Office Snapshot Q1 2017AHMEDABAD, INDIA
MARKETBEAT
Market Indicators (Grade A)
Net Asking Rental / Vacancy Rates (CBD-All Grades)
Pre-commitment / Net Absorption (CBD-All Grades)
www.cushmanwakefield.com
Q1 16 Q1 17Y-O-Y
Change
12-Month
Forecast
Overall Vacancy 40.7% 38.7% 2.0%*
Weighted Average Net
Asking Rentals
(INR/sf/month)
37.00 39.65 7.2%
YTD Net Absorption (sf) 169,700 37,000 -78.20%
* percentage points
EconomyDespite a dim forecast due to the impact of the Indian rupee’s
demonetization, India’s Gross Domestic Product (GDP) still grew
7.0% during the fourth quarter of 2016. While the pace of growth
slowed from the 7.4% in the previous quarter, most sectors except
Construction and Financial, Real Estate, and Professional Services
recorded higher growth during the quarter. India’s bellwether index,
the S&P BSE 100 Index gained about 12% in value in January-
March 2017 period, indicating healthy performances for the top
100 large-cap companies. However, the BSE IT Index, which
tracks the performance of listed Information Technology–Business
Process Management (IT-BPM) companies, gained only 4% in the
same period, at a time when the IT-BPM sector is going through a
tumultuous time. Concerns on global macroeconomic headwinds
have resulted in the software industry body, the National
Association of Software and Services Companies (NASSCOM),
lowering its IT export growth target to 8-10% for the year ending
March 2017. This implies that leasing by IT-BPM companies could
be adversely impacted. Going ahead, it is expected that GDP
growth could remain stressed for the short term due to the hang-
over impact of demonetization on manufacturing and investments.
Significant addition in supply and decline in net absorption lead to increase in vacancy levelsAhmedabad recorded 454,000 square feet (sf) of new supply
spread in the submarkets of C.G. Road and S.G. Highway during
the first quarter of 2017. This significant supply addition, coupled
with moderate leasing activity, led to a 1 percentage point increase
in the overall vacancy levels, which stood at 25.6% at the end of
the first quarter of 2017.
Net absorption of approximately 87,300 sf was recorded during the
quarter, declining 22% Quarter-on-Quarter (QoQ). Majority (42%)
of the net absorption was recorded in the S.G. Highway
submarket. The quarterly leasing activity was dominated by the
banking, financial services, and insurance (BFSI) sector with a
37% share, followed by the IT-BPM sector with a 22% share.
The first quarter of 2017 witnessed lease commitments by
companies from the BFSI and IT-BPM sectors in under-
construction buildings that are expected to be completed by the
end of 2017. Grade A rentals across most markets remained
range-bound during the quarter due to the lackluster leasing
activity.
OutlookNearly 1.7 million square feet (msf) of Grade A supply is expected
to become available during the second quarter of 2017. In the
wake of significant supply infusion coupled with moderate leasing
activity, overall city vacancy levels may rise in the short term.
Rentals are expected to remain stable.
0
50
100
150
2010 2011 2012 2013 2014 2015 2016 Q12017
Pre-commitment (000' sf) Net Absorption (000' sf)
AHMEDABAD OFFICE
0%
4%
8%
12%
16%
25
30
35
40
45
2010 2011 2012 2013 2014 2015 2016 Q12017
Net Asking Rental (INR/sf/month) Vacancy Rate (%)
Office Snapshot Q1 2017AHMEDABAD, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Key Lease Transactions Q1 2017
PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET
Studio Complex 25,000 Adarsh Bank Lease S.G. Highway
Shoppers Plaza 12,000 Indus Ind Bank Lease C.G. Road
Key Construction Completions Q1 2017
PROPERTY SF TENANT GRADE SUBMARKET
Shilp Arista 180,000 NA A S.G. Highway
Key Projects Under Construction
PROPERTY SF TENANT COMPLETION DATE SUBMARKET
The First 900,000 NA Q2 2017 Satellite / Prahladnagar
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
SUBMARKET INVENTORY (SF)OVERALL
VACANCY RATE
YTD LEASING
ACTIVITY (SF)
UNDER
CONSTRUCTION
(SF)
YTD
CONSTRUCTION
COMPLETION (SF)
YTD NET
ABSORPTION
(SF)
AVERAGE ASKING
RENT (Q4 2016)*
AVERAGE
ASKING RENT
(Q1 2017)*
AVERAGE ASKING
RENT (Q1 2017)**
AVERAGE
ASKING RENT
(Q1 2017)***
ALL GRADES
C.G. Road (CBD) 3,443,800 14.8% 16,500 220,000 183,000 16,300 38.68 39.18 $7.18 € 6.65
Ashram Road 651,600 18.4% 0 920,000 0 0 42.92 42.92 $7.87 € 7.29
S.G. Highway 8,028,100 24.6% 64,400 2,812,500 271,000 62,000 41.21 41.85 $7.67 € 7.11
Satellite / Prahladnagar 6,688,300 23.5% 19,000 1,866,000 0 9,000 36.95 36.99 $6.78 € 6.28
TOTALS# 25,318,700 25.6% 99,900 29,272,100 454,000 87,300 39.19 38.99 $7.15 € 6.62
GRADE A
S.G. Highway 6,058,200 31.0% 39,400 2,707,500 271,000 37,000 41.81 42.28 $7.75 € 7.18
Satellite / Prahladnagar 4,061,500 30.8% 10,000 1,866,000 0 0 38.51 38.51 $7.06 € 6.54
TOTALS# 13,442,600 38.7% 49,400 27,198,600 271,000 37,000 39.90 39.65 $7.27 € 6.73
Net absorption refers to the incremental new space take-up; renewals not included in leasing activity statistics
Average asking rents indicated weighted average, warm shell, asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up
*Weighted average rental rates reflect gross asking INR/sf/month
** Weighted average rental rates reflect gross asking USD/sf/year
*** Weighted average rental rates reflect gross asking EUR/sf/year
Conversion rate : US$1 = INR 65.46 and EUR 1= INR 70.65
#Total figures contain additional submarkets not mentioned above
Numbers for the first quarter are based on market information collected until 10th March 2017
Office Snapshot Q1 2017BENGALURU
MARKETBEAT
Market Indicators (Grade A)
Net Asking Rental / Vacancy (Grade A)
Pre-commitment/ Net Absorption (Grade A)
www.cushmanwakefield.com
Q1 16 Q1 17Y-O-Y
Change
12-Month
Forecast
Overall Vacancy 7.7% 6.2% -2.2%*
Weighted Average
Net Asking Rentals
(INR/sf/month)
55.33 61.03 10.3%
YTD Net Absorption
(sf)
3,314,500 1,144,900 -65.5%
* percentage points
EconomyDespite a dim forecast due to the impact of the Indian rupee’s
demonetization, India’s Gross Domestic Product (GDP) still grew
7.0% during the fourth quarter of 2016. While the pace of growth
slowed from the 7.4% in the previous quarter, most sectors except
Construction and Financial, Real Estate, and Professional Services
recorded higher growth during the quarter. India’s bellwether index,
the S&P BSE 100 Index gained about 12% in value in January-March
2017 period, indicating healthy performances for the top 100 large-
cap companies. However, the BSE IT Index, which tracks the
performance of listed Information Technology–Business Process
Management (IT-BPM) companies, gained only 4% in the same
period, at a time when the IT-BPM sector is going through a
tumultuous time. Concerns on global macroeconomic headwinds
have resulted in the software industry body, the National Association
of Software and Services Companies (NASSCOM), lowering its IT
export growth target to 8-10% for the year ending March 2017. This
implies that leasing by IT-BPM companies could be adversely
impacted. Going ahead, it is expected that GDP growth could remain
stressed for the short term due to the hang-over impact of
demonetization on manufacturing and investments.
Subdued absorption levels due to deferment in new
supply The city saw limited supply infusion during the quarter as only 1.4
million square feet (msf) of Grade A space received occupancy
certificates out of the 7.0 msf scheduled for completion. Outer Ring
Road (ORR) continues to see the highest share (55%) of new supply
followed by Peripheral East (24%).
Grade A net absorption was noted at 1.1 msf during the quarter. ORR
remains the preferred market for occupiers, accounting for 61% of the
overall Grade A net absorption. The quarter saw large transactions
from IT occupiers such as Nokia (about 200,000 sf) and TCS
(360,000 sf). Approximately 912,000 sf of Grade A space was pre-
committed during the quarter by IT-BPM and consulting companies,
majority (73%) in the ORR submarket. Grade A vacancy rate
increased marginally to 6.2% from 6.0% in the previous quarter owing
to low absorption. The quoted rentals remained stable across
markets. However, weighted average rentals in ORR and Peripheral
South witnessed an increase during the quarter, owing to availability
of spaces with high rentals.
OutlookAdditional supply of about 6.0 msf is expected to become operational
during the next quarter. However, vacancy rate is expected to remain
stable due to healthy demand and previous pre-commitments for the
upcoming supply. Rental values across markets are expected to
remain flat.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2010 2011 2012 2013 2014 2015 2016 Q12017
Pre-commitment (000' sf) Net Absorption (000' sf)
BENGALURU OFFICE
0%
5%
10%
15%
20%
25
30
35
40
45
50
55
60
65
70
2010 2011 2012 2013 2014 2015 2016 Q12017
Net Asking Rental (INR/sf/month) Vacancy Rate (%)
Office Snapshot Q1 2017BENGALURU
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
Key Lease Transactions Q1 2017
PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET
Brigade Bhuwalka Icon 360,000 TCS Lease Whitefield
Manyata Valdel (M2) 194,900 Nokia Lease Outer Ring Road
Key Construction Completions Q1 2017
PROPERTY SF TENANT GRADE SUBMARKET
RMZ Eco World (7) 764,500 NA A Outer Ring Road
Brigade Bhuwalka Icon 360,000 NA A Whitefield
Key Projects Under Construction
PROPERTY SF TENANT COMPLETION DATE SUBMARKET
Hinduja SEZ 800,000 NA Q3 2017 Peripheral North
Bhartiya Center for Information Technology Block -2 790,000 NA Q4 2017 Peripheral North
Net absorption refers to the incremental new space take-up; renewals not included in leasing activity statistics
Average asking rents indicated weighted average, warm shell, asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up
IT-BPM denotes Information Technology and Business Process Management services
*Reflect average asking rents in INR/sf/month ** Reflect average asking rents in USD/sf/year *** Reflect average asking rents in EUR /sf/year
Conversion rate : US$1 = INR 65.46 and EUR 1= INR 70.65
#Total figures contain additional submarkets not mentioned above. Numbers for the first quarter are based on market information collected until 10th Mach 2017
2016 numbers have been recalibrated based on revision in inventory and vacant spacesKey to submarkets:
CBD/Off-CBD – M.G. Road, Millers Road, Vittal Mallya Road, Residency Road, etc.; Peripheral South – Electronic City, Hosur Road, Mysore Road;
Outer Ring Road – Sarjapur, KR Puram, Hebbal; Suburban East – Indira Nagar, Old Airport Road, C.V. Raman Nagar
Peripheral East – Whitefield; Suburban South – Koramangala, Bannerghatta Road, Jayanagar
Peripheral North – Bellary Road, Thanisandara Road, Tumkur Road,
SUBMARKETINVENTORY
(SF)
OVERALL
VACANCY
RATE
YTD LEASING
ACTIVITY
(SF)
UNDER
CNSTRUCTION
(SF)
YTD CONSTRUCTION
COMPLETION
(SF)
YTD NET
ABSORPTION
(SF)
AVERAGE
ASKING RENT
(Q4 2016)*
AVERAGE
ASKING RENT
(Q1 2017)*
AVERAGE
ASKING RENT
(Q1 2017)**
AVERAGE
ASKING RENT
(Q1 2017)***
ALL GRADES
CBD/Off-CBD 11,417,600 6.4% 104,400 875,600 92,000 -64,200 72.33 80.87 $14.83 € 13.74
Suburban East 19,368,900 1.2% 362,300 1,961,800 0 263,200 50.05 57.65 $10.57 € 9,79
Suburban South 11,094,700 4.0% 86,000 3,399,000 0 59,000 62.98 64.51 $11.83 € 10.96
Peripheral East 30,899,500 9.9% 506,500 4,978,700 360,000 247,200 40.67 42.26 $7.75 € 7.18
Peripheral North 2,921,000 48.5% 0 3,820,600 233,500 -72,300 72.87 72.87 $13.36 € 12.38
Peripheral South 14,887,200 12.7% 116,600 1,250,000 0 44,800 43.08 49.27 $9.03 € 8.37
Outer Ring Road 54,507,600 7.0% 733,200 13,815,800 830,500 697,300 67.19 75.69 $13.87 € 12.86
TOTALS# 146,396,500 7.9% 1,909,000 30,681,600 1,515,900 1,175,100 50.25 53.97 $9.89 € 9.17
GRADE A
CBD/Off-CBD 3,795,300 5.5% 83,100 875,600 0 -22,900 73.92 73.92 $13.55 € 12.55
Suburban East 18,099,800 0.5% 331,500 1,961,800 0 230,900 75.00 77.00 $13.75 € 12.74
Suburban South 4,987,700 0.2% 0 2,900,000 0 0 70.00 70.00 $12.83 € 11.89
Peripheral East 23,198,500 5.4% 506,500 4,766,700 360,000 267,200 44.30 45.55 $8.35 € 7.74
Peripheral North 2,548,500 54.0% 0 3,820,600 233,500 -72,300 73.43 73.43 $13.46 € 12.47
Peripheral South 8,106,800 9.5% 56,600 1,250,000 0 44,800 54.64 59.77 $10.96 €10.15
Outer Ring Road 53,452,700 6.4% 718,400 12,993,900 764,500 697,300 68.56 77.00 $14.12 € 13.08
TOTALS# 115,289,300 6.2% 1,696,000 29,148,700 1,358,000 1,144,900 61.16 61.03 $11.19 € 10.37
Office Snapshot Q1 2017CHENNAI, INDIA
MARKETBEAT
Market Indicators (Grade A)
Net Asking Rental / Vacancy (Grade A)
Pre-commitment/ Net Absorption (Grade A)
www.cushmanwakefield.com
Q1 16 Q1 17Y-O-Y
Change
12-Month
Forecast
Overall Vacancy 8.8% 9.2% 0.4%*
Weighted Average Net
Asking Rentals
(INR/sf/month)
44.27 57.36 29.6%
YTD Net Absorption (sf) 544,600 709,000 30%
* percentage points
EconomyDespite a dim forecast due to the impact of the Indian rupee’s
demonetization, India’s Gross Domestic Product (GDP) still grew
7.0% during the fourth quarter of 2016. While the pace of growth
slowed from the 7.4% in the previous quarter, most sectors except
Construction and Financial, Real Estate, and Professional Services
recorded higher growth during the quarter. India’s bellwether index,
the S&P BSE 100 Index gained about 12% in value in January-
March 2017 period, indicating healthy performances for the top 100
large-cap companies. However, the BSE IT Index, which tracks the
performance of listed Information Technology–Business Process
Management (IT-BPM) companies, gained only 4% in the same
period, at a time when the IT-BPM sector is going through a
tumultuous time. Concerns on global macroeconomic headwinds
have resulted in the software industry body, the National
Association of Software and Services Companies (NASSCOM),
lowering its IT export growth target to 8-10% for the year ending
March 2017. This implies that leasing by IT-BPM companies could
be adversely impacted. Going ahead, it is expected that GDP
growth could remain stressed for the short term due to the hang-
over impact of demonetization on manufacturing and investments.
Net absorption drops, vacancy rate declines as no
fresh supply is added Grade A net absorption stood at 709,000 square feet (sf), a sharp
drop of 67% from the previous quarter. Gross leasing activity
remained healthy at 1.2 million sf. Bulk of the leasing activity (70%)
was observed in Peripheral South followed by Suburban South.
The IT-BPM sector continues to dominate Grade A leasing activity,
characterized by big ticket transactions in excess of 100,000 sf in
IT-Special Economic Zones (SEZs). Thoraipakkam, Navalur, and
GST Road were the main micromarkets that saw a huge demand
in office space.
There was no fresh addition of Grade A space during the quarter
as the projects completions were deferred. Overall Grade A
vacancy rate was noted at 9.2%, a 1.6 percentage points decline
from the previous quarter. However, Off-CBD area recorded a high
Grade A vacancy rate of 29% as a tenant occupying a substantial
area relocated during the quarter. Grade A rental values remained
stable across markets.
OutlookGiven that availability of ready-to-move Grade A office spaces is
limited, demand for Grade A office space is expected to rise. Only
about 100,000 sf of Grade A space is expected to be added in the
upcoming quarter in CBD area. Also, select micro-markets such as
Suburban South and South-West may witness an increase in
rentals in the next quarter on the back of steady demand coupled
with no addition to supply.
0
2,000
4,000
6,000
2010 2011 2012 2013 2014 2015 2016 Q12017
Pre-commitment (000'sf) Net Absorption (000'sf)
CHENNAI OFFICE
0%
10%
20%
30%
40%
10
20
30
40
50
60
2010 2011 2012 2013 2014 2015 2016 Q12017
Net Asking Rental (INR/sf/month) Vacancy Rate (%)
Office Snapshot Q1 2017CHENNAI, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Key Lease Transactions Q1 2017
PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET
Chennai One Magnum 370,000 TCS Lease Peripheral South
Chennai One Magnum 123,000 Wells Fargo Lease Peripheral South
ETA Techno Park 140,000 Fujitsu Lease Peripheral South
Key Construction Completions Q1 2017PROPERTY SF TENANT GRADE SUBMARKET
Best IT Park 73,000 NA B South-West
Key Projects Under ConstructionPROPERTY SF TENANT COMPLETION DATE SUBMARKET
Olympia Teknos 111,500 NA Q3 2017 South West
Chennai One Magnum – Phase II 1,087,450 NA Q4 2017 Peripheral South
Siddhart GoelSenior Director Research Services,
India
Tel: +91 80 40465555
SUBMARKETINVENTORY
(SF)
OVERALL
VACANCY
RATE
YTD LEASING
ACTIVITY (SF)
UNDER CNSTR
(SF)
YTD
CONSTRUCTION
COMPLETION
(SF)
YTD NET
ABSORPTION
(SF)
AVERAGE
ASKING RENT
(Q4 2016)*
AVERAGE
ASKING RENT
(Q12017)*
AVERAGE
ASKING RENT
(Q1 2017)**
AVERAGE
ASKING RENT
(Q1 2017)***
ALL GRADES
CBD 15,067,900 8.8% 62,000 100,000 0 24,400 62.80 62.74 $11.50 € 10.66
Off-CBD 10,325,900 13.3% 48,600 125,400 14,000 -40,400 62.49 64.56 $11.84 € 10.97
South-west 13,341,600 4.5% 19,800 951,600 73,000 13,700 61.92 63.23 $11.59 € 10.74
North-west 5,072,200 9.5% 0 0 14,000 0 39.93 40.66 $7.45 € 6.91
Suburban South 19,029,100 7.1% 220,200 0 0 127,500 73.14 73.76 $13.52 € 12.53
Peripheral South 12,078,900 19.3% 791,900 1,087,500 0 708,300 43.62 41.41 $7.59 € 7.03
Peripheral South-west 3,073,800 5.6% 126,900 800,000 0 -47,000 35.12 41.63 $7.63 € 7.07
TOTALS 77,989,400 9.8% 1,269,400 3,064,500 101,000 786,600 55.81 56.67 $10.39 € 9.63
GRADE A
CBD 2,176,800 14.4% 35,600 100,000 0 9,800 75.58 75.91 $13.92 € 12.89
Off-CBD# 340,000 29.4% 0 80,000 0 -80,000 65.00 93.00 $17.05 € 15.80
South-west 9,591,600 3.6% 19,800 861,500 0 12,200 63.96 63.75 $11.69 € 10.83
North-west 2,872,000 5.6% 0 0 0 0 31.54 31.54 $5.78 € 5.36
Suburban South 15,853,800 5.9% 163,700 0 0 105,700 84.07 85.55 $15.68 € 14.53
Peripheral South 10,131,700 19.8% 791,900 1,087,500 0 708,300 44.07 41.65 $7.64 € 7.07
Peripheral South-west 2,982,000 5.4% 120,000 800,000 0 -47,000 35.00 42.00 $7.70 € 7.13
TOTALS 43,947,800 9.2% 1,131,000 2,929,000 0 709,000 56.01 57.36 $10.52 € 9.74
Net Absorption refers to the incremental new space take-up, renewals not included in leasing activity statistic
Average asking rents indicate weighted average, warm shell, asking rental rates for vacant properties that provide core facil ity, high-side air conditioning and 100% power back up
*Reflect average asking rents in INR/sf/month
** Reflect average asking rents in USD/sf/year
*** Reflect average asking rents in EUR /sf/year
#Revision in data
Conversion rate : US$1 = INR 65.46 and EUR 1= INR 70.65
IT-BPM denotes Information Technology and Business Process Management services
Numbers for the first quarter are based on market information collected until 10th March 2017
The changes in inventory is due to removal of retail and non-commercial spaces from inventory
Key to submarkets:
CBD – Anna Salai, Nungambakkam, R.K. Salai Off-CBD – T.Nagar, Alwarpet, Kilpauk, Egmore, Chetpet, Royapettah, Kotturpuram
South-west – Guindy, Ashok Nagar, Vadapalani, Manapakkam, Ekkaduthangal North-west – Ambattur, Padi, Anna Nagar, Koyambedu, Arumbakkam
Suburban South – Perungudi, Taramani, Thiruvanmiyur, Velachery Peripheral South – Sholinganallur, Thoraipakkam, Navalur, Siruseri, Padur
Peripheral South-west – Singaperumalkoil, Tambaram, Guduvanchery, Perungalathur, Pallavaram
Office Snapshot Q1 2017DELHI-NCR, INDIA
MARKETBEAT
Market Indicators (Grade A)
Net Asking Rental / Vacancy (Grade A)
Pre-commitment/ Net Absorption (Grade A)
www.cushmanwakefield.com
Q1 16 Q1 17Y-O-Y
Change
12-Month
Forecast
Overall Vacancy 31.6% 28.7% -2.9%*
Weighted Average Net
Asking Rentals
(INR/sf/month)
73.60 73.54 -0.1%
YTD Net Absorption (sf) 709,200 746,000 5.2%
* percentage points
EconomyDespite a dim forecast due to the impact of the Indian rupee’s
demonetization, India’s Gross Domestic Product (GDP) still grew
7.0% during the fourth quarter of 2016. While the pace of growth
slowed from the 7.4% in the previous quarter, most sectors except
Construction and Financial, Real Estate, and Professional Services
recorded higher growth during the quarter. India’s bellwether index,
the S&P BSE 100 Index gained about 12% in value in January-
March 2017 period, indicating healthy performances for the top
100 large-cap companies. However, the BSE IT Index, which
tracks the performance of listed Information Technology–Business
Process Management (IT-BPM) companies, gained only 4% in the
same period, at a time when the IT-BPM sector is going through a
tumultuous time. Concerns on global macroeconomic headwinds
have resulted in the software industry body, the National
Association of Software and Services Companies (NASSCOM),
lowering its IT export growth target to 8-10% for the year ending
March 2017. This implies that leasing by IT-BPM companies could
be adversely impacted. Going ahead, it is expected that GDP
growth could remain stressed for the short term due to the hang-
over impact of demonetization on manufacturing and investments.
Net absorption declines, surge in new supplyGrade A net absorption of 746,000 square feet (sf) was recorded
during the quarter, a 19% decline quarter-on-quarter (QoQ). The
IT-BPM sector contributed 25% to Grade A leasing during the
quarter, followed the by banking, financial services and
insurance (BFSI) and engineering and manufacturing sectors with
12% and 10% shares, respectively. Majority of the space leased by
the BFSI and manufacturing segments during the quarter were led
by international occupiers. The quarter also recorded a pre-
commitment transaction of 225,000 sf by a technology research
firm in an upcoming project in Gurgaon.
Grade A new supply increased almost 100% from the previous
quarter with new supply of 895,000 sf coming from the submarkets
of Gurgaon Others and Noida. Overall vacancy remained similar to
the previous quarter at 28.7%. Grade A weighted average rentals
declined by 1.2% QoQ due to the addition of new space in Noida.
However, submarkets in Gurgaon noted a quarterly increase of
0.7–1.2% in weighted average rents due to decline in vacancy
levels during the quarter.
OutlookAbout 1.06 million sf of new supply is expected to be complete in
the next quarter in the Gurgaon Others submarket, while about
983,000 sf of supply scheduled for completion in the next quarter
has been deferred. The coming quarter is expected to witness
improved absorption of office space. However, rentals are likely to
remain largely unchanged on account of space availability as well
as upcoming supply.
0
2,000
4,000
6,000
8,000
10,000
2010 2011 2012 2013 2014 2015 2016 Q12017
Pre-commitment ('000 sf) Net Absorption ('000 sf)
DELHI-NCR OFFICE
0%
10%
20%
30%
40%
50%
0
20
40
60
80
100
2010 2011 2012 2013 2014 2015 2016 Q1
2017
Net Asking Rental (INR/sf/month) Vacancy Rate (%)
Office Snapshot Q1 2017DELHI-NCR, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Key Lease Transactions Q1 2017
PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET
SP Infocity 50,000 Encore Lease Gurgaon
DLF Building 14 50,000 EXL Lease Gurgaon
Key Construction Completions Q1 2017
PROPERTY SF TENANT GRADE SUBMARKET
Pioneer Square 345,000 PepsiCo A Gurgaon
Key Projects Under Construction
PROPERTY SF TENANT COMPLETION DATE SUBMARKET
Innovative Techno Park 500,000 NA Q2 2017 Gurgaon
Candor Office Park 411,000 NA Q2 2017 Gurgaon
Siddhart GoelSenior Director Research Services, IndiaTel: +91 80 [email protected]
SUBMARKET INVENTORY (SF)
OVERALL
VACANCY
RATE
YTD LEASING
ACTIVITY (SF)
UNDER
CNSTRUCTION
(SF)
YTD
CONSTRUCTION
COMPLETION (SF)
YTD NET
ABSORPTION
(SF)
AVERAGE ASKING
RENT (Q4 2016)*
AVERAGE
ASKING RENT
(Q1 2017)*
AVERAGE ASKING
RENT (Q1 2017)**
AVERAGE ASKING
RENT (Q1 2017)***
ALL GRADES
Delhi CBD 5,320,500 7.6% 24,000 253,900 0 (13,800) 331.06 328.62 $60.24 €55.82
South-East Delhi 8,801,300 19.5% 3,000 0 0 (44,900) 148.60 151.33 $27.74 €25.70
Delhi International Airport 1,186,200 17.2% 104,100 0 0 104,100 225.00 225.00 $41.25 €38.22
Gurgaon CBD 16,391,500 5.2% 118,800 2,549,000 0 46,500 117.09 118.07 $21.64 €20.05
Gurgaon Others 53,489,800 37.3% 737,300 15,257,300 345,000 591,700 68.71 69.15 $12.68 €11.75
Noida 24,935,200 29.5% 93,300 4,740,000 550,000 13,300 57.36 56.62 $10.38 € 9.62
TOTALS 110,124,500 27.7% 1,080,200 22,800,200 895,000 696,900 74.06 73.38 $13.45 €12.46
GRADE A
Delhi CBD 1,373,700 18.8% 24,000 253,900 0 1,000 398.62 398.62 $73.07 €67.71
South-East Delhi 7,608,200 17.4% 3,000 0 0 (44,900) 176.79 179.77 $32.95 €30.53
Delhi International Airport 1,186,200 17.2% 104,100 0 0 104,100 225.00 225.00 $41.25 €38.22
Gurgaon CBD 15,827,500 5.1% 118,800 2,549,000 0 62,300 117.97 119.39 $21.89 €20.28
Gurgaon Others 49,884,700 38.2% 737,300 15,062,300 345,000 603,200 68.96 69.41 $12.72 €11.79
Noida 22,502,400 29.2% 86,000 4,740,000 550,000 20,300 58.34 57.29 $10.50 € 9.73
TOTALS 98,382,700 28.7% 1,073,200 22,605,200 895,000 746,000 74.43 73.54 $13.48 €12.49
Key to submarkets:
Delhi CBD - Connaught Place
South-East Delhi - Rohini, Shalimar Bagh, Jasola, Munirka, Saket & Nehru Place
Gurgaon CBD - Cyber City and M. G. Road
Gurgaon Others - rest of the city (excludes Manesar); Noida - excludes Greater Noida
Net absorption refers to the incremental new space take-up; renewals not included in leasing activity statistics
Average asking rents indicated weighted average, warm shell, asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up
IT-BPM denotes Information Technology and Business Process Management services
BFSI denotes Banking, Financial Services and Insurance
*Weighted average rental rates reflect gross asking INR/sf/month
** Weighted average rental rates reflect gross asking USD/sf/year
*** Weighted average rental rates reflect gross asking EUR /sf/year
Conversion rate : US$1 = INR 65.46 and EUR 1= INR 70.65
Numbers for the first quarter are based on market information collected until 10th March 2017
2016 numbers have been recalibrated based on revision in inventory and vacant spaces
Office Snapshot Q1 2017HYDERABAD, INDIA
MARKETBEAT
Market Indicators (Grade A)
Net Asking Rental / Vacancy (Grade A)
Pre-commitment/ Net Absorption (Grade A)
www.cushmanwakefield.com
Q1 16 Q1 17Y-O-Y
Change
12-Month
Forecast
Overall Vacancy 8.99% 5.80% -3.19%*
Weighted Average Net
Asking Rentals
(INR/sf/month)
37.96 51.77 36.38%
YTD Net Absorption (sf) 3,181,200 550,800 -82.68%
* percentage points
EconomyDespite a dim forecast due to the impact of the Indian rupee’s
demonetization, India’s Gross Domestic Product (GDP) still grew
7.0% during the fourth quarter of 2016. While the pace of growth
slowed from the 7.4% in the previous quarter, most sectors except
Construction and Financial, Real Estate, and Professional Services
recorded higher growth during the quarter. India’s bellwether index,
the S&P BSE 100 Index gained about 12% in value in January-
March 2017 period, indicating healthy performances for the top 100
large-cap companies. However, the BSE IT Index, which tracks the
performance of listed Information Technology–Business Process
Management (IT-BPM) companies, gained only 4% in the same
period, at a time when the IT-BPM sector is going through a
tumultuous time. Concerns on global macroeconomic headwinds
have resulted in the software industry body, the National
Association of Software and Services Companies (NASSCOM),
lowering its IT export growth target to 8-10% for the year ending
March 2017. This implies that leasing by IT-BPM companies could
be adversely impacted. Going ahead, it is expected that GDP
growth could remain stressed for the short term due to the hang-
over impact of demonetization on manufacturing and investments.
Tight vacancies continue, occupiers should look at pre-
committingTight vacancies continued in the key submarkets of Madhapur
(2.0%) and Gachibowli (13.0%) during the quarter. Consequently,
90% of the space scheduled for delivery in 2017 has already been
pre-committed, forcing larger occupiers to pre-commit for buildings
with expected completions in 2018. As such, tenants with
immediate space requirements are forced to compromise on
quality, location, amenities, etc. and explore standalone commercial
properties in the suburban market.
With very few space options available in the market, Grade A net
absorption during the quarter was restricted to 550,800 square feet
(sf), almost half of the previous quarter. New supply of 465,800 sf
has entered the Gachibowli micro market at full occupancy levels.
There was no new supply in Madhapur over the last 3 months.
Gachibowli gains prominence with several Grade A
projects underway Gachibowli has gained traction over the last 12-18 months as major
clients such as Apple, DBS, GAP, ZF, and Google set-up their
offices. As market activity gained pace, developers have started
building large tech parks with Grade A offices. With tenants
currently competing for limited space options, rents are increasing
gradually. The availability of residential projects and schools are
also attracting tenants to choose Gachibowli as their preferred
location.
Outlook Increasing rents and limited availabilities are forcing clients to plan
in advance. However, this trend will change from second half of
2018 as several Grade A projects are expected to be delivered.
Vacancies expected to hover around 2-3% until the first half of
2018, while rents in Madhapur and Gachibolwi are expected to go
up 5-7% this year.
0
2,000
4,000
6,000
2011 2012 2013 2014 2015 2016 Q1 2017
Pre-commitment (000' sf) Net Absorption (000' sf)
HYDERABAD OFFICE
0%
5%
10%
15%
20%
25
30
35
40
45
2012 2013 2014 2015 2016 Q1 2017
Net Asking Rental (INR/sf/month) Vacancy Rate (%)
Office Snapshot Q1 2017HYDERABAD, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Key Lease Transactions Q1 2017
PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET
TSI 2.2 100,560 DBS Lease Suburban (Gachibowli)
TSI 2.2 40,000 Digital domain Lease Suburban (Gachibowli)
Key Construction Completions Q1 2017
PROPERTY SF TENANT GRADE SUBMARKET
TSI 2.2 465,768 DBS A Suburban (Gachibowli)
Key Projects Under Construction
PROPERTY SF TENANT COMPLETION DATE SUBMARKET
Avance Business Hub H03 560,000 NA Q1 2017 Suburban (Madhapur)
TSI 2.3 409,500 Innominds Q4 2017 Suburban (Gachibowli)
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
SUBMARKETINVENTORY
(SF)
OVERALL
VACANCY
RATE
YTD LEASING
ACTIVITY
(SF)
UNDER
CONSTRUCTION
(SF)
YTD
CONSTRUCTION
COMPLETION (SF)
YTD NET
ABSORPTION
(SF)
AVERAGE ASKING
RENT (Q4 2016)*
AVERAGE
ASKING RENT
(Q1 2017)*
AVERAGE ASKING
RENT (Q1 2017)**
AVERAGE
ASKING RENT
(Q1 2017)***
ALL GRADES
CBD 3,531,577 13.54% 57,040 348,800 0 28,000 48.91 49.33 $ 9.04 € 8.38
Off- CBD 9,223,502 13.01% 97,380 93,546 126,000 22,880 45.24 45.16 $ 8.28 € 7.67
Madhapur 31,148,525 3.65% 322,844 7,976,000 104,496 322,844 51.89 53.89 $ 9.88 € 9.15
Gachibowli 11,993,880 15.21% 591,943 3,528,250 965,768 465,768 40.72 50.09 $ 9.18 € 8.51
Suburban (Others) 1,442,561 3.65% 322,844 7,976,000 0 322,844 34.38 34.88 $ 6.39 € 5.93
Prime Suburban 3,733,170 15.25% 39,790 623,652 0 39,790 45.34 45.06 $ 8.26 € 7.65
Peripheral East 1,686,600 15.64% 0 1,160,000 0 0 30.00 30.00 $ 5.50 € 5.10
TOTALS 62,759,815 10.24% 1,170,410 13,730,248 1,196,264 900,142 43.27 46.80 $ 8.58 € 7.95
GRADE A
Madhapur 25,049,903 2.34% 43,053 7,976,000 0 85,053 57.23 57.07 $ 10.46 € 9.69
Gachibowli 9,506,287 13.09% 465,768 3,528,250 965,768 465,768 39.00 50.00 $ 9.17 € 8.49
Peripheral East 1,348,000 18.16% 0 0 0 0 30.00 30.00 $ 5.50 € 5.10
TOTALS 35904190 5.8% 508,821 11,504,250 965,768 550,821 41.37 51.70 $ 9.38 € 8.69
Net absorption refers to the incremental new space take-up; renewals not included in leasing activity statistics
Average asking rents indicated weighted average, warm shell, asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up
*Reflect average asking rents in INR/sf/month ** Reflect average asking rents in USD/sf/year *** Reflect average asking rents in EUR/sf/year
#Revisions in inventory on account of removal of some office spaces being recently converted to retail spaces
Conversion rate : US$1 = INR 65.46 and EUR 1= INR 70.65
IT-BPM denotes Information Technology and Business Process Management services
Numbers for the first quarter are based on market information collected until 10th March 2017
Key to submarkets:
CBD – Banjara Hills Road No. 1, 2, 10 & 12 Off-CBD – Begumpet, Somajiguda, Raj Bhavan Road, S.P Road, Himayath Nagar
Suburban (Madhapur) – Madhapur, Kondapur, Raidurg Suburban (Gachibowli) – Gachibowli - Nanakramguda, Manikonda;
Suburban (Others) – Kukatpally, Shaikpet Prime Suburban – Rest of Banjara Hills, Jubilee Hills
Peripheral East – Pocharam and Uppal
Office Snapshot Q1 2017KOLKATA, INDIA
MARKETBEAT
Market Indicators (Grade A)
Salt Lake Net Asking Rental / Vacancy (Grade A)
Pre-commitment/ Net Absorption (Grade A)
www.cushmanwakefield.com
Q1 16 Q1 17Y-O-Y
Change
12-Month
Forecast
Overall Vacancy 35.5% 33.8% -1.7%*
Weighted Average Net
Asking Rentals
(INR/sf/month)
51.94 49.46 -4.7%
YTD Net Absorption (sf) 136,400 111,000 -18.6%
* percentage points
EconomyDespite a dim forecast due to the impact of the Indian rupee’s
demonetization, India’s Gross Domestic Product (GDP) still grew
7.0% during the fourth quarter of 2016. While the pace of growth
slowed from the 7.4% in the previous quarter, most sectors except
Construction and Financial, Real Estate, and Professional Services
recorded higher growth during the quarter. India’s bellwether index,
the S&P BSE 100 Index gained about 12% in value in January-
March 2017 period, indicating healthy performances for the top
100 large-cap companies. However, the BSE IT Index, which
tracks the performance of listed Information Technology–Business
Process Management (IT-BPM) companies, gained only 4% in the
same period, at a time when the IT-BPM sector is going through a
tumultuous time. Concerns on global macroeconomic headwinds
have resulted in the software industry body, the National
Association of Software and Services Companies (NASSCOM),
lowering its IT export growth target to 8-10% for the year ending
March 2017. This implies that leasing by IT-BPM companies could
be adversely impacted. Going ahead, it is expected that GDP
growth could remain stressed for the short term due to the hang-
over impact of demonetization on manufacturing and investments.
Net absorption declines, no new supply addition Grade A net absorption dropped almost 30% from the previous
quarter and was recorded at 111,000 square feet (sf), with Salt
Lake contributing 80%. Domestic engineering and manufacturing
firms contributed a majority share (70%) in Grade A leasing
activities during the quarter, while the banking, financial services
and insurance (BFSI) sector had a 9% share in the Grade A
leasing transactions.
No new supply was added during the quarter. Grade A vacancy
recorded a marginal decline of 0.5 percentage points at 33.8%
during the first quarter of 2017 on account of moderate leasing and
absence of supply infusion. Asking rents remained stable due to
the adequate availability.
OutlookAbout 1.55 million square feet (msf) of space is expected to be
added during the next quarter in the submarkets of Rajarhat and
Rashbehari Connector. The vacancy level in Rajarhat is likely to
increase with addition of new supply from an IT project.
Overall rents are likely to remain largely unchanged in the next
quarter owing to space availability in existing projects.
KOLKATA OFFICE
0%
10%
20%
30%
40%
50%
60%
25
30
35
40
45
50
55
2010 2011 2012 2013 2014 2015 2016 Q1
2017
Net Asking Rental (INR/sf/month) Vacancy Rate (%)
0
500
1,000
1,500
2,000
2010 2011 2012 2013 2014 2015 2016 Q12017
Pre-commitment (000' sf) Net Absorption (000' sf)
Office Snapshot Q1 2017KOLKATA, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director Research Services,
India
Tel: +91 80 4046 5555
Key Lease Transactions Q1 2017
PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET
Technopolis 60,000 Tata Steel Lease Sector-V, Salt Lake
Ecospace 15,730 Sankalp Semiconductor Lease Rajarhat
Key Construction Completion Q1 2017
PROPERTY SF TENANT GRADE SUBMARKET
- - - - -
Key Projects Under Construction
PROPERTY SF TENANT COMPLETION DATE SUBMARKET
Mani Casadona 1,300,000 NA Q2 2017 Rajarhat
SUBMARKETINVENTORY
(SF)
OVERALL
VACANCY RATE
YTD LEASING
ACTIVITY (SF)
UNDER
CONSTRUCTION
(SF)
YTD
CONSTRUCTION
COMPLETION (SF)
YTD NET
ABSORPTION
(SF)
AVERAGE ASKING
RENT (Q4 2016)*
AVERAGE
ASKING RENT
(Q1 2017)*
AVERAGE ASKING
RENT (Q1 2017)**
AVERAGE ASKING
RENT (Q1 2017)***
ALL GRADES
CBD 6,069,900 18.5% 4,800 178,900 0 4,800 103.55 101.81 $18.66 €17.29
Park Circus Connector 948,200 25.6% 0 600,000 0 0 90.97 90.38 $16.57 €15.35
Rashbehari Connector 985,400 25.0% 0 452,000 0 0 87.29 88.66 $16.25 €15.06
Rajarhat 8,327,800 20.3% 18,200 1,829,000 0 18,200 38.91 38.63 $ 7.08 € 6.56
Sector –V, Salt Lake 12,169,700 43.1% 92,800 1,236,100 0 92,800 45.92 44.74 $ 8.20 € 7.60
TOTALS 28,501,000 30.0% 115,800 4,296,000 0 115,800 54.47 53.58 $ 9.82 € 9.10
GRADE A
CBD 1,375,200 31.2% 0 110,500 0 0 111.81 110.05 $20.17 €18.69
Park Circus Connector 710,300 25.2% 0 600,000 0 0 92.01 92.05 $16.87 €15.63
Rashbehari Connector 875,100 24.0% 0 452,000 0 0 88.12 88.02 $16.14 €14.95
Rajarhat 8,281,100 20.3% 18,200 1,829,000 0 18,200 38.91 38.63 $ 7.08 € 6.56
Sector –V, Salt Lake 10,533,900 46.1% 92,800 1,098,400 0 92,800 45.84 44.61 $ 8.18 € 7.58
TOTALS 21,775,600 33.8% 111,000 4,089,900 0 111,000 50.36 49.46 $ 9.07 € 8.40
Key to submarkets:
CBD - Park Street, Camac Street, AJC Bose Road, Theatre Road.
Net absorption refers to the incremental new space take-up; renewals not included in leasing activity statistics
Average asking rents indicated weighted average, warm shell, asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up
IT-BPM denotes Information Technology - Business Process Management
BFSI denotes Banking, Financial Services and Insurance
*Weighted average rental rates reflect gross asking INR/sf/month
** Weighted average rental rates reflect gross asking USD/sf/year
*** Weighted average rental rates reflect gross asking EUR /sf/year
Conversion rate : US$1 = INR 65.46 and EUR 1= INR 70.65
Numbers for the first quarter are based on market information collected until 10 th March 2017
2016 numbers have been recalibrated based on revision in inventory and vacant spaces
Office Snapshot Q1 2017MUMBAI, INDIA
MARKETBEAT
Market Indicators (Grade A)
Net Asking Rental / Vacancy (Grade A)
Pre-commitment/ Net Absorption (Grade A)
www.cushmanwakefield.com
Q1 16 Q1 17Y-O-Y
Change
12-Month
Forecast
Overall Vacancy 16.21% 17.74% 1.53%*
Weighted Average Net
Asking CBD Rentals
(INR/sf/month)
221.60 224.78 1.44%
YTD Net Absorption (sf) 440,800 350,200 -20.55%
* percentage points
EconomyDespite a dim forecast due to the impact of the Indian rupee’s
demonetization, India’s Gross Domestic Product (GDP) still grew
7.0% during the fourth quarter of 2016. While the pace of growth
slowed from the 7.4% in the previous quarter, most sectors except
Construction and Financial, Real Estate, and Professional Services
recorded higher growth during the quarter. India’s bellwether index,
the S&P BSE 100 Index gained about 12% in value in January-March
2017 period, indicating healthy performances for the top 100 large-
cap companies. However, the BSE IT Index, which tracks the
performance of listed Information Technology–Business Process
Management (IT-BPM) companies, gained only 4% in the same
period, at a time when the IT-BPM sector is going through a
tumultuous time. Concerns on global macroeconomic headwinds
have resulted in the software industry body, the National Association
of Software and Services Companies (NASSCOM), lowering its IT
export growth target to 8-10% for the year ending March 2017. This
implies that leasing by IT-BPM companies could be adversely
impacted. Going ahead, it is expected that GDP growth could remain
stressed for the short term due to the hang-over impact of
demonetization on manufacturing and investments.
Delayed supply, limited leasingGrade A net absorption decreased by 70% from the previous quarter
to 350,000 square feet (sf) due to the delayed completion of pre-
committed buildings in the submarkets of SBD and Thane-Belapur
Road. Of the expected nearly 1.9 million square feet (msf) of Grade A
supply, only 230,000 square feet (sf) was completed during the
quarter because of prolonged delays in obtaining approvals from the
local regulatory authority. The new supply came from the completion
of a single project in the Central suburbs submarket.
Nearly 38% of the net absorption was concentrated in the Central
suburbs, followed by the submarkets of Malad/Goregaon (13%) and
Thane-Belapur Road (12%). Thane-Belapur Road continues to
attract occupiers’ interest, resulting into pre-commitments of nearly
100,000 sf recorded during the quarter.
Grade A weighted average rentals remained range-bound across
most submarkets during the quarter. An exception was the Central
suburbs that saw an increase of 3-4% owing to sturdy demand and
limited supply. Grade A vacancy levels remained similar to levels
from the previous quarter and stood at 17.9% on the back of weak
absorption amidst limited fresh supply.
OutlookNearly 2.1 msf of new Grade A supply is expected to be ready in the
next quarter. At the same time, demand is also expected to rebound,
mainly in the submarkets of Thane-Belapur Road and SBD. Average
rentals are expected to remain range-bound across most submarkets
in the upcoming quarter.
0
1,000
2,000
3,000
4,000
5,000
6,000
2010 2011 2012 2013 2014 2015 2016 Q12017
Pre-commitment (000' sf) Net Absorption (000' sf)
MUMBAI OFFICE
0%
10%
20%
30%
15
45
75
105
135
2010 2011 2012 2013 2014 2015 2016 Q1
2017
Net Asking Rental (INR/sf/month) Vacancy Rate (%)
Office Snapshot Q1 2017MUMBAI, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Key Lease Transactions Q1 2017PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET
Reliable Tech Park 25,000 Tata BSS Lease Thane-Belapur Road
Nirlon - IT Park 25,000 Citibank Lease Malad/Goregaon
Key Construction Completions Q1 2017
PROPERTY SF TENANT GRADE SUBMARKET
Zillion Phase 2 230,000 NA A Central Suburbs
Key Projects Under Construction
PROPERTY SF TENANT COMPLETION DATE SUBMARKET
Empire Tower 1,500,000 NA Q3 2017 Thane-Belapur Road
SUBMARKETINVENTORY
(SF)
OVERALL
VACANCY RATE
YTD LEASING
ACTIVITY (SF)
UNDER CNSTR
(SF)
YTD
CONSTRUCTION
COMPLETION (SF)
YTD NET
ABSORPTION
(SF)
AVERAGE ASKING
RENT (Q4 2016)*
AVERAGE
ASKING RENT
(Q1 2017)*
AVERAGE AS
RENT (Q1 2017)**
AVERAGE ASKING
RENT (Q1 2017)***
ALL GRADES
CBD 10,411,900 5.5% 15,000 0 0 15,000 193.6 195.8 $35.90 €33.26
SBD 10,720,200 19.5% 33,100 2,959,000 0 33,100 243.4 243.0 $44.55 €41.27
Worli 4,149,500 13.6% 16,500 0 0 16,500 205.5 204.5 $37.50 €34.74
Lower Parel 10,526,400 13.5% 32,400 1,420,000 0 25,400 172.0 171.5 $31.44 €29.13
Andheri-Kurla 25,094,200 15.3% 130,500 3,780,400 0 130,500 113.2 113.4 $20.79 €19.26
Powai 6,127,700 3.4% 0 198,000 0 0 108.4 108.4 $19.87 €18.41
Malad/ Goregaon 16,165,000 18.8% 47,000 2,600,000 0 47,000 101.8 101.4 $18.59 €17.22
Vashi 3,740,500 10.8% 0 99,900 0 0 73.1 73.1 $13.39 €12.41
Thane-Belapur Road 18,444,400 17.8% 42,000 10,200,600 0 42,000 44.5 44.5 $08.16 €07.56
Thane 7,273,800 16.1% 46,500 620,000 0 46,500 56.9 57.0 $10.45 €09.69
TOTALS 126,460,200 15.3% 528,600 23,354,100 230,000 521,600 126.1 126.8 $23.25 €21.54
GRADE A
CBD 1,962,800 8.7% 0 0 0 0 224.8 224.8 $41.21 €38.18
SBD 7,754,700 20.7% 22,600 2,879,000 0 22,600 262.5 262.0 $48.03 €44.50
Worli 1,469,000 23.5% 16,500 0 0 16,500 224.8 223.9 $41.05 €38.03
Lower Parel 7,542,500 12.5% 32,400 1,420,000 0 32,400 176.1 175.6 $32.19 €29.82
Andheri-Kurla 11,182,700 18.9% 37,700 2,098,500 0 37,700 118.4 118.4 $21.70 €20.11
Powai 5,877,600 3.6% 0 198,000 0 0 108.4 108.4 $19.87 €18.41
Malad/ Goregaon 10,851,800 20.7% 47,000 2,600,000 0 47,000 104.2 103.6 $18.99 €17.60
Vashi 1,619,500 7.1% 0 0 0 0 83.1 83.1 $15.24 €14.12
Thane-Belapur Road 14,184,100 19.0% 42,000 7,350,800 0 42,000 44.8 44.8 $08.21 €07.61
Thane 5,136,000 19.5% 18,500 550,000 0 18,500 57.7 57.8 $10.60 €09.82
TOTALS# 76,967,300 17.9% 350,200 17,996,300 230,000 350,200 132.5 133.1 $24.39 €22.60
Net absorption refers to the incremental new space take-up; renewals not included in leasing activity statistics
Average asking rents indicated weighted average, warm shell, asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up
IT-BPM denotes Information Technology and Business Process Management Services
*Weighted average rental rates reflect gross asking INR/sf/month
** Weighted average rental rates reflect gross asking USD/sf/year
*** Weighted average rental rates reflect gross asking EUR /sf/year
Conversion rate : US$1 = INR 65.46 and EUR 1= INR 70.65
# Total figures contain submarkets not mentioned above
Numbers for the first quarter are based on market information collected until 10th March 2017
Key to submarkets:
CBD – Ballard Estate, Colaba, Churchgate, Fort & Nariman Point; SBD – Bandra-Kurla Complex, Bandra East, Kalina; Lower Parel includes Lower Parel, Parel and Dadar
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
Office Snapshot Q1 2017PUNE, INDIA
MARKETBEAT
Market Indicators (Grade A)
Net Asking Rental / Vacancy (Grade A)
Pre-commitment / Net Absorption (Grade A)
www.cushmanwakefield.com
Q1 16 Q1 17Y-O-Y
Change
12-Month
Forecast
Overall Vacancy 11.1% 9.4% -1.7%*
Weighted Average Net
Asking Rentals
(INR/sf/month)
65.56 65.26 -0.46%
YTD Net Absorption (sf) 510,600 814,400 59.50%
*percentage points
EconomyDespite a dim forecast due to the impact of the Indian rupee’s
demonetization, India’s Gross Domestic Product (GDP) still grew
7.0% during the fourth quarter of 2016. While the pace of growth
slowed from the 7.4% in the previous quarter, most sectors except
Construction and Financial, Real Estate, and Professional Services
recorded higher growth during the quarter. India’s bellwether index,
the S&P BSE 100 Index gained about 12% in value in January-
March 2017 period, indicating healthy performances for the top
100 large-cap companies. However, the BSE IT Index, which
tracks the performance of listed Information Technology–Business
Process Management (IT-BPM) companies, gained only 4% in the
same period, at a time when the IT-BPM sector is going through a
tumultuous time. Concerns on global macroeconomic headwinds
have resulted in the software industry body, the National
Association of Software and Services Companies (NASSCOM),
lowering its IT export growth target to 8-10% for the year ending
March 2017. This implies that leasing by IT-BPM companies could
be adversely impacted. Going ahead, it is expected that GDP
growth could remain stressed for the short term due to the hang-
over impact of demonetization on manufacturing and investments.
Significant surge in supply and absorption; marginal decline in vacancy levelsPune recorded approximately 1.0 million square feet (msf) of new
commercial office supply during the first quarter of 2017, more than
double of the previous quarter. Majority (68%) of the total supply
are categorized as Grade A developments, concentrated in the
submarket of SBD East.
The quarterly Grade A net absorption was recorded as 814,400
square feet (sf), a 33% increase Quarter-on-Quarter (QoQ). 76%
of Grade A leasing was concentrated in the submarket of SBD
East. Quarterly Grade A leasing activity was driven largely by
companies in the IT-BPM sector with a 55% share, followed by the
consulting sector with a 23% share.
Amidst healthy leasing activities and significant supply addition,
Grade A vacancy rate in the city declined by 0.9 percentage points
to 9.4% at the end of March 2017. Grade A weighted average
rentals remained range-bound during the quarter.
OutlookApproximately 1.7 msf of Grade A supply is expected to become
available in the second quarter of 2017. In the wake of significant
supply addition and moderate leasing activity, Grade A vacancy
levels in the city may rise in short term. Rentals are expected to
remain stable in most submarkets.
0
1,000
2,000
3,000
4,000
5,000
6,000
2010 2011 2012 2013 2014 2015 2016 Q12017
Pre-commitment (000' sf) Net Absorption (000' sf)
PUNE OFFICE
0%
5%
10%
15%
20%
25%
20
30
40
50
60
70
2010 2011 2012 2013 2014 2015 2016 Q12017
Net Asking Rental (INR/sf/month) Vacancy Rate (%)
Office Snapshot Q1 2017PUNE, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Key Lease Transactions Q1 2017PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET
Magarpatta Cybercity Tower 12 44,300 John Deere Lease SBD East
ICC Trade Tower 38,000 Sailpoint Lease CBD
Key Sales Transactions Q1 2017
PROPERTY SF SELLER/BUYER PRICE SUBMARKET
Magarpatta Cybercity - Tower 12 44,000 NA/Investor NA SBD East
Key Construction Completions Q1 2017
PROPERTY SF TENANT(S) GRADE SUBMARKET
Inorbit IT Building 600,000 NA A SBD East
Key Projects Under Construction
PROPERTY SF TENANT COMPLETION DATE SUBMARKET
World Trade Centre - Tower D 530,000 NA Q2 2017 SBD East
Solitaire – Tower I 400,000 NA Q2 2017 SBD East
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
SUBMARKET INVENTORY (SF) OVERALL
VACANCY
RATE
YTD LEASING
ACTIVITY (SF)
UNDER
CONSTRUCTION
(SF)
YTD
CONSTRUCTION
COMPLETION (SF)
YTD NET
ABSORPTION (SF)
AVERAGE ASKING
RENT (Q4 2016)*
AVERAGE ASKING
RENT (Q1 2017)*
AVERAGE ASKING
RENT (Q1 2017)**
AVERAGE ASKING
RENT (Q1 2017)***
ALL GRADES
CBD 13,168,500 12.1% 235,000 1,854,400 24,000 192,900 80.61 79.49 $14.57 €13.50
SBD East 33,500,900 11.9% 914,200 9,181,200 819,000 788,900 61.27 62.35 $11.43 €10.59
SBD West 10,039,400 14.7% 171,200 6,630,700 75,600 123,500 63.92 64.52 $11.83 €10.96
PBD East 1,171,800 5.6% 0 960,000 0 0 56.10 56.10 $10.28 €09.53
PBD West 14,032,200 20.0% 62,800 6,509,700 87,500 62,800 48.56 49.40 $09.06 €08.39
Totals 71,912,800 13.8% 1,383,200 25,136,000 1,006,100 1,168,100 61.54 61.73 $11.32 €10.49
GRADE A
CBD 3,421,400 11.5% 113,600 1,245,000 0 99,100 95.30 96.25 $17.64 €16.35
SBD East 23,951,200 8.1% 733,100 8,735,000 600,000 621,300 69.33 70.34 $12.89 €11.95
SBD West 4,124,300 6.8% 73,900 6,200,000 0 50,700 66.26 66.35 $12.16 €11.27
PBD East 1,150,200 4.5% 0 800,000 0 0 55.00 55.00 $10.08 €09.34
PBD West 11,119,400 13.2% 43,300 5,485,000 87,500 43,300 49.21 50.58 $09.27 €08.59
Totals 43,766,500 9.4% 963,900 22,465,000 687,500 814,400 65.15 65.26 $11.96 €11.09
Net absorption refers to the incremental new space take-up; renewals not included in leasing activity statistics
Average asking rents indicated weighted average, warm shell, asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up
SBD refers to Suburban Business District
PBD refers to Peripheral Business District
*Weighted average rental rates reflect gross asking INR/sf/month
** Weighted average rental rates reflect gross asking USD/sf/year
*** Weighted average rental rates reflect gross asking EUR /sf/year
Conversion rate : US$1 = INR 65.46 and EUR 1= INR 70.65
Numbers for the first quarter are based on market information collected until 10th March 2017
Key to submarkets:
CBD: Laxmi Road, Camp, Bund Garden, Boat Club, Koregaon Park, Dhole Patil Road, Pune Station, Shivaji Nagar, FC Road, JM Road, Wakdewadi, SB Road, Model Colony, Ganeshkhind Road
SBD East: Kalyani Nagar, Kharadi, Mundhwa, Yerwada, Nagar Road, Viman Nagar, Hadapsar, Kondhwa
SBD West: Aundh, Baner, Pashan, Kothrud, Karve Nagar, Khadki, Paud Road
PBD East: Phursungi, Wagholi, Charoli, Solapur Road, Saswad Road, Katraj
PBD West: Hinjewadi, Wakad, Pimpri, Bhosari, Chinchwad, Bavdhan, Mulshi, Talawade, Tathawade, Nanded, Pimple Saudagar