Leechhvee Roy
China's real estate crunch vs India's property power surge
China's real estate crisis is closely tied to its GDP, with the sector contributing almost 30% to China's GDP, while India's real estate contributes only around 5.5-6%.
Source: Pexels
Evergrande's default in 2021 triggered a wider real estate crisis in China, and now Country Garden's offshore debt is at risk of default.
Source: Pexels
India's real estate market is currently experiencing a boom, with a recent rally in real estate stocks.
Source: Pexels
Approximately 40% of Chinese home sales have seen defaults by real estate developers since 2021.
Source: Pexels
Chinese developers have defaulted on over $114.6 billion of their $175 billion in dollar bonds outstanding since 2021.
Source: Pexels
China's real estate challenges stem from the COVID-19 pandemic and government crackdowns on financing methods.
Source: Pexels
India's real estate sector contributes only about 7% to the country's GDP.
Source: Pexels
India's real estate sector is estimated to expand to $5.8 trillion by 2047, contributing 15.5% to the total economic output.
Source: Pexels
India's real estate boom is driven by end-user demand, even during previous slowdowns.
Source: Pexels
The 2008 financial crisis affected India's real estate market similarly to China's current challenges. Lessons have been learned and regulatory authorities have helped clean up the sector.
Source: Pexels
India's real estate market now sees certainty in current demand from end users and improved financial health, with the debt-to-asset ratio falling to 22-25%.
Source: Pexels
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