China’s home sales have decreased by 60% year over year, and the current downturn (which has lasted for 11 months) is thought to be the worst in the history of the nation.
One of the most challenging economic crises China has ever faced is currently underway. Alarm bells have gone off as a result of China’s real estate market collapse during the past year. What began as a problem with the Evergrande Group is now spreading to become a global disaster. According to Think Tank, which was cited in the New York Times, China’s housing market is now viewed as “a national menace” as prices soar to unprecedented heights.
How India will be impacted by the collapse of the real estate markets and what lessons China’s economic woes can teach it. specialists decode.
Investors in China are undoubtedly interested in India and other rising countries, according to Ajay Taneja, Agnayi Realtors. “This will boost growth and have a beneficial effect on the Indian real estate markets. India’s quick urbanization, the 4700 Amrut 2.0 cities named, the Make in India program, and the extensive metro train construction. Urbanization and higher consumer expenditure are both being fueled by the massive emphasis on building highways and bridges that connect cities. According to Gurmeet Singh Arora, this is boosting demand for both residential and commercial property.
Investors are reportedly focusing on higher
The real estate market in China, which contributes about 30% of the nation’s GDP, has seen a 72 percent decline in property sales over the past year. The lessons India should learn from the Chinese catastrophe, according to Suren Goyal, partner at RPS Group, are that investment instruments that are driven by mindless social standards will typically come at a significant cost to both people and the economy. Second, while a company’s debt accumulation may initially appear to be accelerating growth, in today’s volatile, uncertain, and chaotic market environment, it runs the risk of everything collapsing at once.
China’s home sales have decreased by 60% year over year, and the current downturn (which has lasted for 11 months) is thought to be the worst in the history of the nation. The long-term impact on chances for global growth, according to Ajay Taneja, President – Agnayi Realtors, could stifle the early signs of recovery in economies like India.
Ajay Taneja warned that if China’s twin crises result in a protracted downturn in the Chinese real estate market, India’s robust iron ore exports, many of which are bound for China, could suffer.
The Chinese crisis has taught us that Indian developers need to carefully assess their financial risks and revise their business plans in order to make them more resilient in the current economic environment, he continued.
