ORGANISED RETAILING, AS WE KNOW, HAS TAKEN-OFF TO a flying start and is projected to grow at over 42 percent in 2008. Fortunately enough, the Real Estate story is equally encouraging, especially after the relaxation in FDI norms in 2006 and the enthusiasm of Indian corporate houses in mega Special Economic Zone (SEZ) projects.

By 2010, the IT sector alone is expected to require 150 mn sq.ft of space across major cities. Growth in the services sector, accompanied by impressive growth in the overall gross domestic product is sure to generate commensurate growth in demand for residential space as well. It is estimated that in the residential sector there is a shortage of 19.4 mn units out of which 6.7mn are in urban India.

The increase in purchasing power and exposure to organised retail formats has redefined the consumption pattern. As a result, retail projects have been mushrooming across even teir-II and tier-III cities. The retail market is expected to grow at around 35 percent. Industry observers feel that this growth is facilitated by favourable demographics, increasing purchasing power, existence of customer-friendly banks and housing finance companies, professionalism in real estate and reforms initiated by the Government to attract global investors.