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Indian States to notify 12% of urban land for commercial use
| January 3, 2007 |   (2 votes, average: 4 out of 5) Loading ... |
The urban development ministry has circulated a notice for all the states according to which they will have to notify at least 10-12% of the land for commercial development like shopping arcades, multiplexes, and other retail spaces. Again, the retail sector is believed to drive the demand for commercial real estate markets within urban centres.
All states are asked to contribute in bringing improvements to city management by undertaking the development of commercial spaces. This is a strategic move focusing at motivating the growth of organized retail especially in Tier I and Tier II cities, says a ministry official. He further adds that the move can also be looked upon as a result of rigorous lobbying by concerned stakeholders, chiefly the upcoming retail chain such as reliance, Bharti-Wal Mart, ands the Aditya Birla Group.
These groups are all set to carve a substantial niche in the retail sector. Recently, Sunil Mittal has announced to make an investment of over $8 billion in retail sector. This underlines the growing interest of potential investors in retailing. However, lack of quality standards have been the biggest barriers to real estate development in India.
According to the property surveys, India will require more than 250 million square feet of retail space by 2010. Moreover, International retail chains are also showing large interest in spreading out their wings to India. Tesco and Carrefour are two of among such giant conglomerates. However, the existing brands like Pantaloon, Shoppers’ Stop and Piramyd are looking forward to embark on an aggressive expansion drive. This will put the total demand to around 400 million square feet. Interestingly, more driving innovation and upgradations are likely to come into the sector. Related policies and regulation acts are in the pipeline.
News Published Under: Real Estate India |
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