OPMO April 2015 India

Office Property Market Overview
INDIA
April - 2015
Contents
Marco Economic Overview
Mumbai Office Market Overview
Delhi Office Market Overview
Gurgaon Office Market Overview
NOIDA Office Market Overview
10
Chennai Office Market Overview
12
Bengaluru Office Market Overview
14
Kolkata Office Market Overview
16
Pune Office Market Overview
18
Research & Forecast Report | April 2015 | Colliers International
Research &
Forecast Report
India | Office
April 2015
Office demand set

to improve
The Indian economy continued to see positive trends, with
Business Confidence Index marginally up by 20 basis points
in January 2015. Indias GDP recorded a 7.5% growth in the
October - December 2014; and the forecast is for the GDP
to expand by 7.8% in January to March 2015 quarter. In
addition, the WPI (Wholesale Price Index) inflation reached
its 10-year low at -2.06% in February 2015.
Both the economy and the office market turned the corner
in 2014 and are poised for further improvement in 2015.
For the commercial real estate sector, 2015 witnessed a
good start, with first quarter office absorption of 8.5 million
sq ft in the eight major metro cities in India, headed by
Bengaluru (3.82 million sq ft, including 1.74 million sq ft
pre-committed), NCR-Delhi, Gurgaon and NOIDA (1.48
million sq ft), Mumbai (1.33 million sq ft), Pune (0.89
million sq ft), Chennai (0.81 million sq ft) and Kolkata (0.22
million sq ft).
Office space absorption increased by 2.8% from last
quarter. Tenants from IT / ITeS and BFSI were the primary
sectors driving this demand. Within IT / ITeS, E-commerce
companies took up 52% of the total space absorbed. Select
micro markets in cities like Bengaluru, Mumbai and Noida
witnessed marginal increase in rental values in the range of
1% 3% QoQ.
Colliers View
With an expanding economy, improving business sentiment
and increasing job creations, the momentum in demand for
office real estate is expected to stay. In response to tenant
demand, the strongest markets (namely Bengaluru and
Gurgaon) will witness development of new stock. However,
developer sentiment towards speculative construction of
office buildings is expected to remain cautious, and this in
turn will limit the risk of further overbuilding.
Economic Barometer
Indicators
4Q 2014
1Q 2015
7.50%
7.80%1
56.20%
56.40%
Repo Rate
8.00%
7.50%
Reverse Repo Rate
7.00%
6.50%
Cash Reserve Ratio
4.00%
4.00%
0.11%
-2.06%
10.00% - 10.30%
10.00% - 10.25%
8.00% - 9.05%
8.00% - 8.75%
4Q 2014
1Q 2015
INR - USD
63.33
62.36
INR - EURO
77.00
66.48
Gross Domestic
Product
Business
Confidence Index
Ination (WPI)
Prime Lending Rate

Deposit Rate3
Exchange Rates
Return on Alternative Investments

4Q 2014
1Q 2015
QoQ
CHANGE
Gold
26,507
26,232
-1.04%
Silver
35,999
36,983
2.73%
Equity
(BSE Sensex)
27,499
27,957
1.67%
1,555
1,692
8.77%
Parameters
Realty Index
Note:
Estimates as per International Monetary Fund
Wholesale Price Index (WPI)
SBI interest rate < INR 1 crore Term Deposits for 1 Year
Research &
Forecast Report
Mumbai | Office
April 2015
Increasing demand
trend led by IT/
ITeS occupiers
Office absorption in Mumbai increased by 9% QoQ, from
1.22 million sq ft in 4Q 2014 to 1.33 million sq ft in 1Q 2015.
The IT/ITeS sector dominated the citys office absorption
with over 57% (0.75 million sq ft) of the total absorption,
followed by BFSI with 0.38 million sq ft (28%) and pharma
with 0.07 million sq ft (5%). The maximum number of office
transactions were concluded in the western suburbs (0.54
million sq ft) including BKC, Andheri, Malad and Goregaon,
followed byNavi Mumbai (0.39 million sq ft), and the central
suburbs (0.25 million sq ft) including Vikhroli, Powai and
Kanjurmarg. This rise in demand is largely attributed to an
increase in the confidence of occupiers regarding overall
business growth in India and abroad.
In major office transactions during the quarter, E-clerx
took about 0.2 million sq ft in Mindspace SEZ by K Raheja
Corp located in Navi Mumbai. Other major deals included,
Housing.com and Edelweiss, took up 0.13 and 0.10 million
sq.ft. at Nomura by Hiranandani at Powai and Kohinoor City
by Kohinoor Group at Kurla, respectively.
1Q 2015 witnessed new supply of 0.6 million sq ft. The
projects accounting for this new supply were 0.2 million sq
ft of Lodha Supremus (located in I-Think Campus) by Lodha
Group; and 0.4 million sq ft of Century Greenspan (located
in Worli) developed by Century, an Aditya Birla Group
company. No new project was launched during the quarter
as developers were focusing to complete their existing
ventures, about 7.7 million sq ft of Grade A office supply is
available for fitout in Mumbai, among which majority of the
supply is located in the western suburbs (47%) including
BKC, Andheri (E), Malad and Goregaon/JVLR, followed by
Central Mumbai (16%) including Worli, Prabhadevi and
Lower Parel.
City Office Barometer

INDICATORS
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
CBD**
200 - 230
5%
-7%
Worli/Prabhadevi
185 - 225
0%
2%
Lower Parel
145 - 190
0%
4%
BKC
225 - 320
0%
0%
Kalina
150 - 200
0%
-9%
Goregaon / JVLR
100 - 110
0%
10%
Andheri East
80 - 130
0%
-3%
Malad
80 - 100
0%
5%
Powai
120 - 130
4%
13%
Navi Mumbai
60 - 100
0%
22%
Thane / LBS
60 - 110
0%
13%
*Indicative Grade A rents in INR per SF per month

**Nariman Point, Ballard Estate & Fort
2.50
2.00
1.50
1.00
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
Average Rental And Capital Value Trend

30,000
Forecast
250
25,000
200
20,000
150
15,000
100
10,000
50
5,000
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
1Q 2010
0
1Q 2008
Top 5 Transactions of the Quarter

CLIENT
BUILDING NAME
E-clerx
Mindspace SEZ
Housing.com
AREA (SF)
LOCATION
LEASE / SALE
200,000
Navi Mumbai
Lease
Nomura
130,000
Powai
Lease
Edelweiss
Kohinoor City
100,000
Kurla
Sale
L&T infotech
Mindspace SEZ
90,000
Navi Mumbai
Lease
Capegemini
Gigaplex
85,000
Navi Mumbai
Lease
AREA (SF)
LOCATION
POSSESSION
Key Under Construction Projects

BUILDING NAME
DEVELOPER
Seawood Grand Central Tower

I & II
L & T Infrastructure
1,350,000
Navi Mumbai
2015
Godrej BKC
Godrej Group
1,200,000
BKC
2015
Kohinoor Square
Kohinoor Group
800,000
Dadar
2015
Notes:
1. Office Market: The major business locations in Mumbai are the CBD (Nariman Point, Fort and Ballard Estate), Central Mumbai (Worli, Lower Parel and Parel), Bandra Kurla
Complex (BKC) and Andheri Kurla stretch. Powai, Malad and Vashi are the preferred IT/ ITES destinations, while Airoli at Navi Mumbai and Lal Bahadur Shastri Marg are
emerging as new office and IT/ITES submakets.
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.
Captial Values INR Per SF
300
Rental Values INR Per SF Per Month
For the last 4 consecutive quarters, there has been an

increase in the absorption of office real estate. This is likely
to continue on the back of an improving economy and
demand from IT/ITeS and BFSI sectors. The markets are
also witnessing a clear price segmentation with tenants
being less price sensitive in prime markets like CBD and
BKC. Developers are however averse to adding new stock
on speculative basis. These factors in the long run will result
in an upward pressure on rentals due to diminishing gap
between supply and demand.
4Q 2013
Colliers View
3Q 2013
1Q 2013
0.00
2Q 2013
0.50
1Q 2009
The New Development Plan of Mumbai 2014-34 was

unveiled by the MCGM (The Municipal Corporation of
Greater Mumbai). Development Plan 2034, which will
remain in place for 20 years, has suggested taking an areawise view on FSI, which may range from a minimum 2.5
to as much as 8 for areas closer to transport hubs (railway,
metro stations, etc.) or business districts.
Quarter Wise Absorption
Million Sq.ft
Despite a rise in demand, rental values remained

unchanged in most of the micro markets, except in CBD
and Powai where rents rose by 4% to 5% QoQ. Capital values
remained stable in all of the micro markets.
Research &
Forecast Report
Delhi | Office
April 2015
Absorption
declined due
to shrink in
transaction size
Delhi grade A office leasing market in 1Q 2015 saw an
absorption of only 0.11 million sq. ft. Manufacturing sector
companies took about 34% (0.03 million sq ft) of this total
absorption followed by BFSI 19% and IT/ITeS 18%. Majority
of the transactions were concluded in CBD (Connaught
Place) (0.03 million sq ft) followed by Saket (0.02 million sq
ft) and Jasola (0.01 million sq ft).
There was also demand from Government and media sector
for small office space primarily in Central Delhi micro
markets. Major transactions during the quarter include the
lease of 14,000 sq ft office space by Anchor in TDI Tower at
Jasola, 13,000 sq ft by SMCC Construction in Salcon Rasvilas
at Saket and the lease of 10,000 sq. ft. by Motilal Oswal in
Tolstoy House located at Connaught Place.

INDICATORS
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
CBD**
185 - 450
0%
2%
Nehru Place
180 - 225
1%
1%
Saket
140 - 190
0%
-6%
Jasola
95 - 130
0%
0%
NSP***
65 - 75
0%
0%

**Connaught Place
***Netaji Subhash Place
The average transactions size in 1Q 2015 was around 6,000

sq ft which is lesser than the previous quarter average of
over 35,000 sq ft. This is the primary reason for overall lower
absorption numbers.
During the quarter approximately 0.14 million sq. ft. of
office space was added to the office market in Delhi. Key
projects contributing to this supply were commercial tower
on plot 2B by HT Group and commercial tower on plot 32B
by an Individual developer both located on Pusa Road and
Business Tower by Nagpal Builders located at Okhla Phase
II.
1Q 2014
No new commercial grade A office space were launched

this quarter. Rents in Delhi remain stable in 1Q 2015 across
all the micro markets. There was a marginal increase of 1%
QoQ in Nehru Place. Similarly capital values were remained
stable across all the micro markets.

0.80
0.70
Million Sq.ft
0.60
As the economy expands, we expect improvement in overall

leasing in coming quarters. However, the demand will
primarily come from the companies looking to locate near
Government offices. Less supply addition due to limited
land availability will keep the overall rents stable however
select premium building will continue to command
premium above market rates.
0.40
0.30
0.20
1Q 2015
4Q 2015
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013
0.00
2Q 2013
0.10
1Q 2013
Colliers View
0.50

40,000
Forecast
30,000
200
25,000
150
20,000
15,000
100
10,000
50
5,000
35,000
250
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
1Q 2010
1Q 2009
0
1Q 2008
300

CLIENT
BUILDING NAME
Anchor
TDI Tower
SMCC Construction
AREA (SF)
LOCATION
LEASE / SALE
14,000
Jasola
Lease
Salcon Rasvilas
12,500
Saket
Lease
Motilal Oswal
Tolstoy House
10,000
Connaught Place
Lease
JDSU
Infotech Park
9,348
Dundahera
Lease
Reliance Corporate IT Park
Gopal Das Building
8,250
Connaught Place
Lease

BUILDING NAME
DEVELOPER
AREA (SF)
LOCATION
POSSESSION
RPS Infinia
RPS Developer
1,000,000
Mathura Road
2015
NBCC Plaza
NBCC Ltd.
350,000
Okhla
2015
Caddie Commercial Tower
Caddie Hotel
100,000
Aerocity
2015
Notes:
1. Office Market: The commercial areas in New Delhi can be broadly classified into the CBD (Connaught Place), SBD Nehru Place, Bhikaji Cama Place, Netaji Subhash Place, Jasola
and Saket .
Research &
Forecast Report
Gurgaon | Office
April 2015
Absorption dips
marginally by 6%
QoQ but solid
pipeline for 2Q
Gurgaon commercial real estate market remained active
in the first quarter of 2015. The citys office absorption
was recorded at approximately 1.12 million sq ft, which is
about 6% lower than that of the previous quarter. IT/ITeS
and BFSI with 47% and 25% share, respectively were the
prime contributors to this demand. Apart from this, media
and entertainment, manufacturing, pharma, FMCG and
engineering sectors also leased large office spaces during
the quarter. A few notable transactions this quarter were the
0.12 million sq ft office lease by Ernst & Young in Unitech
Cyber Park located at Sector 39, 0.10 million sq ft by Arvato
in JMD Megapolis located at Sector 48 and 0.08 million sq ft
by Boston Consulting in Bestech Business Park located on
Sohna Road.
At the end of the quarter, the total available office supply
stood at 16 million sq ft. Areas with the highest available
supply were Golf Course Road Ext / Sohna Road (30%),
Manesar (25%), National Highway 8 (15%), Udyog Vihar
and Industrial Sectors (14%) and Golf Course Road (9%).
The city witnessed the completion of three small projects
this quarter, namely, Spaze Palazo (0.25 million sq ft) by
Spaze Group at Sector 69, JMD Empire (0.18 million sq ft)
by JMD Group at Golf Course Extension Road and Legends
Heights (0.25 million sq ft) by ILD at National Highway
8. Given the large vacant stock, developers continued to
refrain from adding speculative supply. Only Earth Group in
collaboration with AMB Group launched Earth SKY GATE at
Sector 88. It is a mixed-use development project of about 1.5
million sq ft, which will have retail, commercial, bank space
and restaurant components.

INDICATORS
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
MG Road
100 - 145
0%
7%
DLF Cyber City (IT)
90 - 100
0%
20%
Golf Course Road
55 - 80
0%
17%
55 - 95
0%
20%
55 - 80
0%
17%
National Highway 8
50 - 150
0%
14%
Udyog Vihar &

Industrial Sectors
30 - 45
0%
-12%
Manesar
40 - 45
0%
4%
Institutional Sectors
(Sec 44, 32, 18)
Golf Course Road
Ext./Sohna Road
2.00
1.60
1.20
0.80
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013

14,000
Forecast
120
12,000
100
10,000
80
8,000
60
6,000
40
4,000
20
2,000
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
1Q 2010
0
1Q 2008
140
With the number of RFPs floating in the market, we

anticipate an increase in office absorption in the near future.
The Udyog Vihar and Institutional sectors will continue to
remain the most preferred office locations due to location
advantages and competitive rents. Rents are expected to
remain on the same levels due to the high vacancy levels
and robust under-construction developments in the
pipeline, especially in micro markets, such as the Southern
Peripheral Road and Golf Course Extension Road, in the
coming quarters.
1Q 2013
0.00
Colliers View
2Q 2013
0.40
1Q 2009
On the infrastructure front, the new state Government has

scrapped the decision to terminate the Kundli-ManesarPalwal (KMP) Expressway project, and instead has injected
fresh funds to the tune of INR 1,200 crores for completion
of the project. This project will be taken over by the Ministry
of Transport from Haryana Industrial and Infrastructure
Development Corporation (HSIIDC).
Million Sq.ft
Rents and capital values in Gurgaon remained stable in 1Q

2015 across all the micro markets due to the large available
supply and low absorption witnessed during the quarter.

CLIENT
BUILDING NAME
AREA (SF)
LOCATION
LEASE / SALE
Ernst & Young
Unitech Cyber Park
125,000
Sector 39
Lease
Boston Consulting
Bestech Business Park
80,000
Sohna Road
Lease
Nagarro
Tower of Arc
70,000
Udyog Vihar
Lease
HSBC
Plot No. 80
67,000
Udyog Vihar
Lease
TCS
Vatika Business Park
62,000
Sohna Road
Lease
AREA (SF)
LOCATION
POSSESSION

BUILDING NAME
DEVELOPER
Business Club
AIPL
700,000
Golf Course Extension

Road
2015
Parsvnath IT Park Technicia
Parsvnath Developers
695,000
Sohna Road
2015
Unitech Infospace, Gurgaon

Phase 2 Building 7
Unitech
450,000
NH-8
2015
Notes:
1. Office Market: The prime business locations in Gurgaon are MG Road, Golf Course Road, Cyber City and Udyog Vihar. Manesar on the outskirts of Gurgaon is also emerging as
the citys new office destination.
Research &
Forecast Report
NOIDA | Office
April 2015
Absorption
declined in 1Q
2015, despite few
large transactions
The NOIDA office market witnessed a major downturn
this quarter, in terms of absorption. The office market
witnessed about 0.5 million sq ft of office absorption, which
is almost half of 4Q 2014s absorption figure of 1 million
sq ft. Expansion and relocation were the primary demand
drivers this quarter. IT / ITeS continued to be the dominant
sector leasing office space in NOIDA. There was also some
demand from manufacturing companies who leased smaller
office spaces in locations like Sector 62 and 59. The most
significant leasing transaction for 1Q 2015 took place in
Institutional Sector 62, with Kronos leasing 70,000 sq ft in
Okaya Blue. Jubilant Industries signed a 67,000-sq ft lease
at Logix Technopark and Lava Mobile took 60,000 sq ft in a
stand-alone building in Sector 58.
The construction scenario showed signs of improvement,
and the city witnessed the completion of over 1.3 million sq
ft of prime office space. The projects that were completed
this quarter include World Trade Tower by Sapphire Group
measuring over 1 million sq ft and located in Sector 16 and
Stellar Business Park (0.24 million sq ft) by Stellar Group
located in Sector 135 (Expressway).

INDICATORS
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
Commercial
Sectors**
Institutional
Sectors (Non IT)***
Institutional
Sectors (IT)***
Industrial Sector
(IT)****
RENTAL
VALUE*
% CHANGE
QoQ
YoY
90 - 110
-2%
3%
55 - 110
3%
18%
45 - 65
5%
5%
35 - 55
5%
15%

**Sector 18
***Sector 16A, 62, 125-142
****Sector 124, 57-60, 63-75
At present, approximately, 13 million sq ft of Grade A office

space is available for lease or sale in the NOIDA office
market. Approximately 51% of this vacant stock is located
in Institutional Sectors, including locations like Sector 16A,
Sector 62 and Sectors 125 to 142. About 48% is available in
the Commercial Sector (Sector 18). Overall rise in vacancy
10 Research & Forecast Report | April 2015 | Colliers International
1.20
1.00
0.80
0.60
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
0.00
4Q 2013
We anticipate an increase in absorption in the coming

quarters in sectors along NOIDA expressway and Sectors 62
to 65. In the Institutional Sectors, demand will be primarily
from midscale IT / ITeS companies, whereas NOIDA
expressway will see demand from large corporations. An
upward pressure on rents is expected in the Institutional
Sectors due to limited supply addition. Meanwhile, other
markets will remain stable.
3Q 2013
0.20
1Q 2013
Colliers View
2Q 2013
0.40

14,000
Forecast
10,000
60
50
8,000
40
6,000
30
4,000
20
2,000
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
10
12,000
70
1Q 2010
90
80
1Q 2009
In a major office sale transaction, Kotak Mahindra Group

and private equity fund New Vernon Capital Llc. have jointly
bought Green Boulevard, an information technology (IT)
park at Noida in the National Capital Region for Rs 270
crore from 3C Company. The property is about 700,000 sq ft
located in Sector 62.
Million Sq.ft.
levels was noticed during the quarter due to less absorption

and addition of new supply.

CLIENT
BUILDING NAME
AREA (SF)
LOCATION
LEASE / SALE
Kronos
Okaya Blue
70,000
Sector 62
Lease
Jubilant Industries
Logix Techno Park
67,000
Expressway
Lease
Lava Mobile
Individual Building
60,000
Sector 58
Lease
Genpact
Stellar 135
60,000
Expressway
Lease
Oxford
Stellar IT Park
20,000
Sector 62
Lease

BUILDING NAME
DEVELOPER
AREA (SF)
LOCATION
POSSESSION
Delhi One
The 3C Company
2,000,000
DND Flyway
2015
Mist Avenue
Bhasin Group
1,000,000
Sector 143
2015
Assotech Business Cresterra
Assotech
500,000
Sector 135
2015
Notes:
1. Office Market: NOIDA market is comprised of sectors broadly classified as institutional, industrial and commercial sectors. Institutional sectors include sec 16A, 62 and125-142,
industrial sectors include Sec 1-9, 57-60 and 63- 65 while sector 18 is the most developed commercial sector.
Research &
Forecast Report
Chennai | Office
April 2015
IT/ITeS remains
the prime driver
with 53% of total
absorption
Chennai 1Q 2015 absorption stood at 0.8 million sq ft as
compared to the previous quarters 1.33 million sq ft. The
IT/ITES sector accounted for 53% of the total absorption
followed by manufacturing at 17% and pharma at 16%.
The BFSI, engineering, FMCG, media & entertainment and
logistics sectors were also represented in the deals closed
during the period. Approximately 50% of total absorption
was in the CBD followed by OMR (16%) and Ambattur
(11%). Notable transactions include the Income Tax
Department taking the entire BSNL Building of 0.19 million
sq ft located in the CBD. Apart from this, Ford took 0.06
million sq ft in SP Infocity at OMR and Bank Bazaar took
0.05 million sq ft in India Bulls located at Ambattur.
Cautious market sentiments restricted the new supply to
only 0.40 million sq ft. Projects contributing this supply
were Lalah Tower (0.28 million sq ft) by Ramaniyam on
Nelson Manickam Road; Sri Balaji Complex (0.06 million
sq ft) by Shanthi Builders at Royapettah; and AGR Platina
(0.05 million sq ft) by an independent developer at
Ekkaduthangal. The total available supply for lease / fitout stood at 10.7 million sq ft. By micro-market, OMR (IT
corridor) accounted for 34% of this total available supply,
followed by Ambattur 28% and the CBD 27%. No new
projects / parts of projects were launched in Chennai during
the quarter. Lack of new completed supply has led to a
decline in vacancy rates especially on the OMR stretch.

INDICATORS
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
CBD
60 - 80
0%
0%
Guindy
50 - 60
0%
4%
Ambattur
20 - 30
0%
0%
OMR I**
45 - 60
-1%
1%
OMR II & III***
25 - 45
0%
0%
GST Road
35 - 40
0%
0%

**OMR I (Madhya Kailash Perungudi- Toll gate I)
***OMR II (Thoraipakkam Sholinganallur) & OMR III (Semmencherry Siruseri)
Weak absorption continued to keep pressure on rents and

capital values in 1Q 2015, resulting in a marginal decline by
1% in OMR I (Madhya Kailash - Perungudi - Toll Gate I). All
2.4
2.0
1.6
1.2
0.8
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013

10,500
Forecast
30
3,000
15
1,500
1Q 2017F
4,500
1Q 2016F
45
1Q 2015
6,000
1Q 2014
60
1Q 2013
7,500
1Q 2012
75
1Q 2011
9,000
1Q 2010
90
Capital Values INR Per Sq.ft
105
1Q 2008
Rental Values INR Per Sq Ft Per Month
The demand for office space is expected to gain further

momentum in line with the revival in economic growth
projected for the medium term. However, the high
vacancy level, coupled with upcoming supply is likely to
restrain the rent growth particularly in micro-markets
like Thoraipakkam, Sholinganallur and Semmenchery to
Siruseri over the next few quarters.
1Q 2013
Colliers View
2Q 2013
0.4
1Q 2009
During this quarter, the Chennai Government has

allocated INR500 and INR750 crore for the Chennai Mega
City Development Mission and the Integrated Urban
Development Mission, respectively for 2015 - 2016. Apart
from this, the sum of INR420 crore has been allocated for the
Tamil Nadu Urban Road Infrastructure Fund. Civic bodies
are targeting the overall infrastructure development of the
city through these funds.
Million Sq.ft
other micro-markets remained stable; this is also attributed

to the huge vacant stock, especially on the OMR stretch.

CLIENT
BUILDING NAME
Income Tax Department
BSNL Buidling
Ford
AREA (SF)
LOCATION
LEASE / SALE
197,000
CBD
Lease
SP Infocity
69,000
Old Mahabalipuram
Road
Lease
Bank Bazaar
India Bulls
50,000
Ambattur
Lease
Citi Bank
TRIL
44,000
Old Mahabalipuram
Road
Lease
Vasan Eye care Hospital
Harini Towers
40,000
CBD
Lease

BUILDING NAME
DEVELOPER
AREA (SF)
SP InfoCity, OMR Phase 2
Shapoorji Pallonji Group
1,200,000
Chennai One (BPO Park) Phase 2 ETL Developers
1,100,000
Estancia Block B2
469,000
L&T & Arun Excello
LOCATION
Old Mahabalipuram
Road
Old Mahabalipuram
Road
GST Road
POSSESSION
2015
2015
2015
Notes:
1. Office Market: Prime office properties in Chennai are located in four principal sub-markets: the CBD, SBD (Guindy, Manpakkam,Velachery) and the PBD (Old Mahaballipuram
Road (OMR).
Research &
Forecast Report
Bengaluru | Office
April 2015
Momentum
continues with
over 2.3 million
sq ft of office
absorption
It was another solid performance for the Bengaluru office
market in 1Q 2015, with office absorption totalling 2.31
million sq ft. Apart from this, about 1.74 million sq ft of
office space was pre-committed for build to suit by MNCs
like Amazon, Wells Fargo, Arista Networks and WSP
Consultants. IT / ITeS commanded the absorption with
about 69% (1.6 million sq ft), followed by BFSI sector 14%
and Retail 6%. SBD locations, such as Bannerghatta Road,
Koramangala, Malleswaram, Yamalur, J P Nagar and Outer
Ring Road - Marathahalli to KR Puram, saw maximum
traction with about 1.4 million sq ft office absorption, trailed
by PBD locations like Whitefield, Hosur Road and Outer
Ring Road - KR Puram to Hebbal, where more than 0.45
million sq ft was leased during the quarter.
Bengaluru recorded new supply of over 2.1 million sq ft
in 1Q 2015, 23% higher than that of the previous quarter.
Projects constituting this supply were Purva Gainz by
Purvankara Projects and Prestige Trinity Center by Prestige
Group both located at Hosur Road, Divyasree Technopolis
- Block by Divyasree at Yamalur, Global Village SEZ by
Tanglin Group at Mysore Road and Pritech - Block 14 by
Primal Group at ORR Marathahalli Sarjapur Road.
The total available stock for fit-outs was approximately 11
million sq ft. EPIP Zone / Whitefield accounted for 39%
of the total stock, followed by Outer Ring Road (24%) and
Electronic City (18%).

INDICATORS
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
CBD
90 - 130
0%
16%
55 - 63
0%
7%
53 - 60
0%
0%
Bannerghatta Road
50 - 60
0%
0%
EPIP Zone/
Whitefield
28 - 36
0%
0%
Hosur Road
25 - 40
0%
8%
Electronic City
26 - 33
0%
7%
Outer Ring Road

(Marathalli Sarjapur)
Outer Ring Road
(North)**

**Northern part of ORR - KR Puram till Hebbal
4
3
2
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013
1Q 2013
2Q 2013

Forecast
60
12,000
10,000
50
8,000
40
6,000
30
4,000
20
2,000
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
10
Capital Values INR Per Sq.ft
70
1Q 2010
Overall, the Bengaluru office market is in the sweet

spot in terms of supply-and-demand fundamentals.
About 2 million sq ft of office space is expected to witness
completion next quarter, out of which about 0.2 million sq ft
is already committed. This steady increase in development
activity and greater domestic and foreign investor interest
in office market should result in additional occupancy and
rent growth. Select micro markets located along Outer Ring
Road (Marthalli - Sarjapur) and EPIP Zone / Whitefield
will continue to remain preferred micro markets among
occupiers due to their strategic locations.
1Q 2009
Colliers View
1Q 2008
In one of the major real estate transactions, Brigade Group

and GIC Singapore jointly bought Hindustan Unilever
Ltd. (HUL)s prime 26 acres of land located in Whitefield
to develop an IT Special Economic Zone. The property is
located in a prime location with connectivity to two IT hubs,
namely, Whitefield and Outer Ring Road.
Million Sq.ft
Rental values were remained stable across Bengaluru,

however capital values posted an average rise of 2% QoQ
across the city, except CBD, Hosur Road and Bannerghatta
Road where capital values were remained stable.
The quarter witnessed many new project launches during

the quarter, such as Embassy Tech Village, HVP Crest,
Mantri Agara Project, Vaishnavi Project and Primal Park
(RGA Tech Park) Blocks 3 and 4. All these projects are
expected to add more than 4 million sq ft of Grade A office
space between 201617 in the citys inventory.

CLIENT
BUILDING NAME
Amazon
Constellation Business
Park
Misys
AREA (SF)
LOCATION
LEASE / SALE
500,000
Outer Ring Road
Lease
World Technology Centre
150,000
Outer Ring Road
Lease
Nokia
Karle Town Centre
131,640
Outer Ring Road
Lease
Epsilon
Karle Town Centre
131,640
Outer Ring Road
Lease
GCC Services India Pvt Ltd
World Technology Centre
131,211
Outer Ring Road
Lease
LOCATION
POSSESSION
900,000
Outer Ring Road
2015
Bagmane Constellation Business

Bagmane Developers
Park - Virgo Block
800,000
Outer Ring Road
2015
RGA Tech Park
800,000
Sarjapur Road
2015

BUILDING NAME
DEVELOPER
Maple Tree - 1 Phase
Adamas Builder
Primal Realty
AREA (SF)
Notes:
1. Office Market: Prime office properties in Bengaluru can be divided into three principal sub-market CBD/O CBD (MG Road, Millers Road, Vittal Mallya Road etc.) the SBD
(Banerghatta Road & Outer Ring Road (ORR)) and PBD (Hosur Road, EPIP Zone, Electronic City and Whitefield).
Research &
Forecast Report
Kolkata | Office
April 2015
Transaction
volumes picks up
in 1Q 2015
During 1Q 2015, Kolkata office market showed signs of
improvement with over 0.22 million sq ft of absorption
compared to the previous quarters absorption of only 0.15
million sq ft. IT / ITeS occupiers topped the chart with over
36% of the total, followed by manufacturing 29% and BFSI
13%. Major transactions during the quarter included the
lease of 0.05 million sq ft office space by Siemens VAI in
Godrej Water Side and the lease of 0.02 million sq ft by NIIT
in Eco Space. Sector V / New Town remained the preferred
micro market among occupiers, with 79% share in the total
absorption. A few small deals were also concluded in the
CBD and SBD micro markets. Developers continued to
remain watchful in launching new projects because many
of the large office spaces are currently struggling with leases
/ sales due to the limited new entrants and the absence of
expansion plans of existing occupiers.

INDICATORS
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
CBD**
85 - 115
0%
-7%
SBD***
65 - 75
0%
-7%
Sector V
40 - 45
-8%
-11%
PBD****
34 - 35
0%
-3%

**Park Street, Camac Street, Chowranghee Road, AJC Bose Road
***EM Bypass, Topsia, Ruby
****Salt Lake, New Town, Rajarhat
Similarly, the city did not witness any major completion

during the quarter due to cautious approach from
developers and low absorption levels seen in the past few
quarters. Meanwhile, PS Group completed its Non-IT
building, PS-Arcadia (0.1 million sq ft), located in Camac
Street area, which is part of CBD.
Rents across Kolkata remained stable during the quarter,
with a marginal decline recorded in Sector V / New Town
micro market due to large availability of supply and limited
demand pipeline. Similarly, capital values declined in Sector
V / New Town and PBD micro markets in the range of 23%
QoQ. The rest of the micro markets remained stable.

1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
3Q 2013
2Q 2013
4Q 2013
0.10
0.00
1Q 2013
The overall market sentiment improved in the first quarter.

However, developers are not very optimistic about the
continuation of this absorption trend. The city is expected
to see very limited supply in the form of small- to mediumsized projects as developers are focusing on finishing
projects with small- to medium-sized floor plates, which
are relatively easy to lease. Rentals are expected to remain
stable primarily because of existing vacancy and low
absorption base.
Million Sq.ft
Colliers View
Forecast
12,000
100
10,000
80
8,000
60
6,000
40
4,000
20
2,000
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
1Q 2010
1Q 2009
Capital Values INR Per Sq.ft.
120
1Q 2008

CLIENT
BUILDING NAME
AREA (SF)
LOCATION
LEASE / SALE
Siemens VAI
Godrej Water Side
46,769
Sector V
Lease
NIIT
Eco Space
18,000
New Town
Lease
PWC
South City Pinacle
13,777
Sector V
Lease
Religare
PS Arcadia Central
10,000
Camac Street
Lease
Honda Motors
Eco Space
9,167
New Town
Lease

BUILDING NAME
DEVELOPER
AREA (SF)
LOCATION
POSSESSION
Mani Twin
Mani Group
1,800,000
Rajarhat
2015
Technopolis 2
Forum Projects
1,200,000
Bantala
2015
Magnacon
Infinity Group
Salt Lake
2015
740,000
Notes:
1. Office Market: The major business locations in Kolkata are CBD (Park Street, Camac Street, Chowranghee Rd, AJC Bose Rd), East Kolkata (EM Bypass, Topsia, Ruby), Salt Lake/
Sector V and New Town / Rajarhat.
Research &
Forecast Report
Pune | Office
April 2015
IT / ITeS driving
the city office real
estate
Renewals and expansions by IT / ITeS companies continued
to drive the Pune office market in 1Q 2015. However, the
citys office absorption was recorded at approximately
0.89 million sq ft, which is 40% lower than the previous
quarters absorption. Nagar Road and Airport Road /
Pune Station continued to remain as the most preferred
locations by major occupants, each with about 24% of the
total absorption, followed by Hinjewadi and Hadapsar /
Fursungi, each with about 16%.
Occupiers from the IT / ITeS sector were the primary
contributors to this demand, taking up more than 90% of
the total absorption. This was followed by other sectors like
Logistics, Pharma and Manufacturing, accounting for over
7% of the total absorption. A number of large-floor plate
deals were concluded this quarter, like the 0.13 million sq
ft lease by Vodafone India in Business @ Mantri located
on Nagar Road. In addition, Amdocs took 0.08 million sq
ft in Magarpatta Cybercity Tower 3, and more than 0.05
million sq ft each was taken by Rockwell Automation and
Access Health Services in Embassy - Mississippi located at
Hinjewadi.
About 4 million sq ft was available for lease in Pune market,
of which 24% was located on the Airport Road / Pune
Station, 18% Nagar Road and 16% in Hinjewadi. The city
witnessed limited new supply, and only about 0.64 million
sq ft of Grade A supply was added to the citys Grade A
inventory. Projects that contributed to this new supply were
Marvel Alaina and Marvel Edge, both by Marvel Group, at
Koregaon Park and Viman Nagar, respectively.

INDICATORS
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
Baner
45 - 55
0%
0%
Bund Garden
50 - 65
0%
0%
Airport road/pune
station
45 - 75
0%
7%
Aundh
45 - 60
0%
0%
Senapati Bapat
Road
55 - 85
0%
0%
Bavdhan
35 - 45
0%
0%
Kalyani Nagar
45 - 60
0%
0%
Nagar Road
40 - 60
0%
0%
Hinjewadi
34 - 45
3%
3%
Hadapsar/Fursungi
38 - 65
0%
7%
Kharadi
34 - 65
2%
2%
Despite low absorption, developers like Vascon launched
1.80
1.50
1.20
0.90
0.60
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013

8,000
Forecast
70
7,000
60
6,000
1Q 2017F
1,000
1Q 2016F
10
1Q 2015
2,000
1Q 2014
3,000
20
1Q 2013
30
1Q 2012
4,000
1Q 2011
5,000
1Q 2010
50
40
Capital Values INR Per Sq.ft.
80
1Q 2008
The office market of Pune will continue to remain upbeat

due to strong fundamentals. IT/ITeS will remain as the
key occupier in the coming quarters of 2015. Vacancy is
expected to decline due to lesser amount of new supply and
increase in absorption. Rents are expected to inch up in
medium term.
2Q 2013
0.00
Colliers View
1Q 2013
0.30
1Q 2009
The rents for prime office property remained stable across

all major micro markets, except in Hinjewadi and Kharadi,
where rents rose by 23% QoQ. Capital values remained
on the same level compared to that of the previous quarter
across Pune.
Million Sq.ft
Platinum Square (0.04 million sq ft) at Viman Nagar, Nyati

launched Nyati Emporius (0.03 million sq ft) at Baner
and MSR Group launched a 0.07 million sq ft project
at Sangamwadi. These projects are currently under
construction and are expected to be completed in 2016.

CLIENT
BUILDING NAME
AREA (SF)
LOCATION
LEASE / SALE
Vodafone India
Business @ Mantri
133,379
Nagar Road
Lease
Amdocs
Magarpatta Cybercity
Tower-3
88,000
Hadapsar
Lease
Rockwell Automation
Embassy - Mississippi
51,516
Hinjewadi
Lease
Access Health Services
Embassy - Mississippi
51,116
Hinjewadi
Lease
HCL
Business Bay
46,000
Yerwada
Lease
AREA (SF)
LOCATION
POSSESSION

BUILDING NAME
DEVELOPER
SP Infocity Building 5
Shapoorji Pallonji Group
800,000
Phursungi
2015
Commerzone Building 8
K Raheja Corp
420,000
Yerwada
2015
Acendas Phase II
Acendas
615,000
Hinjewadi
2015
Notes:
1. Office Market: The prime office sub-markets of Pune include CBD (Deccan Gymkhana, Bund Garden Road, Senapati Bapat Road & Camp), O CBD (Aundh, Airport Road and
Kalyani Nagar) and the eastern corridor, along with Nagar Road and Kharadi, which have emerged as a preferred location for financial and IT/ITES companies.
Primary Authors:
502
67 countries on
6 continents
United States: 140
Canada: 31
Latin America: 24
199
EMEA: 108
Surabhi Arora
Associate Director | Research
+91 124 456 7500
surabhi.arora@colliers.com
Sachin Sharma
Manager | Research
Amit Oberoi I National Director
Valuation & Advisory Services & Research
For Oce Services:
Mumbai: George Mckay I South Asia Director
george.mckay@colliers.com
Delhi / NCR: Vikas Kalia | National Director
vikas.kalia@colliers.com
$2.3
billion in
annual revenue
1.7
billion square feet

under management
16,300
professionals
About Colliers International
colliers.com
2015
Bengaluru: Goutam Chakraborty I Director

goutam.chakraborty@colliers.com
Pune: Rishav Vij I Senior Associate Director
rishav.vij@colliers.com
Chennai: Kaushik Reddy I Director
kaushik.reddy@colliers.com
Kolkata: Swapan Dutta I Senior Associate Director
swapan.dutta@colliers.com
Colliers International
Technopolis Building, 1st Floor,
DLF Golf Course Road,
Sector 54, Gurgaon - 122 002
TEL +91 124 456 7500

OPMO April 2015 India

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Office Property Market Overview

Marco Economic Overview

Mumbai Office Market Overview

Delhi Office Market Overview

Gurgaon Office Market Overview

NOIDA Office Market Overview

Chennai Office Market Overview

Bengaluru Office Market Overview

Kolkata Office Market Overview

Pune Office Market Overview

Research & Forecast Report | April 2015 | Colliers International

Office demand set

Reverse Repo Rate

Cash Reserve Ratio

Prime Lending Rate

Return on Alternative Investments

Research & Forecast Report | April 2015 | Colliers International

City Office Barometer

*Indicative Grade A rents in INR per SF per month

Research & Forecast Report | April 2015 | Colliers International

Average Rental And Capital Value Trend

Top 5 Transactions of the Quarter

Key Under Construction Projects

Seawood Grand Central Tower

Research & Forecast Report | April 2015 | Colliers International

Captial Values INR Per SF

For the last 4 consecutive quarters, there has been an

The New Development Plan of Mumbai 2014-34 was

Quarter Wise Absorption

Despite a rise in demand, rental values remained

City Office Barometer

*Indicative Grade A rents in INR per SF per month

The average transactions size in 1Q 2015 was around 6,000

Research & Forecast Report | April 2015 | Colliers International

No new commercial grade A office space were launched

Quarter Wise Absorption

As the economy expands, we expect improvement in overall

Average Rental And Capital Value Trend

Captial Values INR Per SF

Rental Values INR Per SF Per Month

Top 5 Transactions of the Quarter

Reliance Corporate IT Park

Gopal Das Building

Key Under Construction Projects

Caddie Commercial Tower

Research & Forecast Report | April 2015 | Colliers International

City Office Barometer

DLF Cyber City (IT)

Golf Course Road

Udyog Vihar &

*Indicative Grade A rents in INR per SF per month

Research & Forecast Report | April 2015 | Colliers International

Average Rental And Capital Value Trend

Captial Values INR Per SF

With the number of RFPs floating in the market, we

On the infrastructure front, the new state Government has

Quarter Wise Absorption

Rents and capital values in Gurgaon remained stable in 1Q

Top 5 Transactions of the Quarter

Ernst & Young

Unitech Cyber Park

Bestech Business Park

Vatika Business Park

Key Under Construction Projects