Due to growing consumer demand, quality retail real estate development and stable economic and political environment, the retail real estate sector is witnessing growing investments by private equity funds and institutional investors, according to a report by CBRE.

The report titled ‘India Retail 2.0 and the way forward’ also mentioned some of the key investors in the retail segment which include Blackstone, Canada Pension Plan Investment Board, GIC Private Limited and the Xander Group.

Over 14 million sq. ft has been acquired/committed by the four largest private equity investors across the country.

“With a population base of over 1 billion, the Indian market provides a wide customer base which is poised to be the third largest consumer market by 2025. This provides a significant rationale for developers to invest in shopping centres, thereby providing retailers with quality real estate to set shops in, which in turn can change the retail dynamics of India,” said Anshuman Magazine, Chairman, India & South East Asia, CBRE.

The report also highlighted the limited availability of space in operational well-performing malls coupled with an upward pressure on real estate costs in these centres, as a concern for brands looking to enter the Indian market.

Secondly, it also mentioned some key factors that global retailers should keep in mind when they enter India, since each market has its own distinct characteristics, which these global retailers need to adapt to.

“The retail industry is moving forward and growing in the right direction with many more retailers looking at India & actively scouting for partners and opportunities to enter the country. The size of the market has also attracted key investors, who have been aggressively investing, increasing the availability of quality retail real estate for retailers, which has been in short supply lately,” said Bimal Sharma, Head - Retail, India for CBRE South Asia Pvt. Ltd.

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