Retail Real Estate In India & Abroad-present And Future

By Author: Aaliya kapoor
Total Articles: 1
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According to survey done by 333 Acre the retail industry has been expending rapidly. This is the largest contributors to the growth in the service sector in the economy of India and other countries. Leading brands and developers have also pursued their expansion plans aggressively. A report by 333acre.com has revealed that the country's organized retail is estimated at USD 30 billion with around 7.5 per cent penetration. Organized retail has been expanding its footprint across the country with more than 250 operational entertainment and commercial malls across the leading metropolitan cities of the country.
Premium Indian and international brands in Mumbai, Pune, Bangalore and Chennai, continue to focus on the more affluent southern parts of the city, but the lack of suitable space remained a major challenge to growth. New supply is steadily coming on stream in the Delhi, Mumbai, Pune, Banglore and Chennai and will provide opportunities for retailers and developers to operate in an organized retail environment.
Now these days are the current retail trends which are used by retailers and developers.
1. Integrated ...
... Mixed: Use Developments: Developers and Builders have hedged their risks by developing retail as a part of integrated mixed-use developments.
2. Key growth Sector: International F & B outlets continue to expand, both at the fast food and fine dining end of the market. Luxury retailers focused on steady expansion in Tier I locations and continue to refine their strategy and product offering to the Indian market. Domestic retailers across all segments are expanding steadily in Tier I locations.
3. Foreign Investment in Retail: The government recently approved a proposal for 100% FDI in one brand retail. That’s why most players now prefer the joint venture route and have been pursuing the silent partner route due to prevailing FDI rules and regulations.
4. Online Shipping/e-shopping: Now these days’ online retailers providing a new and comprehensive shopping experience to consumers and investors. Factors like attractive discounts, product offers, new schemes, and free home delivery are contributing to the growth of this segment.
5. Revenue Sharing Model: This is because of slowdown in economy. A part of rent is paid as a share of the revenues earn during the month. These types of leasing give the chance to hedge risks during a downfall in the market.
6. Outlook: Despite an anticipated increment in demand, a downside remains in the form of huge retail mall supply pipeline in most leading countries and cities.
Thus a vast array of developments in infrastructure and others in the retail sector will be witnessed in India and other countries.