Foreign Investors shy away from mall development

By ST Team   |   Tuesday, 12 September 2006, 19:30 IST
Printer Print Email Email
MUMBAI: Though it may seem like a hunky-dory period for malls in India, it is still shying itself of foreign investors. Foreign brands may adorn every window among the hundreds of malls that are cropping up in India but the reality is, as retail consultants say, mall development in India is still perceived as a real estate bet. The Indian mall scenario is still paying attention to cashing in on price premiums rather than a long- term proposition from the developers and retailers that is causing all the trouble. According to former CEO of Crossroads, “Retail real estate prices right, which has shown no sign of letting up is more a factor of anticipation of foreign investment.” “It’s not what a lot of people are thinking. There is not much foreign money coming into retail mall development,” said Krish Iyer, Managing Director, Watson India, adding that of the 250 malls expected in the near future, none have foreign money and all have domestic players and real estate developers as investors. Though the speculation of foreign investments in retail mall business may be in the pipeline, experts say that until there is some concrete involvement moving from being purely a real estate play to a genuine retail proposition, foreign investors are going to hold out on participating in the Indian retail boom.