Real estate India expects to overcome the present sluggishness by 2013. The year 2012 has really been a sluggish year for the real estate builders.
Real estate India expects to be boosted by the new retail FDI policy. There will be an increased demand for retail spaces and it prompts real estate builders to come up with more commercial projects. This will lead to real estate boom in India.
There has been a sharp rise in the commercial real estate prices. This was especially higher in big cities like Mumbai and Delhi. It is noted that quality retail spaces are not available for rent at present. This necessitates construction boom in real estate sector. The entry of foreign multi-brand retailers will boost it all the more.
Lok Sabha and Rajya Sabha, the lower and upper houses of Indian Parliament, have voted in favor of retail FDI. With the approval of this there are increased numbers of chances for reforms in the field.
The state governments are vested with power to ban or allow big foreign retailers from entering the state. Moreover, the entry of foreign retailers is approved is conditional. Yet the real estate builders’ joy reaches no bound.
In actual sense the real estate developers will be the most excited group in this. They welcome the foreign multi-brand retailers wholeheartedly. A few real estate developers hope to raise the necessary funds for their projects from the foreign retailers.
Commercial establishments and shopping centers are on the verge to have a boom. The foreign retailers are permitted to own land in India. Yet they will have to wait more time to set up their own shops. Moreover, they are banned to buy and sell undeveloped land as well.
They have to face many other such regulations and restrictions set by the Department of Industrial Policy and Promotion of the Ministry of Commerce and Industry. So in short they are forced to lease commercial properties at least for a short term. Jones Lang LaSalle India reported that the rest depends upon how fast they are able to tackle the restrictions.
