Recently, the Chinese estate experienced one of the most significant slumps in the global real estate scenario. The setback was so huge that it was dubbed the most critical economic turmoils of the country. While China is trying to make amends and recover from this dire situation, there are many things that the real estate industries of other countries can learn from this case. Let’s take a closer look and understand what we can learn from China’s crumbling real estate scenario.

  1. Potential growth in Indian investment – According to the experts, Chinese investors are planning to invest their capital in emerging markets such as India. The overall turmoil that unfolded in China will positively impact our country’s real estate sector. If you see a significant spike in investment in real estate in Kochi soon, do not be surprised. Additionally, the announcement of the 7500 amrut cities, the ever-expanding metro rail development and the government’s focus on building countrywide highways are expected to skyrocket the demand for both commercial and residential real estate among potential foreign investors.
  2. Shift towards Indian Developers – The experts also suggest that investors from across the globe have now shifted their focus from Chinese real estate developers to property developers from India. This shift has been caused due to the sudden turmoil that unfolded in China. Investors increasingly prefer Indian realtors to invest their money because the Indian real estate market is constantly on the rise and is providing 3x returns compared to China.
  3. Debt might show initial growth – One critical aspect that we can learn from China’s crumbling real estate scenario is that in the initial stages, the debt pileup of an industry can seem to grow. However, when it falls, it can take down the entire sector all at once, and all the effort and investment can turn into a big pile of dust in moments. Therefore, we must always weigh all the potential risks and downsides before proceeding with any decided setup.
  4. Investments driven by mindless social norms often have heavy tolls – Another critical thing that no one must forget is that any investment driven by societal norms can have a severe impact. This is very clearly evident from the real estate scenario that is going on in China right now. According to the figures, property sales in China have dropped by 72% in the last year, and the real estate market, which is almost 30 per cent of the country’s GDP, incurred huge losses.

These were some of the most important lessons and insights that we can get from the fall of China’s real estate industry. With such a situation and the potential increase in foreign investment in the country’s real estate sector, there is no better time to invest in flats on sale in Kolkata, Chennai and other metropolises. If you are looking for some good realtors for your next real estate purchase, you can check out Tata Housing and the properties they have developed across major Indian cities.