Categorized | International

Real Estate in China Becoming Quite Attractive to Foreign Investors

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The real estate market in China, much like it is in the United States, is quickly becoming very attractive to foreign investors. As the Chinese government continues to place limits on its real estate market to prevent the growth of the housing bubble, foreign investors have taken advantage of such restrictions to invest tremendous amounts of money into properties in the growing global powerhouse.

There is good reason as to why foreign investors are flocking to the Chinese real estate market. With very high demand existing for properties and homes in smaller cities, and a severe lack of money on behalf of local developers, international investors, such as those from Hong Kong, are seeing China’s real estate market as an excellent venue to make a strong profit.

In their efforts to limit the prices of homes across the country, the Chinese government has made it very difficult for Chinese developers to expand into the smaller markets. With that being said, almost forty-five percent of real estate deals during the first half of 2011 were in these smaller cities, and involved foreign investors. Many of these international investors have been companies seeking commercial properties.

Unlike many local developers, international investors have had much greater success in their negotiations with local Chinese governments with respect to buying properties. As these smaller cities grow at a rapid rate, it only makes sense that the potential opportunities for profit that commercial properties offer are increasingly more attractive. No longer are foreign investors looking for opportunities in the major Chinese cities. Instead, they are seeing the greatest potential in these smaller cities where cost is low, and the opportunities for profit are at astounding levels.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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