[India 2016 Nov] Office Rental Insight Mumbai Report

Page 1

Rental Insight Q3 2016

India | Office Nov 18, 2016

Mumbai Average Rental Trend for Grade A Properties

Grade A Rental Values Micro Markets

INR

$ US

Percentage Change

Per sq ft/Month CBD

Q-o-Q

Y-o-Y

200 - 250

3 - 3.8

0%

0%

90 - 130

1.4 – 2.0

0%

0%

BKC

225 - 320

3.4 - 4.8

0%

0%

Lower Parel

145 - 190

2.2 - 2.9

0%

0%

Malad

80 - 100

1.2 - 1.5

0%

0%

Navi Mumbai

70 - 100

1.2 - 1.5

0%

0%

Powai

120 - 130

1.8 – 2.0

0%

0%

Worli/Prabhadevi

180 - 210

2.7 - 3.2

0%

0%

Goregaon / JVLR

120 - 140

1.8 - 2.1

0%

24%

Kalina

150 - 220

2.3 - 3.3

0%

6%

Thane

70 - 90

1.2 - 1.4

19%

19%

130 - 150

2.0 - 2.3

0%

-

Andheri East

LBS

INR per sq ft per month 300

Forecast 250

200

150

100

50

0 2009 2010 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F Note: Above graph represent rental trends of Grade A Non IT/ITeS buildings only

Note: 1 US$= INR 66.60 (US Dollar rate as on 30/9/2016) Above table represents rental range of Grade A non IT/ITeS buildings only

Supply, Absorption & Vacancy Trends 12.0

Market Transactions Client

25%

Forecast

Building Name

Area (sq ft)

Location

Transaction Type

130,000

Airoli

Lease

10.0

20%

8.0

UBS

Gigaplex

15% 6.0

Teva Pharmaceutical Commerz II Industries Tata Crescenzo Communications

10%

125,000

Goregaon

Lease

100,000

BKC

Lease

4.0 5%

2.0 0.0

Danher

Phoenix Marketcity

75,000

Kurla West

Lease

Springboard91

Akruti Trade Center

46,000

Andheri East

Lease

Note: Above table represents indicative transactions concluded during Q3 2016

0% 2010 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F Absorption (In Mn sqft)

New Supply (In Mn sqft)

Vacancy (In %) Note: Above graph represents both Non IT/ITeS and IT/ITeS Grade A properties

For research related information contact

For Office Services contact

Surabhi Arora Senior Associate Director | Research Surabhi.arora@colliers.com

George McKay South Asia Director | Office Services George.mckay@colliers.com

Tel: 0124-4567580

Indiabulls Finance Centre, 17th Floor, Unit No. 1701, Tower 3 Senapati Bapat Marg, Elphinstone (W) | Mumbai - 400013 | India

Ravi Ahuja Executive Director | Office Services Ravi.ahuja@colliers.com

Copyright © 2016 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.


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