India presents a huge opportunity to global retailers due to its huge and growing population, burgeoning middle class, increasing purchasing power and hundreds of other reasons. A lot of these retailers such as Walmart, Carrefour, Debenhams, Next, Tesco have been actively looking at the Indian market. However, one thing that scares the global retailers is the Indian real estate market.
In India, shopping malls are very expensive and rentals are very steep in most of the markets. Service charges are double that of common maintenance area and rentals are 50 per cent more than what is charged on the carpet area.
Lack of funds has made it very difficult for developers to complete their malls on time. Most of the malls are being delayed by over 6 months to 2 years. This derails the plans of the retailers.
Indian real estate needs to get friendly to tap these foreign retailers who can be a huge contributor to the growth and development of the country.
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India is beginning to make news worldwide. It’s just the right time to think India. There's a new sense of confidence in Indian business. This confidence arises from the growing success of Indian enterprise in the face of competition in an increasing number of sectors. The India growth story is going stronger than ever. Favourable demographic and psychographic changes relating to India’s consumer class, international exposure, availability of quality retail space, wider availability of products and brand communication are some of the factors that are driving the retail in India. Real estate consultancy Jones Lang Lasalle Meghraj has identified 50 Indian cities that are likely to witness most of the retail action over the next couple of years — both in terms of development of malls and advent of organised retailers. And Jaipur, Lucknow and Kochi find mention among cities poised for “high growth.For more view- realtydigest.blogspot.com
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