While the demand by consumers for luxury products in India is rising, the shortage of available commercial real estate outside major cities is an obstacle for deluxe brands seeking to expand.
India’s demand for luxury products is forecasted to grow 22 percent per year over the next five years, reports the Live Mint, according to a research study by the Euromonitor research group. The market for luxury products in China is expected to grow 15 percent per year over the next five years.
Luxury brands, such as Louls Vuitton, are moving from hotels to major malls to better serve the marketplace. This growth has caused several commercial real estate property developers to proceed with new projects in Delhi,Kolkata, Mumbai and Chennai in the next 18-24 months.
In 2011, the local luxury market saw a robust 20% growth to touch $5.8 billion, according to Indian Luxury Review 2011, a report prepared by lobby group Confederation of Indian Industry, or CII, and consultancy AT Kearney.