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- Govt policies playing determinant roles
Govt policies playing determinant roles
The liberalized Government policies and witful decisions have an important role to play in the growth of the retail and real estate markets in India. I'd like to share with you all an extract from a news published in the Financial Express.
On the regulatory front, the two biggest boosts for market growth will be allowing retail FDI (Walmart, Carrefour and the like) and allowing REITs to operate in India.
Other regulatory factors that can also potentially affect market growth include introduction of uniform property law and stamp duties, greater level of transparency in property ownership and transactions and revisions of archaic laws like Rent Control Act.
The government can also propel the real estate sector by ensuring focus on infrastructure development within identified locations.
And if this trend continues, its not long before the retail sector in India will be at par with the Indian real estate boom.
But is retailing in India all about mall space and spending big bucks?CommentQuote0Flag
- Modern retail in India growing at around 30%.
Yes. You are absolutely right. Retail and real estate go hand in hand. Retailing in India is definitely going to be the business to keep a watch on in the next few years.
If one looks at modern retail, it is growing at around 30%. There are 600 malls in various stages of construction, which probably will get operational by 2010-2011. The total new modern retail space probably will be much more than what it is today, so there is a chance that through the modern retail space brands and retailers will occupy 25-30% of modern total retail consumption in the country and I think they need a growth rate of around 50-60% growth on organized retail to get there.
Big names like Tata, Ambani, Birla, Adani and lately the joint venture between Bharti and Wal-Mart making their foray into retail speaks it all.CommentQuote0Flag