GATERE RESEARCH

CITY REPORT
DELHI NCR OFFICE MARKET
Q2 2013

An alliance member of
 CITY REPORT - DELHI NCR OFFICE MARKET - Q2 2013

SUMMARY

Moderate growth in rental and capital values

At micro-market level, selective pockets of Delhi NCR business district
witnessed moderate growth in both rental and capital values.

Despite lowest growth in GDP for the financial year 2012-13, few
micro-markets of Delhi NCR witnessed moderate growth in both
rental and capital values. Occupiers showed interest by taking up
space in Central business district, Nehru Place, Saket, Jasola and
Gurgaon. However, micro-markets of other business districts
remained dry with no space addition, including absorption rate and
rental growth near to negligible. Leasing activity is expected to
strengthen in CBD and Gurgaon region particularly with corporate
formalizing their expansion plans for the present year.

All major transaction activity was driven by IT/ITeS corporate

segments, with major transactions taking place in the Gurgaon region.
Looking at the growth in rented space absorption, certain private
equity funds are also showing interest in acquiring rented assets to
benefit from the fixed income aspect. Given the union cabinet draft
proposal to bring clarity to various provisions for foreign investments
in retail sector, it is expected to benefit the commercial real estate
market also, however the rental values are likely to remain stable
given subdued global economic environment.

2
 CITY REPORT - DELHI NCR OFFICE MARKET - Q2 2013

MACROECONOMIC CONTEXT

The gross domestic product GDP in the first quarter of 2013 (Q4 of financial
year 2012-13) registered at 4.8%, though a marginal improvement of 0.4%
from previous quarter but aggregate growth for the financial year 2012-13
Repo & Reverse Repo Rate declined to a decadal low of 5.0%. The growth was mainly led by finance,
insurance, real estate and business service sector, which expanded by 9.1%,
followed by trade, hotels, transport and communication (6.2%) and
construction (4.4%). The construction sector also saw a significant
improvement with growth increasing from 2.9% to 4.4% at the end of the first
quarter of 2013. In addition, during second quarter of 2013, the INR slid in
value to a record low of INR 60.7 against the US Dollar. This will help
exporters in tapping increased profit margins but on the other side the cost
of imports will increase leading to widening of Indias CAD (Current Account
Deficient) which could adversely impact the inflation rate.
The inflation seems to stay in double digits from the beginning of year with
reaching a high of 11.06% in June 2013 which is slightly higher than the
inflation registered in May 2013 (10.68%). During RBI quarterly review in
June, it stated that the GDP growth is likely reach to 5.7% in 2013-14 due to
an expected increase in economic activity in the second half of the year. But
In-spite of high inflation, the repo rate (the rate at which RBI lends to
Source: RBI
commercial banks) has been kept unchanged .i.e. 7.25%, indicating limited
room for a policy change. Given this, investors sentiment is upset as a falling
rupee and declining manufacturing growth continue to point towards a
broad based slowdown.
Gross Domestic Product (GDP)
On the legislative side, the union cabinet recently approved a draft aimed at
12.0%
bringing transparency in the real estate sector: Real Estate Regulation and
10.0%
Development Bill. The bill that is yet to be approved by the parliament seeks
7.7%
to provide a regulatory authority to review construction of residential
8.0%
6.9% 6.3%
projects. In addition, other real estate policy measures looked upon by the
government included the minimum area requirement for special economic
Percent

5.3%
6.0%
6.1%
4.7% 4.8%
zones and providing clarity to various provisions for foreign investment in
4.0%
5.5% the retail sector.
4.5% 4.4%

2.0%

0.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2011 2011 2011 2012 2012* 2012 2012 2013 2013

Gross Domestic Product (GDP)

Source: RBI, CSO

* Latest Round Projection by Survey of Professional Forecasters
conducted by RBI Major Real Estate
Companies in
India

Wholesale Price Index (WPI)

Source: Office of Economic Advisory

3
 CITY REPORT - DELHI NCR OFFICE MARKET - Q2 2013

DELHI MAP

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Central Business Alternate Central Secondary Business Periphery Business

District Business District District District
1. Barakhamba Road 1. Bikajicama Place 1. Janakpuri 1. Gurgaon 3. Noida
2. Connaught Place 2. Jasola Vihar 2. Jhandewalan 1 (a). DLF Cyber City 3 (a). Expressway
3. ITO 3. Munirka 3. Karkar Duma 1 (b). Golf Course Road 3 (b). Sector 58
4. Janpath 4. Nehru Place 4. Karol bagh 1 (c). Institutional 3 (c). Sector 62
5. Kasturba Gandhi 5. Qutub Institutional 5. Okhla Industrial Estate Sectors / Sushant Lok 3 (d). Sector 63
Marg Area 6. Okhla Industrial Area-I 1 (d). MG Road 3 (e). Sector 64
6. Khan Market 6. Saket 7. Okhla Industrial Area-II 1 (e). Udyog Vihar / Nh8 4. Faridabad
7. Parliament Street 7. Vasant Kunj 8. Pitam Pura 1 (f). Sohna Road 5. Ghaziabad
8. Tolstoy Marg 9. Rajendra nagar new 2. Manesar
10. Rohini
11. Shahdara
12. Wazirpur Industrial Area

4
 CITY REPORT - DELHI NCR OFFICE MARKET - Q2 2013

CENTRAL BUSINESS DISTRICT (CBD)

Moderate Transaction Activity
In comparison to the first quarter of 2013, the second quarter of 2013
witnessed a small percentage increase in rental values in the CBD of
Delhi Region. Occupiers showed signs of interest which was observed
with increased transaction activity as approximately 100,000 Sq.ft of
space was taken up compared to only 60,000 Sq.ft in Q1 2013.
Further, leasing activity was mainly dominated by banking and
financial services, followed by hospitality and infrastructure segment
400
groups. Given increased absorption, the vacancy level also reduced
380 significantly. However, still rental values remained stable in this
/ month)

360 micro market.

sqftft)

340
(INR sq

The average rentals & capital values for the last 6 quarters are as
l Values (INR

320
follows:-
300
RentaValues

280 AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH)

Q1 Q2 Q3 Q4 Q1 Q2
Rental

260
2012 2012 2012 2012 2013 2013
240
Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 CBD 320 325 350 350 360 375
Source: GATERE- Research, India
CBD

40,240

35,240
ft /month)

30,240
sq sq ft )

25,240
s (INR

20,240 AVERAGE CAPITAL VALUES (INR / SQ.FT)

l Value(INR

15,240 Q1 Q2 Q3 Q4 Q1 Q2
CapitaValues

2012 2012 2012 2012 2013 2013

10,240
CBD 35,000 35,000 35,000 35,000 36,000 37,000
Capital

5,240
Source: GATERE - Research, India
240
Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

CBD

5
 CITY REPORT - DELHI NCR OFFICE MARKET - Q2 2013

ALTERNATE CENTRAL BUSINESS DISTRICT

(ALTERNATE CBD)
Sluggish Rental Growth
The micromarket of ACBD, in particular, Nehru Place, Saket and Jasola
witnessed an increased demand for office spaces from diverse
occupiers belonging to infrastructure, media and financial services
including others. Provided lack of fresh supply and increased
absorption rate, has led to decrease in vacancy levels. However, the
rental value in the second quarter of 2013 was no different in
comparison to the first quarter of 2013, given the rentals remain
constant. Provided the micro-market of ACBD witnessed only limited
220 transaction activity, still these micro-markets continue to benefit
from their positioning as established commercial hubs compared to
200 suburbs business districts (PBD) and offer competitive rental values
ft / month)

vis--vis the CBD.

180
sq ft)

However, from the micro-market, only Saket showed a slight increase

(INR sq

160 in rental value compared to previous quarter which showcases that

Values(INR

despite slight vacancy level, slim growth in rental and capital value
140
can be anticipated in near future in this micro-market.
Values

120
Rental
Rental

The average rentals & capital values for the last 6 quarters are as
100
follows:-
80
Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH)
Q1 Q2 Q3 Q4 Q1 Q2
2012 2012 2012 2012 2013 2013
Bikaji Cama Place Jasola Vihar
Munirka Nehru Place Bikaji Cama Place 137 137 137 140 140 140
Qutab Ins tu onal Area Saket Jasola Vihar 120 120 125 130 130 130

Vasant Kunj
Munirka 160 160 170 170 170 170
Nehru Place 190 200 205 205 210 210
Qutub Institutional
115 115 120 120 120 120
Area
Saket 165 165 168 168 168 175
Vasant Kunj 160 160 160 160 165 165
Source: GATERE- Research, India
26000

24000
/ month)

22000
)

AVERAGE CAPITAL VALUES (INR / SQ.FT)

(INRsqsqft ft

20000
Q1 Q2 Q3 Q4 Q1 Q2
18000
2012 2012 2012 2012 2013 2013
Values(INR

16000 Bikaji Cama Place 12,500 12,500 12,500 12,500 12,500 12,500
Capitall Values

14000 Jasola Vihar 16,000 16,000 17,500 17,800 18,000 18,300

Capita

12000 Munirka 15,500 15,500 15,500 15,500 15,500 15,700

10000 Nehru Place 20,300 20,300 22,500 20,300 20,300 23,500
Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
Qutab
12,500 12,500 12,500 12,500 12,700 13,000
Institutional Area
Bikaji Cama Place Jasola Vihar
Saket 23,000 23,000 23,000 23,500 23,500 24,500
Munirka Nehru Place
Vasant Kunj 20,500 20,500 21,000 21,200 21,500 21,500
Qutab Ins tu onal Area Saket
Source: GATERE- Research, India
Vasant Kunj

6
 CITY REPORT - DELHI NCR OFFICE MARKET - Q2 2013

SECONDARY BUSINESS DISTRICT (SBD)

Steady Slim Rental Growth
The SBD of Delhi NCR witnessed a slight to flattened growth in its
micro-markets over the last 3 quarters. Provided limited addition of
fresh office space by renowned developers including location
advantage of the SBDs have benefited these micro-markets in
maintaining a steady slim growth in rental values.
Nonetheless, these business districts continue to suffer from poor
traffic management, lack of grade A office space supply and smaller
floor plates.

85

80
Rentall Values (INR sq ft /month)

75
The average rentals & capital values for the last 6 quarters are as
70 follows:-
65

60 AVERAGE RENTAL VALUES ( INR / SQ.FT / MONTH)

Q1 Q2 Q3 Q4 Q1 Q2
55
2012 2012 2012 2012 2013 2013
50 Janak Puri
55 55 60 60 60 60
Distt Centre
45
Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Mohan Co-op
Industrial 60 60 65 67 67 70
Area
Janak Puri Distt Centre Mohan Co-op Industrial Area
Okhla Ph III 70 70 75 75 77 80
Okhla Ph III Netaji Subhash Place
Netaji
Subhash 55 55 60 60 65 65
Place
Source: GATERE - Research, India

16,000
AVERAGE CAPITAL VALUES (INR / SQ.FT)
15,000
Q1 Q2 Q3 Q4 Q1 Q2
2012 2012 2012 2012 2013 2013
Capital Values (INR sq ft)

Janak Puri
14,000
11,500 12,000 12,500 12,500 12,000 12,500
Distt Centre
Mohan Co-op
Industrial 12,750 12,750 13,500 13,700 13,700 14,000
13,000
Area
Okhla Ph III 12,500 13,250 13,750 14,000 14,000 14,500
12,000
Netaji
Subhash 11,500 12,000 12,500 12,500 12,700 12,700
Place
11,000
Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Source: GATERE - Research, India

Janak Puri Distt Centre Mohan Co-op Industrial Area

Okhla Ph III Netaji Subhash Place

7
 CITY REPORT - DELHI NCR OFFICE MARKET - Q2 2013

PERIPHERY BUSINESS DISTRICT (PBD)

Marginal Rental Increment in Specific Pockets
The micro-markets of Gurgaon witnessed marginal rental growth in
the second quarter in comparison to last quarter rentals. Specific
major pockets of Gurgaon such as Golf Course, MG Road and Sohna
Road registered increase in both rental and capital value. In contrast,
few other pockets such as Udyog Vihar and DLF Cyber City experienced
160 near to negligible growth in both rental and capital values.
Based on above analysis, Gurgaon is observed to be the preferred
140 corporate destination especially by IT/ITeS segment as about 1.4 mn
sq.ft of office space was transacted in the second quarter of 2013, out
120 of which 1.1 mn Sq.ft was leased to IT/ITeS segment itself. In addition,
s (INR sq ft / month)

in terms of office supply among Delhi NCR, Gurgaon witnessed the

100 maximum office space addition of about 1.5 mn Sq.ft with about 70%
(INR sq ft)

concentrated in the IT segment.

80 From the micro-markets of Noida region, flattened rental and capital
value growth was witnessed. In addition, no fresh office supply was
60 made available in the market. However, absorption of approximately
Rental Values

0.3 mn Sq.ft was witnessed on account of IT/ITeS and other

Rental Value

40 engineering sectors. Given, low absorption rate, very limited office

space completion is expected in the coming few quarters.
20
The average rentals & capital values for the last 6 quarters are as
0
Q1'12 Q2'12 Q3'2 Q4'12 Q1'13 Q2'13 AVERAGE RENTAL VALUES (INR / SQ.FT / MONTH)
DLF Cyber City, Gurgaon Golf Course Rd, Gurgaon Q1 Q2 Q3 Q4 Q1 Q2
2012 2012 2012 2012 2013 2013
MG Road, Gurgaon NH8 / Udyog vihar, Gurgaon
Gurgaon
Sohna Rd, Gurgaon Manesar
DLF Cyber City 75 75 75 75 78 80
Expressway, Noida Sector 58, Noida
Golf Course Rd 100 100 105 115 123 130
Sector 62, Noida Sector 63/64, Noida
MG Road 110 110 115 115 123 140
NH8 / Udyog Vihar 50 50 50 55 65 65
Sohna Rd 56 56 56 60 60 65
Manesar
Manesar 35 35 35 35 35 38
27,000
Noida
Expressway 60 60 60 62 62 62
Capital Values (INR sqsqft ft/month)

22,000 Sector 58 35 35 35 36 37 37
)

Sector 62 40 40 40 42 42 42
Sector 63/64 35 35 35 37 38 38
Capital Values (INR

17,000
Source: GATERE - Research, India

AVERAGE CAPITAL VALUES (INR / SQ.FT)

12,000
Q1 Q2 Q3 Q4 Q1 Q2
2012 2012 2011 2012 2013 2013
7,000 Gurgaon
Golf Course Rd 17,000 17,000 19,000 20,500 21,000 22,000
MG Road 17,000 17,000 19,000 21,000 23,500 25,000
2,000
NH8 / Udyog Vihar 8,000 8,000 8,000 8,000 8,500 8,500
Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
Sohna Rd 8,000 8,000 8,000 8,700 9,000 9,500
DLF Cyber City, Gurgaon Golf Course Rd, Gurgaon Manesar
MG Road, Gurgaon NH8 / Udyog vihar, Gurgaon Manesar 4,500 4,500 4,500 5,000 5,000 5,500
Noida
Sohna Rd, Gurgaon Manesar
Expressway 7,300 7,300 8,000 8,000 8,000 8,500
Expressway, Noida Sector 58, Noida
Sector 58 4,300 4,300 4,300 4,300 4,500 4,500
Sector 62, Noida Sector 63/64, Noida
Sector 62 4,700 4,700 4,700 4,700 4,800 4,800
Sector 63/64 4,000 4,000 4,000 4,000 4,200 4,200
Source: GATERE - Research, India

8
 CITY REPORT - DELHI NCR OFFICE MARKET - Q2 2013

RENTAL VALUES FOR Q2 2013 CAPITAL VALUES FOR Q2 2013

CBD CBD
Rent Q on Q Q on Q
Region Region INR / sq.ft
INR/sq.ft/ month Change Change
CBD 375 4% CBD 37,000 3%

Alternate CBD Alternate CBD

Rent Q on Q Q on Q
Region Region INR / sq.ft
INR/sq.ft/ month Change Change
Bikaji Cama Place 140 0% Bikaji Cama Place 12,500 0%
Jasola Vihar 130 0% Jasola Vihar 18,300 2%
Munirka 170 0% Munirka 15,700 1%
Nehru Place 210 0% Nehru Place 23,500 4%
Qutab Institutional Area 120 0% Qutab Institutional Area 13,000 2%
Saket 175 4% Saket 24,500 4%
Vasant Kunj 165 0% Vasant Kunj 21,500 0%

SBD SBD
Rent Q on Q Q on Q
Region Region INR / sq.ft
INR/sq.ft/ month Change Change
Janak Puri Distt Centre 60 0% Janak Puri Distt Centre 12,500 0%
Mohan Co-op Industrial Mohan Co-op Industrial
70 4% 14,000 2%
Area Area
Okhla Ph III 80 4% Okhla Ph III 14,500 3%
Netaji Subhash Place 65 0% Netaji Subhash Place 12,700 0%

PBD PBD
Rent Q on Q Q on Q
Region Region INR / sq.ft
INR/sq.ft/ month Change Change
Gurgaon Gurgaon
DLF Cyber City 80 3% Golf Course Rd 22,000 5%
Golf Course Rd 130 5% MG Road 25,000 6%
MG Road 140 7% NH8 / Udyog vihar 8,500 0%
NH8 / Udyog vihar 65 0% Sohna Rd 9,500 5%
Sohna Rd 65 8% Manesar
Manesar Manesar 5,500 9%
Manesar 38 8% Noida
Noida Expressway 8,500 6%
Expressway 62 0% Sector 58 4,300
5 0%
Sector 58 37 0% Sector 62 4,800 0%
Sector 62 42 0% Sector 63/64 4,200 0%
Sector 63/64 38 0% Source: GATERE- Research, India

Source: GATERE- Research, India

9
 CITY REPORT - DELHI NCR OFFICE MARKET - Q2 2013

KEY TRANSACTIONS
Q2 2013
Space Micro
Property Occupiers Location
(sq.ft) Market
Statesman House Axis Group 5,800 CBD New Delhi
Ambadeep Kotak Bank 35,000 CBD New Delhi
Mohan Cooperative Max Bupa 30,000 SBD Mohan Cooperative
M6 Plaza Samsung Data System 22,700 Alternate CBD Jasola Vihar
Konnectus Vatika Business Centre 18,000 CBD New Delhi
Banni Corporate One Oriflame 42,000 Alternate CBD Jasola Vihar
Platinum Tower Jacob Engineering 116,000 PBD Gurgaon
DLF Building No 5 Du Pont 123,000 PBD Gurgaon
Green Boulevard Tata Consulting 150,000 PBD Noida
Bestech Park View Business Tower Convergys 228,000 PBD Gurgaon
Tech Park Huawei Spaze 70,000 PBD Gurgaon
ASF Insignia BM Daksh 40,700 PBD Gurgaon
DLF Building No 10 Manpower 11,000 PBD Gurgaon
Global Business Park Qualcomm 13,600 PBD Gurgaon
R K Square Reliance 4G 80,000 PBD Gurgaon
Source: GATERE - Research, India

10
 CITY REPORT - DELHI NCR OFFICE MARKET - Q2 2013

KEY PROJECTS
New Supply - Year 2013
Micro Space in Completion date
Building Location
Market sq.ft (expected)
Caddie Commercial Tower Aero City, New Delhi SBD 100,000 2013
DLF Towers Okhla Phase II, New Delhi SBD 420,000 2013
NBCC Plaza Okhla, New Delhi SBD 350,000 2014
Magnum Tower Sector-58, Gurgaon PBD 350,000 2016
One to One 32 Milestone, NH-8 Gurgaon PBD 1,200,000 2017
Spaze Sector-114, Gurgaon PBD 435,600 2016
Source: GATERE - Research, India

11

GLOSSARY
Q2: Quarter 1 of the financial year (April - May - June)
Absorption: Occupied Stock (n) Occupied Stock (n-1); Where n is the specified
period (quarter, year etc.)
Bare Shell: Premises consisting of basic structure with lifts, power supply to junction
box, water supply line, toilets
BPO: Business Process Outsourcing
BUA: Built up area
Super Built-up Area (SBUA): Built-up area + common area including lifts area, common
passages, utilities, terrace etc. & varies from building to building.
Carpet Area: Actual usable area, and does not include any common areas, area occupied
by walls etc.
Completed Stock: Either the building has received occupancy certificate or the client
has moved in and occupied space and started working in a particular premises
DU: Dwelling Unit
EPIP: Export Promotion Industrial Park
FAR: Floor Area Ratio (BUA/ Plot Area)
Grade A Space: Office Space with efficiency in excess of 75%, floor plate in excess of
15,000 sq. ft., Car Parking ratio of atleast 1 per 1000 sq. ft., Floor-to-ceiling height in
excess of 3.75 m, Power provision of 1.25KVA per 100 sq. ft. with 100% power-backup
wherever applicable and professionally managed facilities
Ground Coverage: It is the total covered area on ground by the built component and is
expressed as a percentage of the plot area
Hard Option: Real estate space reserved by the lessee for future occupation within a
particular time frame and at a pre-decided rental
INR: Indian National Rupees
Pre-lease: Space committed for lease before completion of construction
Speculative Stock: The stock which can be leased and excludes Built-to-Suit (BTS) and
Campus facilities.
Stock: Cumulative Supply
Supply: New construction in a particular specified period
Transaction Volumes: Total number of transaction in a particular specified period
Vacancy: Total vacant space in the completed stock
Warm Shell: Premises consisting of power backup, high side A.C., common area fit outs
and fitted out toilets
Q on Q: Quarter on Quarter
y-o-y: year-on-year (All growth figures in this report are y-o-y unless otherwise
mentioned
IT: Information Technology
ITES: Information Technology Enabled Services (includes various services ranging from
call centres, claims processing, medical transcription, e-CRM, SCM to back-office
operations such as accounting, data processing, and data mining)
Repo Rate: Rate that an eligible depository institution (such as a bank) is charged to
borrow short term funds directly from the central bank through the discount window
Reverse Repo Rate: Interest rate that a bank earns for lending money to the Reserve
Bank of India in exchange for government securities
SEC A, B, C & D Socio: Economic Classification; SEC A represents the highest propensity
to spend and SEC D represents the lowest propensity to spend.
Sq.ft: Square Feet
Sq.mt: Square Meter
Mn: Million
Stamp Duty: Form of tax charged on instruments (written documents) requiring a
physical stamp (for government legality) to be attached to or impressed.
New: Building built within the last 5 years.
Recent: Building less than 10 years old.
NCR: National Capital Region (Includes urban agglomeration of Delhi, Gurgaon,
Faridabad, Noida, Gaziabad etc)
SEZ: Special Economic Zone having special tax exemptions / incentives to corporate
occupiers
BFSI: Banking & Financial Services Industry
SLR: Statutory Liquidity Ratio
FSI: Floor Space Index
CITY REPORT - DELHI NCR OFFICE MARKET - Q2 2013
CRR: Cash Reserve Ratio
Major Refurbishment: Building which has undergone structural alteration less than 5
years ago, subject to planning permission.
Renovated: Building which has undergone renovation work not requiring for planning
permission less than 5 years ago.
Modern: High-performance building over 10 years old.
Old: Low-performance building over 10 years old.
CCI (Cost of construction index): Index that makes quarterly measurements of
construction prices for new house building. It is the price after VAT paid by the owner to
construction companies. It excludes land-related prices and costs (site development,
special foundations, etc.), fees and financial costs.
Demand: A search for premises expressed to GATERE Real Estate. The analysis pertains
only to the flow of new demand expressed.
For the occupier: Operation undertaken by an occupier for its own purposes.
New Supply: Any new building and/or heavily refurbished building that adds to the
existing stocks. These are analysed according to progress.
Completed new supply: Buildings on which construction work is finished.
Under construction: Buildings on which construction has effectively begun. Prior
demolition work is not taken into account.
Planning permission granted: Authorisation to build obtained, generally booked after
settlement of third party claims.
Planning permission submitted: Planning permission requested, being processed.
Pre-letting: Transaction by an occupier more than 6 months before the delivery of the
building.
Headline rent: Monthly rent per square feet, charged on super built-up area basis,
featured on the lease, and expressed excluding fitouts, taxes, deposits, advances,
maintenance charges and does not take into account building efficiency (super built up
area - carpet area ratio). Further it does not include attached premises such as parking
areas, archives, staff canteens, etc. If the rental is progressive, the value applied is the
average for the first 3 years or the fixed term of the lease.
Average headline rent: Weighted average of rented area. The average featured is a
moving average over the quarter, to smooth out the changes, exclusive of all taxes,
deposits, advances & maintenance charges..
Underlying rent: Annual rent per square meter expressed free of tax and charges and
excluding advantages agreed by the owners (rent incentive building works, etc).
Prime rents: Represents the top headline rent (excluding non significant transactions)
for an office unit:- of standard size, of the highest quality and specification, in the best
location in each market.
Top rent: Represents the top headline rent for an office unit. It is not necessarily a prime
rent.
Second hand premises: Premises that have been previously occupied by an occupier for
vacant for more than 5 years.
Very good condition: High-performance premises of high quality.
Existing state of repair: Low-performance premises that can be rented as they are.
To be renovated: Low performance premises that need renovation.
Supply available within 1 year: All premises and buildings available within 1 year
including the supply available immediately, new supply that has not been pre-let and
second hand supply that will be vacated definitively (notable terminated leases).
Take-up: Rental or sale of a property asset, finalised by the signature of a lease or a bill
of sale including turnkey transactions and owner-occupier. The transaction is only
taken into account once any existing conditional clauses have been lifted.
Vacancy rate: Ratio measuring the relationship between the supply immediately
available and the existing stock.
Disclaimer: This report is released by GATERE Real Estate and the information in it is
dedicated to the exclusive use of its clients. The report and the information contained in
it should not be copied or reproduced without prior permission from GATERE Real
Estate India. The facts of these reports are believed to be correct at the time of it's
release but cannot be guaranteed. Please note the findings, projections, conclusions
and recommendations are based on information gathered in good faith from both
primary and secondary sources, whose accuracy we are not always in a position to
guarantee. GATERE Real Estate cannot be held responsible if, despite it's best efforts,
the information contained in the present report turns out to be inaccurate or
incomplete.
12
 The facts of these report are believed to be correct at the time of it's release and GATERE Real Estate & Infrastructure
INDIA International offices of BNP Paribas Real Estate
The information contained in it should not be copied or reproduced without prior permission from GATERE India.

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