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For more information, contact:Siddhart GoelNational Head - ResearchTel: +91 22 6657 5555siddhart.goel@ap.cushwake.com

This report contains information available to the public and has been relied upon by Cushman & Wakefield onthe basis that it is accurate and complete. Cushman & Wake field accepts no responsibility if this should provenot to be the case. No warranty or representation, express or implied, is made to the accuracy orcompleteness of the information contained herein, and same is submitted subject to errors, omissions, changeof price, rental or other conditions, withdrawal without notice, and to an y special listing conditions imposed byour principals.2014 Cushman & Wakefield, Inc.All rights reserved.

Q1 2014MUMBAI, INDIA

RETAIL SNAPSHOTMARKETBEAT

A Cushman & Wakefield Research Publication

ECONOMYIndias GDP forecast for 2013-2014 has been

lowered to 4.9% from the earlier 5% due to

contraction in the manufacturing and mining

sectors. However, HSBCs Composite

Output Index for India stood at 50.3 in

February, indicating an expansion from 49.6 and 48.1 in January and

December respectively. The Indian Rupee remained largely range-

bound to INR61-63 against the US Dollar during this quarter,

although it did show some strengthening towards the end. The

Consumer Price Index (CPI) contracted to 8.10% in February 2014,

declining by 0.69 percentage point from January 2014. Though the

Reserve Bank of India (RBI) increased the repo rate by 25 basis

points to 8% this quarter, any further tightening in the near term is

unlikely in view of the declining inflation. Luxury watch brand

Jaeger-LeCoultre applied for a 100% FDI in single-brand retail. In

multi-brand retail, UK-based Tesco (a joint venture with Tata

groups retail arm Trent) got approvals from the Foreign

Investment Promotion Board (FIBP). Further, the RBI allowed

foreign retail investment in tax-free Rupee bonds to broaden the

investor base in the retail sector in the country.

MALL RENTALS APPRECIATE IN LOWER PAREL FORTWO QUARTERS IN A ROWRetailers demand for space remained stable in Mumbai during the

first quarter of 2014. Demand from the apparels segment was high

for a few prominent mall locations, especially in Lower Parel, which

resulted in a quarterly rental appreciation of 4%. Enquiry levels

from the apparels and food & beverage (F&B) segments for mall

space in the western suburbs remain high. Mall rentals in suburban

locations like Andheri, Malad, Goregaon, Ghatkopar, Thane and

Vashi remained stable given the steady demand levels. Mall rentals

at Mulund declined 4.6% during the quarter due to high vacancy

levels. Overall mall vacancy remained firm during the quarter and

was recorded at 15.3% in first quarter 2014.

MAIN STREET DEMAND DRIVEN BY F&B ANDAPPARELSThe demand for space was driven primarily by the F&B and

apparels retailers in main streets locations in Colaba, Andheri-west

and Borivali, but the rentals were static. Limited availability of

quality spaces remains a concern, especially in locations like Colaba,

Breach Candy and Borivali. A number of apparels and footwear

retailers are expanding operations in peripeheral western locations

like Vasai and Virar because of the growing population and

favorable demographics.

OUTLOOKQuality mall developments are expected to witness a steady

demand from retailers planning to expand in the city. Due to

constraints of quality space and high retailer preference for these

locations, select mall developments in Lower Parel, Malad and

Goregaon may witness rental appreciation. Demand for spaces in

main street locations like Linking Road, Borivali and Vashi is also

expected to increase in the coming quarter.

ECONOMIC INDICATORS

NATIONAL 2012 2013E 2014F

GDP Growth 5.0% 4.9% 6.1%

CPI Growth 10.2% 9.5% 7.8%

Private Final Expenditure Growth 5.0% -- -

Govt. Final Expenditure Growth 6.2% - -

Source: MOSPI & Roubini Global Economics

PRIME RETAIL RENTS MARCH 2014

MAIN STREETS INRSF/MTH

EUROSF/YR

US$SF/YR

Q-O-QCHANGE

Y-O-YCHANGE

Linking Road 750 107 148 0.0% 0.0%

Kemps Corner /Breach Candy

450 64 89 0.0% 2.3%

Colaba Causeway 700 100 138 0.0% 0.0%

Fort Fountain 375 54 74 0.0% 7.1%

LokhandwalaAndheri

350 50 69 0.0% 12.9%

Borivali LT Road 370 53 73 0.0% 0.0%

Chembur* 320 46 63 NA NA

Vashi 280 40 55 0.0% 16.7%

Thane 250 36 49 0.0% -3.8%

MALLS INRSF/MTH

EUROSF/YR

US$SF/YR

Q-O-QCHANGE

Y-O-YCHANGE

Lower Parel 600 86 118 4.4% 25.0%

Link Road(Andheri W)

400 57 79 0.0% 0.0%

Malad 460 66 91 0.0% 0.0%

Goregaon 300 43 59 0.0% 0.0%

Ghatkopar 330 47 65 0.0% 3.1%

Bhandup* 190 27 37 NA NA

Mulund 210 30 41 -4.6% -23.6%

Vashi 300 43 59 0.0% 17.7%

Thane 285 41 56 0.0% 1.8%

Kalyan* 60 9 12 NA NA

Note: Asking rents(INR/sf/month) on carpet area of ground floor Vanilla stores is quotedConversion Rate: US$1= INR 60.92 and Euro 1 = INR 84.04*Newly Added in 2014

SIGNIFICANT LEASING TRANSACTIONS

PROPERTY LOCATION TENANT SQUARE FEET

Magnet Mall Bhandup Central 35,000

Viva City Thane Zara 5,000