Economic prosperity in China – commercial

How Economic Prosperity Shapes the Commercial Real Estate Sector in China

Economic prosperity, in the context of China’s macroeconomic condition of the last two decades and its effect on the commercial real estate sector, has two main points of understanding. Economic prosperity is indicative of China’s rapid economic growth in which real gross domestic product (GDP adjusted for inflation) has averaged 10.3 percent from 1991-2000 and resulted in rapid urbanization. Economic prosperity can also be seen as a localization of global markets and industries in China, due to increased globalization and deregulation. This phase of economic prosperity is an essential factor for the localization of foreign investment and industry-specific. Foreign investment and the localization of the global industry have been a significant driving force in creating demand for commercial real estate in China.