CITY REPORTMUMBAI OFFICE MARKET
Q2 2010
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CITY REPORTMUMBAI OFFICE MARKET - Q2 2010
Summary p. 4
Macroeconomic Context p. 5
Mumbai Map p. 6
Central Business District (CBD) p. 7
Extended Central Business District (Extended CBD) p. 8
Alternate Central Business District (Alternate CBD) p. 9
Secondary Business District (SBD) p. 10
Periphery Business District (PBD) p. 11
Glossary
p. 13Key Transactions
p. 14Key Projects
p. 15
CONTENTS
Rental Values & Capital Values p. 12
4I I
SUMMARY
The Commercial Real Estate market continue to gain momentum as many new transactions were reported in Q2 2010. The Secondary Business Districts of Andheri and Powai showed renewed interest from occupiers to take up spaces. The property values however, remained stagnant in most of the micro markets. It is expected that many large format transactions in excess of 100,000 sq.ft. will take place in the next quarter which may push up rates especially in the Alternate Business Districts (ACBD) and Periphery Business District (PBD). The demand for office space especially for IT/ITES is picking up gradually. Further, the demand for office space to banking and financial services companies is also increasing. The occupiers also continued their shift from Central Business District (CBD) areas of Nariman Point to ACBD of Bandra Kurla Complex and Extended Business Districts (ECBD) of Lower Parel and Prabhadevi.
On the development side, many new developments are expected to be completed in this quarter which is expected to put additional pressure on rents and capital values. With increase in FSI on certain commercial buildings especially in ACBD of Bandra Kurla Complex and other areas of Mumbai, the gap between demand and supply is increasing further.
There is still high demand for commercial office space land in Mumbai. The key transactions for land in Mumbai included purchase of 6.1 acres of land by Lodha Developers in Wadala, Mumbai. This land was bought by the developer for approx. INR 4,053 crores (USD 85 million) via a government auction. It is well noted in this quarter that the development companies continue to scout for land for IT/ITES development in and around Mumbai. It is expected that the National Textile Mills Corporation, a Government of India company is likely to dispose two prime lands in Extended Business District area of Worli and Lower Parel. These mill lands will generate good interest from certain development companies who are flushed with liquid funds.
In the real estate private equity space, the notable transaction was purchase of majority stake in HCC 247 IT Park by ILFS Milestone income fund. The fund paid approx. INR 574 crores ( USD 120 mn.) for a 74% stake in the property which is 80% leased to key corporate like Dow Chemicals, KEC International, Future group etc. In addition to this, a few transactions are also reported in private equity space for mixed use development in Mumbai.
In the upcoming quarter, it is expected that the demand will pick up and will result in higher transaction volume in the Mumbai Metropolitan region. However, the leasing and the capital values will remain the same.
Markets continue to gain momentum
CITY REPORTMUMBAI OFFICE MARKET - Q2 2010
20-O
ct-0
8
Repo Reverse Repo
Repo & Reverse Repo Rate10
8
6
4
Perc
ent
2
CITY REPORTMUMBAI OFFICE MARKET - Q2 2010
MACROECONOMIC CONTEXTRates hiked further. Well calibrated move to manage growth and inflationThe Reserve Bank of India (RBI), which is the central bank of India in its monetary policy has further raised the CRR, Repo Rate and the Reverse Repo Rate by 25 basis point each. This action by the central bank is seen as a well calibrated move to balance growth, arrest rising inflation and manage liquidity and currency. It is expected that due to rise in rates, the real estate lenders will also increase their rates especially for construction lending. The banking sector also moved to a new “base rate” system of lending effective July 1, 2010, which is expected to enhance transparency in loan pricing, promote competition in the credit market and also improve the transmission of monetary policy. On the credit side, the base rates set by major public sector banks were in the narrow range of 7.25% -8% Further, the RBI also announced two real estate indices for residential and commercial rates. These indices are expected to be updated every quarter. However, it will take some time for these indices to be active.
The economic recovery gained further momentum with the good progress of the monsoon which is expected to yield better agricultural output. The last 6 months has seen substantial rise in foreign cash flows and exports. However, the trade deficit is increasing as imports, especially the oil based imports has risen significantly as well. The economic survey report released by the government of India just ahead of the union budget announced a GDP between 8.25% - 8.75% for the year 2010-11. However, the various industry estimates pegs the GDP growth between 7% -8%.
On the SEZ space, the fate of approved Special Economic Zones, which are yet to become operational, hangs in balance with the proposed Direct Tax Code (DTC) denying tax exemptions to new units in the SEZs. According to the revised DTC draft, the tax exemptions for the SEZs have been provided only for the existing units. The new draft clearly mentions that the profit-linked deductions of units already operating in SEZs for the unexpired period (of 15 years) will be incorporated. This provision would mean end of new investment by promoters, who have received formal approvals from the Commerce Ministry after acquiring land for their projects. The uncertainty will affect even the operational SEZs because not all of them have been occupied by units. At present, SEZ units get 100% income tax exemption on export income for the first five years, 50% for the next five years. They also get exemption on 50% of the ploughed back export profit for the next five years after the first 10 years. The leading SEZ developers of India especially in the IT/ITES space are currently lobbying with the government to reverse certain decisions with respect to exemption for the SEZ units and it will be interesting to see the impact of these revisions of DTC on the decision making process especially of the international corporate occupiers in the IT/ITES services sector.
5I I
SLR CRR
CRR & SLR10
8
6
4
2
Perc
ent
0
May
-08
Jul-
08
Sep-
08
Nov
-08
Jan-
09
Mar
-09
May
-09
Jul-
09
Sep-
09
Mar
-08
Nov
-09
Jan-
10
Mar
-10
Gross Domestic Product (GDP)
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
9.20%
9.30%
8.80%
8.80%
7.90%7.60%
5.30%
5.80%
6.10%
Q22007
Q32007
Q42007
Q32009
7.90%
Q42009
6.00%
Wholesale Price Index (WPI)
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
Jan-
06
Apr-
06
Jul-
06
Oct-
06
Jan-
07
Apr-
07
Jul-
07
Oct-
07
Jan-
08
Apr-
08
Jul-
08
Oct-
08
Jan-
09
Apr-
09
Jul-
09
Oct-
09
Jan-
10
Source: Confederation of Indian Industries
Q12010
8.60%
Apr-
10
May
-10
Jul-
10
DLF Limited 202,853 199,437 2% 41,103 42,638 -4%
Major Real EstateCompanies in
India
Sales (In INR / In Million) Profits (In INR / In Million)
Q2 2010 Q1 2010Q on Q
Change % Q2 2010 Q1 2010Q on Q
Change %
Unitech 82,857 113,248 -27% 18,004 16,341 10%
India Bulls 43,371 49176 -12% 13,358 9,427 42%Sobha Developers 31,560 39,950 -21% 3,430 5,570 -38%
Peninsula Land 14,831 22,474 -34% 4,996 9,627 -48%ParsvnathDevelopers 25,279 35,489 -29% 3,182 3,472 -8%
Pheonix 4,043 3,447 17% 1,826 1,570 16%
Omaxe Limited 25,293 37,820 -33% 2,172 4,511 -52%
MahindraLifespace 6,793 10,096 -33% 1,448 2,369 -39%
Ananthraj 10,342 3,409 203% 4,585 3,095 48%
Ackruti City 17,649 21,731 -19% 4,205 5,420 -22%
Ansal Properties 25,077 21,571 16% 3,686 -633 -682%
20-N
ov-0
8
20-D
ec-0
8
20-J
an-0
9
20-F
eb-0
9
20-M
ar-0
9
20-A
pr-0
9
20-M
ay-0
9
20-J
un-0
9
20-J
ul-0
9
20-A
ug-0
9
20-S
ep-0
9
20-O
ct-0
9
20-N
ov-0
9
20-D
ec-0
9
20-J
an-1
0
20-F
eb-1
0
20-M
ar-1
0
20-A
pr-1
0
MUMBAI MAP
6I ICITY REPORTMUMBAI OFFICE MARKET - Q2 2010
ElephantaIsland
ButcherIsland
N
TulsiLake
ViharLake
PowaiLake
DomesticAirport
Sahar Airport(International Airport)
Sanjay Gandhi National Park
knilaeS ilroW ar dnaB
Ar
ab
ia
n
S
ea
4
5
9
3 628
7
12
58
4
1
3
9
7
5
21
18
726
14
2
20
11
25
1
10
9
6
16
12
4
17
3
13
19
24
8
15
6
22
14
6
1
4
9
15
1316
5
11
2
8 12
103
7
12 3
4
yawhgiH sserpxE nretsaE
Chatrapati ShivajiTerminus (CST)
PUNE
Ahmed
abad
23
1. Girgaon2. Grant Road3.4.5.6.7.8.9.
Lower ParelMahalakshmiMumbai CentralPedder RoadPrabhadeviTardeoWorli
Extended CentralBusiness District
Alternate CentralBusiness District
1. Bandra2. Bandra East3. Bandra Kurla
Complex4. Santacruz East
(Kalina)
Periphery BusinessDistrict
1.2.3.4.5.6.7.8.9.10.11.12.13.14.15.16.
AiroliBelapurDombivaliGhansoliJui NagarKalwaKalyanKhargharKoper KhairneMumbraNerulPanvelSanpadaThaneTurbheVashi
Central BusinessDistrict
1.2.
3.4.5.6.7.8.9.
Breach CandyChatrapati Shivaji Terminus (CST)ChurchgateColabaCuffe ParadeFortMalabar HillMarine LineNariman Point
Secondary District
Business
1.2.3.4.5.6.7.8.9.
AndheriBandra WestBhandupBorivaliBycullaChemburDadarGhatkoparGoregaon
19. Powai20. Santacruz21. Sewri22. Sion23. Vidya Vihar24. Vikhroli25. Vile Parle26. Wadala
10.11.12.13.
JogeshwariJuhuKandivaliKanjurmarg
14. Kings Circle15. Kurla16. Malad17. Mulund18. Parel
7I I
CENTRAL BUSINESS DISTRICT (CBD)
There is not much activity in the CBD of Mumbai as no prominent transaction was recorded in this quarter. There are a few small format leasing transactions being reported mainly, by banks and financial institutions in Nariman Point area with the reopening of the Oberoi Hotel and Taj Mahal Hotel. The business activity in the area has increased.. It is expected that in the next 6 months, the occupancy in good quality buildings will improve.
The demand for large format space is slowly shifting to ECBD and ACBD. However, there are still 2-3 ongoing enquires of 100,000 sq.ft. of space in this area which can reinstate the sentiment of this region.
CITY REPORTMUMBAI OFFICE MARKET - Q2 2010
No major activity is recorded
Source: BNP Paribas Real Estate, India
Ballard Estate 275 250
Nariman Point 350 325
Fort 150 150
Cuffe Parade 225 200
Q12009
Q22009
RENTAL VALUES ( INR / SQ.FT / MONTH)Q3
2009Q4
2009
250
325
150
200
250
325
150
200
Q22010
Q12010
250
200
150
325
Source: BNP Paribas Real Estate, India
Q12009
Q22009
Ballard Estate 35,000 35,000
Nariman Point 40,000 40,000Fort 22,500 22,500
Cuffe Parade 30,000 30,000
CAPITAL VALUES (INR / SQ.FT)Q3
2009Q4
2009
35,000
40,000
22,500
30,000
35,000
40,000
22,500
30,000
Q12010
Q22010
35,000
30,000
22,500
40,000
The average headline rentals & capital values for the last 6 quarters are as follows:-
250
200
150
300
35,000
30,000
22,500
40,000
Nariman Point Ballard Estate
Cuffe Parade Fort
Rent
al V
alue
s (IN
R / s
q.ft
/ m
onth
)
0
50
100
150
200
250
300
350
400
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q12009
Q22009
Q32009
Nariman Point Ballard Estate
Cuffe Parade Fort
Capi
tal V
alue
s (IN
R / s
q.ft
)
Q42009
Q12010
Q22010
—
10,000
20,000
30,000
40,000
50,000
EXTENDED CENTRAL BUSINESS DISTRICT(ECBD)
There are new commercial projects on the verge of completion in this area, which will put downward pressure on rents and capital values. The new developments however also offer modern real estate with large floor plates and a choice to within the complex operations.
scaleup
8I ICITY REPORTMUMBAI OFFICE MARKET - Q2 2010
Supply outstrips demand
Q12009
Q22009
Mahalaxmi 15,000
Lower Parel 18,000
Worli 30,000 30,000
Prabhadevi 25,000 25,000
15,000
18,000
Source: BNP Paribas Real Estate, India
Q32009
Q42009
30,000
25,000
15,000
18,000
30,000
25,000
15,000
18,000
Q22010
Q12010
Mahalaxmi 150
Lower Parel 180
Worli 300 300
Prabhadevi 250 250
150
180
Q12009
Q22009
Source: BNP Paribas Real Estate, India
Q32009
Q42009
300
250
150
180
300
250
150
180
Q22010
Q12010
180
150
225
275
18,000
15,000
25,000
30,000
The average headline rentals & capital values for the last 6 quarters are as follows:-
RENTAL VALUES ( INR / SQ.FT / MONTH)
CAPITAL VALUES (INR / SQ.FT)
180
150
225
275
18,000
15,000
25,000
30,000
Rent
al V
alue
s (IN
R / s
q.ft
/ m
onth
)
0
50
100
150
200
250
300
350
400
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Worli Prabhadevi
Lower Parel Mahalaxmi
Capi
tal V
alue
s (IN
R / s
q.ft
)
Q12009
Q22009
Q32009
—
5,000
30,000
40,000
Worli Prabhadevi
Lower Parel Mahalaxmi
20,000
Q42009
Q12010
Q22010
10,000
15,000
25,000
35,000
ALTERNATE CENTRAL BUSINESS DISTRICT(ALTERNATE CBD)
There is a major shift of demand especially from international banks and financial institutions to Bandra Kurla Complex and adjoining areas of Santacruz East (Kalina) and Bandra East.The region has world class projects like Maker Maxity which is attracting attention from the top end international commercial occupiers. Other notable projects which attracted attention include Platina and upcoming projects like First India Financial Centre and The Capital.
9I ICITY REPORTMUMBAI OFFICE MARKET - Q2 2010
The favorite destination
Source: BNP Paribas Real Estate, India
Source: BNP Paribas Real Estate, India
Q12009
Q22009
Bandra - KurlaComplex 250 250
Bandra East 175 175
Kalina 200 200
Q32009
Q42009
250
175
200
250
175
200
Bandra - KurlaComplex 25,000 25,000
Bandra East 17,500 17,500
Kalina 20,000 20,000
Q12009
Q22009
Q32009
Q42009
25,000
17,500
20,000
25,000
17,500
20,000
Q22010
Q12010
Q22010
Q12010
300
175
200
30,000
20,000
22,500
The average headline rentals & capital values for the last 6 quarters are as follows:-
RENTAL VALUES ( INR / SQ.FT / MONTH)
CAPITAL VALUES (INR / SQ.FT)
325
175
200
30,000
20,000
22,500
Bandra - Kurla ComplexKalinaBandra East
Rent
al V
alue
s (IN
R / s
q.ft
/ m
onth
)
0
50
100
150
200
250
300
350
400
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Capi
tal V
alue
s (IN
R / s
q.ft
)
Q12009
Q22009
Q32009
—
5,000
20,000
25,000
40,000
10,000
15,000
30,000
35,000
Bandra - Kurla ComplexKalinaBandra East
Q42009
Q12010
Q22010
SECONDARY BUSINESS DISTRICT (SBD)
This region has witnessed renewed interest from commercial space occupiers. The developers are now offering flexible commercial terms which is attracting several occupiers to take up space in this area. However with the increasing supply, there will be downward pressure on property values. Powai and Vikhroli still remains one of the favorite destinations for occupiers.
10I ICITY REPORTMUMBAI OFFICE MARKET - Q2 2010
Demand is coming back
Source: BNP Paribas Real Estate, India
Source: BNP Paribas Real Estate, India
Q12009
Q22009
Vile Parle 120 120
Andheri W 110 110
Andheri E 120 120
Powai 90 90Vikhroli 65
Malad 90
Borivali 50
65
90
50
Q32009
Q42009
120
110
120
9065
90
50
120
110
120
9065
90
50
Vile Parle 12,000 12,000
Andheri W 11,000 11,000
Andheri E 12,000 12,000
Powai 9,000 9,000Vikhroli 6,500 6,500
Malad 9,000 9,000
Borivali 5,000 5,000
Q12009
Q22009
Q32009
Q42009
12,000
11,000
12,000
9,0006,500
9,000
5,000
12,000
11,000
12,000
9,0006,500
9,000
5,000
Q22010
Q12010
Q22010
Q12010
120
11060
809075120
12,000
11,0006,500
9,0009,0007,500
12,000
The average headline rentals & capital values for the last 6 quarters are as follows:-
Kurla 65 60 65 70 70
Kurla 8,500 8,500 8,500 8,000 8,000
RENTAL VALUES ( INR / SQ.FT / MONTH)
CAPITAL VALUES (INR / SQ.FT)
110
10060
809075140
80
12,000
11,0006,500
9,0009,0007,500
13,000
8,000
Rent
al V
alue
s (IN
R / s
q.ft
/ m
onth
)
Q12009
Q22009
Q32009
0
100
Vile Parle
Andheri East
Andheri WestPowai
Malad
Vikhroli
Borivali
40
Q42009
Q12010
Q22010
20
60
80
120
140
160
180
Kurla
Capi
tal V
alue
s (IN
R / s
q.ft
)
—
4,000
Vile ParleAndheri EastAndheri WestPowai
Malad
VikhroliBorivali
8,000
10,000
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
2,000
6,000
12,000
14,000
16,000
18,000
Kurla
PERIPHERY BUSINESS DISTRICT (PBD)
There is a good demand for SEZ projects in this region. Many large format occupiers transacted more than 1mn sq.ft of space in the last 6 months. It is expected that the leasing and capital values in this region may go up by the end of the year.
11I ICITY REPORTMUMBAI OFFICE MARKET - Q2 2010
Good demand from IT/ITES sector
Thane 4,000 4,000
Airoli 3,500 3,500
Vashi 6,500 6,000
Q12009
Q22009
Source: BNP Paribas Real Estate, India
Source: BNP Paribas Real Estate, India
Q32009
Q42009
4,000
3,500
6,000
Thane 40 40
Airoli 35 35
Vashi 65 60
Q12009
Q22009
Q32009
Q42009
40
35
60
40
35
60
4,000
3,500
6,000
Q22010
Q12010
Q22010
Q12010
40
40
60
4,500
4,000
6,000
The average headline rentals & capital values for the last 6 quarters are as follows:-
RENTAL VALUES ( INR / SQ.FT / MONTH)
CAPITAL VALUES (INR / SQ.FT)
40
40
60
4,500
4,000
6,000
Q12009
Q22009
Q32009
0
10
20
30
40
50
60
70
80
Vashi Thane Airoli
Rent
al V
alue
s (IN
R / s
q.ft
/ m
onth
)
Q42009
Q12010
Q22010
Q12009
Q22009
Q32009
—
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Capi
tal V
alue
s (IN
R / s
q.ft
)
Vashi Thane Airoli
Q42009
Q12010
Q22010
RENTAL VALUES FOR Q2 2010
12I ICITY REPORTMUMBAI OFFICE MARKET - Q2 2010
Source: BNP Paribas Real Estate, India
CAPITAL VALUES FOR Q2 2010
RentINR/ sq.ft/ month
Ballard Estate
Nariman PointFort
Cuffe Parade
Region Q on QChange
250
300150200 0%
0%
0%
-8%
Ballard Estate
Nariman PointFortCuffe Parade
Region INR / sq.ft Q on QChange
35,000
40,00022,50030,000
0%
0%0%0%
MahalaxmiLower Parel
WorliPrabhadevi
Region RentINR/ sq.ft/ month
Q on QChange
150180
275225
0%0%
0%
0%
MahalaxmiLower Parel
WorliPrabhadevi
Region Q on QChangeINR / sq.ft
15,00018,000
30,00025,000
0%0%
0%
0%
ThaneAiroli
Vashi
Region RentINR/ sq.ft/ month
Q on QChange
4040
600%0%
0%ThaneAiroli
Vashi
RegionQ on QChangeINR / sq.ft
4,5004,000
6,000
Vile Parle
Andheri WAndheri E
Powai
Region
Vikhroli
Malad
Borivali
RentINR/ sq.ft/ month
Q on QChange
140
100110
9075
80
60
17%
-9%-8%
0%
0%0%
0%Kurla 80 14%
Vile Parle
Andheri WAndheri E
PowaiVikhroli
Malad
Borivali
Region Q on QChangeINR / sq.ft
13,000
11,00012,000
9,0007,500
9,000
6,500
8%
0%0%
0%
0%
0%
0%
Kurla 8,000 0%
Bandra - KurlaComplexBandra EastKalina
Region RentINR/ sq.ft/ month
Q on QChange
325
175200
8%
0%0%
Bandra - KurlaComplexBandra EastKalina
Region Q on QChangeINR / sq.ft
30,000
20,00022,500
0%
0%0%
CBD CBD
Extended CBD Extended CBD
Alternate CBD Alternate CBD
SBD SBD
PBD PBD
0%0%
0%
13I I
KEY TRANSACTIONS
CITY REPORTMUMBAI OFFICE MARKET - Q2 2010
Q2 2010
Building Occupiers Space(in sq.ft) District Location
Express Towers Wells Fargo 6,500 CBD Nariman Point
Udyog Bhavan Oasis Consulting 3,500 CBD Ballard Estate
One India Bulls AMFI 6,000 Extended CBD Lower Parel
Windsor First Data 6,700 Alternate CBD Kalina
Platina Wachovia RE 3,000 Alternate CBD Bandra Kurla Complex
247 Park Siemens 100,000 SBD Vikhroli
Canon Rustomjee Natraj 15,000 SBD Andheri East
Amway Rustomjee Natraj 15,000 SBD Andheri East
Boomerang GPX 35,000 SBD Andheri East
Cepla Raj Plaza 20,000 SBD Vikhroli
Qube Kingfisher Airlines 60,000 SBD Andheri East
Supreme Business Park Fullerton India 60,000 SBD Powai
Boomerang Heurtey Petrochem 30,000 SBD Chandiwali
Kalpataru Square Llyods Register Asia 21,500 SBD Andheri East
Kalpataru Square Indofil Chemicals Company 10,700 SBD Andheri East
Leela Business Park Torm Shipping 20,000 SBD Andheri East
Mindspace Karmic Labs Pvt ltd 11,300 PBD Airoli
Dosti Pinnacle Tata Motors 6,500 PBD Thane
Sun Infotech Park India Infoline 115,000 PBD Thane
Dosti Pinnacle Façade India 6,500 PBD Thane
14I I
KEY PROJECTS
CITY REPORTMUMBAI OFFICE MARKET - Q2 2010
New Supply – Year 2010
Building Location Micro Market Space (in sq.ft)
Completion Date(expected)
One India Bulls Centre Lower Parel Extended CBD 700,000 Ready
India Bulls Financial Centre Lower Parel Extended CBD 500,000 Q2 2010
Cynergy Prabhadevi Extended CBD 400,000 Q3 2010
Peninsula Business Park Lower Parel Extended CBD 1,300,000 Q3 2010
Wadia Plaza Worli Extended CBD 400,000 Q3 2010
Sheth Developers Prabhadevi Extended CBD 350,000 Q4 2010
Cresenzo Bandra Kurla Complex Alternate CBD 577,000 Ready
Grande Palladium Kalina Alternate CBD 150,000 Ready
Ackruti Iris Andheri East Alternate CBD 700,000 Q1 2011
Pooja Constructions Bandra Kurla Complex Alternate CBD 160,000 Ready
Ackruti Gold Bandra Kurla Complex Alternate CBD 100,000 Ready
Rustomjee Natraj Andheri East SBD 286,000 Q2 2010
Silver Uthopia Andheri East SBD 400,000 Q2 2010
Rustomjee Aspire Sion SBD 124,000 Ready
IT Park, Ajmera Andheri East SBD 1,100,000 Q2 2010
Supreme Chambers Andheri West SBD 240,000 Ready
Ackruti Star Andheri East (MIDC) SBD 400,000 Q2 2010
Boomerang Chandivali SBD 1,000,000 Q2 2010
Western Edge Borivali SBD 400,000 Ready
Ruby Dadar SBD 1,000,000 Q4 2010
Suntech Grandeur Andheri West SBD 100,000 Q2 2011
Reliable Tech Park Airoli PBD 1,000,000 Q2 2010
Mindspace Airoli PBD 600,000 Q1 2011
Amruta Thane PBD 42,000 Q2 2010
G Corp Tech Park Thane PBD 700,000 Ready
Mindspace SEZ Airoli PBD 600,000 Ready
Gigaplex Airoli PBD 300,000 Ready
Nitco Business Park Thane PBD 170,000 Ready
15I ICITY REPORTMUMBAI OFFICE MARKET - Q2 2010
GLOSSARYQ2:
Super Built-up Area (SBUA):
Carpet Area:
Sq.mt:
Mn:
New:
Recent:
SEZ:
BFSI:
SLR:
FSI:
MMRDA:
Quarter 2 of the financial year (April - May - June)
Built-up area + common area including lifts area, common passages, utilities, terrace etc. & varies from building to building.
Actual usable area, and does not include any common areas, area occupied by walls etc.
Square Meter
Million
Building built within the last 5 years.
Building less than 10 years old.
Special Economic Zone having special tax exemptions / incentives to corporate occupiers
Banking & Financial Services Industry
Statutory Liquidity Ratio
Floor Space Index
Mumbai Metropolitan Region Development Authority
Absorption:
Bare Shell:
BPO:
BUA:
Completed Stock:
DU:
EPIP:
FAR:
Grade A Space:
Ground Coverage:
Hard Option:
INR:
Pre-lease:
Speculative Stock:
Stock:
Supply:
Transaction Volumes:
Vacancy:
Warm Shell:
Q on Q:
y-o-y:
IT:
ITES:
Repo Rate:
Reverse Repo Rate:
SEC A, B, C & D Socio:
Sq.ft:
Stamp Duty:
Occupied Stock (n) – Occupied Stock (n-1); Where “n” is the specified period (quarter, year etc.)
Premises consisting of basic structure with lifts, power supply to junction box, water supply line, toilets
Business Process Outsourcing
Built up area
Either the building has received occupancy certificate or the client has moved in and occupied space and started working in a particular premises
Dwelling Unit
Export Promotion Industrial Park
Floor Area Ratio (BUA/ Plot Area)
Office Space with efficiency in excess of 75%, floor plate in excess of 15,000 sq. ft., Car Parking ratio of atleast 1 per 1000 sq. ft., Floor-to-ceiling height in excess of 3.75 m, Power provision of 1.25KVA per 100 sq. ft. with 100% power-backup wherever applicable and professionally managed facilities
It is the total covered area on ground by the built component and is expressed as a percentage of the plot area
Real estate space reserved by the lessee for future occupation within a particular time frame and at a pre-decided rental
Indian National Rupees
Space committed for lease before completion of construction
The stock which can be leased and excludes Built-to-Suit (BTS) and Campus facilities.
Cumulative Supply
New construction in a particular specified period
Total number of transaction in a particular specified period
Total vacant space in the completed stock
Premises consisting of power backup, high side A.C., common area fit outs and fitted out toilets
Quarter on Quarter
year-on-year (All growth figures in this report are y-o-y unless otherwise mentioned
Information Technology
Information Technology Enabled Services (includes various services ranging from call centres, claims processing, medical transcription, e-CRM, SCM to back-office operations such as accounting, data processing, and data mining)
Rate that an eligible depository institution (such as a bank) is charged to borrow short term funds directly from the central bank through the discount window
Interest rate that a bank earns for lending money to the Reserve Bank of India in exchange for government securities
Economic Classification; SEC A represents the highest propensity to spend and SEC D represents the lowest propensity to spend.
Square Feet
Form of tax charged on instruments (written documents) requiring a physical stamp (for government legality) to be attached to or impressed.
CRR:
Headline rent:
Average headline rent:
Disclaimer:
Cash Reserve Ratio
Monthly rent per square feet, charged on super built-up area basis, featured on the lease, and expressed excluding fitouts, taxes, deposits, advances, maintenance charges and does not take into account building efficiency (super built up area - carpet area ratio). Further it does not include attached premises such as parking areas, archives, staff canteens, etc. If the rental is progressive, the value applied is the average for the first 3 years or the fixed term of the lease.
Weighted average of rented area. The average featured is a moving average over the quarter, to smooth out the changes, exclusive of all taxes, deposits, advances & maintenance charges.
Major Refurbishment:
Renovated:
Modern:Old:CCI (Cost of construction index):
Demand:
For the occupier:New Supply:
Completed new supply:Under construction:
Planning permission granted:
Planning permission submitted:Pre-letting:
Underlying rent:
Prime rents:
Top rent:
Second hand premises:
Very good condition:Existing state of repair:To be renovated:Supply available within 1 year:
Take-up:
Vacancy rate:
Building which has undergone structural alteration less than 5 years ago, subject to planning permission.
.
Building which has undergone renovation work not requiring for planning permission less than 5 years ago.
High-performance building over 10 years old. Low-performance building over 10 years old.
Index that makes quarterly measurements of construction prices for new house building. It is the price after VAT paid by the owner to construction companies. It excludes land-related prices and costs (site development, special foundations, etc.), fees and financial costs.
A search for premises expressed to BNP Paribas Real Estate. The analysis pertains only to the flow of new demand expressed.
Operation undertaken by an occupier for its own purposes. Any new building and/or heavily refurbished building that adds to the
existing stocks. These are analysed according to progress. Buildings on which construction work is finished.
Buildings on which construction has effectively begun. Prior demolition work is not taken into account.
Authorisation to build obtained, generally booked after settlement of third party claims.
Planning permission requested, being processed.Transaction by an occupier more than 6 months before the delivery of the
building.
Annual rent per square meter expressed free of tax and charges and excluding advantages agreed by the owners (rent incentive building works, etc).
Represents the top headline rent (excluding non significant transactions) for an office unit:- of standard size, of the highest quality and specification, in the best location in each market.
Represents the top headline rent for an office unit. It is not necessarily a prime rent.
Premises that have been previously occupied by an occupier for vacant for more than 5 years.
High-performance premises of high quality. Low-performance premises that can be rented as they are.
Low performance premises that need renovation. All premises and buildings available within 1 year
including the supply available immediately, new supply that has not been pre-let and second hand supply that will be vacated definitively (notable terminated leases).
Rental or sale of a property asset, finalised by the signature of a lease or a bill of sale including turnkey transactions and owner-occupier. The transaction is only taken into account once any existing conditional clauses have been lifted.
Ratio measuring the relationship between the supply immediately available and the existing stock.
This report is released by BNP Paribas Real Estate & Infrastructure Advisory Services and the information in it is dedicated to the exclusive use of its clients. The report and the information contained in it should not be copied or reproduced without prior permission from BNP Paribas Real Estate and Infrastructure Advisory Services. The facts of these reports are believed to be correct at the time of it's release but cannot be guaranteed. Please note the findings, projections, conclusions and recommendations are based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. BNP Paribas Real Estate & Infrastructure Advisory Services cannot be held responsible if, despite it's best efforts, the information contained in the present report turns out to be inaccurate or incomplete.
www.realestate.bnpparibas.com
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ALBANIA*Danos & AssociatesBlvd. Deshmoret e KombitTwin Towers - Building 211th FloorTiranaTel.: +355-4-2280488Fax: +355-4-2280192
AUSTRIA*Dr. Max Huber & PartnerDr. Karl-Lueger-Platz 51010 ViennaTel: +43-1-513 29 39 0Fax: +43-1-513 29 39 14
BULGARIA*
28, Hristo Botev BoulevardSofiaTel: +359-2-9532314Fax: +359-2-9532399
CANADA*Cresa PartnersTel.: +1-617-758 6000Fax: +1-617-742 0643
CYPRUS*Danos & Associates35, I. Hatziosif Ave2027, NicosiaTel.: +357-22 31 70 31Fax: +357-22 31 70 11
Danos & Associates
GREECE*Danos & Associates1, Eratosthenous Str.11635 AthensTel: +30-210 7 567 567Fax: +30-210 7 567 267
JAPAN*RISA Partners5F Akasaka Intercity 1-11-44Akasaka, Minato-ku107-0052 TokyoTel: +81-3-5573 8011Fax: +81-3-5573 8012
RUSSIA*Astera10, b.2 Nikolskaya Str.Moscow, 109012Tel/Fax: +7-495-925 00 05
NETHERLANDS*Holland Realty PartnersJ.J. Viottastraat 33,1071 JPAmsterdam,Tel: +31-20-305 97 20Fax: +31-20-305 97 21
NORTHERN IRELAND*Whelan Property Consultants44 Upper Arthur StreetBelfast Bt1 4GJTel: +44-28-9044 1000Fax: +44-28-9033 2266
POLAND*Brittain Hadley EuropaWarsaw Financial Centre13th floorEmilii Plater 5300-113 WarsawTel.: +48-22-586 31 00Fax: +48-22-586 31 16
SERBIA*6, Vladimira Popovica StreetOffice B3111000 BelgradeTel.: +381-11-2600 603Fax: +381-11-2601 571
SLOVAKIA*Modesta (Dr. Max Huber &Partner Group)Heydukova 12-14811 08 BratislavaTel.: +421-2-3240 8888Fax: +421-2-3214 4777
SWITZERLAND*NaefAvenue Eugène-Pittard 14-16Case Postale 301211 Geneva 17Tel.: +41-22 839 39 39Fax: +41-22 839 38 38
UKRAINE*Astera2a Konstantinovskaya Street04071, KievTel: +38-044-501 50 10Fax: +38-044-501 50 11
USA*Cresa Partners200 State Street13th FloorBoston, Massachusetts 02109Tel.: +1-617-758 6000Fax: +1-617-742 0643
Falcon Real Estate570 Lexington Avenue32nd FloorNew York, NY 10022Tel.: +1-212 271-5445Fax: +1-212 271-5588
ABU DHABIAl Bateen AreaPlot No. 144, W-11New Al Bateen MunicipalityStreet 32P.O. Box 2742Abu Dhabi, UAETel.: +971-505 573 055Fax: +971-44 257 817
BELGIUMBlue TowerAvenue Louise 326B14 Louizalaan1050 BrusselsTel: +32-2-646 49 49Fax: +32-2-646 46 50
DUBAIEmmar SquareBuilding No. 1, 7th FloorP.O. Box 7233Dubai, UAETel: +971-505 573 055Fax: +971-44 257 817
FRANCE13 boulevard du Fort de Vaux75017 ParisTel: +33-1-55 65 20 04Fax: +33-1-55 65 20 00
GERMANYGoetheplatz 460311 FrankfurtTel.: +49-69-2 98 99 0Fax: +49-69-2 92 91 4
IRELAND40 Fitzwilliam PlaceDublin 2Tel: +353-1-66 11 233Fax: +353-1-67 89 981
JERSEY4th Floor, Conway HouseConway StreetSt HelierJersey Je2 3NTTel: +44-15 34-62 90 01Fax: +44-15 34-62 90 11
ITALYCorsa Italia, 15/A20122 MilanTel: +39-02-58 33 141Fax: +39-02-58 33 14 39
LUXEMBOURGAxento BuildingAvenue J.F. Kennedy 441855 LuxembourgTel.: +352-34 94 84Fax: +352-34 94 73
ROMANIAUnion International Center11 Ion Campineanu StreetSector 1Bucharest 010031Tel: +40-21-312 7000Fax: +40-21-312 7001
SPAINMaría de Molina, 5428006 MadridTel: +34-91-454 96 00Fax: +34-91-454 97 65
UNITED KINGDOM90 Chancery LaneLondon WC2A 1EUTel: +44-20-7338 4000Fax: +44-20-7430 2628
*Alliances
Bangalore403, The Estate,121, Dickenson Road,Bangalore - 560 042Tel: +91 80 4050 8888Fax: +91 80 4050 8899
DelhiUpper ground floor, Unit No 7,Mercantile House, 15 KG Marg,New Delhi 110001Tel: +91 11 4959 8800Fax: +91 11 4959 8818
INDIA
Mumbai704, Level 7, MMTC House, C-22,Bandra Kurla Complex, Bandra (E),Mumbai - 400 051Tel: +91 22 6138 8088Fax: +91 22 6138 8089
For Queries / Comments:Tasneem Gandhi at+91 9930141009 or email at [email protected]
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BNP PARIBAS REAL ESTATE& INFRASTRUCTURE ADVISORYSERVICES PVT. LTD.