After Realty, Retailing is Next to Set Another Milestone

March 7, 2007	(2 votes, average: 4.5 out of 5)  Loading ...
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It is the Indian retail industry next going to take the country’s service sector on new high, leading to a huge spurt in demand for quality real estate, especially for shopping malls, says a survey held out by ICICI Property Services and Technopak.

The survey further determines that the Indian retail industry is likely to mark the growth from the current USD 330 billion to over USD 500 by 2011. The growth will create a huge demand for at least 500 million square feet of real estate, with shopping malls accounting for half of the actual need.

Developers, however, have planned for only 143 million sq ft of space for the retail industry, leading to a projected shortage of 40 per cent. That said, the survey predicts that Indian real estate will move into the ‘next orbit’, with international developers and MNCs creating world-class and ever expanding shopping environs.

Indian Real estate developers plan for only 143 million sq ft of space for the retail industry thereby fulfilling the need shortage of 40 per cent. Indian real estate is likely to move into the growth orbit, with international developers and MNCs working to create an exclusive shopping environment.

The retail sector will see an inflow of USD 30 billion in very near future. Seventy per cent of the infusion will come from just prominent developers such as Reliance Industries, Aditya Birla Group, Bharti-Wal-Mart, and the Future Group. International companies such as Wal-Mart, Metro, Carrefour, Auchan, and TESCO will account for 40 per cent of the investment.

Hypermarkets and supermarkets top the chart when it comes to retail real estate development. Others attracting large interests include outlets selling apparels, consumer durables, and furniture and furnishings.

The survey has also highlighted some of the factors which may hamper the growth. It puts mall development in danger zone which is believed to be prone to poor development. It may result into poor utilization of space and low returns on investment.

Developers have also been asked to look at infrastructure dynamics such as public transport connectivity, electricity and water supply, and parking space.

News Published Under:   Real Estate India |

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