Finally, the Government has made a bold move by allowing international brands and retailers up to 51 per cent foreign direct investment (FDI) in the multi-brand retail sector and 100 per cent FDI in single-brand retail.
The sluggish economy coupled with minimal salary increments among consumers did not work in favour of the real estate sector in 2013. High property prices together with high home loan rates have had a significant impact on the affordability index, leading to low housing demand.
Sheth Developers & Realtors has made a foray into the retail sector with the launch of a mall in Thane. Built on a 13-acre plot and spread over 1 million sq ft - three floors of prime retail and leisure space - it encompasses over 240 stores with high-profile tenants.
According to global real estate consultants Cushman & Wakefield, the first-half of 2016 witnessed the highest annual PE investments in retail with over Rs 33,500 million being invested, compared to only Rs NR 2,500 million invested in H1 2015. This is the highest annual PE investments made since 2008.
Whether it was large-scale acquisitions or private equity (PE) deals, 2016 was a mixed bag as far as investments in real estate were concerned. The market witnessed transactions worth US$ 5.6 billion during the year as against an approximate US$ 4.6 billion in 2015.