MA R K E T B E AT Office Q1 2021

Leasing activity continued to grow in Q1 2021 The first quarter of the year recorded gross leasing volumes of 2.96 msf, a 34% q-o-q growth, as leasing was healthy in select sub-markets and was driven by major transaction closures. Higher gross leasing was driven by 1.77 msf of term renewals, 1.04 msf of fresh leasing and nearly 0.14 msf of pre-leasing during the quarter. However, a 9% yoy drop was witnessed in gross leasing, which stood at 3.24 msf in the first quarter of 2020. The -Belapur Road submarket was the most active 2.96 msf GROSS LEASING (Q1 2021) with a 27% share of overall leasing activity in Q1, followed by BKC with a 19% share, and - and submarkets with 11% shares each. In terms of fresh leasing activity, Thane-Belapur Road and BKC continued to dominate with 30% and 18% shares respectively. The IT-BPM and Engineering & Manufacturing sectors accounted for 33% and 18% shares of overall leasing activity, respectively, while BFSI and professional services contributed 14% and 7%, respectively of the quarterly leasing activity. 0.49 msf NEW COMPLETIONS (Q1 2021) Even though leasing activity witnessed improvement during the quarter, overall vacancy increased marginally as the trend of select occupiers either downsizing or relocating to new spaces leased in the previous quarters continued. Also, new project completions added to the Q1 vacancy rate, which stood at 21.0%, a marginal 20 bps rise from the previous quarter. Despite marginally higher vacancy in the current quarter, net absorption stood at 0.20 msf, lower by 20.4% compared to the previous 13.84 msf UPCOMING SUPPLY quarter. As Mumbai is witnessing the second wave of Covid-19, we expect leasing activity to remain muted during the first half of 2021. Going forward, overall leasing (2021 – 2023) demand is expected to gain some momentum in the second half of 2021, as occupiers from IT-BPM, engineering & manufacturing, professional services and BFSI segments along with GCCs of BFSI are expected to drive office space demand in the upcoming quarters, mainly on the back of faster vaccinations across the city and stronger business and economic sentiments.

BKC witnessed solitary completion in Q1 MARKET INDICATORS OVERALL A total of only 0.495 msf of new supply was added during the quarter with only BKC witnessing new completion. We anticipate an additional 13.84 msf of supply over the Q1 2021 next three years with the highest contributions from Thane-Belapur Road (), Lower -, and - submarkets. However, in the near term, the Covid-19 resurgence might pose challenges for ongoing projects as the government has imposed a number of restrictions in recent weeks including night 12 month Q1 2020 Q1 2021 curfew and weekend lockdown though construction sites have been allowed to operate if the developer provides an accommodationfacility for the workers. Considering Forecast these factors, we can expect completion delays of at least 3-6 months across all projects. Overall 19.0% 21.0% Vacancy Rental values remained unchanged during the quarter The quoted rental values across all major submarkets remained stable in Q1. However, the stock weighted rental values in select sub-markets increased marginally on Weighted Average the back of minor rental changes in select set of projects. Some of the landlords have continued to offer rental discounts of 5-10% during transaction closures, though Net Asking Rents 265.7 SBD 265.7 institutional landlords have not offered any rental flexibility during the quarter. Interestingly, in Thane-Belapur Road (Navi Mumbai), Thane and Central Suburbs sub- (INR/sf/month) markets, Institutional landlords are offering innovative deals to select occupiers with tenant improvements or extended occupancy cost delays. Capital values across all submarkets also remained stable on the back of muted sales activity during the quarter. We expect rental values to remain stable in the first half of 2021 and some YTD Net 882,693 201,642 Absorption (sf) upward movement in select sub-markets is expected only with a more sustained return of occupier demand by end-2021. NET ABSORPTION & NEW SUPPLY OVERALL VACANCY & WEIGHTED AVERAGE ASKING RENT 140.0 25.00% 8.0 120.0 20.00% 6.0 100.0 80.0 15.00% 4.0 60.0 10.00% 40.0 5.00% 2.0 20.0 0.0 0.00% 0.0

2016 2017 2018 2019 2020 2021F 2021F

Q1 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 NET ABSORPTION (MSF) NEW SUPPLY (MSF) WEIGHTED AVERAGE RENTS (INR/SF/MONTH) OVERALL VACANCY(%) MA R K E T B E AT MUMBAI Office Q1 2021 MARKET STATISTICS

YTD GROSS PLANNED & UNDER GRADE A WTD. AVG. RENT* INVENTORY YTD CONSTRUCTION YTD NET SUBMARKET VACANCY RATE (%) LEASING CONSTRUCTION (SF) COMPLETIONS (SF) ABSORPTION (SF) ACTIVITY# (SF) (SF)^ INR/SF/MO US$/SF/YR EUR/SF/YR

CBD 1,962,814 7.20% 59,882 0 0 165 241.2 39.8 33.1 SBD 10,340,696 20.48% 562,172 439,604 495,000 108,456 265.7 43.8 36.4 Worli 1,604,000 14.33% 66,857 1,015,504 0 23,857 220.1 36.3 30.2 Lower Parel 8,568,703 21.84% 184,977 3,586,618 0 -7,651 177.0 29.2 24.3 Andheri-Kurla 14,209,800 19.59% 318,247 700,000 0 7,512 126.7 20.9 17.4 Powai 6,325,576 9.76% 313,122 0 0 -35,810 140.6 23.2 19.3 Malad/Goregaon 13,514,084 19.41% 101,273 2,959,000 0 -115,187 110.0 18.1 15.1 Central Suburbs 11,340,532 28.39% 266,844 1,367,000 0 -20,242 146.1 24.1 20.0 1,619,500 10.29% 43,858 0 0 5,985 91.7 15.1 12.6 Thane-Belapur Road 21,456,844 28.62% 788,960 2,725,591 0 143,978 65.6 10.8 9.0 Thane 9,764,977 13.17% 248,922 1,050,000 0 90,579 70.1 11.6 9.6 TOTAL 100,707,526 21.05% 2,955,114 13,843,318 495,000 201,642 119.7 19.7 16.4

The report highlights Grade A details only. Certain indicators are historically corrected by addition / deletion of older / refurbished projects as per grade A classification and accounting for changes in built-up / leasable area besides adjusting tenant leases to reflect accurate market conditions. ^ Includes planned & under construction projects until 2023 Net absorption refers to the incremental new space take-up Ketan Bhingarde #YTD gross leasing activity includes pre commitments and term renewals Manager, Research Services *Weighted average asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up IT-BPM – Information Technology – Business Process Management +91 22 6771555 / [email protected] Key to submarkets: CBD – Ballard Estate, , , & ; SBD – -Kurla Complex, Bandra East, Kalina; Lower Parel includes Lower Parel, Parel and Kapil Kanala US$ 1 = INR 72.8 € 1 = INR 87.5 Senior Associate Director, Research Services th Numbers for the first quarter are based on market information collected until 30 March 2021 +91 40 40405555 / [email protected] KEY LEASE TRANSACTIONS Q1 2021 PROPERTY SUBMARKET TENANT SF TYPE Mindspace , Building 8 Thane – Belapur Road CitiusTech Healthcare 101,952 Fresh Lease cushmanwakefield.com

Trade Centre BKC GIA 89,299 Term Renewal A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Ventura Powai General Mills 74,605 Term Renewal Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers G Corp Tech Park Thane IQVIA RDS () Private Limited 73,146 Term Renewal and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and SIGNIFICANT PROJECTS PLANNED AND UNDER CONSTRUCTION 60 countries. In 2019, the firm had revenue of $8.8 billion across core services of property, facilities and project management, leasing, PROPERTY SUBMARKET MAJOR TENANT SF COMPLETION DATE capital markets, valuation and other services. To learn more, visit Nirlon Knowledge Park – Phase V Malad – Goregaon JP Morgan Chase 1,159,000 Q3 2021 www.cushmanwakefield.com or follow @CushWakeon Twitter.

Q Park (Q2) Thane – Belapur Road NA 850,000 Q2 2021 ©2021 Cushman & Wakefield. All rights reserved. The information contained within Lower Parel NA 850,000 Q2 2021 this report is gathered from multiple sources believed to be reliable. The information Indiabulls Finance Centre – Tower 4 may contain errors or omissions and is presented without any warranty or Oberoi Commerz 3 Malad – Goregaon Morgan Stanley 1,800,000 Q4 2023 representations as to its accuracy.