Based on the recent survey of Cushman & Wakefield it can be stated that private equity venture in retail real estate has been pitched close to 3350 crore in the first half of 2016. It looks like the bigger shopping malls are gaining the better investment preference from the international and domestic retailers. For establishing shops inside a mall 40% of the perceptive investors voted for Shopping malls of 350,000 sq ft and beyond.
From the investors perspective it’s visible that with the bigger alignment they will achieve the access to an additional wide-ranging retail surroundings like superstores, multiplexes, gaming zone. Thus they could attract more visitors and further inflow. The recent cost of property, quality of shopping malls and incentives and rent-free period materialized as the prime factors to manipulate the property locations by the retailers. Proper shop size, required floor area, appropriate micro-market were the other formidable aspects for choosing the location of such stores.
Capacity of the mall and the functional area, economical cost are top three facts bumping the location selection of the mall. For setting up shopping malls around the highways factors like wide spread parking zone, external surroundings have a vital impact on the choice of location. In the metro cities like- Delhi, Gurgaon, Noida , Mumbai have shown some great effects against the expansion plan applied by the retailers. This is an inevitable offshoot of the brand consciousness and purchasing power of the people of these mentioned gateway cities. Specifically speaking fashion and apparel retailers do great business in all the major cities. But Delhi NCR is way ahead in terms of the all season selling quotient in comparison to the other major cities.
These are the reasons behind the sale of office and retail segments are taking upstairs with the passing fiscal years. As per the latest property selling statistics of Property Portal in Kolkata sale of new built constructions which will be used for commercial purpose or office spaces are being purchased in limited numbers where as
Commercial Property in Kolkata is majorly occupied on lease. For shopping malls there has been a mixed scenario in terms of single ownership and lease holders.
Private equity investment in retail real estate surged to whooping Rs. 3350 crore in the first half of 2016. It is the highest amount of money that had been ever invested after 2008 according to the Cushman & Wakefield report. Central Govt. has sorted out all tax difficulties for real estate investment trusts (REITs), retail properties have been continuously in demand. It seems like it could be slated under REIT assortment. New malls have been registered in the maximum counts out of which the supply of 4.8 million sq ft has been already accomplished. This quotation contains the supply statistics first half of 2016 which is supposed to be the biggest supply during past five years, where as in the first half of the previous year it was just 0.2 msf.
Till the first half of 2016, NCR comes first with the lofty 64% supply of the share in new supply followed by Pune and Mumbai.
By LNN (Liyans News Network)
Nice Article as it gives also an investor a great choice were to invest