Policy changes keep global interest for investing in country high: CBRE

Chennai: Global interest for investing in India remains high due to recent policy changes, investor-friendly business environment and sturdy market fundamentals, a retail report has stated.

CBRE South Asia Pvt Ltd in its recent findings of its latest global retail report titled ‘India Retail 2.0 and the way forward’, said, “The retail real estate sector is witnessing growing investments by leading PE funds and institutional investors against the backdrop of growing consumer demand, stable economic and political environment, and quality retail real estate development.”

According to the report, some of the key investors in the retail segment include Blackstone, Canada Pension Plan Investment Board, GIC Private Limited and The Xander Group.

CBRE had in 2017 highlighted the fact that, India was one of the top choices for expansion among retailers withing the emerging retail markets in the APAC region.

The report highlights that limited availability of space in operational well-performing malls coupled with an upward pressure on real estate costs in these centres, as a concern for brands looking to enter the Indian market.

It also stated that some key factors, global retailers should keep in mind when they enter India, since each market has its own distinct characteristics, which these global retailers need to adapt to.

Processes and approaches which work in the home country of these retailers may not necessarily work in other geographies and certain critical factors where professional guidance can be an asset for these retailers are location and costs, store size, tapping tier II cities and new markets, professional guidance, etc, the report stated.

By positively influencing government strategies for growth and working in tandem with domestic groups, such large retail chains can help contribute to strategic, operational and financial synergies in the system, thus driving the country’s retail market on to a higher trajectory, the report said.

Chairman, India & South East Asia, CBRE, Anshuman Magazine, said, “There is immense potential for growth in the retail segment that has been aided by the recent relaxation in investment norms by the government. With a population base of over one billion, the Indian market provides a wide customer base which is poised to be the third largest consumer market by 2025. This provides a significant rationale for developers to invest in shopping centers, thereby providing retailers withquality real estate to set shops in, which in turn can change the retail dynamics of India.”

NT Bureau