Indian retail space remains under-penetrated by global brands and is now emerging as an attractive destination for global retailers with further liberalisation of the FDI policy and creation of business friendly environment.
Indian cities including Mumbai, Bengaluru, Delhi, Chennai and Pune are among the top 10 cities with highest retail sales growth forecast between 2015 and 2019, according to a JLL India report.
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Currently, India has total 32 million sq ft of quality retail real estate supply, of which more than 87% is occupied. Between 2016 and 2019, the supply of grade A retail real estate is expected to grow by 35% and occupancy by 3-5% annually.
“The primary drivers for retail growth are in place – faster economic growth, rising affluence and consumerism, supportive government policies and enhanced flow of capital to the retail real estate sector.” said Anuj Puri, country head, JLL India.
In the JLL Global Cross Border Retailer Attractiveness Index 2016, Delhi ranked at 92 and Mumbai at 109, he highlighted.
In the recent years, the government has undertaken several steps including 100% FDI in single-brand retail with 30% local sourcing restriction in case of foreign ownership greater than 51%. Reforms such as these are expected to improve foreign retail brands presence in the country.
(Source: Economic Times)