ICREA / WorldProperties.com News
Large foreign retailers one step closer to entering the Indian marketplace
January 17, 2013
The introduction of large foreign retailers into the Indian marketplace is enthusiastically awaited by many in the real estate sector where builders and developers hope to benefit from an increased demand for retail spaces. Actions taken by the Indian Parliament in December suggest that the arrival of foreign retailers may come sooner than later.
Both the lower and upper houses voted against a measure that would have forbid foreign multi-brand retailers from entering the market. State governments retain the option to ban large foreign retailers from their state, and their entry into the market may be conditional.
In recent years commercial real estate prices in India have risen sharply in big cities. There is a shortage of quality retail spaces available for rent. The entry of foreign multi-brand retailers would likely result in a construction boom.
Foreign retailers are allowed to acquire land in India if they build their own stores on it. They may not buy and sell raw land, according to development regulations set by the Department of Industrial Policy and Promotion of the Ministry of Commerce and Industry. The National Association of Realtors – India
represents organized real estate in India within ICREA and is represented on its Board.