Growth of malls in India

India has yet again topped on the AT Kearney’s annual Global Retail Development Index. It is estimated that the Indian retail market will grow from US$330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015. Organized retailing comprises just 4.6% of the currently estimated Indian retail market. However, this segment grew nearly 40% in 2007 and is estimated to increase to 22% by 2010. The entry of major global players, larger Indian corporate houses into the arena, along with the booming services sector and the growth in disposable income is expected to provide the impetus to this boom. As a direct reflection of the robust growth of organized retailing, the retail real estate market in India is also doing very well especially after the Indian government’s relaxation in the foreign direct investment (FDI) norms (100% FDI is allowed in construction projects) in 2006. Mall space, which was virtually nonexistent before 2000, is expected to reach 60 million square feet by the end of 2008 according to Jones LangLaSalle's third annual Retailer Sentiment Survey-Asia. In another report, Images Retail has estimated that the number of operational malls will more than double to over 412 with 205 million square feet by 2010 and further to 715 malls by 2015, on the back of major retail developments even in tier II and tier III Indian cities.

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