The increasing purchasing power and exposure to organised retail formats has redefined the consumption patterns for dwelling units, which has resulted in mushrooming of retail projects in smaller towns and cities.
The retail market is likely to grow at around 35 per cent, which heightens scope for real estate developers, says ASSOCHAM study.
The study estimates that nearly 30 million square feet of organised retail space is currently available, while 90 million square feet is likely to be added by 2008 from over 265 upcoming mall projects. Out of these, 20 million square feet is slated to come up in Delhi and Mumbai and around 10 million square feet in Ludhiana, 5.8 million square feet in Chandigarh and 3.5 million square feet in Ahmedabad.
Shopping malls with over one million square feet space have become the order of the day. About 20 of these are now at various stages of construction across the country.
According to ASSOCHAM projections, the foreign direct investment in the domestic real estate market is likely to be around $ 30 billion.
At present, the domestic real estate market is expected to be of $14 billion in which the foreign direct investment contribution is estimated around $5.50 billion, says the study.