Real Estate Investment: The Race Between India and China

Abstract

Real estate had been witnessing significant growth in both India and China in the last few years, due to the increasing demand of the real estate property. Both India and China were the fastest growing economies in the world and they accounted for around 20% of the global economy. It was estimated that the Indian real estate market would grow from $14 billion in January 2007 to $90 billion by 2015. The growth was expected to be driven by the growth in Information Technology and outsourcing industry. It was estimated by the World Bank that China’s infrastructure needs would be more than US$270 billion by 203'3 Analysts opined that favorable demographics, increasing purchasing power, existence of banks and finance companies, and favorable reforms initiated by the government to attract foreign investors had contributed to the growth of the real estate in India and China. It remained to be seen which of the two would be able to attract higher investment in the real estate sector in the long run. Pedagogical Objectives: * To understand the developments in the Indian and Chinese Real estate sector. * To understand the strategies adopted by each country to generate higher returns from its Real estate investments.