Forecast

Office property market overview India- Q1 2016

Office property market overview India- Q1 2016

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Office property market overview India- Q1 2016