Retailers Signing Up With Small Developers to Manage Rents

June 8, 2007	(Be the first to rate this story!)  Loading ...
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Soaring rents and increasing demand for Indian real estate is encouraging retail majors to negotiate with small property developers for establishing shops.

These small developers are always in a lookout to associate themselves with reputed brands like Reliance Retail, AV Birla Retail, Bharti Retail among others.

Talking about Aditya Group, it acquires a land in the NCR and the Angel Group which has opened the Angel Mall in Ghaziabad, as an interim arrangement, to set up over great space for hypermarkets next to their emerging malls to be used by these retail giants till the time as the malls are fully operational.

Following in footsteps are other large scale developers including the prominent names such as DLF, Unitech, and the Rahejas together control 65% of the land banks in India, while the remaining is divided among the small developers.

Contrary to this, a number of regional developers and smaller retail chains like Cottons by Century, who have to position themselves at malls by large real estate developers. Such steps assure them visibility for future move.

Rents charged by the big property developers are 50% higher than those charged by small developers in the same location. This is the ‘difference between upcoming players and already established ones.

However, signing up a deal with recognized brands is an opportunity that promises to bring better results for small developers even it is not done at very attractive rentals.

News Published Under:   Real Estate India, Retail Market in India |

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