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Demand for retail spaces grows in India

Demand for retail spaces grows in India
Demand for retail spaces grows in India
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The rapid growth of India’s retail industry means there is great demand for real estate. Demand for retail spaces is likely to rise drastically and this will encourage companies to develop new malls and retail spaces as requirement ratio is significantly higher for multinational retailer. Indian government is all set to implement goods and services GST and finalizing list of 100 smart cities in country will also help to boost retail demand.

Present Retail Industry Scenario

With the influx of many new companies in infrastructure, real estate, manufacturing, e-commerce and IT, India has developed as the biggest investment market. Foreign direct investments FDI in multiple sectors have been the prime motivator of opportunity and prospects for domestic and foreign companies both. FDI in retail is going to generate better income, create jobs and catalyse large investment in upstream and downstream of the retail lifecycle. Even India’s retail real estate demand has improved in last quarter, as per report of commercial real estate services.

Future Prospects

Government has already rolled out GST and it is expected to enable companies to run operations under uniform tax code. E-commerce is probably creating the biggest revolution in the retail industry. Retailers have large opportunity to leverage e-commerce, which would enable them to take more space on less cost on real estate while reaching out to more customers in Tier-I and Tier-II cities.

Both organised and unorganised retail companies have to work together to ensure better prospects for the overall retail industry, while generating new benefits for their customers. India is expected to become the world’s fastest growing e-commerce market, driven by robust investment in the sector and rapid increase in the number of internet users. Various agencies have high expectations about growth of Indian e-commerce markets.

Government also has planned to open more domestic and international airports that will surely encourage other players to enter into retail segment. Modernization of railway station and public transport hubs such as bus and metro terminal could be next in league to attract quality retail and commercial space.

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