Property koncepts - Property News: REAL ESTATE SECTOR STILL HOPEFUL FROM FDI:

REAL ESTATE SECTOR STILL HOPEFUL FROM FDI:
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adminkoncepts on 12/12/2011 05:45:00
 
The vested politics has superseded economics. Demand for quality retail space
would continue to exist with the proliferation of domestic supermarket chains,
but “things will move at a slower pace.“Allowing foreign investment would
have opened new avenues for the Retail commercial space and lead to healthy
survivar war.
Realtors feel that from their perspective, allowing FDI in multi-brand retail
was not only about leasing space by corporate retailers, but about a
simultaneous boost to economic activity and demand for residential space around
these projects.
India is one of the best business address for multinational retailers but due to
the type political volatility it is a wrong presumption that multinational
retailers are desperate to come to India. India is a desirable market and
everybody is interested to have a presence but nobody is very desperate.
Raj Jain, president Wal-Mart India had earlier told that the company would study
the shopping trends in a city before scouting for space, which would have taken
a year. That is likely to be on hold, at least for now.Due to suspension of FDI
“Demand will continue to come but certainly at a slower pace,“ said Rohtas
Goel, chairman Omaxe.
And this slow demand, for instance, will come from single brand retailers such
as Swedish furniture major IKEA and domestic retail giant like Reliance Retail.
IKEA leases huge space of the tune of 30,000 to 50,000 sq ft. and Reliance
wholesale cash-and-carry trade are housed in single mega stores averaging
1,50,000 sq ft each.
But, can these fit into the shoes of multi-brand retailers such as the Wal-Marts
and the Carrefours? The question remains unanswered.