India’s retail real estate sector is witnessing growing investments by leading private equity funds and institutional investors against the backdrop of policy changes, growing consumer demand, stable economic and political environment, and quality retail real estate development, said a CBRE South Asia report quoted by ET Realty.

Recent policy changes, including relaxation in Foreign Direct Investment (FDI) norms, have resulted in an investor-friendly business environment as well as the economy’s sturdy market fundamentals has prompted rise in institutional investors’ interest in Indian retail real estate.

Some of the key investors in the retail segment include Blackstone Group, Canada Pension Plan Investment Board (CPPIB), Singapore sovereign wealth fund GIC and The Xander Group.

Private equity major Warburg Pincus is ALSO poised to enter into an alliance with developer Runwal Group to invest $1billion in retail-led mixed-use development in India.

“There is immense potential for growth in the retail segment that has been aided by the recent relaxation in investment norms by the government. With a population base of over 1 billion, the Indian market provides a wide customer base which is poised to be the 3rd largest consumer market by 2025,” said Anshuman Magazine, Chairman, India & South East Asia, CBRE.

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