OFFICE December 2018 MARKETBEATS

6.1 msf 2.32msf 8.0% Gross Leasing activity including New Completions Current overall pre-commitments (2018) (Q4 2018) vacancy rate

HIGHLIGHTS MARKET INDICATORS OVERALL 12 month New supply supports leasing gains Q4 2017 Q4 2018 Forecast

Occupier demand rebounded in the fourth quarter on the back of new completions in SBD Overall Vacancy 8.4% 8.0% East, West and Hinjewadi. As such, gross leasing activity has gone up by 31% on an annual Weighted Average Net Asking Rental (INR/sf/month) 64.90 68.57 basis. Due to tight vacancies across select submarkets, the weighted average rental rose by YTD Net Absorption (sf) 2,264,900 3,379,400 4% on a sequential basis. Quarterly Grade A leasing activity was driven by the IT-BPM sector which accounted for a 64% share. Net absorption rose by nearly 50% YoY with new GRADE A OVERALL RENT & VACANCY RATE completions propping up the annual numbers. At 3.0 msf, pre-commitments have accounted 80 16% for nearly 50% of the gross leasing activity during 2018. 70 14% 12% Competition for upcoming supply; tight vacancy situation 60 10% to prevail, pre-leasing is the way forward 50 8% 40 6% Overall vacancy was 8.0% in Q4, with new supply coming on-line with pre-commitments and 4% 30 2% intense competition for available spaces keeping vacancy in a tight range. Nearly 60% of the 20 0% 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 upcoming supply (5.0 msf in 2019) is already pre-leased. While we expect new supply to 2018 2018 2018 2018

bring in more space options in key corridors of SBD East and West, pre-leases from 2018 Net Asking Rental (INR/sf/month) Vacancy Rate (%) and healthy occupier demand should keep vacancy in single digits as has been the case GRADE A PRE COMMITMENT AND NET since the past two years. Tenants continue to prefer in the east with and ABSORPTION A Cushman & Wakefield 6,000 Research Publication the locations of choice in the West. New supply is opening up corridors such as Fursungi and along the Wagholi-Nagar Road axis. 4,000

DATA Coworking is growing faster than expected 2,000 INTO Annual leasing by flexible space operators was recorded at 0.63 msf, 1.13 times higher on a ACTION 0 YoY basis and holding a 10% share in leasing volume for 2018. Big players in this category 2012 2013 2014 2015 2016 2017 2018 Pre-commitment (000' sf) Net Absorption (000' sf) www.cushmanwakefield.com are prepping for foot print expansion in the city going forward. PUNE OFFICE MARKETBEAT December 2018

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 3,974,400 7.7% 373,100 95,300 553,000 530,400 104.67 $17.8 €15.6 [email protected] SBD East 25,696,700 5.7% 3,150,898 5,866,400 1,450,000 1,315,600 76.68 $13.1 €11.5 SBD West 4,620,400 5.5% 1,491,710 3,050,000 428,500 440,300 84.58 $14.4 €12.6 PBD East 1,950,200 26.7% 140,237 1,100,000 0 166,300 55.00 $9.40 €8.20 PBD West 12,021,000 11.0% 933,190 686,600 806,200 926,800 52.45 $8.90 €7.80 TOTAL# 48,262,700 8.0% 6,089,135 10,798,000 3,237,700 3,379,400 68.57 $11.67 €10.25 The report highlights Grade A details only Net absorption refers to the incremental new space take-up; renewals not included in leasing activity statistics ^ Includes planned & under construction projects until 2021 *Weighted average asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up IT – Information Technology Key to submarkets: CBD: Laxmi Road, Camp, Bund Garden, Boat Club, , Dhole Patil Road, Pune Station, Nagar, FC Road, JM Road, Wakdewadi, SB Road, Model Colony, Ganeshkhind Road; SBD East: , Kharadi, Mundhwa, Yerwada, Nagar Road, Viman Nagar, , Kondhwa; SBD West: Aundh, Baner, Pashan, , Karve Nagar, , Road; PBD East: Phursungi, Wagholi, Charoli, Solapur Road, Saswad Road, ; PBD West: Hinjewadi, , , , , , , Talawade, Tathawade, Nanded, US$ 1 = INR 70.50; € 1 = INR 80.28 Numbers for the fourth quarter are based on market information collected until 10th December 2018

KEY LEASING TRANSACTIONS Q4 2018

PROPERTY SUBMARKET TENANT SF LEASE TYPE DATA INTO Blue Ridge IT 6 CBD L&T Infotech 83,197 New lease ACTION The Kode (One Square) SBD West Indiqube 66,000 New lease Cybercity Tower 1 SBD East Yash Technologies 44,000 New lease A Cushman & Wakefield SBD East Varian Medical Systems 44,000 New lease Research Publication Magarpatta Cybercity Tower 3

Cushman & Wakefield (NYSE: CWK) is a leading global real estate SIGNIFICANT PROJECTS PLANNED & UNDER CONSTRUCTION services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had PROPERTY SUBMARKET MAJOR TENANT SF COMPLETION DATE revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other Amar Sadanand Tech Park SBD West NA 200,000 Q3 2019 services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. Phoenix Fountain Head SBD East NA 133,400 Q1 2019 www.cushmanwakefield.com World Trade Center Tower E SBD East NA 250,000 Q3 2019 Symphony IT Park (phase II) SBD East NA 400,000 Q4 2019 Copyright © 2018 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.