Rising demand for retail real estate, along with the lack of quality space in Mumbai, is likely to result in rental value growth. European and US brand especially from F&B, hypermarket, and mid-range fashion apparel segments seem most likely to enter the country or expand their retail footsteps in coming months. Domestic brands, meanwhile, continued to expand across tier II and III locations during Q3 2014.
As per a report shortage of high quality shopping centres continue the key barrier in India's real estate space especially in tier II locations. New Delhi and Mumbai remained the most preferred locations for the global and domestic brands in F&B retails whereas Tamil Nadu and Kerala attracted demand from fashion apparel and hypermarkets as well.
Hi Vinu, The Asian market leasing activity was operate by food and beverages retailers especially cafes and quick-service restaurant demand. The report expects large scale market brands to find highly populated markets for extension in 2015. The gross volume of retail transactions next year will most likely be strong in India and China, with India expected to see demand pickup in upcoming quarters.
According to the CBRE report for July-September, steady improving economic index and increasing thrust of global large scale market raise brands into the country. The overall retail renting activity in the Asia-Pacific region, however, remained amazed in the third quarter.