Impact of China’s realty market on the Indian real estate
It is not news that China is one of the biggest real estate markets in the world, but China’s markets are crashing down and facing one of the most difficult economic crises since the past year, sure is. Home sales have dropped in China by 60 per cent this year and the ongoing decline is said to be the worst in the country’s history. This global impact in China is mostly due to very low growth. Rising prices deter an average person from buying his/her own house. Developers find it difficult to find buyers and investors who can bankroll the stalled projects, courtesy of tight regulations and drying capital expenditure. Considering this, the overall scenario for the housing market in China looks bleak.
Investors in China are looking at the Indian market as it is emerging rapidly. This will in turn have a positive impact on the Indian real estate market. It is bound to have further growth as well. Increased consumer spending largely assists urbanisation with more focus on infrastructure. This paves way for demand for both residential and commercial properties.
The Indian realty market is comparatively going strong. This is corroborated by facts. According to reliable reports, India is the second largest country for steel production after China. The collapse in the Chinese property market will also reduce commodity prices which will eventually benefit India. The Indian real estate market has a great opportunity at its doorstep since it has grown rapidly and has proven resilient in the last two years despite the global crisis.
Domestic demand on the rise
Ever since the pandemic, work-from-home opportunities have become a norm, the need for a roof over the head became more evident. Add to that the income levels are on the rise consistently. This will lead to an increase in domestic demand. Also, huge investments in infrastructure and rapid urbanisation are all leading to an increase in demand for buying homes.
This is happening due to the reforms in the real estate sector. Post the pandemic, it was observed that the rates have been raised on high-end and luxury properties from individuals and Non-Resident Indians (NRI) having a much higher net-worth. Their purchasing power is probably connected to the nosedive of rupee value.
Read More at https://www.financialexpress.com/industry/impact-of-chinas-realty-market-on-the-indian-real-estate/2705969/