MA R K E T B E AT Office Q2 2021

Demand softened in Q2; recovery delayed by the second wave Pune office market recorded gross leasing of about 0.76 msf in Q2, a 50 % q-o-q decline. PBD West accounted for more than half of all the office demand followed by SBD East and CBD at 29% and 11% respectively. The second wave has impacted sentiments and market recovery,as several 0.76 msf GROSS LEASING (Q2 2021) occupiers deferred their return to office / space take up plans and chose to continue a cautious approach. No new completions were recorded, and the vacancy rate was almost stable at 6.5% during the quarter.

0.18 msf NET ABSORPTION (Q2 2021) Net absorption was limited at 0.18 msf, a decline of 51% q-o-q, which was mainly due to limited demand for immediate occupation coupled with occupier exits that are driven by portfolio optimization strategies and weak market conditions. Overall, for H1 2021, gross easl ing in Pune was recorded at 1.9 msf, was 17% lower as compared to the first half of 2020. 14.18 msf UPCOMING SUPPLY (H2 2021 – 2023) Navigating office space with a flexible approach As vaccinations are gaining pace, companies have started taking a relook at return to office strategies and planning short term space needs. Enterprise demand has been on the rise steadily in recent years. Flex space as a business solution has gained traction over het last 12-18 months as occupiers are looking for CAPEX savings, shorter lock-in periods, possibility to scale up / down as per business needs. MARKET INDICATORS OVERALL Q2 2021 Major flex space operators have leased more than 1.3 msf over the last 18 months, a 19% share in overall leasing. Nearly 40%of this space was leased post the first wave suggesting that flex has become an integral part of space strategies for several occupiers in recent months. We expect 12 month this trend to gain traction going forward as market picks up and occupiers explore Core+Flex strategies and hybrid work models. Q2 2020 Q2 2021 Forecast Vacancy likely to increase in the short-term Overall 6.0% 6.5% Vacancy With several projects in the final stages, approximately 14.18 msf is estimated to be delivered by 2023 which includes 3.91 msf of new projects that are likely to become operational in H2 2021. SBD East and SBD West to dominate the upcoming supply in H2 2021 with nearly 80%share. Weighted Average Net Asking Rents 70.6 70.6 (INR/sf/month) We expect vacancy levels to rise in next 12-18 months due to limited pre-commitments and higher new supply as market gradually picks up pace. Wider vaccine rollout and reopening of offices in a phased manner will determine market recovery and demand in the short term. Developers have YTD Net 233,735 457,592 Absorption (sf) remained strategic in offering discounts while occupiers are looking to make the most of the current situation. Over the next6-12 months, rents are likely to remain stable across most markets and landlords are expected to remain accommodative.

NET ABSORPTION & NEW SUPPLY OVERALL VACANCY & WEIGHTED AVERAGE ASKING RENT

6 80.0 15.0% 60.0 10.0% 4 40.0 5.0% 2 20.0 0.0 0.0% 0

2016 2017 2018 2019 2020 2021F 2021F

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

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

CBD 4,039,495 5.0% 125,320 1,289,250 - 49,041 125.20 20.3 17.0

SBD East 30,161,222 7.3% 1,076,535 6,468,056 - 252,652 90.85 14.7 12.3

SBD West 6,030,858 13.2% 119,094 2,695,000 - 33,526 89.49 14.5 12.3

PBD East 1,950,209 4.4%* - - - - 64.07 10.4 8.7

PBD West 12,844,002 3.8% 588,130 3,729,312 - 122,373 53.96 8.7 7.3

TOTAL 55,025,786 6.5%** 1,894,098 14,181,618 - 457,592 70.60 11.4 9.6

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. Net absorption refers to the incremental new space take-up #YTD gross leasing activity includes pre commitments and term renewals Ketan Bhingarde ^^Includes planned & under construction projects until 2023 Manager, Research Services *The vacancy excludes hard option exercised by an IT major **Excludes a yet-to-be exercised hard option by an IT major in the PBD East submarket. On an overall basis, vacancy stands at 6.5%. +91 22 6771555 / [email protected] ***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 Kapil Kanala Key to submarkets: Director, Research Services CBD: Laxmi Road, Camp, Bund Garden, Boat Club, , Dhole Patil Road, Pune Station, Nagar, FC Road, JM Road , Wakdewadi, SB Road, Model Colony, Ganeshkhind +91 40 40405555 / [email protected] Road; SBD East: , , Mundhwa, Yerwada, Nagar Road, Viman Nagar, , Kondhwa; SBD West: Aundh, , , , Karve Nagar, , Road; PBD East: Phursungi, Wagholi, Charoli, Solapur Road, Saswad Road, ; PBD West: Hinjewadi, , , , , , , Talawade, Tathawade, Nanded, US$ 1 = INR 74.07; € 1 = INR 88.38 KEY LEASE TRANSACTIONS Q2 2021 PROPERTY SUBMARKET TENANT SF TYPE Blue Ridge IT-5 PBD West Singtel Singapore 46,000 Fresh Lease cushmanwakefield.com Commerzone – B7 SBD East Workday 42,000 Fresh Lease Embassy Tech Zone - Congo PBD West Marquardt Pvt. Ltd. 23,623 Fresh Lease A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Binarius SBD East Cotiviti India 22,325 Fresh Lease Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate SIGNIFICANT PROJECTS PLANNED AND UNDER CONSTRUCTION services firms with approximately 53,000 employees in 400 offices and 60 countries. In 2019, the firm had revenue of $8.8 billion across core PROPERTY SUBMARKET Major Tenant SF COMPLETION services of property, facilities and project management, leasing, AP 81 CBD Smartworks 800,000 Q4 2022 capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. Ascendas ITPP – Tower 1 SBD East Whirlpool 1,150,000 Q2 2022 ©2021 Cushman & Wakefield. All rights reserved. The information contained within Blue Ridge Phase 3 - Tower A PBD West Ebix, Cerence 1,400,000 Q4 2022 this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or Panchshil Business Park – 2 SBD East Snowflake 1,008,000 Q2 2022 representations as to its accuracy.