India Office Property Market Overview 2Q 2012

7/31/2019 India Office Property Market Overview 2Q 2012

1/12

OfficePrOPerty Market OverviewiNDia

QUarterLy UPDate | JULy | 2012

Aelerating suess.


2/12www.coier.com

MACRO ECONOMIC OVERVIEW

GDP growth rate saw a sharp redution to

5.3% during 1Q 2012. The most impated

setor inluded agriulture, mining &

quarrying, manuaturing and onstrution.

Prime reasons attributed to this were

unertainties in domesti poliy, umulative

impat o monetary tightening and slaening

o eternal demand.

Ination as measured by the wholesale prie

inde (WPI), was 7.55%, 7.23% & 7.69% in

May, April & Marh 2012, respetively. There

was upward pressure on the WPI, due to

steep prie inrease o vegetable, mil, pulses

& protein based items. While ination remain

a onern, the WPI stands 200 basis lower in

2Q 2012 as ompared to the same period last

year.

Early in this quarter, RBI ut the repo and

reverse repo rates by 50 basis points eah to

boost the eonomy. However, the inreased

ination rate has let a limited sope or

urther redution in repo rates.

The rupee remained under pressure and

depreiated urther against both the EURO

and the US Dollar as oreign investors were

worried about persisting ination, and the

high sal and urrent aount deit. TheRupee losed at INR 55.68 to 1 USD and INR

70.04 to 1 Euro as on 15th June 2012.

The Department o Industrial Poliy and

Promotion (DIPP) reorded a total FDI inow

or April 2012 in at $ 1.85 billion whih is 41%

lower as ompared to $ 3.12 billion in April

2011. The housing and onstrution setors

ontributed only 2.96% to the total FDI

reeived.

ECONOMIC BAROMETER

RETuRN ON AlTERNATIVE INVEsTMENTs

RESEARcH & FOREcAST REPORTsYDNEY CENTRAl BusINEss DIsTRICT

INDIA OFFIcE MARkETREsEARCh & fORECAsT REpORT

Jn-11 Jn-12

REPO RATE 7.50% 8.00%

REVERSE REPO

RATE 6.50% 7.00%

cRR 6.00% 4.75%

INFLATION 9.51% 7.55%

PRIME

LENDING RATE9.25% - 10.00% 10.00% - 10.50%

DEPOSIT RATE

(


3/12

2Q 2012 GRADE A AND GRADE BRENTAl VAluEs

pRIME OffICE spACE RENTAl TREND

cBD

AndheriEast

Bkc

LowerParel

Malad

NaviMumbai

Powai

Worli/Prabhdevi

Goregaon/JVLR

kalina

Thane/LBS

AndheriEast(IT)

LowerParel(IT)

Malad(IT)

NaviMumbai(IT)

Powai(IT)

Goregaon/JVLR(IT)

Thane/LBS(IT)I

NRPerSqtPerMonth

0

50

100

150

200

250

300

2Q2008

1Q2008

INRperSqtperMonth

INRperSqtperMonth

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

4Q2010

2Q2012

1Q2012

4Q2011

3Q2011

2Q2011

1Q2011

3Q2010

70

20

120

170

220

270

320

370

420

cBD

Lower Parel Navi Mumbai

kalinaGoregaon

/ JVLR

Andheri East Malad

Powai

Bkc

Worli /

Prabhadevi

Thane / LBS2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

2Q2012

4Q2012F

2Q2013F

1Q2013F

3Q2012F

1Q2012

4Q2009

1Q2008

1Q2010

2Q2010

3Q2010

Grade A Grade B

COllIERs INTERNATIONAl | p. 3

MARKET TRANsACTIONs

cLIENT BUILDING NAME AREA(SQ. FT.)

LOcATION TRANSAcTIONTYPE

Devon Supreme Business Par 56,000 Powai Lease

Famy care Peninsula corporate Par 15,000 Lower Parel Lease

Lodha I Thin 40,000 Thane Lease

Reliane Digital Times Square 26,000 Andheri Lease

Tata Teso kohinoor Business Par 50,000 Vidyavihar Lease

Vships Lotus Midtown 27,000 kalina Lease

MuMBAI

During 2Q 2012, approimately 9.4 million

sq.t. o grade A oe spae was available

or lease and sale, primarily onentrated in

Andheri East, Lower Parel and Thane/ LBS

Marg.

The itys grade A inventory was added by

0.2 million sq.t. o new supply in SBD this

quarter by Star Hub projet o Star

Developers at Andheri East.

During the surveyed quarter, onstrution

ativities remained moderate. Due to a

slowdown in the eonomy, developers

remained autious and hesitant in undertaing

urther onstrution ativities, thus, no new

projets were launhed in the maret.

Rental levels o grade A oe spae remained

stable aross all the miro marets eept

Bkc (Bandra-kurla-comple) where rents

inreased by 3% q-o-q due to limited supply

and demand rom orporates.

Going orward, the rental values or grade A

oe spae are epeted to remain stable in

almost all miro marets.

In this quarter, the state revenue department

revised the Land Lease Poliy and imposed a

7.5% premium on the maret value o the

land/plots leased or redevelopment o

residential, eduational and religious ativities,

whereas 10% or other ativities.

During the same period, Peninsula Land sold

of its oe building loated at Lower Parel to

various nanial servies rms namely Tata

capital, National Realty, India Nivesh Insurane

Broers and Tata AIG Lie Insurane.

AVAIlABlE supplY IN pRIME AREAs

Andheri East 24%

cBD 1%

Thane / LBS 22%

Worli / Prabhadevi 1%

Goregoan / JVLR 8%

Powai 4%

Malad 5%

Navi Mumbai 6%

Lower Parel 19%

Bkc 9%

CITY OffICE BAROMETER

1Q 2012 2Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

iNDia | 2Q 2012 | OFFICE

GRADE A AVERAGE RENTAl VAluE

MUMBAI

0

35

70

140

105

210

245

175

Source: Colliers International India Research

kalina 1%

Foreast


4/12

Grade A Grade B

Nehru Plae Saet

Netaji Subhash

Jasola cannaught

plae

p. 4 | COllIERs INTERNATIONAl




DElhI

Approimately 1.0 million sq.t. o grade A

oe spae was ready or lease / sale in

2Q 2012 loated mainly in Saet and Jasola

neighborhoods o Delhi.

Fast paed onstrution ativities were

observed in a newly developed area near Delhi

Airport namely Aeroity. Two projets loated

at Aeroity suh as Aria Signature Oe

and IBIS commerial Tower developed by

JW Marriot and IBIS Hotel respetively, added

approimately 0.2 million sq.t. o ommerial

grade A oe during this quarter.

A new ommerial projet caddie commerial

Tower, was launhed by caddle Hotel with

an area o 0.1 million sq.t. in Aeroity. The

projet is epeted to be omplete by end o2013.

Overall absorption was restrained in 2Q

2012 in omparisons to last quarter as both

investors and end-users were ollowing wait

and wath poliy due to prevailing eonomi

unertainties.

In 2Q 2012, rental values or grade A

properties inreased in the range o 2 to 7%

on q-o-q in loations suh as connaught

Plae and Nehru Plae, however negative

orretions in the range o 4 to 10% wereregistered in Jasola and Saet.

Oe rent prognosis reveal urther stability

or grade A oe spae in the maret on

aount o eonomy slowdown and limited

supply.


connaught Plae 2%

Nehru Plae 10%

Saet 29%

Jasola 59%


1Q 2012 2Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE



2Q2008

3Q2008

0

50

100

150

200

250

300

350

400

connaught

Plae

NehruPlae

Jasola

INRperSqFtperMonth

Saet

NetajiSubhash

0

50

100

150

200

250

300

350

400

450

1Q2010

INRperSqtperMonth

0

35

70

105

140

175

210

245

280

INRperSqtperMonth

DELHI

2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

3Q2012F

4Q2012F

2Q2013F

1Q2013F

2Q2012

1Q2012

4Q2009

1Q2010

2Q2010

3Q2010 1Q

2008

4Q2008

2Q2009

3Q2009

2Q2010

1Q2009

4Q2009

3Q2010

4Q2011

1Q2012

2Q2012

3Q2011

2Q2011

4Q2010

Foreast

MARKET TRANsACTIONs



Barista Independent Building 10,000 Ohla Phase I Lease

cPM c-126 12,000 Ohla Phase I Lease

Hitahi konnetus 25,000 Minto Road, c.P Lease

Mario DLF Towers 4,300 Jasola Lease


5/12


MGRoad

GolcourseRoad

/Ext/SohnaRoad

NH8/UdyogVihar

Manesar

InstitutionalSetors/

SushantLo

Golcourse

Road/Ext/Sohna

Road

DLFcybercity(IT)

NH8/UdyogVihar(IT)

Manesar(IT)

0

20

40

60

80

100

120

140

Grade A Grade B

MG Road

Gol course Road/Et /Sohna Road

NH8/Udyog Vihar (IT)

Institutional Setors /Sushant Lo

NH8/Udyog Vihar

DLF cyber city (IT)

Gol course Road/Et /Sohna Road (IT)

Manesar

Manesar (IT)

4Q2011

1Q2012



GuRGAON

Nearly 13.8 million sq.t. o grade A oe

spae was available or t-out in 2Q 2012.

Most o this available supply was onentrated

in Gol course Road and its etension, Udyog

Vihar and NH8 up to Manesar.

Projets/parts o the projets ompleted

this quarter inludes: Asendas Onehub

developed by Asendas; JMD Megapolis by

JMD Group and Par View Business Par by

Besteh Group, loated on Sohna Road; and

Universal Business Par by Universal Group

on Gol course Road Etension. All o these

projets together ontributed approimately

2.8 million sq.t. o grade A oe spae to

the itys total oe inventory.

During this quarter no new grade A

ommerial projet was launhed in

Gurgaon.

Demand or grade A oe spae remained

stable and only ew large oor plate leases

were signed during the quarter.

On the rental side, grade A oe spae

values observed a negative orretion in the

range o 2 to 4% on quarter on quarter aross

all miro-marets, eept or Manesar where

rentals remained stable.

Looing orward, Demand or oe spae in

Gurgaon is liely to witness moderate growth

and rents are epeted to remain stable in the

near uture.


Institutional Setors /Sushant Lo

8%

DLF cyber city 4%

MG Road 2%

Manesar 18%

Gol course Road/Et /Sohna Road 47%

NH8/ UdyogVihar 21%


1Q 2012 2Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE


GRADE A AVERAGE RENTAl VAluE pRIME OffICE spACE RENTAl TREND

INRpersqtpermonth

INRpersqtpermonth

180

20

40

60

80

100

120

140

160

2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

2Q2012

3Q2012F

4Q2012F

2Q2013F

1Q2013F

0

15

30

45

90

105

60

75

120

GURGAON

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

4Q2010

1Q2011

2Q2011

3Q2011

2Q2012

3Q2010

2Q2008

3Q2008

Foreast

INRperSqtperMonth

MARKET TRANsACTIONs



capgemini Spaze iTeh Par 80,000 Sohna Road Lease

childrens Plae cyber Terraes 12,000 DLF cyber city Lease

E&Y DLF yber Greens 100,000 DLF yber ity Lease

Hitahi Time Tower 3,000 M.G. Road Lease

Pepsi Pioneer Par 269,000 Gol ourse Road Etn. Lease

Stel Independent Building 4,000 Setor 29 Lease


6/12

Grade A Grade B

p. 6 | COllIERs INTERNATIONAl



NOIDA

In 2Q 2012, about 6 million sq.t. o grade

A and grade B oe spae was available

or sale or lease. 88% o this available oe

spae was dediated to IT/ITeS loated in

setors 16 A, 62 and 125 to 143 along theNOIDA epressway.

New grade A oe supply o more than

1.5 million sq.t. was added to NOIDAs total

oe inventory. contributors to the new

supply were, SDS tower by SDS Inrateh

Private Limited, Plot No. 8 by 3c Universal

Pvt. Ltd., Ansal corporate Par by Ansal API

and Plot No. 6, 12 & 21 at Setor 125 by ew

loal developers.

Nearly 1 million sq.t o grade A oe spae

were launhed during this quarter inludingLogi Riviera at setor 105 by Logi Group,

Jaypee commerial Spae at setor 128

by Jaypee Group and Assoteh Business

cresterra at Setor 135 by Assoteh.

Overall demand or grade A oe spae

remained subdued and only ew transations

were observed during the quarter. Leasing in

speial eonomi zone remained ative, and

vaany has signiantly dropped over the

quarter.

In 2Q 2012, rental values delined in almost all

the miro marets in the range o 2 to 5% due

to autious investor sentiments and downward

pressure o oe demand. However in the

Industrial Setor rentals appreiated by 4%

on quarter on quarter basis.

Going orward rental values or grade A

oe spae are epeted to remain stable on

aount o limited supply in the near uture.

Most o the under onstrution projets are

sheduled to omplete by the end o the year

2013.


commerial Setors(Se 18) 2%

Institutional Setors(Se.16A, 62, 125-142)

88%

Industrial Setors (Se.1-9, 57-60, 63-65)

(Grade B)10%


1Q 2011 2Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE

1Q2009

INRPerSqFtPerMonth

0

20

40

60

80

100

120

140

0

10

20

30

40

60

70

50

80

100

90

2Q2009

3Q2009

4Q2009

1Q2010

InstitutionalSetors

(Se16A,62,125-

142)(IT)

IndustrialSetors

(Se1-9,57-60,

63-65)

commerialSetors

(Se18)I

NRPerSqFtPerMonth

Institutional

Setors(Se.16A,62,

125-142)

2Q2010

1Q2011

2Q2011

3Q2011

4Q2011

2Q2012

1Q2012

4Q2010

3Q2010

Institutional Setors (IT)

Institutional Setors (Non IT)commerial Setors

Industrial Setor


1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

1Q2011

2Q2011

3Q2011

4Q2011

3Q2012F

4Q2012F

1Q2012

2Q2012

4Q2010

3Q2010

INRperSqtperMonth

0

10

20

40

30

50

80

60

70

NOIDA


2Q2013F

1Q2013F

Foreast


MARKET TRANsACTIONs



I Yogi Oygen SEZ 50,000 Setor 144 Lease

Mererr Uniteh SEZ 120,000 Setor 135 Lease

United Health Group Oygen SEZ 60,000 Setor 144 Lease


7/12

2Q 2012 GRADE A IT AND NON ITRENTAl VAluEs

cBD

INRpersqtpermonth

Guindy(SBD)

Ambattur

OMR(ITcorridor)

GSTroad

0

10

20

30

40

50

60

70

80

IT NON IT


ChENNAI

Over 13 million sq.t. grade A oe spae

was available or lease/sale in 2Q 2012.

Nearly 75% o this sto was dediated to IT/

ITeS oe spae mainly loated at OMR (IT

corridor) and Ambattur.

commerial projets launhed in chennai in

2Q 2012 inludes Gupta Towers in Guindy

by Gupta Builders admeasuring 0.2 million

sq.t. The projets ompletion is oreseen by

1Q 2013.

No new grade A oe spae was ompleted

during this quarter in chennai. The majority

o the projets that were epeted to be ready

or t out during 2Q 2012 were deerred until

the net quarter.

In 2Q 2012, the ommerial lease maret

remained ative and a number o mid-sized

ompanies were onsidering onsolidation

and looing or more ost efetive real estate

solutions.

Rental values remained stable in almost all

the miro marets. Going orward, rentals

are liely to remain stable on aount o the

limited supply sheduled or ompletion by

end o this year.

In this quarter, NHAI (National Highways

Authority o India) has nalised the si lane

chennai-Bangalore highway with a total ost

estimation o around INR 5,000 rore, whih

is antiipated to boost the real estate ativities

in the region.


cBD14%

Guindy (SBD) 5%

Velahery 1%Vadapalini 1%

GST Rd 3%

OMR (IT corridor) 51%

Ambattur 24%


1Q 2011 2Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE



4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

2Q2012

1Q2012

4Q2011

3Q2011

2Q2011

1Q2011

4Q2010

3Q2010

2Q2008

1Q2008

INRpersqtpermonth

90

20

30

40

50

60

70

80

3Q2008

Ambattur GST road

OMR (IT corridor)

Guindy (SBD)cBD


2Q2008

1Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

1Q2011

2Q2011

3Q2011

4Q2011

2Q2013F

1Q2013F

4Q2012F

3Q2012F

2Q2012

1Q2012

4Q2010

3Q2010

INRperSqtperMonth

0

10

20

30

40

60

50

cHENNAI


Foreast

MARKET TRANsACTIONs



Agility Logistis Temple Steps 19,500 Guindy Lease

Beroe Systems ASV chandilya 50,000 IT corridor Lease

Emirates Prestige Palladium Bayan 8,000 Greams Road Lease

GE onverteam Ramaniyam 40,000 Guindy Lease

kavian Systems khivaraj omple 11,000 Nandanam Lease

Laarge RR1 Towers 10,000 Guindy Sale


8/12p. 8 | COllIERs INTERNATIONAl

1Q 2012 2Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE



BENGAluRu (BANGAlORE)

About 8.6 million sq.t. o ommerial grade

A oe spae was available or t-outs in

2Q 2012. More than 60% o this total available

spae is onentrated in EPIP Zone and

Whiteeld.

New supply in Bengalurus grade A oe

spae or 2Q 2012 aounted or more

than 0.8 million sq.t. Projets/ parts o the

projets ontributing to this new supply were

condent Eletra and condent Aquila

developed by condent Group, Embassy

Vogue by Embassy Group and Neo Town

by Patel Realty.

During 2Q 2012, RMA corp launhed two

new towers in RMZ EcO WORLD with a

development potential o about 1.7 millionsq.t. Additionally, Bagmane Group launhed

a ommerial projet Bagmane constellation

Pheoni with a lettable area o about 0.4

million sq.t. Both these projets were loated

along Outer Ring Road and epeted to be

ready or lients by end o 2014.

The leasing maret remained ative with

a number o medium size deals in the a

range o 10,000 to 50,000 sq. t. Most o

the transation too plae in Whiteeld and

Eletroni city miro marets.

Average rentals or grade A oe premises

remained stable in almost all the miro

marets eept or cBD where an inrease o

6% was observed on quarter on quarter. This

inrease ould be attributed to the persistent

demand and limited supply in this region.

For the net quarter, absorption levels are

epeted to remain airly high. Despite the

elevated demand, rental values will remain

stable as signiant supply is epeted to enter

the maret in the near uture omplimenting

this way the epeted demand.


cBD 7%

Outer Ring Road 13%

Bannerghatta Road 3%

Eletroni city 10%

EPIP Zone/ Whiteeld 64% Hosur Rd 4%



1Q2008

2Q2008IN

RPerSqFtPerMonth

0

10

20

30

40

50

60

70

80

90

100

3Q2008

4Q2008

1Q2009

3Q2009

1Q2010

2Q2009

4Q2009

2Q2010

3Q2010

1Q2011

2Q2011

2Q2012

1Q2012

4Q2011

3Q2011

4Q2010

0

10

20

30

40

50

60

70

80

90

OuterRingRoad

Grade A Grade B

Eletroni

city(IT)

BannerghattaRoad

EPIPZone/

Whitefeld

HosurRoad

INRPerSqFtPerMonth

cBD

cBD

Eletroni city

Outer Ring RoadEPIP Zone / Whiteeld

Hosur Road

Bannerghatta Road


INRperSqtperMonth

15

20

25

30

50

40

45

35

BENGALURU

2Q2008

1Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

1Q2011

2Q2011

3Q2011

4Q2011

3Q2012F

2Q2013F

1Q2013F

4Q2012F

2Q2012

1Q2012

4Q2010

3Q2010


Foreast

MARKET TRANsACTIONs



Ais Aerospae Vaswani enterpolis 21,650 Langord Road Lease

Ellusion Prestige Zeenath 31,820 Rajaram Mohan Roy Road Lease

Tyo Prestige Shantinietan 25,000 Whiteeld Lease

VM Ware Forutna1 28,000 JP Nagar Lease

xentri Studios Private Limited Priteh - SEZ 21,125 Outer Ring Road Lease

Yoogawa IA Tehnologies Umiya Business Bay 30,000 Outer Ring Road Lease


9/12



cBD(ParSt,cama

St,AJcBoseRd)

INRpersqtpermonth

Setor-5(IT)

Setor-5

PBD(New

Town,Rajarhat

Ballygunge

-cirularRD

PBDNewTown,

Rajarhat(IT)

Eastkolata

0

20

40

60

80

100

120

140

Grade A Grade B

1Q2012


KOlKATA

In 2Q 2012, 0.5 million sq. t. was added to

the grade A oe sto in kolata. Projets/

parts o the projets ontributing this supply

were New Town Square by PS Group, DLF

Galleria by DLF Ltd. both o these projetswere loated at New Town. Another projet

Merlin Legend by Merlin Group loated at

Bhowanipore.

Bio Wonder projet was launhed in 2Q

2012 with an area o 0.4 million sq.t. o oe

spae loated at EM Bypass. Another projet

by Zion Realty at Par cirus connetor was

launhed with an area o 0.1 million sq.t. both

epeted to be ompleted by end o 2015.

Rentals in 2Q 2012 remained stable in almost

all the miro marets eept in cBD where anappreiation o 4% was mared on q-o-q. The

overall maret sentiments remained stagnant

during the quarter; while many ompanies

are ollowing the wait and wath strategy

until unertainties related to poliies will be

leared by the state government.

Epetations or the net quarter reveal stable

rentals in cBD while peripheral areas ould

witness a downward pressure on rental levels

due to massive upoming supply in pipeline.

Major land transations in 2Q 2012 inlude, a

2 are plot on EM Bypass was sold to AHW

Steels or INR 115 rore by kolata Muniipal

corporation and 10 are land parel was

sold to State Ban o India or INR 58 rore

or establishing a their training institute at

Rajarhat.

NEW supplY IN pRIME AREAs

PBD (New Town,Rajarhat)

95%

cBD (Par St,cama St,AJc Bose Road) 5%


1Q 2012 2Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE


1Q2008

1Q2009

2Q2008

2Q2009

3Q2008

3Q2009

4Q2008

4Q2009

1Q2010

2Q2010

4Q2010

3Q2011

2Q2012

4Q2011

2Q2011

1Q2011

3Q2010

INRpersqtpermonth

20

40

60

80

100

120

140

160

Setor 5

East kolatta

Ballygunge cirular Rd

PBD (New Town, Rajarhat

cBD (Par St,cama St,AJc Bose Rd)


INRperSqtperMonth

40

50

70

90

60

80

0

10

20

30

kOLkATA

1Q2008

2Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

2Q2010

1Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

2Q2012

3Q2012F

4Q2012F

2Q2013F

1Q2013F

4Q2010

3Q2010


Foreast

MARKET TRANsACTIONs



Aditya Birla Nova Haut Street 4,000 Topsia Lease

Bajaj Finane Tehnopolis 10,000 Setor 5, Salt Lae Lease

EBMIRON Building No.139 4,000 SP Muherjee Road Lease

HDFc Eo Spae 125,000 New Town, Rajarhat Lease

Learning Mate Eo Spae 30,000 New Town, Rajarhat Lease

TcS Eo Spae 33,000 New Town, Rajarhat Lease


10/12p. 10 | COllIERs INTERNATIONAl

2Q 2012 GRADE A IT AND NON ITRENTAl VAluEs

puNE

About 6.0 million sq.t. o grade A oe

spae was available or t out in Pune during

2Q 2012. Nearly 76% o this supply was

evenly distributed in miro marets o kharadi,

Hinjewadi, Hadapsar/Fursungi, Nagar Roadand Airport Road.

No new supply was added to itys grade A

oe spae during the surveyed period.

Panhshil Realty launhed conve

admeasuring 0.4 million sq.t. in kharadi. The

projet is epeted to be ompleted by 4Q

2015.

Pune ontinued to eperiene high absorption

levels. Most o the small oor plate layout

oe leases were observed in Viman Nagar,Aundh, Wadewadi and Hadapsar.

In this quarter rental values o grade A oe

spae registered an inrease in the range o

5 to 6% on q-o-q in Baner and kalyani Nagar

loations primarily due to limited availability

o supply in cBD. However, rents in all other

miro marets remained stable.

Going orward, rentals are epeted to remain

stable in most o the miro marets barring

speial eonomi zones, where marginal

appreiation an be seen due to limitedsupply.

During this quarter, wor ommened or

operating the bus rapid transit system (BRTS)

on 11-m streth o the Pune-Mumbai highway

in Pimpri- chinhwad ommened and is

epeted to be ompleted by end o 2012. This

will urther interest in the real estate along the

Pune-Mumbai highway.

supplY IN pRIME AREAs

kalyani Nagar 5%Nagar Road 11%

Aundh 3%

Bund Garden 2%

Airport road/pune station 7%

Bavdhan 4%

Baner 5%

kharadi 21 %

Hinjewadi 26%

Hadapsar/Fursungi 11%

Senapati Bapat Road 4%


1Q 2012 2Q 2012

VACANCY

ABsORpTION

CONsTRuCTION

RENTAl VAluE


1Q2008

2Q2008IN

RPerSqFtPerMonth

20

30

40

50

60

70

80

90

100

110

120

130

3Q2008

4Q2008

1Q2009

3Q2009

1Q2010

2Q2009

4Q2009

2Q2010

4Q2010

2Q2011

2Q2012

1Q2012

4Q2011

3Q2011

1Q2011

3Q2010


0

10

20

30

40

50

60

70

90

80

kharadi

kalyaniNagar

NagarRoad

Bavdhan

Hadapsar/Fursungi

Hinjewadi

SenapatiBapatRoad

Aundh

Airportroad/

punestation

BundGarden

INRPerSqFtPerMonth

Baner

Bavdhan Airport road/pune station

Baner

khardi

Nagar Road

Hinjewadi / Hadapsar/Fursungi

kalyani Nagar

Bund Garden

Aundh

Senapati Bapat Rd


INRperSqtperMonth

0

10

30

20

40

70

60

50

PUNE

2Q2008

1Q2008

3Q2008

4Q2008

1Q2009

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

3Q2012F

2Q2012

4Q2012F

2Q2013F

1Q2013F

4Q2010

3Q2010

IT Non IT


Foreast

MARKET TRANsACTIONs



Asent Group Saar 10 7,900 Bund Garden Road Lease

co & kings Mansoor Ali Tower 2,400 Dhole Patil Road Lease

DHL R B Business centre 4,000 Aundh Lease

HUAWEI Gera Emporia 8,000 Vimannagar Lease

kLINGELNBERG No.12 3,250 koregaon Par Lease

kONEcRANES Magarpatta 22,000 Hadapsar Whiteeld


11/12

Mumbai

The major business loations in Mumbai are the cBD (Nariman Point, Fort and Bal lard Estate), central Mumbai (Worli, Lower Parel and Parel), Bandra

kurla comple (Bkc) and Andheri kurla streth. Powai, Malad and Vashi are the preerred IT/ITES destinations, while Airoli at Navi Mumbai and Lal

Bahadur Shastri Marg are emerging as new oe and IT/ITES submarets.

Delhi

The ommerial areas in New Delhi metropolitan area an be broadly lassied into the cBD (connaught Plae), SBD Nehru Plae, Bhiaji cama

Plae, Netaji Subhash Plae, Jasola and Saet .

Gurgaon

The prime business loations in Gurgaon are MG Road, Gol course Road, cyber city and Udyog Vihar. Manesar on the outsirts o Gurgaon is also

emerging as the itys new oe destination.

NOIDA

NOIDA maret is omprised o setors broadly lassied as institutional, industrial and ommerial setors. Institutional setors inlude se 16A, 62

and 125-142, industrial setors inlude se 1-9, 57-60 and 63- 65 while setor 18 is the most developed ommerial setor.

ChennaiPrime oe properties in chennai are loated in our prinipal sub-marets: the cBD, the IT corridor, the SBD and the PBD. The SBD omprises

Guindy, Manapaam, Velahery and other areas. The PBD primarily inludes Ambattur and GST Road, while the IT corridor is the Old Mahaballipuram

Road (OMR) in south chennai.

Bengaluru (Bangalore)

Prime oe properties in Bengaluru an be divided into three prinipal sub-maret cBD, the SBD onsisting o Banerghatta Road & Outer Ring

Road (ORR) and PBD inluding Hosur Road, EPIP Zone, Eletroni city and Whileeld.

Pune

The prime oe sub-marets o Pune inlude Dean Gymhana, Senapati Bapat Road & camp (SBD), while the PBD inludes Aundh, Bund Garden,

Airport Road and kalyani Nagar, among other loations. The eastern orridor, along with Nagar Road and kharadi, have emerged as a preerred

loation or nanial and IT/ITES ompanies.

Kolkata

The major business loations in kolata are cBD (Par Street, cama Street, chowranghee Rd), SBD (AJc Bose Rd, Ballygunge irular Rd, East

kolata), East kolata and PBD (New Town & Rajarhat). The area around Par Street, cama Street and AJc Bose road houses number o high-rises

ommerial buildings suh as chatterjee International centre, Tata centre, Everest House and Industry House among others.

OffICE suBMARKETs



CITY BAROMETER

Inreasing as ompared to previous quarter

Dereasing as ompared to previous quarter

Remained stable rom previous quarter


12/12

Aelerating suess.

colliers International (India) provides property servies to property Investors and Oupiers. We

deliver ustomised servie solutions utilising loal and global nowledge in partnership with our

lients via our property Investment and Oupier servie lines. These servie lines inlude - Oe

Servies, Faility Management, Projet Management, Residential Servies, Investment Servies

and Valuation & Advisory Servies.

www.olliers.om/india

For national oes servies related queries please ontat:

George May, South Asia Diretor Vias kalia, National Diretor

Oe & Integrated Servies Oe Servies

[email protected] [email protected]

Tel: +91 22 4050 4553 Tel: +91 124 456 7531

GLOBAL RETAIL INDIA RESIDENTIAL APAc INDUSTRIAL GLOBAL INDUSTRIAL GLOBAL OFFIcE INDIA BUDGET

Mumbai : Prabhu Raghavendra, Oe Diretor

[email protected]

31/A, 3rd oor, Film center, 68, Tardeo Road, Mumbai, India - 400 034.

Tel : +91 22 4050 4500, a : +91 22 2351 4272

Delhi NCR : Ajay Raheja, Oe Diretor

[email protected]

New Delhi :Statesman House, 4th Floor, Barahamba Road, connaught Plae,

New Delhi, India - 110001

Tel : +91 11 4360 7500, a : +91 11 2335 6624

Gurgaon : Tehnopolis Building, 1st oor, DLF Gol course Main Road, Setor 54, Gurgaon,

India - 122002

Tel : +91 124 437 5807, a : +91 124 437 5806

Bengaluru : Goutam charaborthy, Oe Diretor

[email protected]

Prestige Garnet, Level 2, Unit No.201/202, 36 Ulsoor Road, Bengaluru,

India - 560 042

Tel : +91 80 4079 5500, a : +91 80 4112 3131

Pune : Suresh castellino, Oe Diretor

[email protected]

Hotel Le Meridian, 101, R.B.M. Road, Pune, India - 411 001

Tel : +91 20 4120 6438, a : +91 20 4120 6434

Chennai : kaushi Reddy, Oe Diretor

[email protected]

Heavitree comple, Unit 1c, 1st oor, 23, Spurtan Road, chetpet, chennai,

India - 600 031

Tel : +91 44 2836 1064, a : +91 44 2836 1377

Kolkata : Soumya Muherjee , Oe Diretor

[email protected]

Innity Business centre, Innity Benhmar, Room No 13, Level 18, Plot G - 1,

Blo EP & GP, Salt Lae Setor V, kolata - 700 091 West Bengal, India

Tel : +91 33 2357 6501, a : +91 33 2357 6502

Recent Reports :

This book is printed on 100% Recyclable paper


Aelerating suess.

AUTHORS

Amit Oberoi MRICSNational Diretor, Valuation & Advisory; ResearhEmail: [email protected]

Surabhi Arora MRICSAssoiate Diretor, ResearhEmail: [email protected]

Sachin SharmaAssistant Manager, ResearhEmail: [email protected]

Heliana ManoAssistant Manager,Valuation & AdvisoryEmail: [email protected]

For general queries and eedba :

[email protected]: +91 124 456 7580

This report and other researh materials may be ound onour website at www.olliers.om/India. Questions relatedto inormation herein should be direted to the ResearhDepartment at the number indiated above. This doumenthas been prepared by colliers International or advertisingand general inormation only. colliers International maesno guarantees, representations or warranties o any ind,epressed or implied, regarding the inormation inluding,but not limited to, warranties o ontent, auray andreliability. Any interested party should undertae theirown inquiries as to the auray o the inormation.

colliers International eludes unequivoally all inerredor implied terms, onditions and warranties arising outo this doument and eludes all liability or loss anddamages arising there rom.

copyright 2012 - 2013 All Rights Reserved.

522 oes in 62 ountries on 6 ontinents

United States: 147canada: 37Latin Ameria: 19Asia Pai: 201EMEA: 118

$1.8 billion in annual revenue2.55 billion square eet under management

Over 12,300 + proessionals

Accelerating success.

Residential PropertyMarket OverviewINDIA

QUARTERLY UPDATE | MAY | 2012

ASIA PACIFIC

OFFICE MARKET OVERVIEW

1Q 2012

Accelerating success.

HIGHLIGHTS

GLOBAL INDUSTRIAL

WWW.COLLIERS.COM

SECOND HALF2011| INDUSTRIAL

JAMES COOK Directorof Research| USA

GlobalIndustrialTrendForecastcGrowingglobaltradewillsteadydemandforqualitywarehousespaceinmanyregions.

cIndustrialvacancyrateswillfurtherdropinmostmarkets.

cSomemarkets,U.S.andAustraliaamongthem,willexperiencealackofnewsupplyinthefaceofgrowingdemand.

cPrimewarehouserentswillclimbinmostAsiaPacicmarkets,remainstableinEMEAandLATAM,andcontinuetostrengtheninNorthAmericanmarkets.

Citingdeterioratingnancialconditionsanddimminggrowthprospect,the InternationalMonetaryFunds(IMF)reviseditsSeptember2011WorldEconomicOutlookgrowth projectionsdownwardinJanuary2012.However,theIMFstillforecaststhatglobaltradevolumewillriseby3.8percentin2012and5.4percentin2013;asglobaltraderises,sotoowill demandforwarehousespace.

WhilewarehouserentshavestabilizedinmostEMEAand LatinAmericanmarkets, primewarehouserentsquotedin localcurrenciesincreasedinthemajorityofAsiaPacicandNorthAmericanmarketsin2011overthepreviousyear.Weexpectthistrendtocontinue,withprimewarehouserentsclimbinginmostAsiaPacicandNorthAmericanmarketsinthenextyear.

LatinAmericanRentsPoisedtoStabilizeInLatinAmerica,primewarehouserentalratestookafall.In71.4percentofthemarketswetrack,year-endrentsdecreasedin2011fromayearearlier. However,weexpectwarehouserentsinLatinAmericatostabilizeinthecomingyear.

SoPaulosawa12.4percentdropinwarehouserentsinlocalcurrency,duetoincreasedsupply.However,withabsorptionsettooutpacesupply,

weexpectoverallwarehouserentsintheSoPauloregiontorisebyasmuchasfourpercentinthecomingyear.

MexicoCitysawathreepercentdecreaseinitsindustrialvacancyrateinthesecondhalfof2011,downto4.8percent.MexicowasmorenegativelyaectedbytherecessionthanmostcountriesinNorthAmerica,anditseconomicfutureislargelytiedtothatofitskeytradingpartner,theUnitedStates.ButwithU.S. growthontheupswing,Mexicotooispoisedtogrowatamodestrateandweexpectthatvacanciescouldmakefurtherdropsinthecountry.

SteadyDemandinNorthAmericaSincepeakingin2010,growthinthemanufacturinganddistributionindustryhaskepttheU.S.vacancyratedroppinginamostlyregularfashion.Vacancydroppedto9.72percentin Q42011. Withconstructionproceedingatlowlevels,weexpectvacanciestocontinuetodropatameasuredrateinto2013.

Toronto,Canadasbiggestindustrialmarket,saw13.7millions quarefeetofindustrial spaceabsorbedin2011,andthecitysprimewarehouserentsgrewby7.1percentinthesecondhalfof2011.

DroppingVacanciesinMostAsianMarketsAsiaPacicsawdroppingvacanciesinnearlyeverymarket. Primewarehouserentsgrewinmorethanhalfofthemarkets,andobserversinmorethanhalfofthose marketsexpectthatwarehouserentswillcontinuetoclimboverthenextsixmonths.

Australianindustrialhasbeenespeciallystronginmostmajormarkets.Retailpurchases,mademoreattractivebytherelativelystrongAustraliandollar,havepushedupdemandforlargewarehousespaceinseveralportmarkets. Whilethereisgrowingdemandforlargemodernwarehouse

GlobalWarehouseDemandShows

Consistent Growth

GLOBAL INDUSTRIALCAPITALIZATION RATES(PrimeYield/Percent)

MARKET(SelectMarkets) REGION

DEC2011

DEC2010

HongKong AsiaPacic . . S i ng ap o re A s i aP a ci c . . L o n do n ( H ea t h ro w ) E M E A . . T ok yo A s ia Pa ci c . . LosAngelesInlandEmpire,CA

N A . .

C hi ca go ,I L N A . . Paris E ME A . . M un ic h E ME A . . V an co uv er , BC N A . . M ar se il le s E ME A . . Ne w J er se y No r t he r n NA . . Dallas-Ft.Worth,TX NA . . Shanghai Asi a Pac i c . . Seoul AsiaPacic . . M ad ri d E ME A . . Sydney Asi a Pac i c . . Mexico C ity L A TA M . . P ra gu e E ME A . . A th en s E ME A . . B u ch a re s t E M EA . .

GLOBAL TOP TEN INDUSTRIALWAREHOUSE RENTS

M AR K ET R EG I ON

RENT(USD/

PSF/Year)6-MONTHCHANGE*

T ok y o A s ia P ac i c . - . %L o n do n ( He a t hr o w ) E M E A . . %H on g Ko n g A s ia P ac i c . . %S i ng ap o re A s ia P ac i c . . %Z ur ic h E ME A . . %O sl o E ME A . . %M os co w E ME A . . %G en ev a E ME A . - . %

S oP a ul o L A TA M . - . %H el si nk i E ME A . . %M ar se il le s E ME A . . %P ar is E ME A . . %

*Localcurrency

Continuedonpage8

HIGHLIGHTSGLOBAL OFFICE

WWW.COLLIERS.COM

SECOND HALF2011| OFFICE

JAMES COOK Directorof Research| USA

GlobalOfceTrendForecast

cGlobalocevacancieswillcontinuetheirdecline,duetosteadydemandandlowlevelsofnewconstructioninNorthAmericaandEurope.

cTheighttoqualitytrendwillcontinueinmanymajormarkets,withoccupierstradinguptohigher-qualityspaceorabetterlocationastheirleasesexpire.

cTheEuropeansovereigndebtcrisiswilllikelypushtheEurozoneintoamildrecessioninearly2012.Thiscontractionwillbefeltmostprofoundlyinahandfulofcommercialpropertymarketswithinthemosttroublednations.

EconomicprospectsintheEurozonehaveslightlyreducedoverallposit iveglobalexpectationsformarketperformancein2012.Weexpectcontinuingmodestdemandforocespace,withmostcit iesseeingadropinvacancyrates.Butglobalaveragesdonotspeaktothenuancesofindividualmarkets,andwhileweexpectposit iveabsorptionduetobusinessgrowthandexpansionintheUnitedStates,ChinaandAustraliasomeEurozonecountriesmayseenegativeabsorptionandincreasedvacancyastheregionentersamildrecession.

GlobalOfceDemandGrowthSlowandSteady

GLOBAL CAPITALIZATION RATES /PRIME YIELDS: 10 LOWEST CITIES

MARKET(RankedbyDec2011)

DEC2011

JUNE2011

DEC2010

T ai pe i . . .

H on g Ko n g . . .

Vienna . . .

L o n do n West E n d . . .

Zurich . . .

S i ng ap o re . . .

Geneva . . .

B ei ji ng . . .

P ar is . . .

M un ic h . . .

T ok yo . . .

GLOBAL OFFICE OCCUPANCY COSTS:TOP 10 CITIES

MARKET(RankedbyDec2011)

DEC2011

JUNE2011

DEC2010

H o ng K o n g . . .

LondonWestEnd.. .

P ar i s . . .

R i o d e Ja n e ir o . . .

M os c ow . . .

L o n do n C i ty . . .

Perth . . .

S i n ga p o re . . .

G e ne va . . .

S o Pau l o . . .

CBD CAP RATE (%)

LatinAmericaBoaststheTightestOfceMarketsSomeoftheworldslowestocevacancyratesarefoundinLatinAmericancit ies.Santiago,Chile;RiodeJaneiro,Brazil;SoPaulo,Brazil;andLima,Peruallhavevacancyratesbelowthreepercent,result inginamarketthatstronglyfavorslandlords,promptsnewconstructionandmightsqueezesometenantsthatdesiretoexpand.Forthemostpart ,weexpectthestrengthofthesemarketstopersist.WhiledecreasesinEuropeandemandforitscommoditieswilllikelyhurtLatinAmerica,thiswill betemperedbycontinueddemandfromChina.InSoPaolo,heighteneddemandhasspurredthehighestratesofnewdevelopmentintheregion,whichwill eventuallyputdownwardpressureonaskingrents.

SelectAsiaPacicMarketsSeeBigVacancyDropsTheglobaltrendindroppingvacancyratesshouldbeevi-dentinAsiaandcontinuethrough2012.Marketsthatsawadropinvacancyinthesecondhalfof2011outnumberedbyatwo-to-onemarginthosewherevacancyincreased.

Oftheworldsmostpopulousmarkets,thosewiththemostsignicantdeclinesinsix-monthvacancyrateswerenearlyallintheAsiaPacicregion. Chengdu,propelledbyitsstrongmanufacturingsector,sawitsvacancyratedropby7.8percentintheperiod,andShanghaisawa3.2percentdropinvacancy.

TwootherlargeAsianmarketssawvacancyratesdropby1.5percentormore: Jakarta,whichhasalso seensustainedgrowthinCBDrentalratesandrenewedglobalinvestorinterest;andSingapore,whereoccupanciesare

expectedtostabilize.

MarqueeMarketsSeeRentDeclineWhileHongKong,LondonsWestEndandPariscommandthetopthreehighestaskingrentsforClassAocespace,

eachhasshownapparentdeclineinrentsbetweenJuneandDecemberof2011,whenquotedin U.S.dollars.Substantialdeclines,infact:ledbya$10.87USD dropinParisianClassArents.

Buthowsignicantarethesegures?ThechangeinLondonandParisrentsisduetothestrengtheningdollarrelativetotheeuroandpoundsterling.Inlocalcurrency,primerentsinthesemarketsareholdingground.Althoughsmaller,thedeclineinHongKongof$7.56USD($5.10HKD)persquarefootmaybeamoreimportantindicatorofthingstocome,asdemandfromthebankingandnancialsectorcontinuetoweaken.

EMEAandAsiaPacicLeadGlobalConstructionAsignicantpercentageofthe ocespaceunderconstructionisinEurope,theMiddleEastand Africa(EMEA),andmuchofthatisoccurringinMoscowandDubai.Whilebothofthesemarketsshouldexpectstrongeconomicgrowthin2012,thefactthatDubaiwithavacancyrateof50percentisconstructingatsuchapaceleadsustoexpectthatsupplywillcontinuetooutpacedemandinthatmarket.

TheothertwotopmarketsforoceconstructionareintheAsiaPacic region. GuangzhouChinasleadingcommercialportcityandTokyohave19.6and15.6millionsquarefeetunderconstructionrespectively.Asianeconomicgrowthrateswillremainstronginthecomingmonths,withChinaandIndialeadingthepack. Rentsareontheriseinmostcit iesintheregion.However,droppingrentsinSeoulandHongKongareapotentialindicatorofglobaleconomic

uncertainty.InTokyo,wherenewsupplyhasbeenincreasingforthepastthreeyears,weexpectconstructiontopeakandbegintodeclineinthecomingyear.

CLASSA/NETRENT(USD/SQFT)

www.colliers.com/india

Budget Highlights |RealEstate

FinanceMinisterPran abMukherjeestarted his budgetspeech2012-13 in the

backdropof challenging macroeconomic scenario.Thenancemini sterprojects

theeconomyto grow by7.6% in thenextscal upfrom 6.9% in 2011-12.Hementioned thatduetoadver seglobalecono mic sentiments therehas been a

slowdown in theIndian Economybutthefacti s India stillremains among the

frontrunners in theeconomic growthin anycross countrycomparison. The

budgetaims atfaster,sustainableand moreinclusivegrowth across sectors

emphasizing on vefocus areas including revivalof domestic consumption,

rapid revivalof highgrowthin privateinvestment,removalof supplybottlenecks,

addressing malnutrition in 200 highburden districts and expediteimprovementin deliverysystem,governanceand transparency.

From a realestateperspective,thebudgetremained silenton mostof themajorissues including status of STPIs (SoftwareTechnologyParks of India),RealEstateRegulatoryBill, Land Billetc.however,itmentioned thateorts areon toarriveat a politicalconsensus on theissueof allowing 51% Foreign Direct

Investment(FDI)in multi-brand retail.

THE KEY HIGHLIGHTS OF THE BUDGET WHICH MAY IMPACT REAL ESTATE

SECTOR ARE AS FOLLOWS:

- ExternalCommercialBorrowings (ECB)forlow costaordablehousingprojects. Impact:Real estatecompanies developinglargeaordablehousing

projects with largefund requirements will benet the most from theeasingof

external commercial borrowing(ECB) norms as interest ratecharged is lower incaseofexternal borrowings in comparison to rates charged by domestic

institutions.

- Increasein provision underRural Housing Fund toINR4,000 crorefrom theexisting INR3,000 crore. Impact:It will providehousingnanceto targeted

groupsinruralareasatcompetitiverates.

- Extension of theexisting schemeof interestsubven tion of 1% on housing

loans uptoINR15lakhwhere thecostof thehousedoes notexceed INR25

lakhforanother year. Impact:This will boost the aordablehousingsegmentby providingcheaper loan to theend users.

MARKETREACTIONTO BUDGET

Q1 2012 | RESEARCH

Source: www.bseindia.com | Mar16, 2012

C o mp a ny C h an g e (% )

BSESENSEX -1.19

RealtyIndex -1.26

AnantRajInds -6.04

DBRealty -2.02

DLF 0.15

GodrejProperties -2.82

HDIL -5.21

HubtownLtd. -4.13

IndiabullsRealEstate -1.95

MahindraLifespaces -0.72

OrbitCorp. -3.37

ParsvnathDevelopers -4.04

PeninsulaLand -3.18

PhoenixMills -2.65

S o bh a De v el o pe r s 3 . 04

SunteckRealty -1.13

Unitech -1.68

UNIONBUDGET2012 -13

ASNEAK PREVIEW

P. 1 | COLLIERS INTERNATIONAL

STREET/PRECINCT

RENT

(USD)**

ANNUAL

CHANGE

(%)

New York FithAvenue , .

Hong Kong Queen'sRoad Central,Central(tie)

, .

Hong Kong Canton Road (t ie)

, .

London Old Bond St.*** , .

Paris Avenuedes***Champs-lyses

, f a t

Hong Kong -CausewayBay

, .

New York Madison Avenue

.

Z u r i ch Ba h nh o s tr a sse f a t

Milan Via MonteNapoleone

(.)

Sydney PittStreetMall (.)

HIGHLIGHTSGLOBAL

www.colliers.com

MID-YEAR 2012 | RETAIL

ANNT. NATUNEWICZ Manager| RetailResearch| USA

cColliers2012GlobalRetailStreetssurveyoundthato129locationstracked,51postedhigheryearoveryearaveragerentalrates,49wereat,and24weredown(5lackedcomparabledata).

cRetailersenteringnewmarketsbothdevelopedanddevelopingcontinuetohedgeriskbytargetingthesameoneortwopremierlocations,generatingheatedcompetitionandoutsizedrentalrategrowth

inahandulospace-constrainedcorridors.

cCompanieswiththemostambitiouslong-termexpansionplansremainocusedonemergingmarketswithrapidlygrowingmiddle-classpopulations,butrecentlyinstitutionalcapitalhaspulledbacksomewhattoavorcoremarketsandinvestments.

cWhileeconomicandpoliticalturmoildidaectrentalratesinheadline-generatingmarkets(such

asCairoandAthens),highstreetswithstrongundamentalsremainedremarkablyresilient,suggest-ing,atleastornow,someseparationbetweenmacroeconomicissuesandunderlyingreal

estateundamentals.

cSinceweconductedoursurvey,however,weakeningconsumersentimentamongauentshoppershasalreadybeguntoimpactretailersrevenuesandcouldhinderlandlordsnear-termabilityto

raiserents,suggestingatteninggrowthratesorthecomingyear.

This spring proved to be a tricky time to conduct global benchmarking, as market sentiment hasdeteriorated markedlysince April. During the past year, virtuallyeveryentity making a orecastincludingColliersinour2012U.S.RetailOutlookincludedacaveatrelatedtonot-yet-quantifableglobalallout romEuropesfscal issues. Asthepast ewmonthshaveillustrated, thetimeto aceEurozoneissueshasfnallyarrived,spawninganewwaveofnancialuncertainty.

More than two years post-recession, though, results rom ourannual surveyo High Street rentsillustratethattheworldspriciestretailcorridorscontinuetoattractthemostsought-atertenantsatlotyrentalrates.EightoCollierstoptenGlobalRetailStreetsin2011madethelistagainthisyear.Thebigstory,however,lieswiththeexplosiveyearoveryearrentalgrowthachievedinahandulomarkets.SixoourTop10grewatdouble-digitlevelsyearoveryearinlocalcurrencyunits,fveothembymorethan20%.

At a regional level, streets in areas that entered 2007-08 better-positioned economicallyAustralia,Canada,partsoEasternEuropehadahigherpercentageothisyear'sat-to-higherrentsthanthoseslowertoemergeromtherecession.Wewillbewatchingtheseareasclosely.Evenastheyrepresentsomeo themost attractivedestinationsorexpansion-mindedcompaniesandyield-seekinginvestors,theytooarevulnerabletosoteningconsumerdemandand,orthosewithreliabledata,encroachmentoe-commerce.

This report contains two parts. The frst summarizes the results o ourannual Global Retail Streetssurvey,conductedinApril2012.ThesecondincorporatescontentromColliersbrokerageandresearchteamsworldwidewhocontributedmarketoperationalmetrics,nuancedcommentaryonretailconditions,

andorward-lookingopinionsonwhatthenextyearwillholdorconsumers,landlords,andinvestors.

RecordRentsfor TopRetailCorridors;Global

SlowdownImpactsMomentumElsewhere

TOP 10 GLOBALRETAILSTREETS*

(USD PER SQUARE FOOTPER YEAR)

REGIONALRETAILRESEARCH CONTACTS

AMERICAS> Ann [email protected]

EUROPE/MIDDLE EAST/AFRICA> Zuzanna [email protected]

ASIA> Simon [email protected]

AUSTRALIA/NEW ZEALAND> Nora Farren

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Source:Colliers International* selected cities** exchangerateas o March31,2012*** ZoneA rents

Date post:	05-Apr-2018
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India Office Property Market Overview 2Q 2012

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