99acres.com published an article titled ‘Lack of quality retail space discourages luxury brands in India’ on December 9, 2015. This article contained the views of several real estate experts including Finlace Consulting Director Mr. Pawan Jasuja on the issue of discouraged sentiment amongst luxury segment of Indian real estate. Due to the exorbitantly high rentals and non- availability of good and visible spaces, many foreign luxury brands are hesitant to enter the Indian market. These realty experts feel that more quality spaces needs to be made available at decent prices to encourage investment in this segment. Government authorities could also play a role.
Pawan Jasuja, Director, Finlace Consulting believes that high rentals are the major culprit in presenting luxury brands from investing in India and reduces profits by 30 per cent. He says that since the spaces are limited, the rents in Indian cities are quite high even for luxury brands. According to him, the ideal rents should vary between 10-12 per cent of the total revenue.