India's real estate market is experiencing a boom, fueled by a growing economy and a rising population. A recent report by the Confederation of Real Estate Developers' Associations of India (CREDAI) predicts a significant upsurge in the sector. Watch to know more!

Indian real estate market to reach $1.3 trillion by 2034, says report

A report released by the Confederation of Real Estate Developers' Association of India (CREDAI) unveiled promising forecasts for the Indian real estate sector, suggesting a remarkable growth trajectory in the coming decades. <o:p></o:p>

According to the report titled 'Building Viksit Bharat-Transformative Role of the Real Estate Sector in India,' the sector is expected to soar to a market size of $1.3 trillion by 2034 and a staggering $5.17 trillion by 2047. <o:p></o:p>

Currently valued at ₹24 lakh crore (approximately $300 billion), the Indian real estate market is predominantly split between residential and commercial segments, with residential comprising 80 per cent and commercial 20 per cent of the market share.<o:p></o:p>

The report underscores the pivotal role of the real estate sector in driving India's economic growth, with projections indicating its significant contribution to the country's GDP. <o:p></o:p>

By FY 2034, Indian real estate is anticipated to represent 13.8 per cent of the projected GDP, with further growth to encompass 17.5 per cent of the GDP by 2047. <o:p></o:p>

Additionally, CREDAI projects a substantial demand for housing, estimating a requirement for seven crore additional units by 2030. <o:p></o:p>

This surge in demand is indicative of the aspirational growth of Indian homebuyers, with over 87.4 per cent of housing demand anticipated to stem from properties priced above Rs 45 lakh.<o:p></o:p>

Notably, the average home area is on an upward trajectory, experiencing an annual growth rate of 11 per cent. <o:p></o:p>

Leaders within CREDAI emphasise the pivotal role of real estate in India's journey towards economic development.<o:p></o:p>

Boman R Irani, President of CREDAI, highlights the sector's multiplier effect and its potential to significantly contribute to GDP growth. <o:p></o:p>

Irani emphasises, "Indian real estate today stands at an extremely important junction amidst India's journey to become a developed economy by 2047." <o:p></o:p>

Similarly, Manoj Gaur, Chairman of CREDAI, underscores the sector's pivotal role in fostering economic growth, correlating its performance with India's strong GDP numbers.<o:p></o:p>

Shekhar G Patel, President Elect of CREDAI, acknowledges India's economic resilience amidst global challenges, emphasising the country's significant GDP growth trajectory. <o:p></o:p>

Patel's remarks echo the sentiment of sectoral strength and resilience, positioning Indian real estate as a critical driver of economic progress. <o:p></o:p>

(With inputs from PTI)<o:p></o:p>

A report released by the Confederation of Real Estate Developers' Association of India (CREDAI) unveiled promising forecasts for the Indian real estate sector, suggesting a remarkable growth trajectory in the coming decades.

A report released by the Confederation of Real Estate Developers' Association of India (CREDAI) unveiled promising forecasts for the Indian real estate sector, suggesting a remarkable growth trajectory in the coming decades. According to the report titled 'Building Viksit Bharat-Transformative Role of the Real Estate Sector in India,' the sector is expected to soar to a market size of $1.3 trillion by 2034 and a staggering $5.17 trillion by 2047. Currently valued at ₹24 lakh crore (approximately $300 billion), the Indian real estate market is predominantly split between residential and commercial segments, with residential comprising 80 per cent and commercial 20 per cent of the market share. The report underscores the pivotal role of the real estate sector in driving India's economic growth, with projections indicating its significant contribution to the country's GDP. By FY 2034, Indian real estate is anticipated to represent 13.8 per cent of the projected GDP, with further growth to encompass 17.5 per cent of the GDP by 2047. Additionally, CREDAI projects a substantial demand for housing, estimating a requirement for seven crore additional units by 2030. This surge in demand is indicative of the aspirational growth of Indian homebuyers, with over 87.4 per cent of housing demand anticipated to stem from properties priced above Rs 45 lakh. Notably, the average home area is on an upward trajectory, experiencing an annual growth rate of 11 per cent. Leaders within CREDAI emphasise the pivotal role of real estate in India's journey towards economic development. Boman R Irani, President of CREDAI, highlights the sector's multiplier effect and its potential to significantly contribute to GDP growth. Irani emphasises, "Indian real estate today stands at an extremely important junction amidst India's journey to become a developed economy by 2047." Similarly, Manoj Gaur, Chairman of CREDAI, underscores the sector's pivotal role in fostering economic growth, correlating its performance with India's strong GDP numbers. Shekhar G Patel, President Elect of CREDAI, acknowledges India's economic resilience amidst global challenges, emphasising the country's significant GDP growth trajectory. Patel's remarks echo the sentiment of sectoral strength and resilience, positioning Indian real estate as a critical driver of economic progress. (With inputs from PTI)

Indian real estate sector poised to surge, projected to reach $1.3 tn by 2034

The property sector crisis in China is unlikely to end anytime soon. That's what two IMF officials have written in a recently-published blog.

IMF officials write on China's realty sector

As the Hong Kong court orders the liquidation of China Evergrande, the world's most indebted developer, this report focuses on the aftermath, exploring challenges creditors face in recovering debts, the complex web of Evergrande's assets, and the potential impact on china's broader property market.

Evergrande's liquidation casts shadow on China's capital markets

A Hong Kong court has ordered the liquidation of China Evergrande group, the world's most indebted developer with over $300 billion in liabilities. The liquidation of Evergrande, with $240 billion in assets, is poised to send ripples through china's already fragile capital and property markets.

Evergrande's liquidation rattles Chinese capital markets | World Business Watch

China's real estate crisis is turning property developers to employ unconventional marketing tactics. From promises of free wives to gold bars for homebuyers, developers are pulling out all the stops in the face of a downturn that began with Evergrande's insolvency two years ago.

China's radical realty marketing tactics amid real estate crisis

The average price of new apartments in Tokyo surpassed 100 million yen annually for the first time in 2023. The Real Estate Economic Institute revealed a substantial 39.4 per cent&nbsp;year-on-year increase, setting a record at 114.8 million yen ($778,041).

The surge in apartment prices is attributed to multiple factors. Elevated labour and construction costs play a role, but a significant influence comes from the influx of foreign investors, taking advantage of the yen's decline to a multi-decade low,&nbsp;reported news agency Reuters.

Japan's resilient property and stock markets are experiencing an investment boom after years of deflation and stagnant growth.

The country's low-interest rates create an appealing environment, drawing foreign buyers to&nbsp;capitalise on the weak yen. At a 33-year low, the yen's depreciation becomes a driving force for international investors.

Additionally, individuals seeking to shift funds from China, amidst a real estate crisis and geopolitical concerns, contribute to the surge in Tokyo's property prices.

<a href="https://www.wionews.com/entertainment/lifestyle/news-what-does-it-mean-to-be-japanese-ukraine-born-model-wins-miss-japan-amid-social-media-backlash-683446">Also read |&nbsp;What does it mean to be Japanese? Ukraine-born model wins Miss Japan amid social media backlash</a>

<h2>Staggering price tags and affordability challenges</h2>

With the average apartment price now at 114.8 million yen, it reflects a stark reality: Tokyo apartments cost approximately 25 times the country's nationwide salary average of 4.6 million yen ($31,175.87). The escalating prices pose challenges to local residents and prospective buyers.

The Tokyo metropolitan area witnessed a notable trend in 2023, with over 4,000 units of luxury apartments priced over 100 million yen. Notable examples include Mita Garden Hills in central Tokyo, where a 376.50 square-meter unit sold for a staggering 4.5 billion yen.

Also watch |&nbsp;Ukrainian-born model crowned Miss Japan 2024 sparks national identity debate

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As demand for apartments expands beyond central Tokyo, the greater Tokyo area experienced a surge in average apartment prices, reaching a new record at 81 million yen. This 28.8 per cent&nbsp;increase further underscores the broader impact of Tokyo's property boom.

Japan's property market, buoyed by low-interest rates and heightened investor interest, stands as a dynamic player in the global real estate landscape, attracting attention and reshaping the city's skyline.

(With inputs from agencies)

The average price of new apartments in Tokyo surpassed 100 million yen annually for the first time in 2023. The Real Estate Economic Institute revealed a substantial 39.

The average price of new apartments in Tokyo surpassed 100 million yen annually for the first time in 2023. The Real Estate Economic Institute revealed a substantial 39.4 per cent year-on-year increase, setting a record at 114.8 million yen ($778,041). The surge in apartment prices is attributed to multiple factors. Elevated labour and construction costs play a role, but a significant influence comes from the influx of foreign investors, taking advantage of the yen's decline to a multi-decade low, reported news agency Reuters. Japan's resilient property and stock markets are experiencing an investment boom after years of deflation and stagnant growth. The country's low-interest rates create an appealing environment, drawing foreign buyers to capitalise on the weak yen. At a 33-year low, the yen's depreciation becomes a driving force for international investors. Additionally, individuals seeking to shift funds from China, amidst a real estate crisis and geopolitical concerns, contribute to the surge in Tokyo's property prices. Also read | What does it mean to be Japanese? Ukraine-born model wins Miss Japan amid social media backlash Staggering price tags and affordability challenges With the average apartment price now at 114.8 million yen, it reflects a stark reality: Tokyo apartments cost approximately 25 times the country's nationwide salary average of 4.6 million yen ($31,175.87). The escalating prices pose challenges to local residents and prospective buyers. The Tokyo metropolitan area witnessed a notable trend in 2023, with over 4,000 units of luxury apartments priced over 100 million yen. Notable examples include Mita Garden Hills in central Tokyo, where a 376.50 square-meter unit sold for a staggering 4.5 billion yen. Also watch | Ukrainian-born model crowned Miss Japan 2024 sparks national identity debate As demand for apartments expands beyond central Tokyo, the greater Tokyo area experienced a surge in average apartment prices, reaching a new record at 81 million yen. This 28.8 per cent increase further underscores the broader impact of Tokyo's property boom. Japan's property market, buoyed by low-interest rates and heightened investor interest, stands as a dynamic player in the global real estate landscape, attracting attention and reshaping the city's skyline. (With inputs from agencies)

Japan: In a first, average Tokyo apartment prices exceed $778k in 2023

The US real estate market witnessed a significant downturn in existing home sales in 2023, reaching the lowest levels since 1995. The National Association of Realtors reported a stark contrast from the previous year, with sales dropping to nearly 4 million from 2022's 5 million.

US home sales nosedive to 1995 levels

In a real estate blitz near India's capital new Delhi, India's largest developer, DLF ltd has pulled off a blockbuster sale, offloading all one thousand and one hundred luxury apartments in its latest project for a whopping $865 million. Astonishingly, this feat was accomplished even before construction commenced, with the high-end residences snapped up in just three days.

India's Gurugram emerges as the new hotspot for luxury homes | World Business Watch

New York's attorney general is seeking $370 million from former president Donald Trump in a fraud case which has seen the real estate mogul accused of inflating the value of his properties, court documents showed Friday.

"Record evidence... supports disgorgement of $370 million, plus pre-judgment interest," said the filing, significantly more than the $250 million that New York Attorney General Letitia James previously said she would seek.

Trump, the frontrunner for the 2024 Republican presidential nomination, and his two eldest sons are accused of fraudulently inflating the value of their real estate assets to receive more favourable bank loans and insurance terms.

The amount to be paid will be determined by the judge, Arthur Engoron, whom Trump has repeatedly attacked on social media.

It will be released in his final decision and order.

Trump, in a post on his Truth Social platform, lashed out at James, calling her "totally corrupt" and saying "I did nothing wrong."

"My financial statements are great &amp; very conservative," he said. "This case should never have been brought."

The former president will separately stand trial on March 4 in Washington in a federal case in which he is accused of seeking to upend the results of the 2020 election in a concerted effort that led to the violent January 6, 2021 attack on the US Capitol by his supporters.

Trump also faces federal charges for allegedly mishandling top secret documents after he left the White House, and has been charged with racketeering in Georgia on accusations that he tried to overturn the 2020 election results in the southern state.

New York's attorney general is seeking $370 million from former president Donald Trump in a fraud case which has seen the real estate mogul accused of inflating the value of his properties, court documents showed Friday.

New York's attorney general is seeking $370 million from former president Donald Trump in a fraud case which has seen the real estate mogul accused of inflating the value of his properties, court documents showed Friday. "Record evidence... supports disgorgement of $370 million, plus pre-judgment interest," said the filing, significantly more than the $250 million that New York Attorney General Letitia James previously said she would seek. Trump, the frontrunner for the 2024 Republican presidential nomination, and his two eldest sons are accused of fraudulently inflating the value of their real estate assets to receive more favourable bank loans and insurance terms. The amount to be paid will be determined by the judge, Arthur Engoron, whom Trump has repeatedly attacked on social media. It will be released in his final decision and order. Trump, in a post on his Truth Social platform, lashed out at James, calling her "totally corrupt" and saying "I did nothing wrong." "My financial statements are great & very conservative," he said. "This case should never have been brought." The former president will separately stand trial on March 4 in Washington in a federal case in which he is accused of seeking to upend the results of the 2020 election in a concerted effort that led to the violent January 6, 2021 attack on the US Capitol by his supporters. Trump also faces federal charges for allegedly mishandling top secret documents after he left the White House, and has been charged with racketeering in Georgia on accusations that he tried to overturn the 2020 election results in the southern state.

Trump faces $370 million in penalty demand to New York state in civil fraud case

Builders' distress is rising in Asian economies. Residential housing under strain in Asia. Vietnam to South Korea are facing the Real Estate stress. Watch the video to know more!

Real Estate stress brewing in Asian markets?

According to a recent research by the Japan Center for Economic Research, China's objective of doubling its gross domestic product by 2035 is in jeopardy if the country's real estate bubble explodes and causes a financial crisis. The country's economic growth would be stuck at about 1%.

Goal of expanding GDP to be threatened by China's real estate crash

The second-largest economy in the world is having difficulty picking up steam following years of covid-19 lockdowns. Apart from china's real estate meltdown battering middle-class wealth, there's also the growing threat of unemployment.

China's real estate crisis is battering middle-class wealth

The world's most indebted developer is teetering on the brink of another ominous milestone: liquidation, with only six weeks remaining. The real-estate giant's failure two years ago served as a pivotal moment in China's property crisis, signaling a profound shift and exacerbating concerns about the broader implications for the country's real estate sector.

Evergrande's fate hangs in the balance | World Business Watch

In a bid to curb the state deficit, France is contemplating the sale of real estate and reducing government spending on office space, according to statements by Budget Minister Thomas Cazenave on Sunday.

According to Reuters, Cazenave emphasised the potential for savings in office space, suggesting a 25 per cent reduction in administrative space and possible real estate sales. He highlighted the excess ratio of office space per civil servant compared to private industry standards.

This move aligns with the evolving work landscape post-COVID-19, with increased remote work. Additionally, Finance Minister Bruno Le Maire acknowledged the need for courageous choices, especially in reviewing unemployment benefits for seniors, to achieve the ambitious target of reducing the unemployment rate to 5 per cent by 2027.

Reuters cited Finance Minister Bruno Le Maire, who spoke on the necessity of revisiting social policies to achieve the government's goal of lowering the unemployment rate to 5 per cent by 2027. Le Maire specifically pointed to the need for bold decisions regarding schemes related to seniors' unemployment benefits.

This statement follows the government's efforts in reducing the unemployment rate from 9 per cent to 7 per cent. The proposed changes aim to address structural issues and ensure sustained economic recovery.

In response to Prime Minister Elisabeth Borne's discussions on Thursday, Budget Minister Thomas Cazenave confirmed that the government is pursuing an additional 12 billion euros in spending cuts for the 2025 budget. The overall objective is to trim spending by 16 billion euros for the 2024 budget and an additional 12 billion euros for the 2025 budget.

Cazenave emphasised the government's commitment to reducing deficits, targeting 4.4 per cent of GDP in 2024 and further lowering it to 3.7 per cent in 2025.

(With inputs from Reuters)

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In a bid to curb the state deficit, France is contemplating the sale of real estate and reducing government spending on office space, according to statements by Budget Minister Thomas Cazenave on Sunday.

In a bid to curb the state deficit, France is contemplating the sale of real estate and reducing government spending on office space, according to statements by Budget Minister Thomas Cazenave on Sunday. According to Reuters, Cazenave emphasised the potential for savings in office space, suggesting a 25 per cent reduction in administrative space and possible real estate sales. He highlighted the excess ratio of office space per civil servant compared to private industry standards. This move aligns with the evolving work landscape post-COVID-19, with increased remote work. Additionally, Finance Minister Bruno Le Maire acknowledged the need for courageous choices, especially in reviewing unemployment benefits for seniors, to achieve the ambitious target of reducing the unemployment rate to 5 per cent by 2027. Reuters cited Finance Minister Bruno Le Maire, who spoke on the necessity of revisiting social policies to achieve the government's goal of lowering the unemployment rate to 5 per cent by 2027. Le Maire specifically pointed to the need for bold decisions regarding schemes related to seniors' unemployment benefits. This statement follows the government's efforts in reducing the unemployment rate from 9 per cent to 7 per cent. The proposed changes aim to address structural issues and ensure sustained economic recovery. In response to Prime Minister Elisabeth Borne's discussions on Thursday, Budget Minister Thomas Cazenave confirmed that the government is pursuing an additional 12 billion euros in spending cuts for the 2025 budget. The overall objective is to trim spending by 16 billion euros for the 2024 budget and an additional 12 billion euros for the 2025 budget. Cazenave emphasised the government's commitment to reducing deficits, targeting 4.4 per cent of GDP in 2024 and further lowering it to 3.7 per cent in 2025. (With inputs from Reuters) WATCH WION LIVE HERE

France mulls real estate sales and senior unemployment benefit to tackle budget deficit

We delve into the impact of Gen AI on real estate, exploring how it's reshaping customer engagement, revolutionizing property design, and creating new revenue streams. Generative AI, or Gen AI, has emerged as a catalyst for transformation in an industry traditionally known for its slow adoption of cutting-edge technologies. With mountains of proprietary and third-party data at their disposal, real estate professionals are now at the precipice of leveraging Gen AI to revolutionize the way they operate. This shift, fueled by the creative and open-ended nature of Gen AI, holds the promise of generating significant value.

Decoding future property landscape

The real estate industry is embracing the cutting-edge capabilities of Generative AI (Gen AI), marking a pivotal moment for an industry known for its cautious adoption of technological innovations. McKinsey &amp; Company's recent findings project a potential value generation ranging from $110 billion to $180 billion as Gen AI shapes the future of real estate.

Unlocking Gen AI's potential: A paradigm shift

Traditionally perceived as a slow adopter of new technologies, the real estate sector is now at the forefront of a digital revolution. With its creative and open-ended nature, Gen AI is set to redefine the industry's operational landscape. This shift is not replacing Analytical AI but introducing new use cases, presenting a fresh opportunity for real estate to position itself at the forefront of technological advancement.

The Four C's: Gen AI's impact on real estate

McKinsey's insights reveal that Gen AI's strengths can be categorised into what they term 'the four C's.' Customer engagement, through tools like conversational chatbots, provides swift responses to inquiries. In the creation realm, Gen AI transforms property visualisation and interior design, offering potential tenants a personalised and immersive experience. Concision becomes a hallmark as Gen AI excels in synthesising insights from vast amounts of unstructured data, enhancing decision-making efficiency. Lastly, coding solutions, ranging from interpretation to generation, streamline various processes within the industry.

Real-World Gains: Over 10% growth in net operating income

Real estate companies leveraging Gen AI are already witnessing tangible benefits, experiencing over 10% growth in net operating income. This surge is attributed to more efficient operational models, enriched customer experiences, improved tenant retention, the creation of new revenue streams, and smarter asset selection.

7 Pivotal Actions: Navigating the Gen AI Frontier

Despite the potential, McKinsey emphasises the complexity of deriving value from Gen AI. Real estate companies need seven pivotal actions to navigate this technological frontier successfully. From aligning the C-suite around a business-led roadmap to adopting a laser focus on data, these strategic moves are vital for realising the full potential of Gen AI in the industry. Additionally, crafting a prompt library, creating digital tools that promote action, investing in a modern technology stack, and adopting a new operating model are crucial steps for harnessing the power of Gen AI.

Risks and Rewards: Gen AI's impact on real estate dynamics

As Gen AI becomes a game-changer, it introduces unique risks, including unintended biases and legal considerations. McKinsey underscores the importance of recognising and mitigating these risks early on, ensuring a seamless integration that aligns with ethical standards.

The Road Ahead: Real Estate's Leap into Gen AI Leadership

Real estate's reputation as a tech laggard may be an advantage as the industry did not overinvest in outdated technology. McKinsey encourages a forward-thinking approach, urging executives to start simply with a '2x2' strategy—identifying two use cases for immediate impact and two aspirational cases that promise fundamental business transformation. This approach positions real estate as a leader in the era of Gen AI, where data becomes the new terrain on which businesses compete for investor dollars, tenants, buyers, and longevity. The industry's climb towards Gen AI's transformative power is undeniably challenging but promises unparalleled rewards in the digitally powered future of real estate.

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The real estate industry is embracing the cutting-edge capabilities of Generative AI (Gen AI), marking a pivotal moment for an industry known for its cautious adoption of technological innovations.

The real estate industry is embracing the cutting-edge capabilities of Generative AI (Gen AI), marking a pivotal moment for an industry known for its cautious adoption of technological innovations. McKinsey & Company's recent findings project a potential value generation ranging from $110 billion to $180 billion as Gen AI shapes the future of real estate. Unlocking Gen AI's potential: A paradigm shift Traditionally perceived as a slow adopter of new technologies, the real estate sector is now at the forefront of a digital revolution. With its creative and open-ended nature, Gen AI is set to redefine the industry's operational landscape. This shift is not replacing Analytical AI but introducing new use cases, presenting a fresh opportunity for real estate to position itself at the forefront of technological advancement. The Four C's: Gen AI's impact on real estate McKinsey's insights reveal that Gen AI's strengths can be categorised into what they term 'the four C's.' Customer engagement, through tools like conversational chatbots, provides swift responses to inquiries. In the creation realm, Gen AI transforms property visualisation and interior design, offering potential tenants a personalised and immersive experience. Concision becomes a hallmark as Gen AI excels in synthesising insights from vast amounts of unstructured data, enhancing decision-making efficiency. Lastly, coding solutions, ranging from interpretation to generation, streamline various processes within the industry. Real-World Gains: Over 10% growth in net operating income Real estate companies leveraging Gen AI are already witnessing tangible benefits, experiencing over 10% growth in net operating income. This surge is attributed to more efficient operational models, enriched customer experiences, improved tenant retention, the creation of new revenue streams, and smarter asset selection. 7 Pivotal Actions: Navigating the Gen AI Frontier Despite the potential, McKinsey emphasises the complexity of deriving value from Gen AI. Real estate companies need seven pivotal actions to navigate this technological frontier successfully. From aligning the C-suite around a business-led roadmap to adopting a laser focus on data, these strategic moves are vital for realising the full potential of Gen AI in the industry. Additionally, crafting a prompt library, creating digital tools that promote action, investing in a modern technology stack, and adopting a new operating model are crucial steps for harnessing the power of Gen AI. Risks and Rewards: Gen AI's impact on real estate dynamics As Gen AI becomes a game-changer, it introduces unique risks, including unintended biases and legal considerations. McKinsey underscores the importance of recognising and mitigating these risks early on, ensuring a seamless integration that aligns with ethical standards. The Road Ahead: Real Estate's Leap into Gen AI Leadership Real estate's reputation as a tech laggard may be an advantage as the industry did not overinvest in outdated technology. McKinsey encourages a forward-thinking approach, urging executives to start simply with a '2x2' strategy—identifying two use cases for immediate impact and two aspirational cases that promise fundamental business transformation. This approach positions real estate as a leader in the era of Gen AI, where data becomes the new terrain on which businesses compete for investor dollars, tenants, buyers, and longevity. The industry's climb towards Gen AI's transformative power is undeniably challenging but promises unparalleled rewards in the digitally powered future of real estate. WATCH WION LIVE HERE

Bricks, Clicks, and Gen AI: Real estate's digital renaissance unveiled

Will you benefit from investing in real estate this Diwali? Watch what Niranjan Hiranandani, Co-founder, and MD, of Hiranandani Group has to say.

Will you benefit from investing in real estate this Diwali?

Property investment in China, a vital factor in the country's economic growth, has continued to decline. Home values in the country's largest cities have fallen at their quickest rate in over a year in September. That has dampened investors' enthusiasm about the third-quarter economic growth numbers.

Real estate downturn hits China's stocks

As China’s private developers struggle to meet their debt repayments, concerns are growing over the potential ripple effects on local-level government finances. Country Garden, the country's largest developer, has sounded the alarm, stating it may not be able to meet its offshore debt obligations.

Debt crisis in China's real estate sector

A group of investors protested outside the office of Zhongrong International Trust Co—one of China’s largest shadow banks—after it again failed to make payments on dozens of its products.

Zhongrong is the ninth largest trust in China, with 600 billion Chinese yuan, or $82 billion, worth of assets under management. It has been deferring its payments since late July.

According to Bloomberg, Zhongrong has missed payments on dozens of products and has no immediate plan to make clients whole payouts.

At least 30 products are now overdue, and Zhongrong also reportedly halted redemptions on some short-term instruments.

<h2>Deferred payments since July&nbsp;</h2>

On Wednesday (Aug 16), around two dozen protesters flocked to Zhongrong to demand payment. A video of the incident also went viral showing around 10 police and security officers deployed outside the office and attempting to pacify the agitated crowd.

In one of the clips, which was accessed by Bloomberg, a woman angrily asks about a product she owned that matured on July 28. “Why doesn’t the company pay us back?” she says. “It has already matured. Your financial statements said there is a profit.”

Another woman shouts,&nbsp;“Give us the money back, or we will die here.” A third says: “Why you don’t give us a clear explanation?”

The liquidity crisis troubling Zhongrong has sent alarm bells in Beijing as it comes just days after Country Garden, China's biggest private-sector developer by sales, missed interest payments on two US-dollar-denominated bonds.

<h2>China economy: Overall urban employment rises, economy in China signals sharper downturn</h2>

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<h2>Looming crisis&nbsp;</h2>

Both events are concerning as China's trust companies, once seen as a safe place for wealthy Chinese to park their money for hefty returns, are struggling to repay their clients.

These trust companies sell investment or trust products to corporate and wealthy clients. The clients' funds are then pooled and invested in a wide range of products or used as loans to private companies — including real-estate developers.

According to Bloomberg Economics, as of the end of 2022, China's trust sector's exposure to real estate was about 2.2 trillion yuan, or $302 billion, accounting for 10 per cent of its total assets.

Recently, a lot of trust firms have started defaulting on billions of dollars of investment products and the industry has shrunk by about 20 per cent from its peak in 2017, when regulators began clamping down on the nation’s shadow-banking excesses.&nbsp;

“The big danger is that a negative feedback loop kicks in, with property stress causing strains in the financial system, undermining credit expansion and depressing growth, which, in turn, exacerbates the slump in the property sector,” Bloomberg Economics said in a note.

(With inputs from agencies)

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A group of investors protested outside the office of Zhongrong International Trust Co—one of China’s largest shadow banks—after it again failed to make payments on dozens of its products.

A group of investors protested outside the office of Zhongrong International Trust Co—one of China’s largest shadow banks—after it again failed to make payments on dozens of its products. Zhongrong is the ninth largest trust in China, with 600 billion Chinese yuan, or $82 billion, worth of assets under management. It has been deferring its payments since late July. According to Bloomberg, Zhongrong has missed payments on dozens of products and has no immediate plan to make clients whole payouts. At least 30 products are now overdue, and Zhongrong also reportedly halted redemptions on some short-term instruments. Deferred payments since July On Wednesday (Aug 16), around two dozen protesters flocked to Zhongrong to demand payment. A video of the incident also went viral showing around 10 police and security officers deployed outside the office and attempting to pacify the agitated crowd. In one of the clips, which was accessed by Bloomberg, a woman angrily asks about a product she owned that matured on July 28. “Why doesn’t the company pay us back?” she says. “It has already matured. Your financial statements said there is a profit.” Another woman shouts, “Give us the money back, or we will die here.” A third says: “Why you don’t give us a clear explanation?” The liquidity crisis troubling Zhongrong has sent alarm bells in Beijing as it comes just days after Country Garden, China's biggest private-sector developer by sales, missed interest payments on two US-dollar-denominated bonds. China economy: Overall urban employment rises, economy in China signals sharper downturn Looming crisis Both events are concerning as China's trust companies, once seen as a safe place for wealthy Chinese to park their money for hefty returns, are struggling to repay their clients. These trust companies sell investment or trust products to corporate and wealthy clients. The clients' funds are then pooled and invested in a wide range of products or used as loans to private companies — including real-estate developers. According to Bloomberg Economics, as of the end of 2022, China's trust sector's exposure to real estate was about 2.2 trillion yuan, or $302 billion, accounting for 10 per cent of its total assets. Recently, a lot of trust firms have started defaulting on billions of dollars of investment products and the industry has shrunk by about 20 per cent from its peak in 2017, when regulators began clamping down on the nation’s shadow-banking excesses. “The big danger is that a negative feedback loop kicks in, with property stress causing strains in the financial system, undermining credit expansion and depressing growth, which, in turn, exacerbates the slump in the property sector,” Bloomberg Economics said in a note. (With inputs from agencies) WATCH WION LIVE HERE

Dozens of investors protest as China's shadow bank misses payments, signals deep distress in economy

All eyes are on Yang Huiyan, the billionaire chairperson of Chinese real-estate giant Country Garden, as bondholders hope that she will utilise her personal funds to sustain the company, according to a Bloomberg report.

Yang, whose estimated net worth is $5 billion, would receive nearly $28 million through dividends on Friday for her personal stake in the company’s service unit, according to Bloomberg's calculations. The $22.5 million bond payments that the company missed this week can be paid out by that amount. Another $35 million in cash payouts could go to a family-owned foundation.

The question of whether Yang would use her personal funds to settle Country Garden's obligations has gained attention in the wake of creditors pressuring Hui Ka Yan, the founder of the bankrupt developer China Evergrande Group, to use his own funds to support his company.

Country Garden, formerly the biggest builder in China and regarded by investors as a “model enterprise”, would join a long list of defaulters, including Evergrande, if it does not make the payments during the allotted 30-day grace period.

With the company’s dollar bond expiring in 2026 selling at approximately 10 cents on the dollar, investors have already factored in a potential default. On Thursday, Country Garden was downgraded by Moody’s Investors Service from B1 to Caa1. The firm stated that it could lose up to $7.6 billion in the first half.

“Over the past 12 months, Country Garden has shown higher willingness to pay compared to other privately-owned developers such as CIFI and Evergrande,” Bloombrg quoted Zerlina Zeng, a senior credit analyst at Creditsights Singapore. “However, with contracted sales continuing to tumble, it is hard to say whether they will continue to use their own funds to keep the bondholders afloat.”

Yang has provided Country Garden with “strong support” since its offering, the company claimed in a Thursday night filing with the Hong Kong exchange. Together with family members, this amounts to around HK$38.6 billion ($4.9 billion) in loans, shareholding increases, bond purchases, and scrip dividends, it said, without mentioning how much of the support arrived recently.

Yang this month transferred a sibling-controlled charity foundation a sizable portion of her personal ownership in Country Garden Services, which she also chairs, in a move that alarmed the market. Analysts at UBS Group AG described the timing as ”unusual.” The property manager shifted the payment date for its 2022 payments and special payouts a few days later.

The unit paying the dividends, Country Garden Services, said in a statement to Bloomberg that the payout plan, which was approved in May, is unrelated to any “third-party factor”. The services company explained that it moved forward the dividend payment date from August 30 to Friday because it has enough of cash and wants to relieve investors’ fears about its stability.

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All eyes are on Yang Huiyan, the billionaire chairperson of Chinese real-estate giant Country Garden, as bondholders hope that she will utilise her personal funds to sustain the company, according to a Bloomberg report.

All eyes are on Yang Huiyan, the billionaire chairperson of Chinese real-estate giant Country Garden, as bondholders hope that she will utilise her personal funds to sustain the company, according to a Bloomberg report. Yang, whose estimated net worth is $5 billion, would receive nearly $28 million through dividends on Friday for her personal stake in the company’s service unit, according to Bloomberg's calculations. The $22.5 million bond payments that the company missed this week can be paid out by that amount. Another $35 million in cash payouts could go to a family-owned foundation. The question of whether Yang would use her personal funds to settle Country Garden's obligations has gained attention in the wake of creditors pressuring Hui Ka Yan, the founder of the bankrupt developer China Evergrande Group, to use his own funds to support his company. Country Garden, formerly the biggest builder in China and regarded by investors as a “model enterprise”, would join a long list of defaulters, including Evergrande, if it does not make the payments during the allotted 30-day grace period. With the company’s dollar bond expiring in 2026 selling at approximately 10 cents on the dollar, investors have already factored in a potential default. On Thursday, Country Garden was downgraded by Moody’s Investors Service from B1 to Caa1. The firm stated that it could lose up to $7.6 billion in the first half. “Over the past 12 months, Country Garden has shown higher willingness to pay compared to other privately-owned developers such as CIFI and Evergrande,” Bloombrg quoted Zerlina Zeng, a senior credit analyst at Creditsights Singapore. “However, with contracted sales continuing to tumble, it is hard to say whether they will continue to use their own funds to keep the bondholders afloat.” Yang has provided Country Garden with “strong support” since its offering, the company claimed in a Thursday night filing with the Hong Kong exchange. Together with family members, this amounts to around HK$38.6 billion ($4.9 billion) in loans, shareholding increases, bond purchases, and scrip dividends, it said, without mentioning how much of the support arrived recently. Yang this month transferred a sibling-controlled charity foundation a sizable portion of her personal ownership in Country Garden Services, which she also chairs, in a move that alarmed the market. Analysts at UBS Group AG described the timing as ”unusual.” The property manager shifted the payment date for its 2022 payments and special payouts a few days later. The unit paying the dividends, Country Garden Services, said in a statement to Bloomberg that the payout plan, which was approved in May, is unrelated to any “third-party factor”. The services company explained that it moved forward the dividend payment date from August 30 to Friday because it has enough of cash and wants to relieve investors’ fears about its stability. WATCH WION LIVE HERE

Country Garden billionaire bags big payouts as default looms: Report

The challenging world of real estate is sending ripples through one of the biggest financial institutions. Goldman Sachs, not immune to the current market turmoil, has faced a staggering 1.15 billion dollar hit in the second quarter due to its real estate investments. The market volatility and shifting demands have proven to be a formidable challenge for the institution, prompting a comprehensive review of its portfolio.

Real estate woes hit Goldman Sachs

India's real estate sector is looking forward to the upcoming budget 2023 – 2024 with high expectations from the government to consider some key demands. Watch this video to know more.

What the real estate players need from the Budget

Pele was a footballer like no other, and his final resting place will be exceptional, too: a large replica stadium complete with artificial turf inside the world's tallest vertical cemetery.

Football legend Pele gets resting place in world's tallest vertical cemetery

Canada has placed a ban on foreigners buying property. The ban which took effect on Sunday aims to make homes available to Canadians facing a housing crunch.

It is not a blanket ban and allows certain individuals such as refugees and permanent residents who are not citizens to purchase the property. Furthermore, it only applies to city dwellings and not to recreational properties like summer cottages etc.

Watch |&nbsp;Watch: Winter storm leaves behind unique ice sculptures in Canada

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As per AFP, the measure is temporary and will be in place for two years. About a year back when soaring housing prices were putting house ownership beyond the reach of many Canadians, Prime Minister Justin Trudeau had proposed this measure as part of his 2021 electoral campaign.

Following a win, Trudeau's Liberal party introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

Also read |&nbsp;<a href="https://www.wionews.com/world/amid-tight-election-race-canadian-pm-trudeau-promises-2-year-ban-on-foreign-home-buyers-408261">Amid tight election race, Canadian PM Trudeau promises 2-year ban on foreign home buyers</a>

"The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors," said the Party at the time.

As per the party, this "desirability" was behind the &nbsp;"real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors."

However, as per the Canadian Real Estate Association, the average home price last month fell to Can $630,000 (US $465,000) last month from more than Can $800,000 (US $590,000) at the start of 2022.

Also read |&nbsp;<a href="https://www.wionews.com/world/australia-makes-negative-covid-19-test-report-mandatory-for-china-arrivals-548418">Australia, Canada join list of countries imposing mandatory COVID-19 tests for China arrivals</a>

Foreign buyers according to the national statistical agency account for less than five per cent of homeowners in Canada. Hence many experts as per AFP have said that a ban on them would not make housing more affordable, rather they say more housing construction is needed to meet the demand.

As per a June estimate by the Canada Mortgage and Housing Corporation about 19 million housing units will be needed by 2030. This means that the construction of 5.8 million new homes is needed.

(With inputs from agencies)

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Canada has placed a ban on foreigners buying property. The ban which took effect on Sunday aims to make homes available to Canadians facing a housing crunch. It is not a blanket ban and allows certain individuals such as refugees and permanent residents who are not citizens to purchase the property.

Canada has placed a ban on foreigners buying property. The ban which took effect on Sunday aims to make homes available to Canadians facing a housing crunch. It is not a blanket ban and allows certain individuals such as refugees and permanent residents who are not citizens to purchase the property. Furthermore, it only applies to city dwellings and not to recreational properties like summer cottages etc. Watch | Watch: Winter storm leaves behind unique ice sculptures in Canada As per AFP, the measure is temporary and will be in place for two years. About a year back when soaring housing prices were putting house ownership beyond the reach of many Canadians, Prime Minister Justin Trudeau had proposed this measure as part of his 2021 electoral campaign. Following a win, Trudeau's Liberal party introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act. Also read | Amid tight election race, Canadian PM Trudeau promises 2-year ban on foreign home buyers "The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors," said the Party at the time. As per the party, this "desirability" was behind the "real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors." However, as per the Canadian Real Estate Association, the average home price last month fell to Can $630,000 (US $465,000) last month from more than Can $800,000 (US $590,000) at the start of 2022. Also read | Australia, Canada join list of countries imposing mandatory COVID-19 tests for China arrivals Foreign buyers according to the national statistical agency account for less than five per cent of homeowners in Canada. Hence many experts as per AFP have said that a ban on them would not make housing more affordable, rather they say more housing construction is needed to meet the demand. As per a June estimate by the Canada Mortgage and Housing Corporation about 19 million housing units will be needed by 2030. This means that the construction of 5.8 million new homes is needed. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Trudeau keeps election promise, Canada imposes two year ban on foreign home buyers

The crisis in China's property sector is going from bad to worse. As per reports, in the country, a demolition campaign is gaining speed.&nbsp;

As the world's second-largest economy struggles under the weight of a faltering real estate market, indebted Chinese developers have been forced into a crisis. After massive quantities of debt-fueled construction, China now has enormous, uninhabited "ghost cities," and when builders run out of money, demolitions happen.

Watch |&nbsp;Gravitas: 50 million homes are empty in China

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According to a report in the Telegraph, analysts have warned Beijing has adopted a "build, pause, demolish, repeat" policy as Chinese officials try to limit supply to prevent a drop in property prices and increase economic activity through additional construction.

In an effort to revive the slumping real estate market, the Chinese government is reportedly demolishing tower blocks and halting work on structures that could accommodate 75 million people or more than the entire UK population.

Also read |&nbsp;<a href="https://www.wionews.com/economy/economic-experts-fear-queen-elizabeth-iis-funeral-will-further-damage-the-uks-economy-515503" hreflang="en">Economic experts fear Queen Elizabeth II's funeral will further damage the UK's economy</a>

Citing figures by researchers at Fathom Consulting, the Telegraph reported that in recent years around three billion square metres of housing in China has been paused or demolished.

In mainland China millions of apartments remain unoccupied, reports News Track Live.&nbsp;Due to the oversupply of vacant properties, the already unstable housing market in China may experience challenges with prices dropping even more.

The Chinese property research institute Bic Research Institute (BRI) has issued a warning in its most recent study, noting that China has no scarcity of homes, sitting unoccupied, and that "such high vacancy is risky."

“A large potential supply is represented by vacant homes. When predictions for the housing market turn negative, a significant number of vacant homes will be put on the market, which could add to downward pressure on home prices," it added.

Also read |&nbsp;<a href="https://www.wionews.com/world/china-property-crisis-forcing-families-to-live-in-unfinished-dangerous-flats-505227">China property crisis forcing families to live in unfinished, dangerous flats</a>

The average vacancy rate on the Chinese mainland is 12.1 per cent, according to the&nbsp;BRI report that was released earlier this month.&nbsp;This is much higher than in the UK, where only 0.9 per cent of homes are vacant, in Australia, the proportion is 11.1 per cent, and in the United States, it is 9.8 per cent.

That figure amounts to nearly 50 million vacant units, according to a study done last year by Ren Zepping, a former economist at the Center for Development Research.&nbsp;As per government statistics, there are roughly 400 million homes in mainland China.

(With inputs from agencies)

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The crisis in China's property sector is going from bad to worse. As per reports, in the country, a demolition campaign is gaining speed. As the world's second-largest economy struggles under the weight of a faltering real estate market, indebted Chinese developers have been forced into a crisis.

The crisis in China's property sector is going from bad to worse. As per reports, in the country, a demolition campaign is gaining speed. As the world's second-largest economy struggles under the weight of a faltering real estate market, indebted Chinese developers have been forced into a crisis. After massive quantities of debt-fueled construction, China now has enormous, uninhabited "ghost cities," and when builders run out of money, demolitions happen. Watch | Gravitas: 50 million homes are empty in China According to a report in the Telegraph, analysts have warned Beijing has adopted a "build, pause, demolish, repeat" policy as Chinese officials try to limit supply to prevent a drop in property prices and increase economic activity through additional construction. In an effort to revive the slumping real estate market, the Chinese government is reportedly demolishing tower blocks and halting work on structures that could accommodate 75 million people or more than the entire UK population. Also read | Economic experts fear Queen Elizabeth II's funeral will further damage the UK's economy Citing figures by researchers at Fathom Consulting, the Telegraph reported that in recent years around three billion square metres of housing in China has been paused or demolished. In mainland China millions of apartments remain unoccupied, reports News Track Live. Due to the oversupply of vacant properties, the already unstable housing market in China may experience challenges with prices dropping even more. The Chinese property research institute Bic Research Institute (BRI) has issued a warning in its most recent study, noting that China has no scarcity of homes, sitting unoccupied, and that "such high vacancy is risky." “A large potential supply is represented by vacant homes. When predictions for the housing market turn negative, a significant number of vacant homes will be put on the market, which could add to downward pressure on home prices," it added. Also read | China property crisis forcing families to live in unfinished, dangerous flats The average vacancy rate on the Chinese mainland is 12.1 per cent, according to the BRI report that was released earlier this month. This is much higher than in the UK, where only 0.9 per cent of homes are vacant, in Australia, the proportion is 11.1 per cent, and in the United States, it is 9.8 per cent. That figure amounts to nearly 50 million vacant units, according to a study done last year by Ren Zepping, a former economist at the Center for Development Research. As per government statistics, there are roughly 400 million homes in mainland China. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

'Build, pause, demolish, repeat': China to demolish buildings that could accommodate 75 million people

WeWork co-founder and former CEO Adam Neumann have received around $350 million in funding from top investment fund Andreessen Horowitz (a16z) for his upcoming new rental real estate business, called Flow.

Unicorn status to WeWork co-founder's startup 'Flow' gets pre-launch

China's massive housing market may experience a one-third decline in property sales this year as consumers lose faith in the industry and pressure mounts on struggling developers to finish pre-sold flats. The specialists at the rating agency S&amp;P have decided that the decline in sales will be twice as bad as they had initially predicted for this year, amid rumours that the government is contemplating a rescue of the sector that might cost 300 billion yuan ($44 billion).

The growing situation has gained attention in the wake of last week's report that unsatisfied apartment purchasers at building developments in more than 100 locations had united to withhold payments on unfinished residences. The strike has increased the strain on developers, who are already struggling with severe cash flow issues and rely on buyers making upfront payments for homes off the plan to keep money moving through their operations. The loss of this income will be devastating because the revenues might be utilised to pay debts as well.

Some well-known developers have already declared bankruptcy, sending shockwaves through the global financial system. Most notably, Evergrande, the nation's second-largest real estate company, confessed last year that it was unable to pay a portion of its $300 billion debt mountain. Recent data on home sales suggested that the sharp price declines were levelling out, but that was before the announcement of the mortgage strike caused expectations to be revised. According to S&amp;P, previously strong companies may fail as a result of the spread of decreasing sales and a decline in confidence.

Also Read:&nbsp;<a href="https://www.wionews.com/world/who-states-monkeypox-transmission-not-limited-to-gay-men-says-not-the-case-everywhere-501026">WHO states monkeypox transmission not limited to gay men, says 'not the case everywhere'</a>

According to a separate agency analysis, the loans in question are believed to be worth about 1 trillion yuan ($144 billion), which poses a risk to financial stability in the event of a dramatic price decline, which is now looking inevitable given the drop in sales. Sales and prices are under pressure to decline as a result of the economy's slowdown and rising unemployment.

(with inputs from agencies)

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China's massive housing market may experience a one-third decline in property sales this year as consumers lose faith in the industry and pressure mounts on struggling developers to finish pre-sold flats.

China's massive housing market may experience a one-third decline in property sales this year as consumers lose faith in the industry and pressure mounts on struggling developers to finish pre-sold flats. The specialists at the rating agency S&P have decided that the decline in sales will be twice as bad as they had initially predicted for this year, amid rumours that the government is contemplating a rescue of the sector that might cost 300 billion yuan ($44 billion). The growing situation has gained attention in the wake of last week's report that unsatisfied apartment purchasers at building developments in more than 100 locations had united to withhold payments on unfinished residences. The strike has increased the strain on developers, who are already struggling with severe cash flow issues and rely on buyers making upfront payments for homes off the plan to keep money moving through their operations. The loss of this income will be devastating because the revenues might be utilised to pay debts as well. Some well-known developers have already declared bankruptcy, sending shockwaves through the global financial system. Most notably, Evergrande, the nation's second-largest real estate company, confessed last year that it was unable to pay a portion of its $300 billion debt mountain. Recent data on home sales suggested that the sharp price declines were levelling out, but that was before the announcement of the mortgage strike caused expectations to be revised. According to S&P, previously strong companies may fail as a result of the spread of decreasing sales and a decline in confidence. Also Read: WHO states monkeypox transmission not limited to gay men, says 'not the case everywhere' According to a separate agency analysis, the loans in question are believed to be worth about 1 trillion yuan ($144 billion), which poses a risk to financial stability in the event of a dramatic price decline, which is now looking inevitable given the drop in sales. Sales and prices are under pressure to decline as a result of the economy's slowdown and rising unemployment. (with inputs from agencies)

S&P predicts one-third decline in China's real estate sales as situation worsens

Investments in real estate are considered sacred in some parts of the world. Not only to have a roof over your head, but real estate also plays an important part in long-term financial planning. Now, imagine owning a land that does not exist in the real world. Here comes the world of "metaverse”— the future, the virtual realities, the digital life.

Planning to buy land in metaverse? Follow these simple steps

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