Destination India - A Real Estate Journey for Corporate

Transcription

Destination India - A Real Estate
Journey for Corporate Occupiers
May 2014
2 Destination India - A Real Estate Journey for Corporate Occupiers
Foreword
India, as it stands today, is on the trajectory of becoming the world’s 3rd largest
economy by 2020. Real estate continues to form a key ingredient for the success of
India’s rising economy. However, one would need an association of true intellect and
expertise to unravel India’s true potential.
JLL, for years, has been a preferred partner for multinational and domestic
corporations to provide a seamless platform towards establishing or expanding their
footprint in India. This report aims to provide you with insights into how the Indian
office real estate is transforming amidst a dynamic operating environment.
This report is not only a culmination of both extensive data and research built over
a number of years in our Indian business, but also the result of thought provoking
discussions amongst industry experts aiming to decode the land of a billion
opportunities!
Destination India - A Real Estate Journey for Corporate Occupiers 3
India - a billion opportunities waiting
The second largest developing economy in the world, India, is in an interesting position. The Indian economy is trying to recover from the
after-effects of the global financial crisis (GFC) and at the same time waiting for the decision of an electorate of over 814 million. While the high
inflation, slowing GDP growth, trade deficit, external debt and depreciating currency are visible concerns, factors like lack of policy level clarity
and corporate governance are also affecting international interest in the country.
Figure 1: weak Economic Scenario
Source: Oxford Economics
However, given all these hurdles, the economy’s underlying strength is
undeniable. With a population of 1.3 billion – 65% in the working age
category – India offers a huge market for international corporations.
Talent, one of the key elements for any business, is plentiful and
available at a lesser cost compared to developing nations. In the past
decade, when the economy was in good shape, the manufacturing and
service sectors achieved a growth rate of 7.7% and 9.6% respectively.
The stock market index grew by more than 5½ times, indicating the
potential business growth the country can offer once the economy
recovers.
Figure 2: Increasing Trade Deficit
Source: Oxford Economics
Figure 3: Growing Per Capita Income (PPP)
Source: IMF
Figure 4: No of years left for Dependency Ratio to bottom-out
INDONESIA
INDIA
VIETNAM
41 years
36 years
16 years
CHINA
1 year
Source: UN population statistics
Number of years
Note: Dependency ratio indicates sum of population aged 0-14 and 60+
divided by number of people in the 15-59 (working age) age group.
A falling dependency ratio indicates faster rise in income as more number
of people are earning as opposed to merely spending (or dependents).
Policy Level Clarity
While we agree that the current situation is not the most
favourable, the problems appear to be short-term in
nature. A stable government at the centre with a clear
agenda can reduce the revival time. On the other hand,
long-term business opportunities are immense and are
capable of attracting international corporations and
investors into the country.
Increase in Foreign Money Inflow
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Incr
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Lifestyle
Improving
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Weakenin
Growth
Low GDP
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Increas
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HIGH INFL
What does India offer to
foreign corporates?
Over the years, we have witnessed various MNCs setting up their offices
in India and, despite the challenges; these companies have managed
to grow. Various companies in IT & ITES, banking & financial services,
retail, pharmaceuticals, telecom, food & beverage sectors have entered
India and spread their presence across the country, expanded their
staffing levels and grown their revenue multiple times.
Top five attractions for foreign corporates
Easy talent availability
Finding and retaining a workforce is not a big challenge for various
industries in India. Personnel are available to carry out each and
every job, from the execution of tough work in difficult conditions to
preparing country level business strategies sitting in a smart office.
Across industries, manufacturing in particular, labour cost continues
to be the focus area. India scores well on this, as it offers a wage
cost that is lower than most comparable nations in the world (Figure
7). There is also a noticeable increase in labour mobility. A decade
ago, the percentage of Indians ready to leave their city of origin was
small. This has increased considerably, providing a lot of flexibility
for employers.
New India Emerging
India has the second largest population in the world, a high percentage
(65%) of which are income earning. When combined with the growing
urbanisation rate, an increasing number of nuclear families and an increasing focus on spending, the consumer market potential is clear. The
diversity in spending patterns, eating habits and lifestyle changes (focussed on higher spending) in various parts of the country offer a sizable
market for a range of industries wanting to set up their office in India.
Low cost real estate
While the cost of real estate in India has grown over the past decade, it is still considerably lower than most other developed nations. A
quick look at the cost of real estate in various cities around the world
suggests that Delhi and Mumbai feature at number 10 and 11 in the
list of the costliest office spaces in the APAC, and they are more
than 55% cheaper than the table topper, Tokyo. Bangalore, one of
the fastest growing office markets in the country, is at number 21
and is more than 85% cheaper than Tokyo. (Figure 8)
Figure 7: Wages are lowest in India amongst comparable nations
Figure 5: Growing Urbanisation
Source: McKinsey India Awakening Report
Figure 6: Dropping Savings Rate = Growing Spending
Source: World Bank
Source: International Labour Organisation
Figure 8: Top 21 Office CBDs (Rental) in APAC
Source: JLL IBM has grown its employee strength in India by more than 16 times in last decade. From just 9,000
in 2003 the head count has increased to 150,000 in 2014 which accounts for as high as 33% of the
overall employee strength.
Accenture employs 80,000 employees. This accounts for 28.5% of their global staff strength which is
highest across all the countries in which it is present. The Indian headcount has more than doubled
from 35,000 in 2007.
Ericsson India has an employee strength of 17,991 which accounts for 16% of its global workforce.
India accounts for 2nd highest head count after Northern Europe & Central Asia.
A UK based banking and financial service company has grown its employee strength by more than
1.3 x to 12,500. It plans to add financial services 16% in next 2 – 3 years.
A Germany based banking and financial services company grew at a fast pace and employed more
than 12,000 employees for their back office and offshoring activities in India in last 10 years over 4
locations in the country.
Central time zone
The geographical location of India puts it in almost a central time zone, which enables it to offer services across the regions of the world. While
an early start in India can match the timing of Singapore and Hong Kong, a late evening shift can service clients in the UK, and a night shift can
work well for corporates in the US. This helps corporates across the world to set up offices in India and provide seamless working across offices
in different countries.
INDIA
11:00 AM, MAY 15
CALIFORNIA,
UNITED STATES
10:30 PM, MAY 14
SINGAPORE
1:30 PM, MAY 15
SYDNEY
3:30 PM, MAY 15
UK
6:30 AM, MAY 15
Fast transition from unorganised space to organised space
India was traditionally categorised as an unorganised market.
However, over the past decade, various industries transitioned from
unorganised to organised. The retail, hospitality and real estate
sectors are a few eminent examples of sectors that have undergone
this shift. While during the past decade there was a keenness to
move towards organised space, the next decade is expected to
witness a fast pace shift.
Improvement in Transparency
Apart from these five factors, India’s improving transparency is also
acting positively for foreign corporates and foreign investors. Every
two years, JLL releases a transparency Index which covers 97
markets worldwide. A unique survey that covers 83 different factors
across 13 transparency topics (mentioned below) provides a holistic
score which indicates improvement or deterioration in any country’s
transparency level. The Index aims to help real estate investors,
corporate occupiers, retailers and hotel operators understand
important differences when transacting, owning and operating in
foreign markets. The Index is also a helpful gauge for governments
and industry organisations who are interested in improving
transparency in their home markets.
Figure 9: No of Companies Listed on BSE
5,400
5,300
5,200
5,100
5,000
4,900
4,800
4,700
4,600
4,500
4,400
FY 05F Y 06 FY 07F Y 08 FY 09F Y 10 FY 11F Y 12 FY 13F Y 14
Source: Bombay Stock Exchange
Gradual growth in listed
companies – result of shift from
unorganised to organised
Depending upon their overall development, Indian cities are categorised
as Tier-I, Tier-II and Tier III. While our current edition of the JLL
Transparency Index (2014) is under finalisation, its preliminary findings
suggest that India has improved in various aspects over 2012. On
several parameters, the improvement is better than even the Asia Pacific
average. Whilst it is in semi-transparent stage, the improvement is
encouraging.
DIRECT PROPERTY INDICES | LISTED REAL ESTATE SECURITIES INDICES
UNLISTED FUND INDICES | VALUATIONS
MARKET FUNDAMENTALS DATA | FINANCIAL DISCLOSURE
CORPORATE GOVERNANCE | REGULATION
LAND AND PROPERTY REGISTRATION | EMINENT DOMAIN
DEBT REGULATION | SALES TRANSACTIONS
OCCUPIER SERVICES
Key to effective business
set-up in India - smart and
efficient office space
The single most critical aspect for any corporate occupier when setting
up operations is DOSE (Destination, Optimum space Size and Expenses). Whilst business locations are selected based on a range of
parameters including ease of setting up business, policy framework,
availability of technological resources and accessibility to the right kind
of talent, the choice of the right office premises is also an imperative.
Partnering with the right kind of developer who offers optimum building
specifications and facilities are essential, given the space standards that
all global occupiers have formalised over the years. The cost of running
the facility, i.e. operating expenditure is also a key consideration in real
estate planning and strategy decisions in India.
Over the past two decades, India has made a mark on the global map
as the foremost offshoring and outsourcing destination. The country has
managed to attract large multinational companies operating in the field
of banking, manufacturing, hospitality, logistics, and also construction
and warehousing. The growth of the services sector coincided with the
explosion in construction of commercial offices to fulfil the need of such
occupiers. The three biggest cities of Delhi, Bangalore and Mumbai
attracted the largest share of occupiers in the services and outsourcing
businesses.
Emergence of the top seven cities
Even during the 1980’s and 1990’s, whilst, Mumbai was already the
financial capital of the country, being home to the stock exchange and
the headquarters of various banking and financial institutions, Delhi was
an attractive destination by virtue of being the seat of the government
and hence the policy-makers. Bangalore’s attractiveness as a business
destination was driven by its potential in terms of great talent pool, which
blended well with the opportunities of work that came its way. It is today
the biggest exporter of IT services in India. From an army city, the region
Figure 10: India Office Stock (million sq ft)
It was on the back of these cities and their growth charts that a second tier of cities emerged in the country when the need arose for setting up secondary offshoots at a more affordable cost. This gave rise
to the manufacturing and IT hubs in Chennai, IT and biotechnology
incubators in Hyderabad, and engineering and IT hubs in the erstwhile
pensioners’ paradise of Pune. In the Eastern part of India, Kolkata
too emerged as an attractive destination for few IT and manufacturing
firms. These cities today contribute to over two-thirds of occupier
driven office space leasing volumes in the country.
To put things in the right perspective, the chart below shows the
incremental growth of Grade A office space from 2001 till date. It
clearly brings out the difference in the pace and size of construction across the seven cities mentioned earlier.
Indian Office market evaluation
Not only has the pace of construction picked up, but the quality of
office space - optimal design, building specifications and overall work
place environment - has undergone a transformation. Indian developers are now able to churn out office spaces that match the level of
international occupier expectations.
Hence, office take-up in terms of square foot leased per year has
increased incrementally over the past decade.
The chart below gives annual absorption volumes for the top
seven Indian cities from 2007 till end of 2013.
Figure 11: India Office Space Absorption and Supply
Source: JLL REIS
was transformed into home for major software and financial services
firms. Expansion of big cities such as Mumbai and Delhi was confined
due to their space saturation as development and growth came to
them quite early. In such a scenario, it was the satellite towns –the
peripheral locations – which gave the much-needed growth impetus
by expanding the boundaries of these cities. Today, while the office
corridors of Gurgaon and Noida give real character to the Delhi NCR
zone, it is the Bandra-Kurla Complex and Lower Parel which dominate
the commercial real estate market of Mumbai, leaving the traditional
South Mumbai corridor behind.
Source: JLL REIS
The activity peaks of 2007 and 2008 reflect the pace of space takeup by corporates symptomatic of the pre-crisis euphoria around the
world in terms of business growth and the potential of a country like
India. Thereafter, when the Global Financial Crisis happened, the
impact on the leasing volumes was profound. While the demand
for office space had increased by the end of 2010, the trend
amongst real estate occupiers has shifted towards adopting a more
conservative space acquisition strategy.
As of end-2013, pan-India net absorption remained stable at
2012 level of 26.8 million sq ft. New completions have increased
from 30.4 million sq ft in 2012 to 36.3 million sq ft as at end 2013,
causing the vacancy rate to increase marginally by 130 bps in a
stable demand scenario. Mumbai and Bangalore continued to be
the major contributors to India’s total net absorption in 2013 while
NCR-Delhi witnessed healthy pre-commitments in projects that were
in the advanced stages of completion.
While the momentum in office leasing activity had resumed post
the crisis during 2010-11, it was worth noting that the increases in
rentals and capital values have still left them far from their peak
levels before the crisis. In fact, 5 years after the GFC, office markets
have still not reached their peak values. The office sector heat map
table below highlights some of the latest dynamics.
“Rents Declining”
While the city of Bangalore and Chennai have reached close to
their historic peaks, all others are still heavily discounted. Another
observation worth noting is that the cities which have shown the
highest increases were historically relatively inexpensive office
markets. Average rents in these cities have been sub USD 1 per sq ft
per month since 2009 till date.
While the secondary business districts in Mumbai are thriving office
markets, in Delhi NCR it is the suburban towns which are the primary
drivers of office space supply and demand. The rental discounts
currently available in both locations offer occupiers a window of
opportunity to time the market. The key aspect of this opportune
moment is that superior grade projects are likely to see higher
occupier interest and hence likely to offer a relatively smaller window
before rentals start to appreciate.
The combination of high vacancy and affordable rents that exist
presently has created an occupier-friendly market, especially in the
growth corridors of office developments.
It is however imperative to understand that most of the cities’ Central
Business Districts (CBDs) are saturated in terms of office supply and
their already high rental values have created a cap on their future
growth, thereby causing them to grow slowly over the past five year
period. This difference between the cities’ CBDs and their thriving
“Decline
Slowing”
Rental
Value
Index
Rents Recovering
2008
2009
2010
2011
2012
2013
1Q14
1Q14
BANGALORE
-0.9%
-17.7%
3.3%
10.8%
5.3%
-0.6%
0.3%
99.5
MUMBAI
City
-3.6%
-34.3%
0.8%
1.1%
0.8%
0.5%
0.1%
62.1
DELHI
City
-3.8%
-41.6%
2.2%
3.2%
1.3%
0.0%
0.0%
59.2
MUMBAI
Suburbs
-7.0%
-34.3%
0.0%
7.4%
1.1%
2.1%
0.6%
68.3
GURGAON
Prime
1.6%
-31.1%
2.8%
11.8%
5.7%
5.0%
0.9%
80.9
GURGAON
Off Prime
-15.0%
--38.2%
-2.4%
9.8%
4.4%
2.1%
0.0%
66.7
NOIDA
-3.2%
-16.6%
-9.0%
3.3%
2.7%
3.6%
0.0%
77.7
CHENNAI
-0.6%
-22.4%
0.0%
6.4%
4.9%
4.4%
0.2%
93.2
PUNE
-5.1%
-20.7%
0.0%
3.4%
7.3%
6.8%
2.3%
83.9
HYDERABAD
3.1%
-14.0%
0.0%
4.1%
5.1%
1.1%
0.0%
80.1
KOLKATA
9.3%
-27.4%
0.0%
5.7%
8.2%
-0.3%
0.0%
82.6
Note: Mumbai City includes CBD, SBD Central, BKC and SBD North. Mumbai Suburbs includes Eastern and Western Suburbs. Delhi City
includes CBD and SBD of Delhi.
Source: JLL REIS
peripheral locations needs to be highlighted; as such the CBDs tend
to remain relatively neutral markets and may not offer the negotiating
flexibility to an occupier.
Occupiers’ space acquisition strategy
Key Trends
While the fundamentals of the India story in terms of its skilled
workforce, its cost arbitrage and low-cost real estate remain intact,
occupiers have shown greater maturity in evolving their real estate
strategy. Over the past two years, the net absorption volumes on a pan
India basis remained stable (Chart 2). The slowdown in the US economy
coupled with the economic issues plaguing the European Union had
most of the corporate occupiers, headquartered out of either one of the
two, in a state of conservative growth. With the offshoring/outsourcing
business contracts facing cost and growth issues, real estate space
acquisition was directly impacted. In these times, occupiers were
looking at improving their business margins by consolidating multiple
office locations within city geography to control space occupancy costs.
Portfolio rationalisation through consolidation contributed to much of
fresh office demand over 2012-13. Also, relocations to lower-cost offices
– either in upcoming office corridors or in certain cases to different submarkets were being considered.
A subdued growth of the economy over the past two years also
contributed to the reduction in consumer spending, lesser contracts from
Indian firms and lower earnings estimates from domestic operations. All
these factors combined to result in occupiers evolving their real estate
strategy towards reducing occupancy costs during this period. A lot of
forward thinking was also observed, especially from IT/ITeS occupiers,
who were looking to expand by pre-committing in upcoming Special
Economic Zones, which offered them longer fiscal incentives.
Green shoots of revival have been evident with the performance of the
first quarter of 2014, giving rise to the opinion that the office demand is
beginning to increase. The first quarter of 2014, recorded about 6
million sq ft of office space absorption across the top seven cities, a
healthy gain of 15.4% q-o-q for net absorption. Also, as a percentage
of total absorption during 2013, while 1Q13 had contributed around
19.4%, the contribution of 1Q14 towards the predicted 2014
absorption has been slightly higher at 22.2%. In fact, the 1Q14
absorption as a percentage of total CY numbers has been second
only to 2011 in the past 5 year analysis period. These indicators point
towards increased occupier activity translating to higher absorption
volumes during the quarter gone by.
India market forecasts
A look at the three year forecast at a pan India level and for the
top seven cities indicates that the space acquisition is likely to take
place at a slightly faster pace in 2014, due to the slowly improving
global headwinds and the likely positive change in the investment
and economic climate in India. Another important point for occupiers
to understand, is demand polarisation based on asset quality.
Superior grade office projects are likely to see faster space takeup with established office corridors likely to be preferred more
compared to others. While a larger portion of demand is likely to
emanate from the IT/ITeS sector, the banking and financial services
industry is also likely to see faster growth. It is hence likely that
the cities of Bangalore, Delhi NCR and Mumbai will remain the top
three preferred cities for occupier growth. While, consolidation and
relocation strategies will dominate in the short-to-medium term,
expansion driven growth is expected over the long-term. A wider mix
of corporate occupiers in terms of industry profile is also expected,
as a proactive, investor friendly government at the helm is likely to
enhance investments in the industrial and manufacturing sectors.
An example of potential occupier activity over the coming 6-18 month
period is encapsulated in the next page, to evidence increasing
occupier activity anticipated in the market:
OCCUPIER INDUSTRY
OCCUPIER HQ
CITY LOCATION
SPACE REQUIREMENT
REAL ESTATE STRATEGY
Banking & Financial Services
Europe
Mumbai
180,000
Consolidation
Diversified Business
USA
Mumbai
120,000
Renewal
Europe
Mumbai
450,000
Relocation
Diversified Business Group
Japan
Pune or Hyderabad
100,000
Expansion
USA
Mumbai
330,000
Renewal
Market Consulting Services
Europe
Pune or Hyderabad
100,000
Expansion
Europe
Mumbai
300,000
Consolidation
USA
Mumbai
175,000
Expansion
India
Mumbai
200,000
Expansion
India
Mumbai
500,000
Expansion/Consolidation
Europe
NCR-Delhi
175,000
Expansion
Consulting Services
USA
NCR-Delhi
800,000
IT/ITeS
USA
NCR-Delhi
800,000
Expansion
IT/ITeS
USA
NCR-Delhi
10,000,000
Consolidation
IT/ITeS
India
NCR-Delhi
250,000
Expansion
IT/ITeS
Europe
NCR-Delhi
300,000
Relocation
IT/ITeS
USA
NCR-Delhi
175,000
Expansion
Telecom
Europe
NCR-Delhi
250,000
Insurance
USA
NCR-Delhi
350,000
Relocation
IT/ITeS
USA
NCR-Delhi
100,000
Relocation/Consolidation
IT/ITeS
USA
NCR-Delhi
450,000
Expansion
Consulting Services
USA
NCR-Delhi
125,000
Expansion
IT/ITeS
USA
NCR-Delhi
150,000
Relocation
India
NCR-Delhi
150,000
Relocation/Renewal
Ratings
USA
NCR-Delhi
100,000
Consulting Services
USA
NCR-Delhi
100,000
Relocation
~ 16.7 mn sq ft
Infrastructure Links to Office Real Estate
Office demand is increasingly focused on certain established and upcoming office corridors. This is based on the improvement in physical and
social infrastructure that has occurred over the past 5 to 7 years and has been instrumental in creating new office corridors, while enhancing
the attractiveness of some existing ones. Infrastructure development acts as a magnet for attracting real estate investments. Enhanced
connectivity, uninterrupted power and water supply, associated social infrastructure development and capacity building are combined together
to create a viable real estate corridor. Office sub-markets are even more attuned to developed infrastructure, as existing structures and close-tocompletion projects lead to commercial project development. Occupiers in India continue to be focused on connectivity, accessibility and overall
infrastructure quality.
Kolkata New Town- Rajarhat Office market has
emerged as a destination in the last 3-4 years
Reasons
Outcomes
Extensive new road network and expressways
providing enhanced connectivity with the South &
Central, Airport. Upcoming Airport Metro Corridor
will further enhance connectivity
Zero space availability with developers. Extensive
investor activity
Bangalore Outer Ring Road Corridor and North Bangalore
Hyderabad Hitec City and Gachibowli office corridors
Reasons
Outcomes
Presence of campus style developments by
Ascendas, L&T, DLF and presence of Fortune 500
companies such as Google, Microsoft, Accenture,
GE, IBM, Oracle, Deloitte Consulting, Motorola,
Dell, Convergys among others
Chennai Old Madras Road office corridor; Guindy IT Hub and CBD
Reasons
The Outer Ring Road connectivity and new
international Airport in North Bangalore
Reasons
Outcomes
~25 million sq ft office development in ORR;
developer interest in commercial office projects in
the corridor around the Airport
Outcomes
Pune Eastern and Western Suburbs office corridors
Proactive industrial and development policy,
better road network connectivity, state-driven SEZ
development will further enhance connectivity
OMR road connectivity; GST Road development
and upcoming Metro Rail connectivity
OMR has 25 million sq ft office stock and captive
campuses; SEZ corridor development in Guindy;
sharp 42% increase in capital values in the CBD
based on upcoming metro connectivity
Mumbai Secondary Business Districts – North, Eastern Suburbs
Reasons
Improved road connectivity and accessibility to the
main city; social infrastructure development
Reasons
Upcoming Metro connectivity; existing JV Link Road
Outcomes
Additional office stock of 7.2 million sq ft and
4.5 million sq ft in the East and West corridors,
respectively with healthy office leasing volumes
Outcomes
North and Eastern Suburbs to benefit in terms of
increased absorption, new supply and possible rent
appreciation
Delhi NCR Suburban Office markets, CBD
Reasons
Outcomes
Expressways (Noida-Greater Noida; NH-8 connecting Gurgaon-Delhi), Metro Rail connectivity
Development of the Noida-Greater Noida Expressway office market with 9.3 million sq ft stock and an active SEZ corridor; metro
connectivity increased rents by 20.4% in MG Road (commercial office corridor in Gurgaon) in 3 years; CBD rents reached an all-time
peak within 3 years rising by nearly 200% from 2006; DLF Cybercity in Gurgaon saw rents rise by 100% in 3 years from 2006 and
again have recovered to 80% of peak values in 2013
Occupier sectors driving demand for Indian Real Estate
An analysis of the leasing volumes data from 2009 till end of 2013
reveals that IT/ITeS has been the biggest contributor to space takeup across the top seven cities. It is to be noted that locations such
as Bangalore, Hyderabad and Gurgaon (Delhi NCR) are considered
as laboratories for outsourcing experiment by global firms. The share
of IT/ITeS has remained the largest, though it has shown marginal
downward slope recently as outsourcing contracts were being reviewed
and business environment remained sluggish. The manufacturing/
industrial sector was the second biggest contributor followed by the
financial services sector. The top three sectors are the ones where India
has shown its distinct advantages in terms of talent pool availability,
opportunity for business through increased industry penetration and the
large unrepresented population offering the critical mass for financial
services based firms.
An interesting trend was captured while studying occupiers’ profiles
when we classified them according to their country of origin.
US firms were the most dominant throughout the period studied,
significantly more than the share of domestic Indian business. The
European Union’s share contributed less than one-sixth of the total
which can, perhaps, be attributed to the economic and recessionary
climate hovering over the continent over the last four to five years.
When considering India as a business destination and establishing
a footprint here, the current rental values of under USD 12 per sq ft
Figure 12: Leasing Classification by Industries
annually offer the benefit of affordable business operations. As per
the JLL City Index Research 2014, Delhi and Mumbai figure among
the top 31 cities out of a universe of 300 global cities in terms of
commercial attraction index based on the economic and real estate
market size. However, both are near the 100th rank and lower, in
terms of real estate investment, which points towards the growth
potential these cities behold. With new construction offering smarter
and socially responsible office space at attractive valuations, corridors
within the Indian top cities are primed for an increased level of
engagement with European companies.
Key considerations for acquiring space in india
Choosing the right development partner
As an occupier it is imperative that the right developer is chosen
based on his financial strength, delivery capability, development track
record and quality. During the current times, most of the developers
are struggling with stressed balance sheets. As such, timely delivery
is the biggest concern. At this juncture, choosing the developer who is
focused on commercial office projects and has a proven track record
is essential to mitigate risks. It is also relevant to look at projects
which have seen some levels of pre-commitments or likely to see
interest from other occupiers, as they will probably be completed at a
faster pace.
The commercial office development scene is currently playing host to
a few global players as well. Some of them come with development
capability credentials, while others are using their investments
experience to become development partners. A prime candidate is
Figure 13: Leasing Classification by Country
Source: JLL REIS
Source: JLL REIS
Ascendas, which is a global office development and investment firm
and has been present in India for over a decade, partnering multiple
developments across Hyderabad, Bangalore, Pune and NCR-Delhi.
Other firms such as Tishman Speyer and Hines are leveraging on
their development experience to create superior quality office projects.
It will be amiss to not mention Blackstone, which through strategic
acquisitions is today the second biggest developer in India, both in terms
of developed and under-construction stock.
This brings us to the point that selecting the right development partner
is also to be seen in the perspective of how attractive the developer is
to private equity and global players. It is an indicator of the confidence
when a developer is able to attract investments or potential investor
interest in his commercial office projects.
The year 2008, which attracted the highest private equity investment
from global players in commercial office development, was followed
by a significant fall as interest waned in this asset class with focus
shifting to the faster liquidating and return generating residential sector.
Recently, there has been a renewed interest in the office sector, with
funds focusing on income generating assets which matches with their
investment philosophy.
The chart below shows the global private equity investment in
commercial office asset class from 2007-2013.
The sector has seen upheavals in investment volumes, but the activity is
reflective of the cautious play of equity participants as they look to invest
in rent-yielding assets, or those, which are part complete and have seen
good occupancy levels. For occupiers, as such, the developer’s track
record and capability can be gauged by the extent of private equity
participation in its commercial assets or at an entity level.
Having mentioned Blackstone, which currently holds 28 million
sq ft of office space in collaboration with its Indian partners, who
are incidentally, well-known Indian developers, there are other
players such as IDFC (domestically raised private equity fund),
IL&FS, Milestone Advisors, ICICI Ventures among others who have
invested in built-up office projects. A key feature of their investment
philosophy has been buying distressed and under-performing assets
or from developers who are struggling with cash flows. Most of such
asset acquisitions are largely IT Parks or well-known commercial
developments in the large Indian cities, which are preferred by
global occupiers. A major incentive of such equity participation is that
occupiers can derive immense confidence from such private equityowned assets in terms of commercial negotiations, asset quality and
long-term asset management practices.
JLL’s Transparency Index puts added weightage to regulatory
and legal reforms while putting emphasis on availability of data on
commercial real estate debt. Data on the amount of outstanding real
estate debt by market, and knowledge about whether local regulators
can prevent the overextension of credit in the future, helps investors
and corporate occupiers better assess risks in markets where they
operate. This allows for increase in inward capital flows and hence
India’s Tier1 and Tier 2 cities at the 47th and 48th position as per
the 2012 Index give cause for positive movement going forward.
The participation of private equity players in commercial office
assets is also likely to bring greater transparency in Green Building
benchmarking and energy efficiency, which are critical aspects
for occupiers as property sustainability characteristics play an
increasingly important role in the leasing and investment decisions.
What happened to third tier cities’ growth?
The real estate growth story of the third tier cities hit a roadblock
since the 2008-09 real estate market slowdown in India. The year
2008 saw all the top Indian cities record their rental and capital value
peaks. In such a scenario, occupiers were also looking at analysing
if the next tier of cities can provide them access to less expensive
real estate with the added benefit of cost savings and lower cost of
employees in line with these cities’ lower cost of living index, without
compromising on the employee skill levels.
Figure 14: Foreign PE Investment (USD mn)
The slowdown forced the occupiers to rationalise their headcount and
business growth projections, with the planned expansion into the next
tier being curtailed or put on hold. Besides, the correction seen in the
overall rents during 2008-2010 allowed occupiers to achieve nearly
same occupancy costs in the Tier 1 cities. The cost arbitrage was
rendered negligible.
Over the past two years, though rents have rebounded, they are still
trading at a discount to their peak values. Also, newer office corridors
have sprung up in the bigger cities, offering competitive rents and the
comfort of the presence of established office developers and access
to the same skilled workforce.
Source: JLL
The Tier 3 cities, while having lost a significant portion of their cost arbitrage, also tend to be riskier in terms of the flight of human capital which
tends to gravitate towards the larger Indian metros for better employment opportunities. For occupiers, while real estate quality remains essential,
quality and employability of available talent pool assumes much more significance for business continuation. The available talent pool is not only
limited in the tier 3 cities, but with its inherent risk of moving to bigger cities, can further reduce this restricted pool.
In such a scenario, occupier growth has remained restricted in Tier 3 cities. However, some cities such as Jaipur and Chandigarh (North India),
Ahmedabad (West India), Kochi and Coimbatore (South India) have seen occupiers setting up base. Global occupiers here include Genpact,
Deutsche Bank, Nagarro Software, Affiliated Computer Services, Cognizant and Convensys among others. There are largely IT/ITeS firms which
have located their low-cost operations in these cities.
It remains, however, relevant that the existing potential in the Tier 1 cities provides enough incentives in terms of quality.
Is it the right time to enter India?
Office assets available below replacement cost
Indian real estate had seen a strong northward movement
in the period before the GFC. However, just after the GFC,
prices crashed. While residential property prices witnessed
a sharp bounce back and crossed the earlier peak attained
in 3Q08 across the top seven cities in the country, office
markets are yet to regain their peak (Figure 15). Bangalore,
currently the best office market in the country, has regained
99% of the previous peak, while the peak in Mumbai and the
National Capital Region (NCR) is still very distant.
With an average rent of under INR 45 per sq ft (capital value
of INR 4,900), five out of the top seven cities offer leaseearning office properties below replacement cost (Figure
16). For an investor, this provides an excellent investment
opportunity, as these properties have reduced all the key
risks – land acquisition risk, approval risk, construction risk
and marketing risk – and are already lease-earning
Figure 15: Distance from previous peak
Source:JLL REIS
Figure 16: Cost comparison – Just launched vs. lease earning
properties
Completion
after at least
3 years
Lease
earning
commercial
property
Challenges for new land acquisition in India
Requirement of in depth scrutiny of documents
Unreasonable demand from land owners
No insurance available on land acquisition
High dependency on agents
Multiple approvals (X) multiple agencies
Source: JLL
Foreign exchange – a double-edged sword
Between August 2011 and August 2013, the Indian rupee depreciated by a massive 47% against the US dollar, thereby wiping out the majority of
gains arising from attractive entry valuations. However, the Indian rupee has since strengthened and regained some of its losses, but the future
remains very uncertain; and while the weak Indian rupee adds to the attractiveness of investment options in India, there is the possibility of a
further slide continuing to work against it. This situation will remain until a government that can attract foreign money does not occupy the centre
stage.
REITs – another positive in the waiting
The Congress Government has shown keen interest in setting up REITs in India and the Securities Exchange Board of India released draft
guidelines for the proposed REIT structure in India. While the timing of the start of operations is uncertain, the occurrence will provide a muchneeded funding option for developers and an exit option for investors, resulting in a reduction in cap rates and an improvement in valuations.
USA
SINGAPORE
UK
INDIA
System
REIT
S-REIT
UK-REIT
-
Date Established
1960
1999
2007
In Draft stage (Oct 2013)
Listed/Unlisted
Both
Both
Only Listed
Only Listed
Closed-end or Open-end
Closed
Closed
Closed
Closed
Fund Vehicle
Corporation, Trust
Corporation, Trust
Corporation
Corporation
Investment in Real Estate
At least 75%
At least 70%
At least 75%
At least 90%
Minimum Number of
Stockholders
100
None
100
Public float* for the REIT units
shall be minimum 25%
at all times
REIT Income
Not less than 75% from
rents or mortgage interest
Not more than 10% of its
revenue from sources other
than rents or mortgage interest
At least 75% of gross
income from rents or
mortgage interest
At least 75% of gross income
from rents or mortgage interest
Distribution of REIT income
At least 90%
At least 90%
At least 90%
At least 90%
Conduit Structure
Pass through
Pass through
Tax Exempt
Not yet finalised
Source: JLL
Make or Break
condition
Facility Management
The business organisations globally have been looking to achieve
a mix of growth and productivity. Towards this end, they are looking
at rationalising their business in mature markets while expanding
strategically in the emerging markets. This is giving rise to a new
and more evolved generation of multinational companies which are
transcending their national geographies.
Transparency in the emerging real estate markets is an indicator of the
inherent strengths and concerns which are bound to concern occupiers.
Those occupiers which are looking to primarily self-own their office
premises are likely to look more closely at the sale transaction practices,
high-quality, reliable presale information assembled by the seller and
fairness of the bidding and negotiating process. However, issues
concerning facility management practices, service charges they pay and
professional standards of agents also remain paramount. As part of JLL’s
Transparency Index spanning 97 office markets, the Indian Tier 1 cities
are categorised in the semi-transparent stage with a ranking of 47.
Post the global financial crisis (GFC), the elevation of Corporate Real
Estate decision making is needed to keep pace with broader demands of
business and that has brought about a change in the mandate, structure
and positioning of CRE. While the CRE decision making is becoming
more centralised, client buying preferences have evolved with the
conversation of facilities management outsourcing shifting towards
creating efficient value creation. With the complex demands being
made on in-house CRE causing an increased shift towards CRE
outsourcing, there is a focus towards seeking strategic relationships
and delivering best practices.
As per JLL’s Global Corporate Real Estate Trends 2013, the top five
challenges are:
1.Expectations and pressures build, heightening the risk of
underperformance
2.Increased demand is leading to faster-paced evolution of CRE
outsourcing
3.Workplace transformation is the key to unlocking worker
productivity and optimising portfolios
4.CRE must become a collaborative change agent
5.Failure to deliver in emerging markets will become one of CRE’s
greatest reputational risks
As an aside, 38% of the respondents in the above study anticipated a
net portfolio growth in the next three years in India.
In the above given scenario, integrated facilities management assumes critical importance for corporates looking to enter India or increase
their geographical footprint here. While, choosing the suitable real estate remains essential, the next step of managing the upkeep and daily
operational needs of a facility remain equally vital. The timeline below tracks the evolution of the facility management function in India.
Global corporates have evolved their facility management functions in India. This is in line with an increased efficiency and adapting global
industry standards in terms of engineering services, energy and sustainability. As occupiers demand implementation of global standards, the
standardisation of industry service by the providers has led to more occupiers gravitating towards the industry leaders in this space. This has also
led to consolidation of business among the various players in this field.
The table below shows how major occupiers are moving towards a more integrated and strategic partnership with their facility management
providers. This is an indicator of improved industry practices fostering occupier confidence to outsource their facility management function more
and more, going forward.
Verticalised - pan India
Strategic Alliance Partnership
RBS
HSBC
ACCENTURE
ERICSSON
MICROSOFT IBM
BACS
DEUTSCHE BANK
WIPRO
CAPGEMINI
AMAZON
DELOITTE
5 fragmented ones
are moving towards
regionalising
COGNIZANT
CSC
TCS
INFOSYS
HCL
Fragmented out tasking
9 have consolidated pan
India providers for IFM
Regionalised
Hospitality industry well
placed
Base is set
There are two key factors that any business needs to focus on, to grow:
demand for the product or services, and structural and policy level clarity. While the hospitality industry, along with other businesses in India,
is currently facing the effects of an economic slowdown, from the policy
angle, it does enjoy certain benefits. Unlike other real estate classes,
the hospitality industry enjoys industry status, which provides it access
to easy and cheaper funding. Further, it is permitted to bring in funding
via the 100% FDI under automatic route. Incentive FSI is another benefit
that the industry enjoys, where the Floor Space Index (FSI) increases in
line with the class of property (a luxury hotel enjoys higher FSI compared to a budget hotel). Furthermore, the government recently granted
infrastructure status to hotel projects valued at more than INR 200 crore
and convention centres valued at more than INR 300 crore, allowing
these projects to have access to funding at lower interest rates and
longer tenures.
COMPANY
The smooth entry process and the high level of clarity on policies
have attracted various international hotel chains to enter India.
While domestic players such as Taj, Oberoi, ITC, EIH, Leela,
Sarovar and Lemon Tree have laid a strong base over the years,
the entry of leading international operators such as Marriot, Hyatt,
Accor, Starwood, the Intercontinental Hotel Group and Carlson
has added depth to the industry.
Shift and expansion – drivers for growth
A quick look at the Indian hospitality industry reveals that existing
operators have started offering their services across segments,
with the introduction of other brands under the same group. As
the hospitality market matures, we are seeing the entry of more
midscale and budget brands into India, and this has opened up
the industry and increased options across the categories. Some
of the newer brands who have just entered, or are looking to enter
into the Indian Hospitality market, are Rotana Hotels, Menninger
Hotels, Hotusa Hotels, Caesars Hospitality, MGM Hospitality,
Centara Hotels & Resorts, Movenpick Hotels, Tune Hotels, Six
Senses and Trump Hotels.
BRANDS
COUNTRY
CATEGORY
DOMESTIC
Indian Hotels Company
Taj Luxury, Taj Vivanta, Gateway, Ginger
India
Luxury, Upper Upscale, Midscale,
Economy
East India Hotels
Oberoi, Trident
India
Luxury, Upper Upscale
ITC Hotels
ITC Luxury Collection, My Fortune, Fortune, WelcomHeritage
India
Luxury, Upscale, Midscale
Hotel Leela Venture
Leela, Essence by The Leela
India
Luxury, Upscale
Sarovar Hotels
Sarovar Premier, Sarovar Portico, Hometel
India
Upscale, Midscale, Economy
Lemon Tree Hotels
Lemon Tree Premier, Lemon Tree, Red Fox
India
Upscale, Midscale, Economy
INTERNATIONAL
Hyatt
Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, Hyatt Place, Hyatt House
USA
Luxury, Upper Upscale, Midscale
Intercontinental Hotels
& Resorts
InterContinental, Crowne Plaza, Holiday Inn, Holiday Inn Express
United
Kingdom
Economy
Carlson Rezidor Hotel
Group
Radisson Blu, Radisson, Park Plaza, Park Inn, Country Inns & Suites
USA/
Belgium
Starwood Hotels
Luxury Collection, St. Regis, Méridien, W, Westin, Sheraton,Four points,
Aloft
USA
Marriott Hotels &
Resorts
Ritz Carlton, JW Marriott, Marriott, Courtyard by Marriott, Fairfield by
Marriott
USA
Accor
Sofitel, Pullman, Novotel, Mercure, Ibis
France
Economy
Hilton
Conrad, Hilton, Double Tree by Hilton, Hilton Garden Inn, Hampton Inn
USA
Four Seasons
Four Seasons
Canada
Luxury
Whitbread PLC
Premier Inn
United
Kingdom
Midscale/Economy
Fairmont Raffles Hotels
International
Raffles, Fairmont, Swissotel
Canada
Luxury, Upscale
Another shift, that has been witnessed, is the entry of hotel operators
into Tier II and Tier III cities, including industrial towns and religious
and tourist destinations. Hotel operators, including Marriot, Hyatt and
Carlson, have taken their brands to cities such as Bhopal, Kochi, Katra
and Hampi, which were not on the radar a decade ago. Currently, we
expect 68,000 hotel rooms to become operational over the next few
years, of which at least 35% will be in Tier II and Tier III cities. During the
past decade, the organised hotel industry has extended to various new
markets, increasing the reach to the target audience.
HOTELIER
BRANDS
TIER II & III CITIES
Carlson
Radisson, Park Plaza,
Country Inns & Suites
Mysore, Katra
(Vaishno Devi)
Marriott
Courtyard & Fairfield
Ahmedabad, Bhopal, Kochi
Hyatt
Hyatt Place
Hampi
Starwood Hotels
Four Points by Sheraton,
Aloft
Jaipur, Pune,
Vishakapatnam, Chandigarh
Lemon Tree
Lemon Tree
Aurangabad, Ahmedabad,
Indore, Chandigarh, Pune
Sarovar Hotels
Sarovar, Hometel
Gangtok, Baddi, Lucknow,
Manali, Nashik, Shirdi
Figure 17: Growth of Foreign Travellers in India
Domestic demand continues to grow; the revival of international
demand will take time
The weak economic scenario has affected various businesses across the
globe; while some countries have joined the revival path, others will take
time to join. This has affected growth in the number of foreign travellers
visiting India, currently at a marginal 4%, a considerable drop from the
27% growth witnessed in 2004. We believe it will take time to grow back
to a steady 12-14% range. However, the number of domestic travellers
has grown at a healthy pace of 14% (average between 2004 and 2012).
Coupled with hotel operators widening the offering and geographies, this
will have a positive effect over the longer term.
The Indian real estate sector is witnessing a new trend with the
introduction of branded residences managed by luxury hospitality
players, primarily as a part of larger mixed-use developments or
residential townships. Prominent luxury hospitality brands, including Four
Seasons, Trump, Hyatt, Starwood, Marriott and Leela, have entered
this space by joining hands with reputed real estate players to lend
their brand to high-end luxury residential developments. By combining
the branding and service of a luxury hotel chain with a high quality
residential product, developers aim to provide a differentiator for potential
customers and command a premium over non-branded developments.
Figure 18: Growth of Domestic travellers in India
Industrial and Warehousing
Industrial – One of the key sectors for Indian economy
The Industrial sector in India is critical for two reasons. One, it generates 17% of the output in India while employing 20% of its labour force.
Secondly, it is the only sector that has the potential to upgrade livelihood of people at the bottom-end of the income pyramid. That’s because the
sector has the capability to absorb large amount of unskilled labour in India, who currently throng the agriculture sector for employment. With
increased focus of the Indian government in pushing manufacturing share to higher levels, we can expect this sector to gain share in GDP as well
as employment in the medium-to-long term.
Figure 19: Composition of GDP
Figure 20: Composition of labor force
17%
20%
31%
Industry
Agriculture
17%
Services
66%
49%
Source: CIA, JLL
OUR INDUSTRIAL
TRANSACTIONS FOOT PRINT
LUDHIANA
UTTARANCHAL
NOIDA
GHAZIABAD
DELHI
GURGAON
GUWAHATI
JAIPUR
PATNA
RANCHI
BHUBANESHWAR
PUNE
VIZAG
GOA
MYSORE
COCHIN
COIMBATORE
The manufacturing sector is the most critical component within the Industrial sector. Going by the official Index of Industrial Production (IIP) data,
the segment has a 75% weight in the overall industry sector. Over the years, the manufacturing space has matured and various industries have
set up their base in different regions.
Manufacturing industry has been a major contributor to export revenue, indicating importance of the sector in bringing in foreign money. While
the current challenging economic situation has affected the manufacturing industry and as a result of it, the contribution to overall exports has
come down from 76% in 2001 to 61% in 2012, it still is a major contribution. Once the economy turns around, the share is expected to stabilise at
higher levels.
Figure 21: Manufacturing Growth Rate
Source: Ministry of Statistics and Programme Implementation
Figure 22: Contribution to Exports
Stable contribution in
challenging environment
Source: Director General of Commercial
Intelligence and Statistics
New look warehousing sector – from unorganised to
organised
Figure 24: Healthy demand supply in warehousing space
A decade ago, warehousing sector was fairly unorganised which to
a certain extent affected foreign manufacturing companies in India.
However, during the last decade, with the FDI opening-up in real
estate, focus has shifted towards warehousing sector as well.
Supply is increasing gradually with adequate level of absorption.
Barring past two years, the occupancy has always remained
healthy at 80%+ levels. Due to high occupancy and improving
quality of warehouses, rentals too have witnessed a rise across top
7 cities in India.
Over the years, manufacturing industry in India has passed through
various phases of growth cycle - enjoyed high growth phase and
witnessed negative growth years as well. Going forward, the
sector is expected to enjoy more focus from the government. As
per per the Ministry of Commerce and Industry, government aims
to grow its share in GDP to 25% by 2022 from 17% currently.
This is expected to create 100 million jobs by then. The sector
Source: JLL
Though occupancy percentage has reduced over
the years; with high supply growth, occupancy
has remained healthy
Grade A & Grade B for top seven cities in India
is ably supported by warehousing with adequate supply and high occupancy. While the manufacturing and warehousing are still far from being
called matured, one can unquestionably say that the base is set for foreign manufacturing companies to enter India and start operations without
worrying about acquiring and developing warehousing space for their business.
Warehousing Rent Range (INR / sq ft / month)
MUMBAI
PUNE
BANGALORE
HYDERABAD
CHENNAI
DELHI NCR
AHMEDABAD
2007
10-18
6-12
9-11
9-11
10-12
18-16
9-11
2008
10-20
8-14
10-12
10-12
12-14
18-17
10-12
2009
10-22
10-16
11-13
10-13
14-16
18-18
10-13
2010
10-24
11-19
12-16
10-14
16-18
18-19
10-14
2011
10-25
12-22
13-18
10-14
18-20
18-20
10-14
2012
11-27
13-24
13-22
10-16
20-22
18-21
10-16
2013
11-27
14-25
14-26
10-18
22-24
18-22
10-18
1.00 USD = 59.9 INR The rental range
varies depending
upon quality of
supply
Source: JLL
s
y
a
w
a
e
k
Key ta
ase of
llenging ph it
a
h
c
a
h
g
u
c
assing thro increasing trade defi
Though, p
,
P
e
s
D
n
G
e
m
w
lo
im
on,
offers
ia
d
In
high inflati
y,
c
ned curren
rm
and weake unities in the long te
rt
o
p
p
o
th
grow
Growth in TIER 3 cities remained limited post
GFC; largely due to limited talent availability and
reduced pricing benefit compared to TIER 1 & 2
Large population with changing lifestyle, easy
talent availability, low cost real estate, fast
transition of various industries (including real
estate) towards organised space and favourable Annual rental of less tha
n USD 129 per sq
mtr becomes one of
geographic location are the key attractions for
the key puller of foreig
n
corporates; compan
foreign corporates
ies headquartered in
USA
occupy almost half of
the office supply in Ind
ia;
Europe based corpor
ates occupy 14%
Delhi, Mumbai an
d Bangalore have
been the
most attractive de
stinations, accoun
ting for
over 60% share
IT & ITES continue to demand more than 1/3rd of
of occupier activ
ity across all
industries over th
e past year
office supply; followed by manufacturing and BFSI
space
et
Post GFC, despite recovery in office mark
of
s
ation
reloc
and
tion
olida
cons
absorption,
on office
offices to lower-cost offices put pressure
rentals; opportunity still exists
and current
th prospects om
w
ro
g
rm
te
India’s long
ot hidden fr
rption
points are n
y
tr
n
e
e
tiv
uarter’s abso
a
q
st
lucr
1
f
o
n
d
contributio
bps compare
corporates;
approx. 300
y
b
d
se
a
e
in 2014 incr
year
to previous
Various lease earning Grade A properties
available below replacement cost; mitigating all
development and marketing related risks; Are you
still waiting for better time to occupy?
rkets are
, office ma
C
F
;
G
e
th
after
eak values
Five years a discount to their p e to their
at
ched clos
still trading
hennai rea eavily discounted
C
d
n
a
re
Bangalo
are still h
eak, others
previous p
Improvement in physical and social infrastructure
helped in creating new office corridors along with
enhancing the attractiveness of some existing
ones
Choosing corr
ect developm
ent partner is
the most impo
one of
rtant factor fo
r foreign corp
healthy balanc
or
ates;
e sheet, proven
track record an
confidence of
investors (esp
d
ecia
equity) are ke
y aspects to be lly global private
considered
ical presence;
ing their geograph
Hoteliers expand
tel rooms are
coming 68,000 ho
at least 35% of up
s
in TIER 2 & 3 citie
Warehousing sector becoming more organised;
rentals are considerably cheaper across top 7
cities in the country
Authors
Akshit Shah
Manager - Capital Markets Research
JLL, India
[email protected]
For subscription details and research enquiries contact
Ashutosh Limaye
Head - Research & REIS
JLL, India
+91 22 66581011
[email protected]
Rohan Sharma
Senior Manager - Research
JLL, India
[email protected]
About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by
owning, occupying and investing in real estate. With annual fee revenue of $4 billion, JLL has more than 200 corporate offices and operates in 75 countries
worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and
completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $48.0
billion of real estate assets under management.
JLL has over 50 years of experience in Asia Pacific, with over 27,500 employees operating in 80 offices in 15 countries across the region.
The firm was named ‘Best Property Consultancy’ in three Asia Pacific countries at the International Property Awards Asia Pacific 2013, and
won nine Asia Pacific Awards in the Euromoney Real Estate Awards 2013.
For further information, please visit our website, www.jll.com.
About JLL India
JLL is India’s premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across 11 cities (Ahmedabad, Delhi,
Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 6800, the firm provides investors,
developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project
and development services, integrated facility management, property and asset management, sustainability, industrial, capital markets, residential, hotels, health
care, senior living, education and retail advisory. The firm was named the Best Property Consultancy in India (5 Star Winner) at the International Property Awards
- Asia Pacific for 2012-13. For further information, please visit www.joneslanglasalle.co.in
JLL India Offices
Ahmedabad
+91 79 40150000
Chennai
tel +91 44 42993000
Gurgaon
tel +91 124 4605000
Kolkata
tel +91 33 22273294
Bangalore
tel +91 80 41182900
Coimbatore
tel +91 422 2544433
Hyderabad
tel +91 40 40409100
Mumbai
tel +91 22 66207575
Chandigarh
tel +91 172 3047651
Delhi
tel +91 11 33141000
Kochi
tel +91 484 3018652
Pune
tel +91 20 40196100
Anuj Puri
Chairman & Country Head
JLL, India
tel +91 22 3985 1410
[email protected]
Nitish Bhasin
Managing Director – Office Brokerage
JLL, India
tel +91 124 4605000
[email protected]

Destination India - A Real Estate Journey for Corporate

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