India Retail News

In all the seven cities presented in this review, the retail real estate market appears to be promising with an increase in retailer enquiries. Retail mall rentals witnessed growth in prime city micro markets, while witnessing stability in suburban (supply laden) destinations in key cities like NCR, Mumbai and Bangalore. There was a market correction in select mall developments in few micro markets of Pune, Chennai and Hyderabad.

According to Mr. Anshuman Magazine, Chairman & Managing Director, CB Richards Ellis South Asia Pvt. Ltd, "The increased retail activity across key cities is an indication of the growing confidence of both domestic and international retailers in the India growth story. On the back of growing urbanization and an increase in the acceptance of organized retail, retailers have been expanding their operations across the country. The government allowing 100% FDI in single brand retailing has been a welcome step, however the caveats put by the government like making it mandatory for retailers  to source  30 percent of their requirements locally are a dampener on the announcement."

Moving ahead, transaction activity and size are expected to increase on the back of increase in consumer spending and expanding mid-income purchasing power. However, despite an anticipated increment in demand, a downside remains in the form of large, retail mall supply pipeline in most leading cities. This might lead to a demand-supply mismatch, which might eventually lead to long term pressures on retail rents in select micro markets.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2010 revenue).  The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.

CB Richard Ellis was the first independent international real estate consultancy to set up offices in the Indian Sub-continent with an office in New Delhi in 1994. Since then the India operations has grown to a network of offices in all the major metropolitan cities. Today with over 2300 professionals, CB Richard Ellis is one of the leading real estate consultants in the Indian subcontinent. We provide our clients with a number of services in the core areas of Strategic Consulting, Valuations/ Appraisals, Agency Services, Asset Services and Project Management. Our guiding principle has been to provide our clients with tactical and strategic solutions that make real estate holdings more productive and economically efficient. Please visit our Web site at www.cbre.co.in.