The government may have put the decision to allow FDI in multi-brand retail on

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hold due to political opposition, but global realty consultant CB Richard Ellis expects the proposal being implemented in a phased manner starting with Delhi and Mumbai in the coming months.

"While implementation of the proposal (FDI in multi-brand) was delayed due to political pressures, it is expected that the coming few months might witness the proposal being introduced in a slow and phased manner," CB Richard Ellis (CBRE) said in its latest report 'Indian Retail Market view'.

It further said the move to which the retail sector reacted positively is likely to be implemented in leading retail hubs like Delhi and Mumbai and eventually move to other tier II and III cities.

"The proposal seeks to amend supply side constraints in the retail industry while providing an immense opportunity to developers looking at reducing vacancy pressures in their existing properties," it said.

Even Commerce and Industry Minister Anand Sharma had stated that the decision of FDI in multi-brand retail would not be rolled back.

"The Cabinet took a considered view on retail FDI. We are not going to roll back the decision It is a just a pause. It will happen and the pause cannot be too long," Sharma said last week at the annual World Economic Forum meeting in Davos.

In November last year, the Cabinet had approved 51 per cent FDI in multi-brand and 100 per cent in single brand retail. However, lack of political consensus meant the decision to allow FDI in multi-brand has been put on hold, although single brand retail was opened up fully to FDI with a mandatory clause of local sourcing from small and medium enterprises in case of those with over 51 per cent.

CBRE said as a result of delay in the implementation of the decision, realty developers could adopt a 'staggered' approach towards leasing new space in their premium properties.

"Developers might hold onto vacant space in their developments for premium international retail brands, which might lead to limited churn in prime retail space in the next few months," it said.

Commenting on the developments on the single brand front CBRE South Asia Chairman and MD Anshuman Magazine said: "The government allowing 100 per cent FDI in single brand retailing has been a welcome step, however the caveats like 30 per cent local sourcing are a dampener on the announcement."