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FDI in Multi-Brand Retail is a Good Signal for the Real Estate India

Posted on 21 September 2012 | 5:56 am by

The debate of FDI continues with many supporting while others are not accepting the proposal. Many feel FDI introduction in the country will be a bad move. In the real estate sector, however, the experts feel that FDI will boost the retail segment in the country. The mall space will witness an increase in demand with the coming of FDI in the country. 

The commercial real estate India will gain from the government decision to allow FDI in the country. With boost in multi –brand retailing, there will be demand of more mall space in the country. Real estate experts feel that FDI introduction in the market will bring positivity. The chairperson of Jones Lang LaSalle, Anuj Puri feels that investment in retail will grow and subsequently there will be requirement of more mall space. This decision will help in the clearing the surplus of retail space which is at present available in the real estate India. 

Government is making operational 51% FDI in the multi brand retail. It is left to the state governments to further allow FDI in their respective states. Considering the present situation in the country, some states governments are allowing it while others are still pondering over the decision. Experts feel that FDI will bring the rural producers in direct contact with urban consumers and both will be benefitted from the same. The government has come with some rules and reforms related to FDI in India.

CREDAI, the chief organization of real estate developers and agents in the country, welcomed this move. Its president welcomed this move and said that this will bring new changes in Indian economy. He also added that FDI in multi-bran retail will provide employment to thousands in the country. This indirectly will create demand in residential real estate segment. 

Overall, real estate experts feel that with this move, the commercial real estate industrywill benefit in the long run.

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