CBRE reported that the foreign retailers will control the demand for retail space in the near future.
Foreign retailers are planning to set up various stores in India. This will improve retail space demand. As per the report of CBRE, the foreign retailers are focusing on top cities, Mumbai and Delhi remaining their most favorite destinations.
In 2012, 13 stores were opened in Delhi by the foreign retailers. The number of foreign retail outlets across the Asia Pacific Region also has improved very much. Nearly 70 stores were set up in this region.
Hong Kong received the maximum number of new stores. 51 stores were set up in this city. Gaining 27 stores, Singapore stands second.
According to CBRE, the sentiments of the foreign retailers are inclined to India. The main reason for this is the increasing population in the Subcontinent. The rising income is another key factor that attracts the foreign retailers.
Though the above said factors can be said as the reasons which attract the global retailers, the key reason is the government’s decision to raise the foreign direct investment level.
India is considered as a mature market, states CBRE South Asia Pvt. Ltd.’s CMD Anshuman Magazine. He stated this while he was releasing Retail Hotspots in Asia Pacific,’ their report on retail space demand in the region.
Though the central government has approved the new FDI policy under which the foreign retailers are free to set up their own stores in India, the foreigners are to get the sanction from the state government in which they are planning to set up stores.
The states are given the veto power on FDI. It means that they are free to accept or reject the foreigners’ firms and retail outlets. One thing is sure that if the foreigners enter the country, then the demand for retail space in India will see new heights.