The foreign direct investment inflow in retail trading increased between October 2014 and September 2015 to $70.75 million.

“This (inflow) – coupled with economic stability, liberalisation of the FDI policy and improvement in the consumer sentiment – is expected to help global brands witness a very conducive environment for investment into Indian retail as well as retail real estate sectors,” said Anuj Puri, Chairman & Country Head, JLL India.

“Add to this the steady rise in shoppers’ desire to consume foreign brands due to increased brand awareness, and the scenario looks even more inviting,” he added.

In 2015, single-brand retail saw relaxation in sourcing norms, which is expected to rack up FDI inflows in the times to come.

Moreover, in the Budget 2016-17, 100 per cent overseas capital was allowed in processed food retailing through the Foreign Investment Promotion Board (FIPB) route.

As more and more global brands realise this, they are expected to enter India in 2016. This will make development of world-class malls, having superlative designs and ambience, the need of the hour.

“Retail real estate has been constantly evolving in response to changing consumer, brands and retailers’ preferences but the evolution is bound to become faster in the days ahead,” said Puri.

“This will lead to emergence of stronger retail real estate players, who may manage to get private equity (PE) investment in the coming years,” he predicted.

PE investment has been largely confined to a few retail players in India. In 2015, PE investment into retail properties alone was $39 million, and in 2016, it is expected to be in the range of $75-80 million.

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