The Government`s nod to FDI in multi-brand retail will be a major driving factor for increased activity in 2013.

Since the policy opens the portals to major MNC retail brands in India, the organised retail sector will see a major transformation in terms of its overall contribution in the mid-term. This, in turn, will positively impact the absorption of retail space over the next 1224 months. The absorption is forecast to touch 6.8 million square feet and 7.1 million square feet in 2013 and 2014 respectively. With the demand for IT SEZ space to remain healthy in the next 12-18 months. With a market size of USD 66.8bn, the Real Estate sector contributes around 5 percent to the nations GDP. While the market is growing, there remains a housing shortage across both urban and rural areas, estimated to be 20.5 million and 26 million respectively. This demand for residential space is projected to grow sharply at a CAGR of 19 percent in 2010-2014. Currently, there are few big players like DLF and Unitech that drive this segment. Growing at a rate of about 20% per annum and this sector has been contributing about 5-6% to Indias GDP.
Mumbai residential property prices increased by 17% for the calendar year 2012