The Indian retail real estate escalation
The Indian retail real estate in India is one of the domains which is on a fast pace. Due to innumerable opportunities in the retail industry, the investment circles designate that India will be the 5th largest consumer economy by 2025. This huge impact will be due to the retail industry production and also it will generate about 3 million jobs by 2010.
This major fast paced development of the Indian retail real estate will eventually to alter the Indian physical landscape beyond recognition as compared earlier.
There are various Indian developers who have increasingly initiated themselves to have an easy access to the international public markets like the AIM in London and others. Also the Indian real estate developers have organised several partnering options which will allow them to have a knowledge and access about the foreign technical and production of money in India. There are various private equity funds which have increased capital in the international markets through small and large realty and infrastructure funds. Also there is a major flow of domestic and foreign money through the Indian residential and commercial real estate sector owning to the development of the retail realty market.
Various factors like the approaching of international architects, surveyors and engineering firms who find an opportunity in India for residential, commercial and industrial infrastructure is responsible for the development of the retail realty sector as well. There are also various projects which are renewed and built like that of the Special Economic Zones (SEZ) and Technology Parks for IT and Biotechnology. However, if the Indian airports are modernised and upgraded, they will release a square footage in millions and create a space for retail, commercial usage and hospitality. Also various factors like the inflow of property companies, foreign money, global retailers and brand owners have doubled the growth of the retail real estate in India.
The concept of retail real estate:
The retail real estate industry is a market which focuses on the development of the retail assets ranging from the land assets to the ends of managing the property for commercial purpose. There is an increase in the emergence of a number of malls in India due to which the shopping lifestyle of people has changed. Apart from just the tier I cities the malls have crawled up to the tier II and tier III cities.
Retail markets in India:
In the past decade, South India’s retail section has witnessed a drastic change with an increase of 13.2 2 million sq ft in the year 2012 from 1.6 million sq ft. Also the share of South India’s retail stock to the pan-India will increase from 20% to 30% in the upcoming years. The increased demand for these areas is due to various reasons like the growth of malls, retail spaces, high streets and so on.
The mall spaces in Southern India will increase up to 40 million s1q ft in the coming years. The increased growth of the retail spaces in southern India will perhaps result in a decline in the vacancy of about 20.5%. The residential markets in south India are assumed to be affordable and have increased their growth by 80%, which are priced under Rs.4,000 per sqft. This has given increased chances of the Southern cities remaining string in the real estate sector when compared to cities like Mumbai and Delhi. Having a stable and sturdy real estate market will allow the real estate agents to price their properties in a prudent manner in order to compete and sustain their top position.
The real estate in the southern Indian regions is shifting from Tier I to Tier II cities followed by the developments in the regions like Mysore, Cochin and so on.
Impact of malls in the real estate sector in India:
The growth of malls in southern India has increased to about 59 which comprises of the retail stock. The retail stock share will increase to 36 per cent in the coming years. Results found out through a survey state that the retail market is expected to grow in the coming years. There is an increased development of retail malls which are primarily dominated by the local developers. All the 59 malls in the southern states are either in the stages of construction or are already established. Few of the active project developers in the Southern region are the Mantri Developers, The Prestige Group, DLF, RMZ Corp and so on.
The cause for the development of the Indian retail real estate:
- Upsurge of malls in Tier I, II and III cities.
- Changing lifestyle of people wherein they prefer shopping at a mall rather than a market.
- Retail industry provides employment to a large number of people with an array of job opportunities. Anyone with great potential, right attitude and good English can seek a job in any of the retail industries.
- Various forms of trainings are provided to the employees to make their job convenient.
- Retail real estate sector provides great remuneration to the employees.
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