India Office Property Market Overview July 2013

Office
Property Market Overview
INDIA
QUARTERLY UPDATE | JUlY | 2013
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MACRO ECONOMIC OVERVIEW
GDP growth in India registered at 4.7% in the•
January to March quarter of 2013, which was
marginally higher from the last quarter figure
of 4.5%.
Headline inflation, based on the wholesale•
price index, stood at 4.86% for the month of
June 2013 as compared to 7.58% for the
corresponding month of the previous year.
The rupee plunged 8.6% against the US Dollar•
in the April to June quarter due to massive
capital outflows and month-end dollar demand
from importers. The rupee closed at an all-
time low of 60.72 against the US dollar in the
last week of June.
The reserve bank of India kept the policy rates•
unchanged despite lower inflation due to
concerns on economic indicators such as
currency depreciation and fiscal deficit.
Most of the corporate occupiers maintained a•
cautious outlook on the external environment
and remained cost conscious in regards to
real estate expenditure. The six major cities
ie; Mumbai, NCR, Bengaluru, Chennai, Kolkata
and Pune recorded an overall absorption of
around6.93millionsqftwhichisapproximately
15% less than 1Q 2013. Bengaluru continued
to see the highest absorption followed by
Mumbai and NCR respectively.
COLLIERS VIEW : In the latter half of 2013,
corporate tenants are expected to remain
largely cost conscious until there are more
concrete signs of global economic recovery.
We anticipate stability in rents across the
markets with a downward bias in markets
with huge available supply such as Chennai,
Gurgaon and NOIDA.
ECONOMIC BAROMETER
Return on Alternative Investments
research & forecast Report
SYDNEY CENTRAL BUSINESS DISTRICT
India office market
Research & forecast report
Jun-12 Jun-13
REPO RATE 8.00% 7.25%
REVERSE REPO
RATE
7.00% 6.25%
CRR 4.75% 4.00%
INFLATION (WPI)1
7.58% 4.86%
PLR2
9.75% - 10.50% 9.70% - 10.25%
DEPOSIT RATE3
8.00% - 9.25% 7.50% - 9.00%
Exchange RATE
INR - USD 55.68 57.62
INR- Euro 70.04 76.87
Jun-12 Jun-13 YoY %
Change
Gold 30,097 27,827 -7.54%
SILVER 54,494 43,983 -19.28%
EQUITY (BSE
SENSEX) 16,950 19,326 14.02%
REALTY INDEX 1,623 1,603 -1.25%
Source: Colliers International India Research
ECONOMIC INDICATORS
INRCroreInPercentage
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
FDI in Real Estate
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
4.0%
6.0%
8.0%
10.0%
12.0%
Jan-Mar09
Apr-Jun09
Jul-Sep09
Oct-Dec09
Jan-Mar10
Apr-Jun10
Jul-Sep10
Oct-Dec10
Jan-Mar12
Jan-Mar13
Oct-Dec12
Jun-Sep12
Oct-Dec11
Jul-Sep11
Apr-Jun11
Jan-Mar11
Gross Domestic Product at Factor Cost
0.0%
2.0%
2Q 2013 | OFFICE
70
80
120
130
100
110
90
1-May-2013
10-Jun-2013
20-Jun-2013
21-may-2013
31-may-2013
11-may-2013
1-Apr-2013
11-Apr-2013
21-Apr-2013
30-Jun-2013
BSE Sensex & Realty Index
BSE Sensex Realty Index* Rebase to 100
USD Euro
Exchange Rates
65
70
55
60
50
75
80
1-Apr-13
11-Apr-13
21-Apr-13
11-may-13
21-may-13
31-may-13
1-May-13
10-Jun-13
20-Jun-13
30-Jun-13
Note : All values in the above tables are as on 15th of June 2012
and 2013
1
Wholesale Price Index
2
SBI Prime Lending Rate
3
SBI interest rate < INR 1 croreTerm Deposits for ≤1Year
Apr-Jun12

Note:All the rentals shown above are indicative Grade A rentals in INR per sq ft per month.
Colliers International | p. 3
INDIA | 2Q 2013 | OFFICE
Andheri East
23%
Thane / LBS
21%
Worli / Prabhadevi
1%
Goregoan / JVLR
4%
Powai
4%
Malad
6%
Navi Mumbai
3%
Lower Parel
21%
BKC
15%
Kalina
2%
AVAILABLE Supply in Prime Areas
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
CITY OFFICE BAROMETER
Micro Market Rental
Values
% Change
QoQ YoY
CBD 225 - 260 0% -3%
Andheri East 90 - 125 0% 0%
BKC 225 - 320 1% 1%
Lower Parel 140 - 180 0% -3%
Malad 80 - 90 0% 0%
Navi Mumbai 55 - 75 0% 0%
Powai 100 - 120 0% 0%
Worli/ Prabhdevi 175 - 225 0% 0%
Goregaon/ JVLR 80 - 110 0% 0%
Kalina 175 - 210 0% 0%
Thane / LBS 50 - 100 0% 0%
AndheriEast
BKC
LowerParel
Malad
NaviMumbai
Powai
Worli/
Prabhdevi
Goregaon/
JVLR
Kalina
Thane/LBS
CBD
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Grade a Capital Values
CapitalValues-INRPerSq.ft.
1Q2008
4Q2008
4Q2009
4Q2010
4Q2013F
4Q2014F
4Q2012
4Q2011
50 5,000
0 0
100 10,000
150 15,000
200 20,000
250 25,000
300 30,000
AVERAGE RENTAL AND CAPITAL VALUE TREND
RentalValues-INRPerSq.ft.PerMonth
Note:
Available Supply: Total Grade A office space being marketed for sale or lease in
surveyed quarter.
Grade A Rental/Capital Values: Indicative asking price for Grade A office space.
Prime Office Average RentalTrends: Average market rental values for Grade A
properties.
KEY UNDER CONSTRUCTION PROJECTS
BUILDING NAME Developer AREA (Sq. Ft.) LOCATION Expected Completion
Kohinoor Square Kohinoor Group 800,000 Dadar 2013
Rustomjee Central Park Rustomjee 216,000 Andheri 2013
Zillion Kanakia Spaces 525,000 Kurla 2014
KEY MARKET TRANSACTIONS
CLIENT Building Name AREA (Sq. Ft.) LOCATION TRANSCATION TYPE
Apple Inc FIFC 10,000 BKC Lease
Cognizant Mindspace SEZ 230,000 Navi Mumbai Lease
DKSH Sarla Software Park 9,000 Andheri Lease
Edward Life Sciences Techniplex 9,000 Goregaon Lease
HSBC Nesco 172,000 Goregaon Lease
Mitsui & Co Platina 12,000 BKC Lease
MumBAI
Forecast
MUMBAI
In 2Q 2013, more than 8.2 million sq ft•
of commercial Grade A office space was
available for lease.
The city witnessed a supply of approximately•
1 million sq ft of Grade A office space. The
projects contributing to this supply were
FIFC (The First International Financial
Centre) in BKC developed by Vornado Realty,
and Kalptaru Prime in Thane developed by
Kalpataru Group.
Projects launched during this quarter were•
Green Span by BK Birla Group at Lower
Parel, and Zillion by Kanakia Spaces at Kurla.
Both the projects together will have a gross
leasable area of more than 0.8 million sq ft
and are expected to be completed by 2014.
Demand for office space witnessed a drop•
this quarter due to a cautious approach
adopted by occupiers and a delay in expansion
plans. The city’s total absorption for 2Q 2013
was recorded at around 1.41 million sq ft this
quarter as compared to the last quarter figure
of 2.17 million sq ft.
Rental values for Grade A office space•
remained stable in all of the micro-markets,
except Bandra Kurla Complex (BKC), which
is emerging as the preferred office location
for corporate occupiers, and witnessed a
marginal increase in rental values.
COLLIERS VIEW :• Mumbai office market has
had fairly good absorption during the last two
quarters. Occupier demand is expected to
remain healthy in the coming quarters. With
limited premium commercial development
expected to be completed in 2013, the rent
for commercial office space is expected to
increase slightly however, rental values of
IT/ITeS office space will by and large remain
stable due to demand supply equilibrium.

p. 4 | Colliers International
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
Jasola
59%
Nehru Place
10%
Saket
29%
Connaught place
2%
Micro Market Rental
Values
% Change
QoQ YoY
Connaught Place 326 - 380 -1% 1%
Nehru Place 180 - 192 0% 2%
Saket 166 - 185 3% 17%
Jasola 112 - 130 0% 1%
Netaji Subhash 65 - 75 0% 1%
NehruPlace
ConnaughtPlace
Jasola
Saket
NetajiSubhash
0
10,000
20,000
30,000
40,000
50,000
60, 000
50
5,000
0 0
100
10,000
150
15,000
200
20,000
250
25,000
300
30,000
35,000
40,000
Forecast
Note:
surveyed quarter.
properties.
Caddie Commercial Tower Caddie Hotel 100,000 Aerocity 2013
DLF Towers DLF Ltd. 420,000 Okhla 2013
NBCC Plaza NBCC 350,000 Okhla 2014
Axis Group Statesman House 5,800 CP Lease
Kotak Bank Ambadeep 35,000 CP Lease
Max Bupa Mohan Cooperative 30,000 Mohan Cooperative Lease
Samsung Data Systems M6 Plaza 22,700 Jasola Lease
Vatika Business Centre Konnectus 18,000 CP Lease
delhi
1Q2008
4Q2008
4Q2009
4Q2010
4Q2013F
4Q2014F
4Q2012
4Q2011
DELHI
About 1.7 million sq ft of Grade A commercial•
office space was available for lease in 2Q
2013. Most of this supply was concentrated in
Connaught Place, Jasola and Saket.
In 2Q 2013, the completion of Worldmark Block•
1 by Bharti Group in Aero-City, an upcoming
commercial destination nearthe airport, added
0.3 million sq ft of Grade A commercial office
supply to the city’s total inventory.
No new commercial Grade A projects were•
launched in Delhi this quarter.
Sluggish occupier demand was observed in•
the city during the quarter. Only a few mid-
sized (15,000 to 30,000 sq ft) leases were
concluded in micro-markets like Connaught
Place, Mohan Cooperative and Vasant Kunj,
totalling around 0.15 million sq ft of absorption
in 2Q 2013.
The rental values for Grade A commercial•
offices remained stable in almost all micro-
markets, except Saket where rents rose by
3% QoQ.
Capital values remained stable in almost•
all micro-markets, except Connaught Place
where values moved up by 3% QoQ. The city
witnessed almost negligible activity in the
strata-title sales secondary market due to an
increase in the circle rate.
COLLIERS VIEW : Occupier demand is
expected to remain moderate in the coming
quarters. Limited supply of Grade A office
space will keep overall rental values at the
same levels except for the CBD where there
may be marginal pressure on account of
increased vacancy levels due to the recent
addition of new office space and firms
preferring to locate in Gurgaon or NOIDA.

MG Road
5%
Golf Course Road
3%
DLF Cyber City
4%
Institutional Sectors
(Sec44, 32, 18)
4%
Manesar
28%
National Highway 8
13%
Udyog Vihar &
Industrial Sectors
7%
Golf Course Road
Ext./Sohna Road
36%
InstitutionalSectors
(Sec44,32,18)
GolfCourseRoad
Ext./SohnaRoad
Manesar
GolfCourse
RoadExt./Sohna
Road(IT)
UdyogVihar&Indus-
trialSectors(IT)
NationalHighway8
(IT)
Manesar(IT)
NationalHighway8
MGRoad
GolfCourseRoad
0
5,000
10,000
15,000
20,000
25,000
20 2,000
0 0
40 4,000
60 6,000
80 8,000
100 10,000
120 12,000
Forecast
Note:
surveyed quarter.
properties.
Magnnum Tower Welldone 350,000 Secto 58 2016
One on One Vatika 1,200,000 32 Milestone NH8 2017
Spaze Spaze 435,600 Sector 114 2016
KEY MARKET TRANSACTION
Huawei Spaze I Tech Park 70,000 Sohna Road Lease
IBM Daksh ASF Insignia 40,700 Gwalpahari Lease
Manpower DLF Building No.10 11,000 DLF Cyber City Lease
Qualcomm Global Business Park 13,600 MG Road Lease
Reliance 4G RK Square 80,000 Cyber City Lease
Gurgaon
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
GURGAON
In 2Q 2013, more than 14.6 million sq ft•
of Grade A commercial office space was
available for lease. Most of this available stock
was concentrated in micro-markets like Golf
Course Road and its extension Road, Sohna
Road, Udyog Vihar and NH-8, up to Manesar.
This quarter, a number of projects / parts of•
the projects were launched including Spaze by
Spaze Group at Sector 114, Magnnum Tower
by Welldone Group at Sector 58 and One on
One by Vatika Ltd at 32 milestones NH8. All of
these projects are expected to be completed
by the end of 2015 and will add about 0.5
million sq ft of Grade A office space.
Several projects / parts of the projects were•
completed this quarter, contributing more
than 0.5 million sq ft of Grade A office space
to the city’s total inventory.
The total absorption recorded in 2Q 2013 was•
to the tune of 0.8 million sq ft. Absorption
was primarily driven by the IT/ITeS sector in
locations such as DLF Cyber City, Sohna Road
and MG Road.
Rental values remained stable this quarter•
in most of the markets except for marginal
appreciation in micro markets such as DLF
Cyber City and Manesar.
COLLIERS VIEW : The demand for office
space is expected to remain moderate in the
next quarter due to vigilant expansion plans
by the occupiers. With continuous addition
of new supply, vacancy levels are expected
to rise, thus putting pressure on the rental
values in mid-term.
1Q2008
4Q2008
4Q2010
4Q2010
4Q2013F
4Q2014F
4Q2012
4Q2011
Micro Market Rental
Values
% Change
QoQ YoY
MG Road 100 - 140 0% 0%
Golf Course Rd 80 - 115 0% -5%
Institutional Sect.
(18,32,44)
55 - 65 -2% -8%
Golf Course Rd
Ext./Sohna Rd
50 - 75 0% 0%
NH8 97 - 125 0% 0%
Manesar 38 - 42 0% 0%
DLF Cyber City 75 - 78 2% 18%
Udyog Vihar
& Industrial
Sectors
45 - 65 0% 5%

Commercial Sectors (Sec
18) (Grade B)
0.5%
Industrial Sectors
(Sec. 1-9, 57-60, 63-65)
(Grade B)
9.6%
Commercial Sectors
(Sec 18) (Grade B)
0.2%
Institutional Sectors
(Sec.16A, 62, 125-142
90.5%
Micro Market Rental
Values
% Change
QoQ YoY
Institutional
Sectors (Non IT)
61 - 72 0% -6%
Institutional
Sectors (IT)
44 - 50 -2% -8%
Comercial
Sectors
96 - 103 2% 2%
Industrial
Sector
23 - 32 0% -2%
Institutional
Sectors(NonIT)
Institutional
Sectors(IT)
Industrial
Sectors
Commercial
Sectors
0
3,000
6,000
9,000
12,000
15,000
Grade A Capital Values
10
2,000
0 0
20
4,000
6,000
40
30
8,000
50
10,00080
70
60
Forecast
Amigo Cyber Park Amigo 250,000 NOIDA Expressway 2013
Oxygen SEZ Tower F 3C Group 250,000 NOIDA Expressway 2013
Centrade Business Park Karasa Group 600,000 NOIDA Expressway 2017
Get It GYS Heights 17,000 Sector 125 Lease
Haldiram C 31 50,000 Sector 62 Lease
GE Inox Tower NA Sector 16A Lease
Samsung Engineering Individual Building 500,000 Sector 126 Lease
Note:
surveyed quarter.
properties.
noida
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
1Q2009
4Q2009
4Q2010
4Q2013F
4Q2014F
4Q2012
4Q2011
nOIDA
During 2Q 2013, about 9.4 million sq ft of Grade•
A and Grade B office space was available for
lease. More than 90% of this supply was IT/
ITeS office space located primarily in Sectors
16A, 62 and Sectors 125 to 143 along the
NOIDA Expressway.
New projects / parts of the projects launched•
during the surveyed quarter include Sunshine
Business Park by Sunshine Group at Sector
94, and Centrade Business Park by Karasa
Group at Sector 140. Both of the projects will
add approximately 1 million sq ft by the end
of 2017.
About 1 million sq ft of Grade A commercial•
office space was added to the city’s total
inventory. Projects / part of the projects
contributing to this new supply include
Infospace (Block 2) by Unitech Ltd at Sector
62, and an individual structure on Plot No. 1A
by Corcoustie Management at Sector 16A.
Occupier demand remained weak and•
approximately 0.6 million sq ft of office space
was absorbed in this quarter.
In 2Q 2013, rents increased by 2% QoQ in the•
commercial sectors due to lower vacancy in
Grade A stock. The institutional and industrial
sectors witnessed a marginal decline in IT
rentals due to abundant supply and less
demand.
COLLIERS VIEW : NOIDA will continue
to attract the corporate occupier looking
for consolidation measures and low cost
alternatives. Rental values for commercial
office space will remain stable due to limited
supply availability in near term however;
rentals for IT/ITeS will continue to witness
downward pressures across micro markets in
NOIDA due to high level of vacancies.

PROJECT NAME Developer AREA (Sq. Ft.) LOCATION Expected Completion
Chennai One (BPO Park) Phase 2 ETL 1,100,000 OMR 2013
Ramanujan IT City Little Wood Tower Block D Tata Realty & Infrastructure 1,340,000 Taramani 2013
SP InfoCity Shapoorji Pallonji Group 1,200,000 OMR 2013
CHENNAI
More than 13.5 million sq ft of grade A•
commercial office space was available for
lease during 2Q 2013. The majority of this
supply was concentrated along the OMR IT
Corridor.
No new major supply was added and no new•
projects were launched during the surveyed
quarter.
Absorption remained in-line with the previous•
quarter. A number of mid-sized transactions
(10,000 to 45,000 sq ft) were recorded
during the quarter. The micro-markets which
remained most active in terms of commercial
leasing were OMR, RK Salai and Dr MGR
Road. The total absorption recorded till 2Q
2013 was to the tune of 1.53 million sq ft.
During the surveyed quarter, major occupiers•
were looking for relocations rather than
expansion. Major occupiers like IBM Daksh,
AT&T and Bosch etc. have relocated to
smaller spaces.
In 2Q 2013, rental values and capital values•
for Grade A commercial office space remained
stable, except Ambattur where capital values
decline by 6% QoQ. This is due to restraint in
demand due to supply / demand equilibrium.
Going ahead, rental and capital values both
are expected to remain stable due to large
anticipated supply in the pipe line.
COLLIERS VIEW : Overall absorption dipped
in Chennai this quarter. Amid cautious market
sentiments and more prime office supply
in the pipeline, the average rental values
remained stable across all micro-markets this
quarter. Looking ahead, the rents are expected
to remain stable due to the large supply in the
pipeline and cautious economic sentiments.
for such locations.
Micro Market Rental
Values
% Change
QoQ YoY
CBD 65 - 85 0% 0%
Guindy (SBD) 50 - 60 0% 4%
Ambattur 25 - 30 0% 0%
OMR (IT
Corridor)
25 - 40 0% 0%
GST road 35 - 40 0% 0%
Guindy(SBD)
Ambattur
OMR(IT
Corridor)
CBD
0
2,000
4,000
6,000
8,000
10,000
0
1Q2008
4Q2008
4Q2010
4Q2011
4Q2012
4Q2013
4Q2009
4Q2013F
10
0
20
2,000
1,000
4,000
3,000
30
6,000
5,000
40
50
8,000
7,000
60
Ajuba AKDR 34,000 OMR Lease
Daksh IBM Prince Infocity 34,000 OMR Lease
Duetsche Bank Sunnyside 10,000 CBD Lease
Ford RMZ Millenia I 44,000 Dr MGR Road Lease
MLS Business Centre Acropolis 30,000 RK Salai Lease
Siemens SP Infocity 44,000 OMR Lease
Note:
surveyed quarter.
properties.
chennai
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
Forecast
Guindy (SBD)
7%
CBD
14%
Vadapalani
0%
GST Rd
3%
Velachery
1%
OMR (IT Corridor)
50%
Ambattur
24%

BENGALURU (BANGALORE)
More than 11 million sq ft of Grade A office•
space was available for lease in Bangalore
this quarter.
Anumberofprojects/partoftheprojectswere•
completed during this quarter. All of these
projects together contributed approximately
0.6 million sq ft of Grade A commercial office
space to the city’s total inventory.
Approximately 2.5 million sq ft of Grade A•
office space was absorbed during 2Q 2013
out of which 0.5 million sq ft was Built to Suit
(BTS). Most of this demand was generated by
small and mid-size enterprises for expansion.
Outer Ring Road and Whitefield continued to
remain a preferred destination for corporate
occupiers.
Amid consistent absorption, rental values•
appreciated marginally in the range of 3 - 8%
QoQ in micro-markets such as EPIP Zone,
Whitefield, Bannerghatta Road and Outer Ring
Road.
The central government has approved•
a proposal for setting up an Information
Technology Investment Region (ITIR) on
around 10,500 acres of land near The
International Airport in North Bangalore with
an estimated investment of INR 1.06 lakh
crore.
COLLIERS VIEW : Occupier demand in the
comingquarterisexpectedtoremainmoderate
as not many large space RFPs are floating in
the market. Most of the occupiers are adopting
a cost conscious approach and concentrating
on utilising existing space in efficient ways.
We anticipate stable rental values in most
of the micro-markets as developers refrain
additional speculative supply to the market.
Hosur Road
5%
CBD
7%
Bannerghatta Road
2%
Electronic City
13%
EPIP Zone/ Whitefield
46%
Outer Ring Road
27%
Micro Market Rental
Values
% Change
QoQ YoY
CBD 80 - 100 0% 0%
Hosur Rd. 20 - 40 0% 0%
EPIP Zone/
Whitefield
24 - 33 5% 4%
Electronic City 23 - 32 -7% 0%
Bannerghatta Rd. 50 - 60 8% 4%
Outer Ring Rd. 50 - 60 3% 1%
HosurRoad
EPIPZone/
Whitefield
Electronic
City
Bannerghatta
Road
OuterRing
Road
CBD
0
5,000
10,000
15,000
20,000
10
2,000
0 0
20
4,000
6,000
30
40
8,000
50
60 10,000
Forecast
Divyasree Tech Park C2 Divyasree Developers 650,000 Whitefield 2013
RMZ ECO WORLD 8A&8B - SEZ RMZ Corp 1,200,000 Outer Ring road 2013
Pritech Park STPI Block Primal Projects 220,000 Outer Ring road 2013
Akamai Salarpuria Softzone 70,000 Outer Ring Road Lease
Amazon Brigade WTC 256,000 Malleshwaram Lease
Analog Devices RMZ Infinity 54,000 Old Madras Road Lease
BMC Software Prestige Tech Park 80,000 Outer Ring Road Lease
Honeywell RMZ Ecoworld 500,000 Outer Ring Road Lease
HP Kalyani Platina 180,000 Whitefield Lease
Note:
surveyed quarter.
properties.
bengaluru
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
1Q2008
4Q2008
4Q2009
4Q2010
4Q2013F
4Q2014F
4Q2012
4Q2011

KOLKATA
In 2Q 2013, more than 0.2 million sq ft of•
Grade A commercial office space was added
to the city’s total inventory. Most of this supply
was located in East Kolkata.
The market did not witness any new project•
completions. The total absorption recorded
in 2Q 2013 was to the tune of 0.21 million
sq ft. Most of this demand was generated by
domestic corporations looking for expansion
in locations such as Sector 5-Salt Lake and
Rajarhat.
During the reviewed period, average rents•
for Grade A office space remained stable in
almost all micro-markets. High vacancy levels
and slow uptake of office space kept the rental
values in check.
Investors took a cautious approach resulting•
in fewer transaction activities in the sales
market. Capital values remained stable except
for the CBD and Ballygunge Circular Road
where a marginal appreciation in the range of
2 - 3% QoQ in capital values was recorded.
COLLIERS VIEW : Overall occupier demand is
expected to remain restrained in the coming
two quarters. We anticipate downward
pressure on rents in PBD areas, in view of
the current vacancy levels and expected new
supply pipeline by the end of 2013. However,
rents in the CBD are likely to remain stable
due to limited additional supply.
East Kolkata
74%
CBD (Park St,Camac
St,AJC Bose Road)
26%
Micro Market Rental
Values
% Change
QoQ YoY
CBD (Park
St,Camac
St,AJC Bose
Road)
110 - 130 0% 0%
Ballygunge
Circular Rd.
100 - 110 0% -5%
East Kolkata 75 - 85 0% 0%
Sector-5 48 - 50 0% -7%
PBD (New Town,
Rajarhat)
34 - 39 0% 0%
CBD(Park
St,CamacSt,AJC
BoseRoad)
Ballygunge
Circular
Road
EastKolkata
Sector-5
PBD(New
Town,
Rajarhat)
0
5,000
10,000
15,000
20,000
20 2,000
0 0
40 4,000
60 6,000
80 8,000
100 10,000
120 12,000
Forecast
Acropolis Merlin Group 500,000 EM Bypass 2013
IT Godrej Simocco Phase 2 Godrej Genesis 1,000,000 Salt Lake Sector V 2013
Unitech Infospace, Kolkata Phase 3 B Unitech Ltd. 1,306,800 Rajarhat 2013
Asian Paints Srijan Techpark 6,500 Sector 5, Saltlake Lease
Doller Om Tower 10,000 Park Street Lease
Global ID Asstyst Park 15,000 Sector 5, Saltlake Lease
Reliance Netgeo Crystal Globsyn 60,000 Sector 5, Saltlake Lease
Star TV Rene Building 15,000 RB Connector Lease
Surokhha Diagonistic Centre Infinity Benchmark 10,000 Sector 5, Saltlake Lease
Note:
surveyed quarter.
properties.
Kolkata
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
1Q2008
4Q2008
4Q2009
4Q2010
4Q2013F
4Q2014F
4Q2012
4Q2011

PUNE
In 2Q 2013, approximately 6.1 million sq ft•
of Grade A commercial office space was
available for fit-out in Pune. The majority of
this supply was concentrated in the Airport
Road, Hinjewadi, Kharadi, Nagar Road and
Kalyani Nagar micro-markets.
During the surveyed quarter, more than 0.23•
million sq ft of Grade A commercial office
space was added to the city’s total inventory.
Developers refrained from adding new supply•
to the market and only one new project,
Nyati Corporate, by Nyati Group at Yerwada,
measuring 0.35 million sq ft, was launched
during the quarter. The project is expected to
be completed by 2Q 2014.
Pune recorded limited number of transactions.•
However, a few large floor plate deals
were signed, resulting in total absorption of
approximately 1 million sq ft of Grade A office
space. Micro-markets such as Hadapsar,
Balewadi, Kharadi and Hinjewadi remained the
preferred destination for IT/ITeS occupiers.
Restricted supply in both IT parts of and SEZ•
and a broadening of the range in rents
has resulted in marginal upward correction
in the rental values for Grade A commercial
buildings in select micro-markets, resulting
in an overall average increase of around 5 %
QoQ.
COLLIERS VIEW : Absorption levels are likely
to improve as a number of transactions, which
are in negotiation, are expected to close in
coming quarters. We anticipate a stable rent
scenario with upward bias in select premium
projects in the CBD and SBD micro-markets.
Bavdhan
3%
Kalyani Nagar
9%
Senapati Bapat Road
3%
Aundh
2%
Baner
9%
Bund Garden
4%
Airport road/
pune station
20%
Hinjewadi
20%
Nagar Road
10%
Kharadi
16%
Hadapsar/Fursungi
4%
Micro Market Rental
Values
% Change
QoQ YoY
Baner 45 - 55 0% 11%
Bund Garden 60 - 70 0% 8%
Airport Rd. /
Pune station
47 - 60 9% 11%
Aundh 45 - 51 9% 24%
Senapati Bapat 65 - 90 0% 3%
Bavdhan 38 - 44 -2% 7%
Kalyani Nagar 45 - 60 0% 0%
Nagar Rd. 40 - 50 6% 12%
Hinjewadi 32 - 40 7% 40%
Hadapsar/
Fursungi
32 - 45 6% 17%
Kharadi 32 - 50 6% 16%
BundGarden
Airportroad/
punestation
Aundh
Senapati
BapatRoad
Bavdhan
KalyaniNagar
NagarRoad
Hinjewadi
Hadapsar/
Fursungi
Kharadi
Baner
0
2,000
4,000
6,000
8,000
10,000
12,000
20
10 1,000
0 0
30 3,000
2,000
40
5,000
4,000
70
60
50
6,000
80 8,000
7,000
Forecast
Business Bay Tower D Panchshil 800,000 Yerwada 2013
Marvel Edge Marvel Realtor 1,000,000 Viman Nagar 2013
Nyati Corporate Nyati Group 350,000 Yerwada 2014
KEY MARKET TRANSAcTIONS
Amdocs Magarpatta 44,000 Hadapsar Lease
Barclays EON 40,000 Kharadi Lease
CDAC Western 78,000 Aundh Lease
Cummins Panchshil 345,000 Balewadi Lease
Kohler Magarpatta 30,000 Hadapsar Lease
Posco WTC 30,000 Kharadi Sale
Note:
surveyed quarter.
properties.
pune
1Q 2013 2Q 2013
Vacancy
Absorption
Construction
Rental Value
Capital Value
1Q2008
4Q2008
4Q2009
4Q2010
4Q2013F
4Q2014F
4Q2012
4Q2011

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, Bund Garden Road, Senapati Bapat Road & Camp (CBD), while the Off CBD includes
Aundh, Airport Road and Kalyani Nagar, among other locations. The eastern corridor, along with Nagar Road and Kharadi, have emerged as a preferred
location for financial and IT/ITES companies.
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.
OFFICE SUBMARKETS
City Barometer
Increasing as compared to previous quarter
Decreasing as compared to previous quarter
Remained stable from previous quarter

Colliers International (India) provides property services to property Investors and Occupiers. We
deliver customised service solutions utilising local and global knowledge in partnership with our
clients via our property Investment and Occupier service lines. These service lines include - Office
Services, Facility Management, Project Management, Residential Services, Investment Services
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www.colliers.com/india
For national offices services related queries please contact:
George Mckay, South Asia Director Vikas Kalia, National Director
Office & Integrated Services Office Services
George.mckay@colliers.com Vikas.kalia@colliers.com
Tel: +91 22 4050 4553 Tel: +91 124 456 7531
India office India reSIDENTIAL apac office GLOBAL OFFICE GLOBAL INDUSTRIAL iNDIA bUDGET INDIAN REAL ESTATE
UNPLUGGED
Mumbai : Vaibhav Kumar, Office Director
Vaibhav.kumar@colliers.com
IndiaBulls Finance Centre, 1701-A, 17th Floor, Tower 3, Elphinstone Mills,
Senapati Bapat Marg, Mumbai- 400 013.
Tel : +91 22 4050 4527, fax : +91 22 2351 4272
Delhi NCR : Ajay Rakheja, Office Director
Ajay.rakheja@colliers.com
New Delhi : Statesman House, 4th Floor, Barakhamba Road, Connaught Place,
New Delhi, India - 110001
Tel : +91 11 3044 6423, fax : +91 11 3044 6500
Gurgaon : Technopolis Building, 1st floor, DLF Golf Course Main Road, Sector 54, Gurgaon,
India - 122002
Tel : +91 124 456 7500, fax : +91 124 456 7502
Bengaluru : Goutam Chakraborthy, Office Director
Goutam.chakraborthy@colliers.com
Prestige Garnet, Level 2, Unit No.201/202, 36 Ulsoor Road, Bengaluru,
India - 560 042
Tel : +91 80 4079 5500, fax : +91 80 4112 3131
Pune : Suresh Castellino, Office Director
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
Chennai : Kaushik Reddy, Office Director
Kaushik.reddy@colliers.com
Heavitree Complex, Unit 1C, 1st floor, 23, Spurtank Road, Chetpet, Chennai,
India - 600 031
Tel : +91 44 2836 1064, fax : +91 44 2836 1377
Kolkata : Soumya Mukherjee , Office Director
Soumya.mukherjee@colliers.com
Infinity Business Centre, Infinity Benchmark, Room No 13, Level 18, Plot G - 1,
Block EP & GP, Salt Lake Sector V, Kolkata - 700 091 West Bengal, India
Tel : +91 33 2357 6501, fax : +91 33 2357 6502
Recent Reports :
This book is printed on 100% Recyclable paper
AUTHORS
Amit Oberoi MRICS
National Director, Valuation & Advisory; Research
Email: Amit.oberoi@colliers.com
Surabhi Arora MRICS
Associate Director, Research
Email: Surabhi.arora@colliers.com
Sachin Sharma
Assistant Manager, Research
Email: Sachin.sharma@colliers.com
Heliana Mano
Assistant Manager,Valuation & Advisory
Email: Heliana.mano@colliers.com
For general queries and feedback :
India.Research@colliers.com
Tel: +91 124 456 7580
This report and other research materials may be found on
our website at www.colliers.com/India. Questions related
to information herein should be directed to the Research
Department at the number indicated above. This document
has been prepared by Colliers International for advertising
and general information only. Colliers International makes
no guarantees, representations or warranties of any kind,
expressed or implied, regarding the information including,
but not limited to, warranties of content, accuracy and
reliability. Any interested party should undertake their
own inquiries as to the accuracy of the information.
Colliers International excludes unequivocally all inferred
or implied terms, conditions and warranties arising out
of this document and excludes all liability for loss and
damages arising there from.
© Copyright 2012 - 2013 All Rights Reserved.
482 offices in 62 countries on 6 continents
United States: 140
Canada: 42
Latin America: 20
Asia Pacific: 195
EMEA: 85
$2.0 billion in annual revenue
1.1 billion square feet under management
Over 13,500 + professionals
INDIA
QUARTERLY UPDATE | MAY | 2013
Residential Property
Market Overview ASIA PACIFIC
OFFICE MARKET OVERVIEW
1Q 2013
2013 OUTLOOK
GLOBAL OFFICE
WWW.COLLIERS.COM
2012 | OFFICE
The global economy has seen recent headwinds from the smoldering eurozone debt crisis, slowing growth in
China’s economy and the forecasted American fiscal cliff. Yet our overall global view of office real estate is
moderately positive. While many large occupiers have taken a wait-and-see attitude toward the global economy,
others are leasing up much-needed space to accommodate expanding operations. Quality office buildings in
major global cities are seeing consistent demand from both occupiers and investors.
U.S. is showing gradually lowering vacancy rates. Canada’s office market continues to perform well
and is seeing notable development activity in major markets. Office absorption has been largely driven
by Intellectual Capital, Energy and Education (ICEE) sectors.
Mexico and Brazil report slightly higher vacancies, due to a combination of speculative construction and
slackening economic growth. Yet São Paulo still boasts the ultra-low vacancy rate of 3.3%.
Average Central Business District (CBD) office rents remained broadly unchanged across key EMEA
markets, but this has been a result of limited supply more than increased demand. Business confidence
across Europe is firmly negative, which does not bode well for the next year of activity.
China’s slowing growth has dampened office demand in some Asian markets. Beijing’s office market
remains healthy, but appeared lackluster when compared to an extremely active 2011.
GLOBAL OFFICE MARKETS SHOW
STABILITY IN THE FACE OF HEADWINDS
GLOBAL CAPITALIZATION RATES /
PRIME YIELDS: 10 LOWEST CITIES
MARKET
(Ranked by
June 2012)
JUNE
2012
DEC
2011
JUNE
2011
Taipei �.�� .�� .��
Hong Kong �.�� .�� .��
Vienna �.�� .�� .��
Singapore �.�� .�� .��
London - West End �.�� .�� .��
Zurich �.�� .�� .��
Geneva �.�� .�� .��
Beijing �.�� .�� .��
Paris �.�� .�� .��
Munich �.�� .�� .��
Tokyo �.�� .�� .��
GLOBAL OFFICE OCCUPANCY COSTS:
TOP 10 CITIES
MARKET
(Ranked by
June 2012)
JUNE
2012
DEC
2011
JUNE
2011
Hong Kong ��.�� .�� .��
London – West End ��.�� .�� .��
Tokyo* ��.�� .�� .��
Rio de Janeiro ��.�� .�� .��
Paris ��.�� .�� .��
Moscow ��.�� .�� .��
London – City ��.�� .�� .��
Perth ��.�� .�� .��
Geneva ��.�� .�� .��
São Paulo ��.�� .�� .��
CBD CAP RATE (%)
CLASS A / NET RENT (USD/SF/YR)
10.25
9.00
9.00
4.90
4.75
4.70
4.00
4.00
3.90
3.50
2.67
2.50
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0
Rio de Janeiro
Mexico City
Buenos Aires
New York, NY - Midtown South Manhattan
Vancouver, BC
New York, NY - Midtown Manhattan
London - West End
Zurich
Singapore
Vienna
Hong Kong
Taipei
Asia Pacific
EMEA
North America
Latin America
TOP THREE MARKETS BY REGION: JUNE 2012 CAP RATE (%)
*Tokyo rents listed are gross rents.
Trade Flows
Bolster Industrial
Demand in Asia
and the Americas
> Despite anemic U.S. job growth, demand for North American industrial
warehouse space and modern distribution centers remains strong.
In Q1 2013, the North American vacancy rate declined for the eighth
straight quarter, down 20 basis points to 8.20%. Canada’s vacancy rate
stands at 4.13%.
> Thanks in part to a recent drop in exports to the United States, Mexico
has seen slowing economic growth. In Q1 2013, several Mexico City
industrial warehouses were vacated, slightly increasing the vacancy
rate to 3.49%.
> While occupier demand for industrial property in Brazil remains strong,
the market now appears to have stabilized into a more rational mode of
sustained growth. São Paulo has seen positive net absorption, in spite
of the final tally in 2012 showing a 23% decrease over the previous year.
> Demand for Beijing’s logistics properties remained as strong as it has
been since 2011. Rents grew by 11.41% year-over-year as of the end of
Q1 2013. Shanghai’s industrial sector remained stable, with average
asking rents for ground floor premises of high quality facilities in both
the logistics and workshop sectors unchanged.
> In Hong Kong, high quality warehouse buildings are nearly fully
occupied. Those users seeking to expand or rationalize their real estate
costs have had to consider the option of split operations in lower
quality buildings.
> Indian economic growth remained sluggish through the end of 2012,
however we expect industrial activity to improve, thanks to recent
government actions. These include the government-proposed National
Investment and Manufacturing Zones and the newly approved 51%
foreign direct investment in multi-brand retail trading.
Global | Industrial | Midyear 2013
HIGHLIGHTS
* December 2013 Rent (USD/PSF/YR)
** Local currency
Global Top 10 Industrial Warehouse Rents*
6-Month Change in Rent**
LONDON (HEATHROW)
HONG KONG
SINGAPORE
TOKYO
OSLO
GENEVA
PARIS
HELSINKI
MINSK
SYDNEY
21.95
21.83
21.02
20.61
20.04
16.20
14.70
14.70
13.23
13.23
MIN
SK
OSL
O
SIN
GAP
ORE
SYD
NEY
11.1%
3.9%
2.2%
12.5%
PARIS
HELSINKI
GENEVA
TOKYO
HONG KONG
LONDON
- (HEATHROW)
LEGEND
EMEA
APAC
THE INTERNATIONAL INDIAN May - June 201344
CONTENTS
45 Indian Real
Estate Unplugged
46 Gurgaon
48 NOIDA
52 Mumbai
53 Pune
54 Bengaluru
55 Chennai
56 Hyderabad
56 Kochi
57 Maisuru
57 Thiruvananthapuram
58 Current Market Prices
61 Do’s and Don’ts of Real
Estate Investments
62 Dubai Residential Market Hots up
TheSpring-Summer
REALESTATEFOCUS
OFFICE
PROPERTY MARKET OVERVIEW
INDIA
QUARTERLY UPDATE | APRIL | 2013

India Office Property Market Overview July 2013

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