Market Size of China Commercial Real Estate Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.89 Trillion |
| Market Size (2029) | USD 1.07 Trillion |
| CAGR (2024 - 2029) | 3.49 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Commercial Real Estate Market Analysis
The China Commercial Real Estate Market size in terms of transaction value is expected to grow from USD 0.89 trillion in 2024 to USD 1.07 trillion by 2029, at a CAGR of 3.49% during the forecast period (2024-2029).
For the office market, nationwide net absorption is estimated to reach 6.2 million square meters in 2022, well above the five-year average of 5.3 million square meters. Technology and finance sectors are expected to continue being the primary drivers of office demand.
- COVID-19 significantly impacted China's commercial real estate market. This is due to high vacancy rates in offices and shopping malls in major cities such as Beijing, Shanghai, Guangzhou, and Shenzhen.
- Additionally, the slowing economy has led to a decline in demand for offices and shopping malls, followed by a drop in customer flows, impacting shopping mall rental charges. It is estimated that China's economy will normalize in 2022, with a GDP growth of roughly 5% Y-o-Y. Counter-cyclical policies and structural transformations are being implemented to ensure sustained growth.
- Logistics net absorption is estimated to exceed 6 million square meters for the second year in 2022 due to the increase in space take-up by e-commerce companies, third-party logistics expansion, and the introduction of the Regional Comprehensive Economic Partnership (RCEP) scheme. Further, more cities in China are expected to shift to a balanced or landlord-favourable markets.
China Commercial Real Estate Industry Segmentation
Commercial real estate (CRE) is a property used solely for business or to provide a workspace rather than for residential purposes. Commercial real estate is often leased to tenants to conduct income-generating activities.
A complete background analysis of the China Commercial Real Estate Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.
The Report Covers Commercial Real Estate Companies in China and the Market is Segmented by Type (office, Retail, Industrial (Logistics), and Hospitality). The Report Offers Market Size and Forecasts for the China Commercial Real Estate Market in Value (USD) for all the Above Segments.
| By Type | |
| Office | |
| Retail | |
| Industrial (Logistics) | |
| Hospitality |
China Commercial Real Estate Market Size Summary
The Chinese commercial real estate market is poised for growth, driven by the recovery from COVID-19 impacts and the implementation of counter-cyclical policies. The market is experiencing a shift towards technology adoption, with real estate companies partnering with tech giants like Alibaba and Tencent to enhance operational efficiency through property technology. This collaboration is fostering innovation, particularly in consumer-facing digital technologies, as Chinese consumers increasingly demand personalized and omnichannel experiences. The logistics sector is also witnessing significant expansion due to the rise of e-commerce and third-party logistics, further contributing to the market's growth trajectory.
The market landscape is characterized by a mix of established and emerging players, with significant foreign investment and interest from residential real estate companies diversifying into commercial properties. Major players such as Wanda Group, Greenland Group, and CapitalLand are prominent in the market, while foreign investors like AIA and Ping An Life Insurance are making substantial investments in Chinese properties. The market's fragmentation and the entry of foreign players indicate a competitive environment, with the potential for continued expansion and innovation in the coming years.
China Commercial Real Estate Market Size - Table of Contents
-
1. MARKET INSIGHTS
-
1.1 Current Market Scenario
-
1.2 Value Chain/Supply Chain Analysis
-
1.3 Government Initiatives and Regulatory Aspects for the Commercial Real Estate Sector
-
1.4 Commercial Real Estate Buying Trends - Socioeconomic and Demographic Insights
-
1.5 Insights on Existing and Upcoming Projects
-
1.6 Insights on Interest Rate Regime for the General Economy and Real Estate Lending
-
1.7 Insights on Rental Yields in the Commercial Real Estate Segment
-
1.8 Insights on Capital Market Penetration and REIT Presence in Commercial Real Estate
-
1.9 Insights on Public-Private Partnerships in Commercial Real Estate
-
1.10 Insights on Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
-
1.11 Impact of COVID-19 on the Market
-
-
2. MARKET SEGMENTATION
-
2.1 By Type
-
2.1.1 Office
-
2.1.2 Retail
-
2.1.3 Industrial (Logistics)
-
2.1.4 Hospitality
-
-
China Commercial Real Estate Market Size FAQs
How big is the China Commercial Real Estate Market?
The China Commercial Real Estate Market size is expected to reach USD 0.89 trillion in 2024 and grow at a CAGR of 3.49% to reach USD 1.07 trillion by 2029.
What is the current China Commercial Real Estate Market size?
In 2024, the China Commercial Real Estate Market size is expected to reach USD 0.89 trillion.
