Real Estate Development in China

ABSTRACT

Real Estate Management and Development in China is one of the fast growing in the Chinese Economy. Given that is a highly technical and the diffuse nature of the subject, it has been necessary to pull together the many sources of published statistics and specialist comment, in order to produce a coherent account of the present state of the market, and to give indicators to its future development, while assessing the likely impact on demand of changes in law and taxation.

The real estate market in China is large, active, and has a high barrier to entry. The opportunities to invest in this sector remain compelling given the eight to 10 percent GDP growth, the positive support available for income producing properties, and the potential for rental growth and currency appreciation. The market has also become more mature as a result of positive developments in laws and regulations, improvements in the level of transparency in certain parts of the country, and contributions made by foreign developers to this industry. While the opportunities to invest in this market may have become more obvious with the maturation of the industry, the risks associated with real estate investment remain significant, although they can be mitigated by the investor having a locally-based team that understands not only the intricacies of investing in local real estate, but also the return requirements of the western investment community.