While there seems to be a crisis of credibility in the real estate sector on part of the investors, a survey by the Associated Chambers of Commerce and Industry of India (Assocham) says otherwise. It says the traditional investment options like gold, government bonds and bank fixed deposits are considered old school.
Confusing it may sound, but a project called Delhi One has been launched in Noida by the trend setter of green building concept in India The 3C Company. This mega mixed-use project incorporating residential, commercial, retail and hospitality zones is spread across 12.5 acres at Sector 16-B, Noida.
The eastern corridor of Pune has witnessed rapid growth in commercial sector as Grade A developers have ample stock to lease in the area which enjoys an advantage in terms of social infrastructure, connectivity to other parts of the city, abundant residential options, proximity to airport and railway station among host of other advantages.
Mumbai is the financial capital of the country. While it is still a far cry from being comparable to Shanghai in terms of aesthetics and infrastructure, the fact remains that most large corporations and financial institutions have their presence in this city.
In India the early 1990s experienced the shopping malls expanding their footprint with well designed, built on international formats of retailing and integrated with entertainment and restaurants to provide a complete family experience. Shopping centers till then were designed and built to house several shops in a single facility.
With the return of confidence in the sector, Indian real estate players are now once again looking at private equity funding. That said, the industry still depends heavily on bank debt, NBFC funding and end-user advances. This is because bank debt is a cheaper option, and also because it offers flexible tenures.
With the provision of more entertainment options in malls, Indian retailers now have vastly enhanced their ability to increase sales. Until recently, street markets and bazaars were the top performers in the retail space, and they were cornering a huge chunk of the overall sales.