Retail sector to witness addition of 13.5 million sq ft space in 2019
Indian retail estate is expected to witness the addition of 13.5 million sq ft of mall in 2019 across major cities apart from tier II and III cities, said a study by Anarock.
Among the major metros, both Bengaluru and NCR are expected to see seven operational malls in each city, followed by five in Hyderabad, three in MMR and one in Chennai, said the data.
“Besides commercial office spaces, the retail sector also emerged as one of the most vibrant and fast-paced real estate sectors in India in 2018. Cities that saw maximum retail growth in 2018 included MMR, NCR, Bengaluru and Kolkata,” said Anuj Kejriwal, MD & CEO – ANAROCK Retail.
Among the major policy overhauls, the government further liberalized FDI policies early in the year. “These policy interventions repositioned the Indian retail sector on the global map of investments, attracting a large number of global retailers into India and further fuelling growth of organized retail in the country,” said Kejriwal.
The government’s decision to allow 51% FDI in multi-brand retail and 100% FDI in single-brand has attracted retail giants like Walmart to make forays into the country.
The policy initiative has made 54% jump in the total PE investment inflow in the segment in H1 2018 as compared to H1 2017, while the y-o-y share also grew to 9% (H1 2018) from 2% (H1 2017), mentioned the report.
The centre is now mulling to further tweak norms for retail trade – similar to SEZs – and enacting a 365-days working policy to help India climb higher on the Ease of Doing Business index among 190 countries.
The country’s retail sector is now projected to grow from $672 billion in 2017 to $1.3 trillion in 2020.