city report - mumbai office market - q3 2010

CITY REPORTMUMBAI OFFICE MARKET

Q3 2010

BNP Paribas Real EstateAll the buildings blocks

In India our specialists bring you our expertise in Transaction Advisory, Valuation, Consulting.With our international scope and on-the-ground presence, you’ll find the perfect partner that can ensure thesuccess of your real estate project. With BNP Paribas Real Estate, all the pieces come together.

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Your contact in India: Bangalore: +91 80 4030 0334 - Mumbai: +91 22 6138 8088 - Delhi: +91 11 4959 [email protected]

BNP Paribas Real Estate and Infrastructure Advisory Services Pvt. Ltd

CITY REPORTMUMBAI OFFICE MARKET - Q3 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 Mumbai Metropolitan Region (MMR) witnessed strong demand from corporate end users in Q3 of 2010. There is an increase in absorption of commercial real estate and IT/SEZ real estate space in the city and in the suburbs. The absorption is mainly led by banking and financial services companies and also by telecom and IT services companies. Further, there is also a good amount of uptake of space by pharma, shipping and logistics companies especially in the SBD of Andheri. The Bandra Kurla Complex remains the most favourable location for the high end corporate occupier. This district is also the most preferred area for investment by the corporate and retail investors. Many commercial properties were launched as an “off plan offer” and attracted attention largely form retail investors and also from some corporate investors. Over all the construction activity has picked up and it is expected that approximately 3 mn. sq.ft. of new supply will be added by the end of the year.

On the development side, there are many new projects being announced in all parts of Mumbai. At the same time, many developers especially in the suburbs plan to convert their upcoming commercial projects into either mixed use development or residential development. There has been a surge in demand for land in Mumbai as all major land auctions were successfully sold at a premium. Some of the land transactions announced in this quarter includes Indiabulls Real Estate buying Poddar Mill land (2.3 acre) for USD 105 mn. approx and Bharat Mills land ( 8.37 acres) for USD 326 mn. , both in Worli area, Sheth group buying 18 acres of Borosil land at Andheri for USD 185 mn. and Suntech buying 6 acres of land at Goregaon for USD 34 mn. In the SBD of Borivili, an existing building complex (Mangal Kunj) of over 100,000 sq.ft. consisting of 5 building s and 100 shops got sold at a record price of Rs. 100,000 per sq.ft. Though most of these lands will be converted into residential developments or mixed use developments, it will have a positive impact on nearby commercial developments.

The real estate stocks of real estate companies or companies which announced real estate projects in this quarter saw a high upward movement in their stock prices. Some of the key stocks include Indiabulls Real Estate and Supreme Industries, which saw a major jump over the last quarter.

On the Government side, The Maharashtra government has decided to create a Mumbai Development Fund (MDF) to finance mega infrastructure projects in the city. The fund will be created by imposing new levies and charges on big construction schemes and, possibly, on users of the new metro and monorail projects. The levies will also include part of the money received from charging a premium for the grant of additional FSI and TDR (Transfer of Development Rights). While USD 150 mn. is expected from additional FSI premia, additional funds will be generated by imposing a development surcharge on construction projects above 10,000 sq ft. Further, as per the draft CRZ (Coastal Regulation Zone) notification 2010, the environment ministry has announced that it will allow redevelopment on Mumbai coastal slums. This may give scope for some new hotel developments to come up on the coastal line, however it is too soon to make such an assumption.

Another major development in this quarter is launch of real estate ratings by CRISIL ( a standard and poor company). The ratings are expected to bring greater transparency to assessing real estate projects. The ratings given would be city-specific and based on five parameters – the quality of legal documentation, construction-related risks, the financial flexibility of the project, and the background and track record of the project sponsor.

The rental and capital values for commercial real estate in MMR are expected to remain stable, albeit certain vibrant districts like Bandra Kurla Complex, where there can be further increase in the prices.

Strong corporate occupier demand. Frenzy land buying by developers


Repo Reverse Repo

Repo & Reverse Repo Rate7

6

3

Perc

ent

1


MACROECONOMIC CONTEXTThe Central Bank takes a more sophisticated approach: maintains status quo on CRR & SLR

5I I

SLR CRR

CRR & SLR30

20

10

5

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%

9.30%

8.80%

8.80%

7.90%7.60%

5.30%

5.80%

6.10%

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%

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

22-M

ay-0

9

22-J

un-0

9

23-J

ul-0

923

-Aug

-09

23-S

ep-0

9

24-O

ct-0

9

24-N

ov-0

9

25-D

ec-0

9

25-J

an-1

0

25-F

eb-1

0

19-M

ar-1

0

20-A

pr-1

0

Sep-

10

15

25

20-M

ay-1

0

20-J

un-1

0

27-J

ul-1

020

-Aug

-10

16-S

ep-1

0

2

4

5

0

Jul-

10

Q22010

8.80%

2-Ju

l-10

The Reserve Bank's Review of Monetary Policy on July 27, 2010 expressed concerns over the global outlook. Indicators of economic activity in advanced economies continue to suggest that the recovery is slowing and that the second half of 2010 will post slower growth than the first, although expectations have generally not been revised downwards since end-July.

Under the Liquidity Adjustment Facility (LAF), the RBI has increased the repo rate by 25 basis points from 5.75% to 6.0% and also hiked the reverse repo rate by 50 basis points from 4.5% to 5.0% with immediate effect. This will help maintain financial conditions conducive to sustaining growth, according to the RBI.

India’s GDP during the quarter starting July 2010, rose to 8.8%. Although some of this is attributable to a favourable base effect, the growth rate indicates that the recovery is consolidating and the economy is rapidly converging to its trend rate of growth. Inflation remains the dominant concern in macroeconomic management. The main priority of the Reserve Bank is to curb the ongoing inflation, which peaked at 11% in the month of August. Interest rates have been increased by the banks to contain the inflation, but it could slow down the growth of the Indian economy in the coming months. But even though there has been a rise in the interest rates, there hasn't been much change in the distribution of loans, the Indian customer is hardly affected with the hiked interest rates. Overall, even as the global environment continues to be a cause for caution, the big picture has not worsened significantly since July.

India has replaced the US as the second most important Foreign Directive Investment (FDI) destination for transnational corporations during 2010-2012, according to a survey conducted UNCTAD. In its latest 'World Investment Prospects Survey 2010-2012', the United Nations Conference on Trade and Development said transnational corporations remain buoyant about investment prospects in China, India and Brazil. According to the survey, India is the most important FDI destination next only to China.

DLF Limited 20,285 17% 4,110 2%

Major Real EstateCompanies in

India

Sales (In INR / In million) Profits (In INR / In million)

Q3 2010 Q2 2010Q on Q

Change % Q3 2010 Q2 2010Q on Q

Change %

Unitech 8,286 -22% 1,800 -3%

India Bulls 4,337 25% 1,336 31%Sobha Developers 3,156 35% 343 72%

Peninsula Land 1,483 -17% 500 28%ParsvnathDevelopers 2,528 -23% 318 82%

Pheonix 404 10% 183 21%

Omaxe Limited 2,529 40% 217 69%

MahindraLifespace 679 31% 145 70%

Anantraj 1,034 28% 459 5%

Ackruti City 1,765 -8% 421 31%

Ansal Properties 2,508 27% 369 -38%

5,414 1,745

4,257 589

1,226 638

443

890 247

1,624 550

3,197 228

221

23,690 4,186

3,544 368

1.329 480

6,445 1,740

1,955 579

MUMBAI MAP

6I ICITY REPORTMUMBAI OFFICE MARKET - Q3 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)

Due to attractive leasing rates, the CBD of Mumbai is witnessing some renewed interest especially from small size corporate tenants. However, the medium and large format corporate occupiers (5,000 sq.mts and above) still prefer to move to ECBD and to ACBD.

The vacancy rate is increasing and therefore, there is a downward pressure on leasing and capital values.


Stable occupier demand

Source: BNP Paribas Real Estate, India

Ballard Estate 250

Nariman Point 325

Fort 150

Cuffe Parade 200

Q22009

RENTAL VALUES ( INR / SQ.FT / MONTH)Q3

2009Q4

2009

250

325

150

200

250

325

150

200

Q22010

Q12010

250

200

150

325


Q22009

Ballard Estate 35,000

Nariman Point 40,000Fort 22,500

Cuffe Parade 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

Q22009

Q32009

Q42009

Q12010

Q22010

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

Q32010

Q32010

Q32010

Q32010

220

200

150

290

35,000

30,000

22,500

40,000

EXTENDED CENTRAL BUSINESS DISTRICT(ECBD)

This district is vibrant in terms of number of enquiries from corporate occupiers and investors. However, very few transactions have been reported. It is expected that there will be a downward pressure on rental and capital values owing to increase in upcoming new supply in this district.


Many enquiries, less conversions

Q22009

Mahalaxmi

Lower Parel

Worli 30,000

Prabhadevi 25,000

15,000

18,000


Q32009

Q42009

30,000

25,000

15,000

18,000

30,000

25,000

15,000

18,000

Q22010

Q12010

Mahalaxmi

Lower Parel

Worli 300

Prabhadevi 250

150

180

Q22009


Q32009

Q42009

300

250

150

180

300

250

150

180

Q22010

Q12010

180

150

225

275

18,000

15,000

25,000

30,000


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

Q22009

Q32009

Q42009

Q12010

Q22010

Worli Prabhadevi

Lower Parel Mahalaxmi

Capi

tal V

alue

s (IN

R / s

q.ft

)

Q22009

Q32009

—

5,000

30,000

Worli Prabhadevi

Lower Parel Mahalaxmi

20,000

Q42009

Q12010

Q22010

10,000

15,000

25,000

35,000

Q32010

Q32010

Q32010

Q32010

170

150

220

250

20,000

15,000

25,000

30,000

ALTERNATE CENTRAL BUSINESS DISTRICT(ALTERNATE CBD)

There is high investor demand to buy commercial office space in this district. Most of the properties offered on sale are selling briskly on off plan basis. The new project announcement, especially in Bandra Kurla Complex have generated lot of interest from corporate and rental investors. The lease rental and capital values have again appreciated in this district. It is expected that the activity in this district will remain buyout and there can be another 5-10% appreciation in the next 3-6 months.


Good investor damand



Q22009

Bandra - KurlaComplex 250

Bandra East 175

Kalina 200

Q32009

Q42009

250

175

200

250

175

200

Bandra - KurlaComplex 25,000

Bandra East 17,500

Kalina 20,000

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




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

Q22009

Q32009

Q42009

Q12010

Q22010

Capi

tal V

alue

s (IN

R / s

q.ft

)

Q22009

Q32009

—

5,000

20,000

25,000

10,000

15,000

30,000

35,000

Bandra - Kurla ComplexKalinaBandra East

Q42009

Q12010

Q22010

Q32010

Q32010

Q32010

Q32010

350

175

190

32,000

20,000

22,500

400

SECONDARY BUSINESS DISTRICT (SBD)

There is a good demand from existing corporate occupiers to upgrade to upcoming new and modern buildings in this district. This district, today has approximately 60% of the entire supply of Mumbai metropolitan region. There is a good investor demand for projects abutting the Western Express Highway. Powai continues to attract attention from corporate occupiers.


Renewed interest from corporate occupiers



Q22009

Vile Parle 120

Andheri W 110

Andheri E 120

Powai 90Vikhroli

Malad

Borivali

65

90

50

Q32009

Q42009

120

110

120

9065

90

50

120

110

120

9065

90

50

Vile Parle 12,000

Andheri W 11,000

Andheri E 12,000

Powai 9,000Vikhroli 6,500

Malad 9,000

Borivali 5,000

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


Kurla 60 65 70 70

Kurla 8,500 8,500 8,000 8,000



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

)

Q22009

Q32009

0

100

Vile Parle

Andheri East

Andheri WestPowai

Malad

Vikhroli

Borivali

40

Q42009

Q12010

Q22010

20

60

80

120

140

160

Kurla

Capi

tal V

alue

s (IN

R / s

q.ft

)

—

4,000

Vile ParleAndheri EastAndheri WestPowai

Malad

VikhroliBorivali

8,000

10,000

Q22009

Q32009

Q42009

Q12010

Q22010

2,000

6,000

12,000

14,000

16,000

Kurla

Q32010

Q32010

Q32010

Q32010

100

9060

809070130

90

13,000

12,0008,000

9,0009,5008,000

13,500

9,500

PERIPHERY BUSINESS DISTRICT (PBD)

There is a increase in activity in the SEZ space in this district as there is a lot of new demand from software companies. However, the IT real estate space has few takers and a lot of ready space is available to lease sell. The capital values have improved significantly owing to investor demand. It is expected that this district will remain active and some more leasing and sale activity will be reported for the remaining year.

as well as to


High demand for SEZ space

Thane 4,000

Airoli 3,500

Vashi 6,000

Q22009



Q32009

Q42009

4,000

3,500

6,000

Thane 40

Airoli 35

Vashi 60

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




40

40

60

4,500

4,000

6,000

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

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

Q32010

Q32010

Q32010

Q32010

38

42

70

5,000

4,500

7,500

RENTAL VALUES FOR Q3 2010



CAPITAL VALUES FOR Q3 2010

RentINR/ sq.ft/ month

Ballard Estate

Nariman PointFort

Cuffe Parade

Region Q on QChange

220

290150200 0%

0%

-12%

-3%

Ballard Estate

Nariman PointFortCuffe Parade

Region INR / sq.ft Q on QChange

0%

0%0%0%

MahalaxmiLower Parel

WorliPrabhadevi

Region RentINR/ sq.ft/ month

Q on QChange

150170

250220

0%-2%

-6%

-9%

MahalaxmiLower Parel

WorliPrabhadevi

Region Q on QChangeINR / sq.ft

15,00020,000

30,00025,000

0%0%

11%

0%

ThaneAiroli

Vashi


Q on QChange

4238

705%-5%

17%ThaneAiroli

Vashi

RegionQ on QChangeINR / sq.ft

5,0004,500

7,500

Vile Parle

Andheri WAndheri E

Powai

Region

Vikhroli

Malad

Borivali

RentINR/ sq.ft/ month

Q on QChange

130

90100

9070

80

60

-7%

-10%-9%

-7%

0%0%

0%Kurla 90 13%

Vile Parle

Andheri WAndheri E

PowaiVikhroli

Malad

Borivali


13,500

12,00013,000

9,5008,000

9,000

8,000

4%

9%8%

7%

0%

23%

6%

Kurla 9,500 19%

Bandra - KurlaComplexBandra EastKalina


Q on QChange

350

175190

8%

0%-5%

Bandra - KurlaComplexBandra EastKalina


32,000

20,00022,500

7%

0%0%

CBD CBD

Extended CBD Extended CBD

Alternate CBD Alternate CBD

SBD SBD

PBD PBD

11%13%

25%

35,00030,00022,50040,000

13I I

KEY TRANSACTIONS


Q3 2010

Building Occupiers Space(in sq.ft)

Micro Market Location

Lodha Excelus, Mahalaxmi HDFC Standard Life Insurance 95,013 Extended CBD Mahalaxmi

Trade View NYK Logistics 21,000 Extended CBD Lower Parel

Peninsula Tower Walt Disney 7,000 Extended CBD Lower Parel

Fortune 2000 Global Bio Care 8,000 Alternate CBD Bandra Kurla Complex

Raheja Towers Gartner 18,500 Alternate CBD Bandra Kurla Complex

Platina AIG Real Estate 3,000 Alternate CBD Bandra Kurla Complex

Kohinoor City IIBF 50,000 SBD Kurla - West

Nomura Bldg Religare 25,000 SBD Powai

Supreme Business Park Fullerton 60,000 SBD Powai

Credit Suisse Bldg Credit Suisse 40,000 SBD Powai

Kohinoor City ALD Automotive 10,000 SBD Kurla - West

DLH Park Max Mobile 45,000 SBD Goregaon West

Kaledonia State Bank of India 20,000 SBD Andheri

Rustomjee Nataraj Amway 15,000 SBD Andheri

Mind Space First Source 100,000 PBD Airoli

Reliable Tech Park Spanco 70,000 PBD Airoli

Vishwaroop IT Park IBM 7,000 PBD Vashi

iThink, Thane FLSmidth 38,133 PBD Thane

iThink, Thane Pan Gulf Technologies 34,623 PBD Thane

iThink, Thane Tata Capital 128,394 PBD Thane

Kesar Solitaire Danfoss 8,800 PBD Sanpada

Sun Infotech Park India Infoline 115,000 PBD Thane


14I I

KEY PROJECTS


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 Ready

Cynergy Prabhadevi Extended CBD 400,000 Q4 2010

Peninsula Business Park Lower Parel Extended CBD 1,300,000 Q4 2010

Wadia Plaza Worli Extended CBD 400,000 Q4 2010

Cresenzo Bandra Kurla Complex Alternate CBD 577,000 Q4 2010

Grande Palladium Kalina Alternate CBD 150,000 Ready

Supreme Chambers Andheri West Alternate CBD 275,000 Ready

Pooja Constructions Bandra Kurla Complex Alternate CBD 160,000 Ready

Rustomjee Natraj Andheri East SBD 286,000 Ready

Silver Uthopia Andheri East SBD 400,000 Q4 2010

Rustomjee Aspire Sion SBD 124,000 Ready

IT Park, Ajmera Andheri East SBD 1,100,000 Q4 2010

Supreme Chambers Andheri West SBD 240,000 Ready

Ackruti Star Andheri East (MIDC) SBD 400,000 Ready

Boomerang Chandivali SBD 1,000,000 Ready

Western Edge Borivali SBD 400,000 Ready

Ruby Dadar SBD 1,000,000 Q4 2010

Reliable Tech Park Airoli PBD 1,000,000 Q4 2010

Amruta Thane PBD 42,000 Ready

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



GLOSSARYQ3:

Super Built-up Area (SBUA):

Carpet Area:

Sq.mt:

Mn:

New:

Recent:

SEZ:

BFSI:

SLR:

FSI:

MMRDA:

Quarter 3 of the financial year (July - August - September)

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

Bangalore (Regd. Office)Level 15, Concorde Block,UB City, Vittal Mallya Road,Bangalore – 560001Tel: +91 80 4030 0334Fax: +91 80 4030 0400

DelhiUpper ground floor, Unit No 7,Mercantile House, 15 KG Marg,New Delhi 110001Tel: +91 11 4959 8800Fax: +91 11 4959 8818

INDIA

For Queries / Comments:Tasneem Gandhi at+91 9930141009 or email at [email protected]

BNP PARIBAS REAL ESTATE& INFRASTRUCTURE ADVISORYSERVICES PVT. LTD.

Mumbai (Head Office)704, Level 7, MMTC House, C-22,Bandra Kurla Complex, Bandra (E),Mumbai - 400 051Tel: +91 22 6138 8088Fax: +91 22 6138 8089

city report - mumbai office market - q3 2010

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