New Delhi, Mar 28 (PTI) Private equity investment in retail real estate rose by 15 per cent in 2017 to USD 0.8 billion because of increased demand of retail space, according to property consultant CBRE India.

In its latest report ‘India Retail MarketView Report – H2 2017’, the consultant said that the steady capital inflow reflects continued growth of the retail sector.

“Retail assets in the country witnessed investments of over USD 0.8 billion from PE firms and wealth funds in 2017; a 15 per cent increase over 2016,” CBRE said in a statement.

While close to 3.4 million sq ft of supply entered the market, 15 new brands established their presence in the country.

“Notable trend witnessed during the year was the adoption of omni-channel strategies by established players. Several e-commerce retailers such as Urban Ladder, Craftsvilla, Myntra, Jaypore, Pepperyfry and Nykaa opened their brick-and-mortar stores; whereas established retailers such as Zara launched their online portals,” it said.

During July December 2017, the demand for retail space remained strong, as international brands such as Tom Tailor, Miniso, Simon Carter, and Jo Malone opened their first outlets in the country.

At the same time, other well-known brands including Starbucks, H&M, Mango, Westside, Pantaloons, and Hamleys continued to expand operations across the country. Madame Tussauds also made its debut in the country with its first museum opening in Connaught place, Delhi in October 2017.

Well-known Swedish home furnishing brand IKEA opened an experience centre, Hej Homes, in Hyderabad during H2, 2017.

On the supply side, the CBRE said that nearly 2 million sq. ft. of new supply entered the market in H2, 2017, a majority of which was concentrated in Kolkata, Delhi National Capital Region (NCR), Chennai, Pune and Bengaluru.

“The government’s continued focus towards making India a preferred investment destination is having a positive impact on the country’s economy as well as the retail landscape,” said Anshuman Magazine, Chairman, India and South East Asia, CBRE.

The recent announcement allowing 100 per cent FDI in single brand retail trading under the automatic route is likely to further ease the entry of global retailers, he added.

“Competitive rentals, availability of quality space, and with more brands coming in driven by a growing consumer base, the sector can expect significant growth in times to come,” Magazine said.

CBRE India Head (Retail Services) Vivek Kaul said the steady supply of quality retail developments in key cities is indicative of the continued demand for retail space in the country.

This is published unedited from the PTI feed.