Analysis: China’s Model of developing Real Estate Sector

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China has made rapid progress in real estate sector. The property market of China accounts for quarter demand of its economy. China being 2nd largest economy of the world is making spectacular growth in two decades due to investments in real estate market. Moreover, private entrepreneurs are playing vital role for its growth. Its market entry strategy appeals a large foreign investors around the world, as it provides gateway towards new ideas for infrastructure and development. China’s growth target is set at around 5 percent to expand its economy in 2023.
China’s real estate industry and lessons for Pakistan: Chinese real estate market has witnessed rapid growth. The major aspects of its real estate market include availability of land area for potential supply and population size for potential demand in real estate markets. It is generally driven by capital investment which has made rapid growth in property investments.
Developing countries like Pakistan can analyze the lessons learned from real estate policies in China. Pakistan can follow the Chinese model for development in real estate sector. Firstly, we need to study in depth basic market trends and their impacts on market growth. Secondly, to strengthen coordination between government and other local bodies to regulate our credit and currency. Thirdly, there should be a direct communication between market and cities. Fourthly, Pakistan needs to accelerate its mechanisms for development in real estate market like China. A long term development plan should be formulated by institutions so that real estate market can be stabilized and improved. We should also be aware that there are potential risks in real estate market as well due to which financial institutions are exposed to serious challenges.

– Written by
Mr Ovais Ali Khokhar, CEO, Elaan Marketing & House of Elaan,  Islamabad.