According to a report by global property consultant Jones Lang LaSalle, India ranks second among top 20 countries with the strongest momentum in retail real estate index. It lags behind China due to weaker investment prospects and a smaller presence of global retailer. In top positions are China, India, Indonesia, Turkey, Brazil and Vietnam. The index aims to identify those countries with the strongest momentum in terms of consumer, retailer, developer and investor activity. Due to their favourable demographics, rapid urbanisation, strong consumption growth and significant expansion of modern retailer infrastructures, China and India top the Index. LaSalle states that there is a clear thrust towards international benchmarks, with growing market knowledge and ever-increasing aspirations driving current and future growth. The report confirms that in the last decade, more than USD one trillion of retail real estate has been traded around the world. Global direct investment has averaged more than USD 100 billion per year since 2004 and in 2011 annual volumes hit USD 122.5 billion.
As stated, the demographics are favourable, urbanization is rapid, and the consumption growth is strong. These are reason to stay put and experience the long term benefits of India. Infrastructure investment of almost $1 Trillion over the next five years will be dedicated to new highways, power plants, mass transport systems, airports and seaports.
Written by Melissa W.