Investments in retail real estate, particularly shopping malls, are yielding returns in the region of 12-14.35 per cent as against 6-8 per cent in the residential segment and 11-13 per cent in the office segment.
Though investments in the retail segment have traditionally been more profitable than in the residential or office segments, the absence of enough triple-A rated retailers stopped investors for making a beeline to the segment.
But the entry of a number of foreign retail chains and the success of domestic retailers such as Barista, Westside, and several others has rekindled interest.
Analysts caution that the heralding of retail real estate as the next big investment destination should be preceded by a caveat that high rewards are restricted only to the mall model of investment.
So if you are looking at high-yielding retail investments, then shopping malls with an investment of Rs 25-30 crore fits the bill perfectly.
Investments in high street, stand-alone stores where the investor is also the occupier do not offer high returns as the investor is not in the real estate business.
But the high returns are not the only bait for investors,