1. CITY REPORT
DELHI OFFICE MARKET
Q4 2010

2. BNP Paribas Real Estate - INDIA
All the building blocks
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3. CONTENTS
Summary p. 4
Macroeconomic Context p. 5
Delhi Map p. 6
Central Business District (CBD) p. 7
Alternate Central Business District (Alternate CBD) p. 8
Secondary Business District (SBD) p. 9
Periphery Business District (PBD) p. 10
Rental Values p. 11
Capital Values p. 12
Key Transactions p. 13
Key Projects p. 14
Glossary p. 15
CITY REPORT
DELHI OFFICE MARKET - Q4 2010

4. SUMMARY
Property Price Stability
The year 2010 has been the year of real estate recovery During Q4 2010, approximately 1.5 mn sq ft of office
and stability for the NCR region. In comparison to the space was transacted in the NCR region, with majority
last quarter, the achievable values have marginally of the space being leased by IT/ITES companies. Office
improved in the CBD areas such as Connaught Place. vacancies in NCR region stabilized to around 30%,
This can be largely attributed to the active demand which is a marginal decline from Q3 2010 vacancy
from Banking and Financial Services coupled with the levels owing to substantial availability of investment
absence of new supply within the CBD areas. The grade office space in Gurgaon and Noida micro-
absence of new supply in turn has increased the markets.
demand for Grade B buildings within this micro-
There has been growing interest from financial
market, which are now being refurbished to meet the
institutions and private equity funds to invest in ready
growing demand from this sector. On the other hand,
commercial premises especially in Gurgaon and Noida.
the peripheral locations like Gurgaon and Noida
It is expected that some large ticket purchase
showed stability in real estate prices supported by a
transaction may happen in the next 3-6 months.
growing demand from the IT/ITES sector.
It is expected that 2-3 large ticket transactions will
culminate in the leasing business in periphery district
of Gurgaon and Noida. However, the leasing values and
capital values are not expected to change.
CITY REPORT
DELHI OFFICE MARKET - Q4 2010 I4I

5. CRR & SLR MACROECONOMIC CONTEXT
35
GDP growth moderates on account of unanticipated
30
factors
25
Percent
20
The Indian economy, continued on the high growth path in 2010-11 despite
an uncertain global environment. Though the overall global outlook
15
suggested some moderation in growth in both advanced and emerging
10 economies in 2011, downside risks to India's growth momentum have
5 receded considerably. However, the GDP grew moderately at 8.2 % during the
quarter as compared to 8.8% during the previous two quarters. Significant
0
slowdown in the industrial sector along with marginal downward
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
movement in the services sector were primary factors that led to
moderation in the GDP growth, despite of sharp increase in agricultural
SLR CRR
growth.
Modest softening of manufactured products price and pressures aided by
Repo & Reverse Repo Rate past monetary tightening by RBI, led to moderation in Wholesale Price Index
(WPI) during August-November 2010 relative to double digit levels of 11%
7
experienced during March-July 2010. However, inflationary pressures
6
revived in December 2010 with WPI inflation increasing to 8.4 percent from
5 7.5 per cent in November 2010. These were attributed to unanticipated
Percent
4 factors such as unseasonal showers and supply chain factors affecting the
3 prices of essential commodities such as vegetables. New drivers such as
2 Fuel and non-fuel international commodity prices and demand-supply
1
imbalances in some food items emerged as factors impacting the inflation
rates.
0
23-Jul-09
23-Aug-09
23-Sep-09
24-Oct-09
24-Nov-09
25-Dec-09
25-Jan-10
25-Feb-10
19-Mar-10
20-Apr-10
20-May-10
20-Jun-10
2-Jul-10
27-Jul-10
20-Aug-10
16-Sep-10
2-Nov-10
Liquidity conditions remained tight during the third quarter of 2010-11,
prompting liquidity easing measures being adopted by the Reserve Bank.
Repo
Under the Liquidity Adjustment Facility (LAF), the RBI increased the repo rate
Reverse Repo
by 25 basis points from 6.0% to 6.25% and hiked the reverse repo rate by 25
basis points from 5.0% to 5.25%. Conditions for enhancing the efficiency of
monetary policy however, improved during the quarter with the tightness in
Gross Domestic Product (GDP) liquidity leading to competition among banks, resulting in higher deposit
10.00
8.80%
and lending rates.
9.00 8.60%
8.80%
7.90%
8.00 7.60%
8.80%
8.20%
Supported by a stable economy, India continued to be high on Global
7.90%
7.00 Investment radar. According to The World Prospectus Survey by the United
5.80% Nations Conference on Trade and Development (UNCTAD), in spite of a dip in
Percent
6.00 6.10% 6%
5.00 5.30%
the FDI Inflows, India continues to be the second best attractive destination
4.00 for FDI after China. India witnessed a total FDI inflow of USD 16,039 million
3.00 dollars (as on Dec 2010) followed by Singapore and USA at third and fourth
2.00
places.
1.00 Overall, robust and broad – based growth is expected to co-exist with
0.00 elevated inflation in the near term.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010
Major Real Estate Sales (In INR / In million) Profits (In INR / In million)
Companies in Q on Q Q on Q
India Q4 2010 Q3 2010 Q4 2010 Q3 2010
Change % Change %
Wholesale Price Index (WPI) DLF Limited 24,799 23,690 5% 4,657 4,184 11%
18.00 Unitech 6,598 6,445 2% 1,113 1,740 -36%
16.00 India Bulls 5,962 5,414 10% 2,025 1,727 17%
14.00 Sobha Developers 3,629 4,257 -15% 490 589 -17%
12.00 Peninsula Land 1,178 1,226 -4% 621 638 -3%
Percent
10.00 Parsvnath
2,198 1,955 12% 314 498 -37%
8.00 Developers
6.00 Pheonix 451 443 2% 238 221 7%
4.00 Omaxe Limited 3,480 3,544 -2% 226 367 -39%
2.00 Mahindra
1,558 890 75% 334 247 36%
0.00 Lifespace
Mar-09
Jun-09
Sept-09
Dec-09
Mar-07
Jun-07
Sept-07
Dec-07
Mar-10
Jun-10
Sept-10
Dec-10
Sept-06
Dec-06
Mar-08
Jun-08
Sept-08
Dec-08
Anantraj 2 1.329 -100% 502 480 5%
Ackruti City 2,123 1,624 31% 678 557 31%
Source: Confederation of Indian Industries Ansal Properties 3,378 3,197 6% 324 199 63%
CITY REPORT
DELHI OFFICE MARKET - Q4 2010 I5I