Real Estate in India
India is no longer what it used to be around 10 years back. It has now gone to a great extent of globalization which has led to the development of the country as a great hub for shopping. People now in India have an increased shopping capacity and the increasing number of malls in India has empowered the shoppers to a great extent.
The real estate sector in India has witnessed a revolution, driven by the booming economy, favourable demographics and liberalization of FDI. The real estate sector of India is growing at 35 per cent and is estimated to be worth US$ 15 billion and anticipated to grow at the rate of 30 per cent annually over the next decade, attracting the foreign investment worth $ 30 billion.
Indias retail industry is undergoing a dramatic transformation as the masses are scampering to shopping malls and foreign investors are poised to move in ever ready to sweep them in to the retail boom. Retail, has proved to be one of India's largest industries, and has presently emerged as one of the most dynamic and fast paced industries with multitude of players entering the market. Accounting for over 10 per cent of the countrys GDP and around 8 per cent of the employment, retailing in India is gradually inching its way towards becoming the next boom industry.
Indias vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter new markets Indias middle-classes, widely traveled and with deep pockets, are flocking to malls India’s organised retail industry .is poised to grow by 97 per cent per year in the next five years to a staggering $ 24 billion In next two years, there will be 360 malls across the country And it has only just begun. Developers and promoters of malls believe the face of the industry is about to dramatically change.
Indias retail industry is reflected in its sprawling shopping centres, multiplex-malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behaviour, ushering in a revolution in shopping in India.
27 million square feet of organized retail space is currently available. Another 90 million square feet is expected to be added by 2008 from 263 mall projects. Of these, 18 million square feet is slated to come lup in Delhi as well as in Mumbai, 9.5 million square3 feet in Ludhiana, 6 million square feet in Chandigarh, and 3.6 million square feet in Ahmedabad. Big cities or small towns to the obscure villages, retail shopping development is coming to all parts and comes to India.
Growth in commercial office space requirement is led by the burgeoning outsourcing and information technology industry and organised retail. For example, IT & ITES alone is estimated to require 150 million sq ft across urban India by 2010. Similarly, the organised retail industry is likely to require in additional 220 million sq ft by 2010.
It is expected by the year-end, there will be around 96 shopping malls in Delhi-NCR with 23.5 million sq ft leasable area, Mumbai 55 malls with 16.2 million sqft leasable area, Bangalore 14 malls with 8 million sq ft, Chennai 6 malls with 2.5 million sq ft, Kolkata 10 malls with 3.2 million sq ft, Hyderabad 12 malls with 4.2 million sq ft, Pune 19 malls with 5.6 million sq ft and Ahmedabad 7 malls with 2.7 million sq ft leasable area would be available for the retailer.
Road Ahead
With the economy surging ahead, the demand for all segments of the real estate sector is likely to continue to grow. The Indian real estate industry is likely to grow from US$ 12 billion in 2005 to US$ 90 billion in by 2015.
Given the boom in residential housing, IT, ITeS, organised retail and hospitality industries, this industry is likely to see increased investment activity. Foreign direct investment alone might see a close to six-fold jump to US$ 30 billion over the next 10 years.
