Real estate

The (growing) middle class and the top layer of the Chinese society buys nowadays, partially as an investment, a substantial amount of apartments and houses without the use of grants.
The private purchase of houses has risen enormously, mostly because of the attractive loans of the large national banks. Considering the strong increase of the urbanisation it is likely that the demand for residences will rise in the urban areas in China.
Between 2000 and 2007 the investments in real estate have risen with 20% per year. Since the end of 2007 the market segment is confronted with relapsing prices and transaction volumes. This trend is accumulated by the economic crisis.
It is expected that the situation will improve due to the action plan from the Chinese government.