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China’s real estate development slows in 2021, new construction down 11.4%

Tuesday, 18 January 2022 11:42:15 (GMT+3)   |   Shanghai
       

In 2021, total real estate investments in China amounted to RMB 14.7602 trillion ($2.32 trillion), up 5.2 percent year on year, 0.8 percentage points slower than the rise recorded in the first 11 months last year, signaling a slowdown in the real estate industry due to financial tightness and the overall depression in the sector, while total investments were up 11.7 percent compared to 2019, as announced by China's National Bureau of Statistics (NBS).

In 2021, new commercial real estate sold in China covered a total area of 1794.33 million m2, up 1.9 percent year on year.

The total area covered by construction activity in China in the given period increased by 5.2 percent, down 1.1 percentage points compared to the increase recorded in the first 11 months. Nevertheless, the new area covered by construction activity decreased by 11.4 percent year on year in the given period, 2.3 percentage points faster than the declining pace recorded in the first 11 months last year.  

China’s real estate industry was negatively affected by the debt issues of Chinese real estate giant Evergrande Group. In 2022, the financial tightness in China will be eased to some extent, which will positively affect the real estate industry.


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