International retail brands are cautiously expanding in India due to economic uncertainties and supply constraints, focusing primarily on top cities.
According to JLL India's report, foreign retailers may delay their entry into India due to high costs and upcoming elections, impacting real estate developers and rentals.
Foreign retailers are increasingly targeting India for expansion, attracted by rising incomes and a growing population, with Mumbai and Delhi leading as top destinations.
Steelcase, a US-based furniture company, leased 50,000 sq. ft. of office space at IndoSpace Industrial and Logistics Park in Chakan to set up its first production unit in India.
The demand for office space in India is set to rise as foreign retailers like Starbucks and H&M expand their operations in major cities.
Walmart and the US government have expressed concerns to the Indian government regarding state veto power over FDI in retail. This power creates uncertainty for foreign investors like Walmart, who are hesitant to enter the Indian market due to varying regulations across states.
Indian real estate anticipates recovery from a slow 2012, fueled by retail FDI policy. Increased demand for retail spaces is expected to drive construction and boost commercial real estate.