Shanghai is a major metropolis of China and its financial center. The city was able to rise after the opium war and revolution and became one of the most comfortable cities in the world for living and doing business. Real estate in Shanghai is a dynamic market, which with the right investment will bring high returns.
How profitable it is to invest in real estate in Shanghai
The zest of Shanghai is not in ancient architecture or unique nature, this city conquers people’s hearts with its irrepressible energy. It is considered the business heart of China, the metropolis is home to a huge number of billionaires, there are luxury hotels, famous restaurants and fashionable stores.
The architecture is also fascinating. The city development project has been implemented since the early 90s. Its main objects are skyscrapers in 20-30 floors, where residential apartments and office premises are located. Real estate in Shanghai in such houses is available for the middle class. Credit programs from local banks are available for purchase of housing. Mortgage is given for 30 years with an annual rate of 5% on condition of a down payment of 20% of the purchase amount.
Construction of new projects in the city is carried out at the speed of light. If just a few years ago the tallest building was a TV tower, now more than 100 skyscrapers have almost caught up with it. Factors of rapid development of the Shanghai real estate market are population growth and loyal conditions for doing business. The city is a promising platform for professional activity and ideal opportunities for investment have been created here. Foreign businessmen invest in the implementation of construction projects in order to obtain high profits. In Shanghai, all economic and bureaucratic processes are designed to attract as much investment as possible in the development of local infrastructure. According to last year’s data, the real estate market received more than 51.412 billion yuan. This figure is 2% more than the previous year.
Shanghai has been growing steadily for a long time. Demand for real estate from both the local population and foreign investors is increasing. Optimal conditions have been created for the latter in the megapolis to purchase objects.
Pudong is considered a prestigious district of the city. A square meter of housing here costs from 3200 dollars. In other parts of Shanghai, this figure will range from 1200 dollars.
Experts predict a 10% decrease in prices at the real estate market on average. But despite the recession, the cost of residential and commercial objects still remains high, sometimes unjustified.