city report mumbai office market q4 2010
TRANSCRIPT
CITY REPORTMUMBAI OFFICE MARKET
Q4 2010
BNP Paribas Real Estate - INDIAAll the building blocks
www.realestate.bnpparibas.co.in
BNP
Pari
bas
Real
Est
ate
- SA
S au
cap
ital d
e 32
9 19
6 60
8 €
- 69
2 01
2 18
0 RC
S Pa
ris
- Co
de N
AF 4
110B
- S
iège
soc
ial :
13,
bou
leva
rd d
u Fo
rt d
e Va
ux -
750
17 P
aris
In India our specialists bring you our expertise in With our international scope and on-the-ground presence, you’ll find the perfect partner that can ensure the success of your real estate project. With BNP Paribas Real Estate, all the pieces come together.
Transaction Advisory, Consulting and Land and Building Valuations.
BNP Paribas Real Estate and Infrastructure Advisory Services Pvt. Ltd
Your contacts in India: Mumbai (Head Office) : +91 22 6138 8088 - Bangalore : +91 80 4030 [email protected]
Delhi : +91 11 4959 8800 -
CITY REPORTMUMBAI OFFICE MARKET - Q4 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 office market has responded favorably to corrections in rental values across the various markets in Mumbai city. The city witnessed some notable transactions from Extended CBD to PBD micro markets between Q3 2010 to Q4 2010. Significant absorption levels were witnessed across fresh stocks being launched in the market. However, at the same time a significant amount of secondary supply is being created on account of this movement in newer premises. Therefore, the supply continues to outstrip demand. As a development strategy it would be prudent to acquire quality tenants and right through these times of price corrections, where excessive supply is chasing limited demand.
In recent past, a few developers have launched projects with small office configurations and these projects have witnessed excellent demand. In other cases, some property owners have diluted partial stock at very comparative rentals, in hope of averaging prices as markets improve in future. Innovative ideas like these, will help the market sustain these times.
Industries whose businesses are very sensitive to high real estate costs like retail, have been actively looking at expansion as rental and capital values are reasonably affordable.
Good market response due to correction in rentals
CITY REPORTMUMBAI OFFICE MARKET - Q4 2010
CITY REPORTMUMBAI OFFICE MARKET - Q4 2010 5I I
Repo Reverse Repo
Repo & Reverse Repo Rate7
6
3
Perc
ent
1
Gross Domestic Product (GDP)
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
0.00
2.00
4.00
6.00
8.00
10.00
Q32009
Q42009
Wholesale Price Index (WPI)
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
Sept
-06
Dec-
06
Mar
-07
Jun-
07
Sept
-07
Dec-
07
Mar
-08
Jun-
08
Sept
-08
Dec-
08
Mar
-09
Jun-
09
Sept
-09
Dec-
09
Mar
-10
Jun-
10
Source: Confederation of Indian Industries
Q12010
Sept
-10
23-J
ul-0
9
23-A
ug-0
9
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
20-M
ay-1
0
20-J
un-1
0
27-J
ul-1
0
20-A
ug-1
0
16-S
ep-1
0
2
4
5
0
Dec-
10
Q22010
2-Ju
l-10
MACROECONOMIC CONTEXTGDP growth moderates on account of unanticipated factorsThe Indian economy, continued on the high growth path in 2010-11 despite an uncertain global environment. Though the overall global outlook suggested some moderation in growth in both advanced and emerging economies in 2011, downside risks to India's growth momentum have receded considerably. However, the GDP grew moderately at 8.2 % during the quarter as compared to 8.8% during the previous two quarters. Significant slowdown in the industrial sector along with marginal downward movement in the services sector were primary factors that led to moderation in the GDP growth, despite of sharp increase in agricultural growth.
Modest softening of manufactured products price and pressures aided by past monetary tightening by RBI, led to moderation in Wholesale Price Index (WPI) during August-November 2010 relative to double digit levels of 11% experienced during March-July 2010. However, inflationary pressures revived in December 2010 with WPI inflation increasing to 8.4 percent from 7.5 per cent in November 2010. These were attributed to unanticipated factors such as unseasonal showers and supply chain factors affecting the prices of essential commodities such as vegetables. New drivers such as Fuel and non-fuel international commodity prices and demand-supply imbalances in some food items emerged as factors impacting the inflation rates.
Liquidity conditions remained tight during the third quarter of 2010-11, prompting liquidity easing measures being adopted by the Reserve Bank. Under the Liquidity Adjustment Facility (LAF), the RBI increased the repo rate by 25 basis points from 6.0% to 6.25% and hiked the reverse repo rate by 25 basis points from 5.0% to 5.25%. Conditions for enhancing the efficiency of monetary policy however, improved during the quarter with the tightness in liquidity leading to competition among banks, resulting in higher deposit and lending rates.
Supported by a stable economy, India continued to be high on Global Investment radar. According to The World Prospectus Survey by the United Nations Conference on Trade and Development (UNCTAD), in spite of a dip in the FDI Inflows, India continues to be the second best attractive destination for FDI after China. India witnessed a total FDI inflow of USD 16,039 million dollars (as on Dec 2010) followed by Singapore and USA at third and fourth places.
Overall, robust and broad – based growth is expected to co-exist with elevated inflation in the near term.
DLF Limited 5% 11%
Major Real EstateCompanies in
India
Sales (In INR / In million) Profits (In INR / In million)
Q4 2010 Q3 2010Q on Q
Change % Q4 2010 Q3 2010Q on Q
Change %
Unitech 2% -36%
India Bulls 10% 17%Sobha Developers -15% -17%
Peninsula Land -4% -3%ParsvnathDevelopers 12% -37%
Pheonix 2% 7%
Omaxe Limited -2% -39%
MahindraLifespace 75% 36%
Anantraj -100% 5%
Ackruti City 31% 31%
Ansal Properties 6% 63%
5,414 1,727
4,257 589
1,226 638
443
890 247
1,624 557
3,197 199
221
23,690 4,184
3,544 367
1.329 480
6,445 1,740
1,955 498
24,799 4,657
5,962 2,025
3,629 490
1,178 621
451 238
1,558 334
2,123 678
2-N
ov-1
0
3,378 324
2,198 314
3,480 226
6,598 1,113
2 502
8.80%
7.90%7.60%
5.30%
5.80%6.10%
7.90%
6%
8.60%
8.80%8.20%
8.80%
1.00
3.00
5.00
7.00
9.00
Q32010
Q42010
SLR CRR
CRR & SLR
30
20
10
5
Perc
ent
0
Jan-
09Fe
b-09
Mar
-09
May
-09
Jul-
09
Sep-
09
Nov
-09
Jan-
10
Mar
-10
May
-10
Jul-
10
Sep-
10
15
25
Nov
-10
35
Apr-
09
Jun-
09
Aug-
09
Oct-
09
Dec-
09
Feb-
10
Apr-
10
Jun-
10
Aug-
10
Oct-
10
Dec-
10
Perc
ent
Perc
ent
MUMBAI MAP
6I ICITY REPORTMUMBAI OFFICE MARKET - Q4 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)
CBD continues to see movement of large occupiers to alternate locations which offer better infrastructure and amenities at attractive rental and capital values.
CITY REPORTMUMBAI OFFICE MARKET - Q4 2010
Movement continues to other business districts
Source: BNP Paribas Real Estate - Research, India
Ballard Estate
Nariman Point
Fort
Cuffe Parade
AVERAGE 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 - Research, India
Ballard Estate
Nariman Point
Fort
Cuffe Parade
AVERAGE 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
Q32009
Q42009
Q12010
Q22010
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
45,000
Q42010
Q32010
Q42010
Q32010
Q42010
Q32010
Q42010
Q32010
220 220
200 200
150 150
290 290
35,000
30,000
22,500
40,000
35,000
30,000
22,500
40,000
5,000
15,000
25,000
35,000
EXTENDED CENTRAL BUSINESS DISTRICT(ECBD)
Landmark developments by quality developers like, Penninsula land, Indiabulls Real Estate and Lodha Developers have attracted many high quality occupiers. This is primarily on account of the value propositions that these projects offer vis a vis old stock existing in CBD of Mumbai.Extended CBD continues to witness excessive supply (both primary and secondary), which will continue to exert pressure on rental and capital values.
8I ICITY REPORTMUMBAI OFFICE MARKET - Q4 2010
Pressure on rental values
Mahalaxmi
Lower Parel
Worli
Prabhadevi
Source: BNP Paribas Real Estate - Research, India
Q32009
Q42009
30,000
25,000
15,000
18,000
30,000
25,000
15,000
18,000
Q22010
Q12010
Mahalaxmi
Lower Parel
Worli
Prabhadevi
Source: BNP Paribas Real Estate - Research, 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:-
AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH)
AVERAGE 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
Q32009
Q42009
Q12010
Q22010
Worli Prabhadevi
Lower Parel Mahalaxmi
Capi
tal V
alue
s (IN
R / s
q.ft
)
Q32009
—
5,000
30,000
Worli Prabhadevi
Lower Parel Mahalaxmi
20,000
Q42009
Q12010
Q22010
10,000
15,000
25,000
35,000
Q42010
Q32010
Q42010
Q32010
Q42010
Q32010
Q42010
Q32010
170
150
220
250
20,000
15,000
25,000
30,000
170
150
220
250
20,000
15,000
25,000
30,000
ALTERNATE CENTRAL BUSINESS DISTRICT(ALTERNATE CBD)
Although the market has substantial supply available, most of the options are in the form of small space options in the range of 5,000 sq.ft - 50,000 sq.ft. Tenants looking at larger contiguous floor plates would have to wait till Q2 2011, wherein the market is likely to be infused with fresh supplies from buildings such as The Capital, TCG (FIFC).Rental and Capital values are likely to remain under pressure, in the micro market, however prime projects like Maker Maxity will continue to command higher rental and capital values.
9I ICITY REPORTMUMBAI OFFICE MARKET - Q4 2010
Good demand from corporate occupiers
Source: BNP Paribas Real Estate - Research, India
Source: BNP Paribas Real Estate - Research, India
Bandra - KurlaComplex
Bandra East
Kalina
Q32009
Q42009
250
175
200
250
175
200
Bandra - KurlaComplex
Bandra East
Kalina
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:-
AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH)
AVERAGE 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
Q32009
Q42009
Q12010
Q22010
Capi
tal V
alue
s (IN
R / s
q.ft
)
Q32009
—
5,000
20,000
25,000
10,000
15,000
30,000
35,000
Bandra - Kurla ComplexKalinaBandra East
Q42009
Q12010
Q22010
Q42010
Q32010
Q42010
Q32010
Q42010
Q32010
Q42010
Q32010
350
175
190
32,000
20,000
22,500
400
350
175
190
32,000
20,000
22,500
SECONDARY BUSINESS DISTRICT (SBD)
SBD continues to witness downward pressure on achievable values. This area is already witnessing excessive supply (primary and secondary) coupled with ongoing construction activities such as metro rail resulting in heavy traffic congestion, which is acting as a major deterrent.SBD will continue to face challenges for next few quarters till the infrastructure improves. Quality projects within SBD especially those along with the Western Express highway will still command a premium as compared to other projects.
10I ICITY REPORTMUMBAI OFFICE MARKET - Q4 2010
Pressure on rental and capital values
Source: BNP Paribas Real Estate - Research, India
Source: BNP Paribas Real Estate - Research, India
Vile Parle
Andheri W
Andheri E
PowaiVikhroli
Malad
Borivali
120
110
120
9065
90
50
120
110
120
9065
90
50
Vile Parle
Andheri W
Andheri E
PowaiVikhroli
Malad
Borivali
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
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 70 70
Kurla 8,500 8,000 8,000
AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH)
AVERAGE 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
)
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
Q32009
Q42009
Q12010
Q22010
2,000
6,000
12,000
14,000
16,000
Kurla
Q42010
Q32010
Q42010
Q32010
Q42010
Q32010
100
9060
809070130
90
13,000
12,0008,000
9,0009,5008,000
13,500
9,500
90
9060
809070130
90
12,500
12,0008,000
9,0009,5008,000
13,500
9,500
Q32009
Q42009
Q22010
Q12010
Q42010
Q32010
PERIPHERY BUSINESS DISTRICT (PBD)
The PBD market witnessed maximum transactions in the SEZ developments. Large IT parks in Thane, Navi Mumbai witnessed a few transactions as compared to the SEZ space. IT office market has witnessed corrections in rental values in the last few quarters and are likely to remain under pressure.The market also witnessed a few retail and hospitality transactions, with Navi Mumbai re-enforcing its status as a self sustained market.
11I ICITY REPORTMUMBAI OFFICE MARKET - Q4 2010
Good demand for SEZ space
Thane
Airoli
Vashi
Source: BNP Paribas Real Estate - Research, India
Source: BNP Paribas Real Estate - Research, India
Q32009
Q42009
4,000
3,500
6,000
Thane
Airoli
Vashi
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:-
AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH)
AVERAGE CAPITAL VALUES (INR / SQ.FT)
40
40
60
4,500
4,000
6,000
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
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
Q42010
Q32010
Q42010
Q32010
Q42010
Q32010
Q42010
Q32010
38
42
70
5,000
4,500
7,500
35
40
70
4,700
4,500
7,500
RENTAL VALUES FOR Q4 2010
12I ICITY REPORTMUMBAI OFFICE MARKET - Q4 2010
Source: BNP Paribas Real Estate - Research, India
CAPITAL VALUES FOR Q4 2010
RentINR/ sq.ft/ month
Ballard Estate
Nariman PointFort
Cuffe Parade
Region Q on QChange
220
290150200 0%
0%
0%
0%
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%0%
0%
0%
MahalaxmiLower Parel
WorliPrabhadevi
Region Q on QChangeINR / sq.ft
15,00020,000
30,00025,000
0%0%
0%
0%
ThaneAiroli
Vashi
Region RentINR/ sq.ft/ month
Q on QChange
4035
70-5%-8%
0%ThaneAiroli
Vashi
RegionQ on QChangeINR / sq.ft
4,7004,500
7,500
Vile Parle
Andheri WAndheri E
Powai
Region
Vikhroli
Malad
Borivali
RentINR/ sq.ft/ month
Q on QChange
130
9090
9070
80
60
0%
0%-10%
0%
0%0%
0%Kurla 90 0%
Vile Parle
Andheri WAndheri E
PowaiVikhroli
Malad
Borivali
Region Q on QChangeINR / sq.ft
13,500
12,00012,500
9,5008,000
9,000
8,000
0%
0%-4%
0%
0%
0%
0%
Kurla 9,500 0%
Bandra - KurlaComplexBandra EastKalina
Region RentINR/ sq.ft/ month
Q on QChange
350
175190
0%
0%0%
Bandra - KurlaComplexBandra EastKalina
Region Q on QChangeINR / sq.ft
32,000
20,00022,500
0%
0%0%
CBD CBD
Extended CBD Extended CBD
Alternate CBD Alternate CBD
SBD SBD
PBD PBD
-6%0%
0%
35,00030,00022,50040,000
13I I
KEY TRANSACTIONS
CITY REPORTMUMBAI OFFICE MARKET - Q4 2010
Q4 2010
Building Occupiers Space(in sq.ft)
Micro Market Location
Cumbatta Building Warner Brothers 6,000 CBD Churchgate
Paragon Centre BBDO 8,000 Extended CBD Worli
Paragon Centre OMD 6,500 Extended CBD Worli
One Indiabulls Centre Bloomberg 25,000 Extended CBD Lower Parel
Windsor House Ciena Communications 4,500 Alternate CBD Kalina
Maker Maxity Mcquarie Capital 28,000 Alternate CBD Bandra Kurla Complex
ING Vysya Religare 28,000 Alternate CBD Bandra Kurla Complex
Naman Corporate Link Cholamandlam Insurance 10,000 Alternate CBD Bandra Kurla Complex
IL & FS IBM 62,000 Alternate CBD Bandra Kurla Complex
Grande Palladium DBM Giotech 15,000 Alternate CBD Kalina
Nomura - Hiranandani Teradata 30,000 SBD Powai
Windfall ATC Shipping 6,000 SBD Andheri (East)
Nirlon Citi Bank 77,000 SBD Goregaon
Equinox Business Park Vion Networks 18,000 SBD Kurla
Akruti Center point Diversey 21,000 SBD MIDC, Andheri
Godrej Collosium Powerica 9,000 SBD Sion - Wadala
Nomura Religare 23,000 SBD Powai
Minspace Cognizant 160,000 PBD Airoli
Minspace Globe Op 60,000 PBD Airoli
Source: BNP Paribas Real Estate - Research, India
14I I
KEY PROJECTS
CITY REPORTMUMBAI OFFICE MARKET - Q4 2010
New Supply – Year 2010
Building Location Micro Market Space (in sq.ft)
Completion Date(expected)
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
TCG Financial Centre Bandra Kurla Complex Alternate CBD 182,000 Q2 2011
Cresenzo Bandra Kurla Complex Alternate CBD 577,000 Q4 2010
Pooja Constructions Bandra Kurla Complex Alternate CBD 160,000 Ready
Silver Uthopia Andheri East SBD 400,000 Q1 2011
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
Times Square Andheri Kurla Road SBD 589,000 Q1 2011
Arena JVLR SBD 170,000 Q2 2011
Ruby Dadar SBD 1,000,000 Q1 2011
Viva Andheri SBD 160,000 Q1 2012
Wealth Space Vidya Vihar/Ghatkopar (W) SBD 150,000 Q4 2011
Futurex by Marathon Parel SBD 800,000 Q2 2011 (Phase I)
Reliable Tech Park Airoli PBD 1,000,000 Q1 2011
Mindspace SEZ Airoli PBD 600,000 Ready
Nitco Business Park Thane PBD 170,000 Ready
Source: BNP Paribas Real Estate - Research, India
15I ICITY REPORTMUMBAI OFFICE MARKET - Q4 2010
GLOSSARYQ4:
Super Built-up Area (SBUA):
Carpet Area:
Sq.mt:
Mn:
New:
Recent:
SEZ:
BFSI:
SLR:
FSI:
MMRDA:
Quarter 4 of the financial year (October - November - December)
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.
.
SPAINMaría de Molina, 5428006 MadridTel: +34-91-454 96 00Fax: +34-91-454 97 65
UNITED KINGDOM5 Aldermanbury SquareLondon EC2V 8HRTel.: +44-20-7338 4000Fax: +44-20-7430 2628
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
SERBIA*Danos & associates6, Vladimira Popovica StreetOffice B3111000 BelgradeTel.: +381-11-2600 603Fax: +381-11-2601 571
NETHERLANDS*Holland Realty PartnersJ.J. Viottastraat 33,1071 JPAmsterdam,Tel: +31-20-305 97 20Fax: +31-20-305 97 21
NORTHERN IRELAND*Whelan Commercial LimitedArthur House41 Arthur StreetBelfast BT1 4GBTel.: +44-28-9044 1000Fax: +44-28-9033 2266
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.: +971-44 248 271Fax: +971-44 257 817
BELGIUMBoulevard LouisSchmidtlaan 2 B31040 BrusselsTel: +32 2 646 49 49Fax: +32 2 646 46 50
CZECH REPUBLICPobøežni 3186 00 Praha 8Czech RepublicTel.: +420 224 835 000Fax: +420 222 323 723
DUBAIEmaar SquareBuilding No. 1, 7th FloorP.O. Box 7233Dubai, UAETel: +971-44 248 271Fax: +971-44 257 817
FRANCE167, quai de la Bataillede Stalingrad92867 Issy-les-MoulineauxTel: +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
HUNGARYAlkotas u. 53.H-1123 Budapest,HungaryTel.: +36 1 487 5501Fax: +36 1 487 5542
IRELAND40 Fitzwilliam PlaceDublin 2Tel: +353-1-66 11 233Fax: +353-1-67 89 981
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
POLANDul. Gorczewska 12401-460 WarszawaPolandTel.: +48 22 533 40 03Fax: +48 22 533 40 04
ROMANIAUnion International Center11 Ion Campineanu StreetSector 1Bucharest 010031Tel: +40-21-312 7000Fax: +40-21-312 7001
JERSEYDialogue HousePO Box 158Anley StreetSt HelierJersey JE4 8RDTel.: +44 (0)1 534 815 300Fax: +44 (0)1 534 629 011
*Alliances
INDIA
For Queries / Commentsemail 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
DELHIUpper ground floor, Unit No 7,Mercantile House, 15 KG Marg,New Delhi 110001Tel: +91 11 4959 8800Fax: +91 11 4959 8818
BANGALORELevel 15, Concorde Block,UB City, Vittal Mallya Road,Bangalore – 560001Tel: +91 80 4030 0334Fax: +91 80 4030 0400
BNP
Pari
bas
Real
Est
ate:
Sim
plifi
ed jo
int s
tock
com
pany
wit
h ca
pita
l of €
329
,196
,608
€ -
692
012
180
RCS
Nan
terr
e -
Code
NAF
411
0B -
CE
iden
tific
atio
n nu
mbe
r FR
666
920
121
80
Hea
dqua
rter
s: 1
67, Q
uai d
e la
Bat
aill
e de
Sta
lingr
ad -
928
67 Is
sy L
es M
oulin
eaux
Ced
ex,
Non
con
trac
tual
doc
umen
t - R
esea
rch
depa
rtm
ent
Publ
ishe
d by
: Ra
ja K
aush
al -
Man
agin
g Di
rect
or, B
NP
Parib
as R
eal E
stat
e &
Infr
astr
uctu
re A
dvis
ory
Serv
ices
Pvt
. Ltd
. Pho
to c
ourt
esy
: Sky
line
- M
arch
201
1