Real Estate - China | Statista Market Forecast

The Real Estate market market in China is expected to reach a staggering value of US$130.70tn in 2024.
It is worth noting that the Residential Real Estate segment holds the largest share in the market, with a projected market volume of US$112.90tn in the same year.
Looking ahead, the market is anticipated to grow at an annual rate of 1.96% (CAGR 2024-2029), resulting in a market volume of US$144.00tn by 2029.
When compared globally, United States stands out as the top contributor to the Real Estate market industry, generating the highest value of US$130.70tn in 2024.
China's real estate market is experiencing a surge in demand for high-end luxury properties in major cities.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

China's Real Estate market has been experiencing significant growth and development in recent years.

Customer preferences: Chinese customers have a strong preference for investing in real estate. They view it as a safe and reliable investment option, especially considering the volatility of other financial markets. Additionally, owning property is seen as a symbol of wealth and social status in Chinese culture. As a result, many individuals and families strive to own multiple properties, leading to a high demand for real estate in the country.

Trends in the market: One prominent trend in the Chinese real estate market is the increasing popularity of urbanization. As more people move from rural areas to cities in search of better job opportunities and improved living standards, the demand for housing in urban areas has skyrocketed. This has led to the construction of numerous residential and commercial properties in major cities across China. Another trend is the rise of the middle class. With a growing economy and increasing disposable income, more Chinese citizens are able to afford their own homes. This has fueled the demand for affordable housing, particularly in the suburbs and smaller cities. Developers are capitalizing on this trend by constructing more affordable housing projects to cater to the needs of the middle-class population.

Local special circumstances: China's real estate market is heavily influenced by government policies. The Chinese government has implemented various measures to regulate the market and prevent speculative activities. These policies include restrictions on property purchases and loans, as well as the introduction of property taxes in certain cities. These regulations aim to control property prices and prevent the formation of real estate bubbles.

Underlying macroeconomic factors: China's rapid economic growth and urbanization have played a significant role in the development of the real estate market. As the country continues to urbanize and industrialize, more people are moving to cities, increasing the demand for housing and commercial properties. Additionally, favorable mortgage policies and low interest rates have made it easier for individuals to obtain financing for real estate purchases. Furthermore, foreign investment has also contributed to the growth of the Chinese real estate market. The government has relaxed restrictions on foreign property ownership, attracting overseas investors who see the potential for high returns in the Chinese market. This influx of foreign capital has further fueled the development of the real estate sector. In conclusion, the Real Estate market in China has been experiencing significant growth and development due to customer preferences for real estate investments, trends such as urbanization and the rise of the middle class, local special circumstances influenced by government policies, and underlying macroeconomic factors such as rapid economic growth, urbanization, and foreign investment.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - China

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Value Split

Volume

Analyst Opinion

Transaction Value

Methodology

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