Investing in Retail Property in India

If you want to buy property in india, you must have to read article below first:

The real estate in India has become such an important sector that everyone has been talking about it. It is so deeply associated with lives of people that each one of them has either made a property transaction in the past or planning to in the future, be it buying, selling or investing.

The real estate sector plays a significant role in Indian economy by contributing heavily towards the GDP. It generates employment only second to agriculture and is developing further at a rapid pace owing to the growing demand for property in India. According to PWC and Urban Land Institute, India leads the pack of top property investment markets in Asia for 2010. It points out that Mumbai and Delhi in India particularly top the charts of promising realty destinations. Residential properties have been gaining much higher than commercial and retail segment in India today. Hotel buying prospects across Indian cities are found to be most favorable in Delhi, Mumbai and Bangalore.

As per various studies and reports, the relatively stronger fundamentals and the lack of dependence on foreign demand are seen as key advantages for Indian market. This is how it has been able to mitigate the severe recession that has hit most other Asian countries. Indian economy successfully survived the unfortunate times of slowdown even as major economies of the world were scattered. And was quick to recover, reaching its earlier boom and even surpassing it sometimes in a matter of few months after the exit of recession.

Retail property in India makes for a good long term investment as this segment is just in its nascent stages. It has just adopted the developmental path, growing exponentially and is still awaiting a bigger boom. All the major cities of the country like metros and tier-II cities have actively adopted the mall culture and are ready for more. All the existing and upcoming realty destinations provide various opportunities to invest in Indian retail property. The retail segment did hit hard during recession and mall owners had to give heavy discounts to the retailers to help them continue renting the space but that phase is over now. Retailers are now ready to pay higher rents and co-operate with the mall owners as they helped them out in bad times.

Even though, the confidence level for investment in retail property is low, it will reap great profits for long-term investors looking at capital appreciation in established retail destinations. According to the CEO of Retailers Association of India (RAI), Kumar Rajagopalan, retail tenants bring great news for property investors looking at consistent income over the years. Banks are also found willing to finance against rent receivable if investor needs money for other ventures without losing ownership on the property. With the speedy recovery of economy and quick growth, retail activity is once again picking up and investments in the sector are improving. Moreover, Union Budget also brings in good news by relaxing income tax slabs as they can fuel demand in the retail sector encouraging more investments.

J Crasta, the President of Federation of Karnataka Chambers of Commerce and Industry (FKCCI) advises that joint developments are a wiser option for investing in retail properties india. With such high land costs, it is not viable to buy property and construct a mall or arcade, so go in for a joint development agreement with a landowner and sign a MOU on the investment share. As soon as a mall is opened, the value of the residential property in the nearby places increases which serves in favor of the retailers.