OFFICE March 2019 MARKETBEATS

20% 3.9 msf 6.3% LEASING SHARE OF FLEX PRE -COMMITTED CURRENT OVERALL SPACE OPERATORS UPCOMING SUPPLY VACANCY RATE

HIGHLIGHTS MARKET INDICATORS OVERALL 12 month Tech occupiers drive leasing activity in the first quarter Q1 2018 Q1 2019 Forecast With fresh leasing limited by the low vacancy in Grade A stock and some exits by occupiers Overall Vacancy 8.7% 6.3% Weighted Average Net as part of their relocation/consolidation plans, net absorption saw a substantial dip during the Asking Rental (INR/sf/month) 65.8 67.3 quarter. Majority of leasing was concentrated in SBD East & SBD West submarkets (70% of YTD Net Absorption (sf) 523,800 344,000 the total leasing activity). IT-BPM led with a 47% share of leasing activity, followed by flex GRADE A OVERALL RENT space operators who accounted for a 20% share. & VACANCY RATE Rent growth in SBD submarkets; peripheral markets to 80 16% gain traction 70 14% 12% Amid the prevailing tight vacancies, weighted average rents rose by 1.5% on a sequential 60 10% 50 8% basis. Q1 2019 saw limited supply additions with a similar situation likely in the next quarter, 40 6% 4% as the entire upcoming supply is expected to come up in H2 2019. A significant rental uptick 30 2% is expected in SBD submarkets, driven by the low vacancy levels and high pre-commitments 20 0% 2012 2013 2014 2015 2016 2017 2018 Q1 2019 in the upcoming supply additions for remainder of 2019. Tenants continue to prefer locating in or close to core markets despite the high rentals. However, with upcoming supply in Net Asking Rental (INR/sf/month) Vacancy Rate (%) peripheral markets, we expect demand to pick up in these locations. GRADE A PRE COMMITMENT AND NET Supply crunch likely to ease by 2020 ABSORPTION A Cushman & Wakefield 6,000 Research Publication Around 11 msf of supply is expected to come up over next three years, of which 6.4 msf is likely in 2019 itself. Nearly three-fourths of this supply is concentrated in SBD sub-markets 4,000 DATA while the remaining is distributed among PBD and CBD sub-markets. The SBD West sub- 2,000 INTO ACTION market has currently achieved a 85% pre-leasing rate for its upcoming supply of 2019. 0 However, we expect the space crunch to ease slightly by end-2020, considering the robust 2012 2013 2014 2015 2016 2017 2018 Q1 2019 Pre-commitment (000' sf) Net Absorption (000' sf) www.cushmanwakefield.com supply pipeline. Rents are expected to rise through 2019 and 2020 before stabilizing. PUNE OFFICE MARKETBEAT March 2019

PLANNED & YTD GRADE A WTD. AVG. RENT* Rohan Sharma INVENTORY VACANCY YTD LEASING UNDER CONSTRUCTION YTD NET SUBMARKET (SF) RATE ACTIVITY (SF) CONSTRUCTION^ COMPLETIONS ABSORPTION (SF) Director INR/SF/MO US$/SF/MO EUR/SF/MO (SF) (SF) Research Services Tel: +91 124 4695555 CBD 3,954,500 5.1% 104,400 309,300 0 94,900 121.74 21.1 18.8 [email protected] SBD East 26,000,200 2.9% 264,000 4,690,000 133,400 285,000 85.79 14.9 13.2 SBD West 4,191,900 0.9% 259,500 3,450,000 0 29,600 85.63 14.9 13.2 PBD East 1,950,200 27.1% 0 1,100,000 0 0 58.00 10.1 8.9 PBD West 12,201,000 12.5% 95,300 1,359,700 0 (65,500) 53.73 9.3 8.3 TOTAL# 48,297,800 6.3% 723,200 10,909,000 133,400 344,000 67.36 $11.7 €10.4

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. Net absorption refers to the incremental new space take-up; renewals not included in leasing activity statistics ^ Includes planned & under construction projects until 2021 *Weighted average asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up IT – Information Technology Key to submarkets: CBD: Laxmi Road, Camp, Bund Garden, Boat Club, , Dhole Patil Road, Pune Station, Nagar, FC Road, JM Road, Wakdewadi, SB Road, Model Colony, Ganeshkhind 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 69.17; € 1 = INR 77.84. Numbers for the fourth quarter are based on market information collected until 10th March 2019

KEY LEASING TRANSACTIONS Q1 2019

PROPERTY SUBMARKET TENANT SF LEASE TYPE DATA INTO Panchshil Business Park SBD East VM Ware 122,700 Pre-commitment ACTION World Trade Center Tower - 4 SBD East Red Bricks 58,000 Fresh lease Sai Radhe CBD Exceltech Solutions 48,370 Fresh lease A Cushman & Wakefield PBD West Toll Group 47,233 Fresh lease Research Publication Symphony IT Park

Cushman & Wakefield (NYSE: CWK) is a leading global real estate SIGNIFICANT PROJECTS PLANNED & UNDER CONSTRUCTION services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across PROPERTY SUBMARKET MAJOR TENANT SF COMPLETION DATE core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit EON Phase II - Tower B SBD East NA 1,000,000 Q3 2019 www.cushmanwakefield.com or follow @CushWake on Twitter. Panchshil Business Park SBD West NA 1,500,000 Q3 2019 www.cushmanwakefield.com Gera Commerzone Building R1 & R4 SBD East NA 1,200,000 Q3 2019 SalarpuriaTech point SBD East NA 357,000 Q4 2019 Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.