FDI in retail will boost real estate Capital Value & Rentals

FDI in retail will boost real estate Capital Value & Rentals

Investments in retail properties used to be a little risky business until now, but things will take turn.

It seems the 51% FDI in Retail is going to create more no. of Malls & Warehouse spaces.

How FDI in retail can boost realty:

The retail segment has mostly been a downturn for real estate investors except for a few thoughtful projects.

Foreign players entering the retail market could looking at signing long term lease agreements with enhanced rentals benefiting the Mall developers & owners.

Micromarkets like Sarjapur road, Hosur road, Hebbal, Jakkur, etc. could benefit from Grade-A Shopping facilities which is currently scarce & further help the residential properties to appreciate their capital values & rentals.

The minimum requirement of foreign players like Walmart, Tesco, Carrefour, etc. could starts from 60,000 sq ft. & go upto 2,00,000 sq ft.
The Retail space owners should now come out with flexible spaces & make most out of this retail boom.

See what the market leaders have to say about FDI in retail:

Lalit Jain-President-CREDAI, 

"It is a very good step. We welcome this. This will open a new chapter in the Indian economy". 

Jain also said FDI in multi-brand retail would enhance the business of companies developing malls. "FDI in multi-brand retail would create employment opportunities, which would create housing demand". 

Irfan Razack-Chairman-Prestige Estates & projects:

“Retail is a cash cow, if you know what you are doing and how to sell,” Razack said at the sidelines of an event in Chennai , without disclosing more details. “We will (allocate) maybe 60,000 sq. ft in our malls (in Bangalore) and then take it to other cities where we do not have properties.” 

Razack welcomed the government’s decision to open up FDI in the retail sector. 

Pre-launch 

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