From being multi-storied buildings within the city, the concept of IT Parks and other commercial and industrial spaces in INDIA has now undergone not only a structural change, but also a dramatic change in the mindset of the business and industrial community. The concept has now moved on from just being multi-storied buildings/parks to being an entire integrated townships / zones that meets all the business, infrastructural and social needs of it occupants.
But it is not just the IT / ITES, Software & Biotechnology companies that are fueling the exponential growth in this sector, but also the promoters of other specialized spaces such as, Retail malls & multiplexes, Special Economic Zones (SEZs), Export Processing Zones (EPZs), Free Trade Zones (FTZs) industrial cities, agri parks, knowledge parks, gem & jewellery parks, media parks, textile parks, , and also the etc.
The recent decision by the Indian Government to allow 100 per cent FDI in the sector along with the easing up of bank finance for developers has acted as important catalysts for the growth in this sector. And to have their slice of the pie, international property developers too have already made their presence in the Indian commercial space with strategic partnerships in select Indian cities.
India's retail sector with a three-year compounded annual growth rate of 46.64 per cent is the fastest growing sector in the Indian economy. Traditional markets are making way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and second-rung cities alike, introducing the Indian consumer to an unparalleled shopping experience
Organised retailing in small-town India is growing at a staggering 50-60 %.
Organised retailing is growing at 35-40 % in the large cities.
Branded retail.. growing at 25 -30 % annually.
Food retail.. growing at 9 % annually.
Mobile retail revolution… growing at 20% annually.
Kids retail…. Growing at 30-35 % annually.
It is this exponential growth in the above retail sectors that is creating a surging demand for quality Retail Space.
By 2007, an estimated 50 million square feet of quality retail space will be available across India. This is in sharp contrast to the situation a decade ago when there was not one shopping mall in India. Today, in Delhi, Mumbai and their suburbs, there are about 100 malls. Of the 700 new malls coming up all over India, 40 per cent are concentrated in the smaller cities.
The Indian retail market is estimated at US$ 350 billion. But organised retail is estimated at only US$ 8 billion. However, the opportunity is hugeby 2010, organised retail is expected to grow to US$ 22 billion. With the growth of organised retailing estimated at 40 per cent (CAGR) over the next few years, Indian retailing is clearly at a tipping point. India is currently the ninth largest retail market in the world. And it is names of small towns like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the rankings soon.
Indian companies today are going global and many are in the process of creating a global brand name. The buoyancy in the Indian economy is attracting a number of countries to woo the local businessmen for setting up ventures in their land.
The promoters of Free Zones & Industrial Parks from around the world esp. from countries like UAE, Saudi Arabia, Malaysia, Qatar, Iran, Kenya, Singapore etc, are wooing the global Indian and Indian Enterprise by offering sops such as 100 per cent foreign ownership and free repatriation of capital and profits, easy access to the location, power, water supply, security, and labour and all available on tap. In UAE, the majority of the investors that have already parked their space in their free zones / industrial parks are Indian companies…. and their numbers are still growing….. |
