Jones Lang LaSalle has released a new report called China50: Fifty Real Estate Markets that Matter, which highlights the opportunities for corporate property occupiers, real estate investors, developers, retailers and hotel operators in 50 secondary and tertiary cities across mainland China (download China50 infographic).
- Nine cities, defined as Tier 1.5 Transitional Cities, have separated themselves from the pack: Chengdu, Chongqing, Dalian, Hangzhou, Nanjing, Shenyang, Suzhou, Tianjin and Wuhan. They are fast-tracking to maturity and, as large diversified open economies, are creating depth across multiple real estate sectors.
- Chengdu has emerged as the premier China50 real estate market; Chongqing, Shenyang and Tianjin have built up the strongest momentum.
- To keep pace with the phenomenal speed of economic growth, over 80 million sq. m of modern retail and nearly 30 million sq m (322 sq ft) of Grade A offices will be built in China50’s main cities over the remainder of the decade, bringing much needed stock to the market.
- Jones Lang LaSalle predicts that retail will provide the greatest real estate opportunity in China50, and that significant opportunities will also exist in the logistics sector.
“These 50 cities combined are expected to account for 12% of overall global economic growth over the next decade and China50 contains all of the world’s 10 fastest growing large cities, led by Chongqing, Tianjin and Chengdu. These numbers are a clear signal that China50 is one of the world’s most exciting real estate opportunities,” said Michael Klibaner, head of research for Jones Lang LaSalle China.
The development of over 100 million sq m (1.07 billion sq ft) of commercial space over the next decade is bringing much needed high-quality stock to these 50 cities. As developers move deeper into China50, it is also helping to support the expansion of domestic and international corporates, retailers and hotel operators across the China50, into third-tier cities as they tap into favorable demographics and seek ‘first mover’ advantage.