China’s $60 trillion housing boom turned into a crisis. Could India be next?
China's housing market is facing a deep and long property downturn, with inflation-adjusted home prices falling back to 2005 levels, erasing wealth created during the two-decade real estate boom. The crisis is reshaping China's economy and raising concerns about potential impacts on other countries, including India.
China's housing market has experienced a significant downturn, with inflation-adjusted home prices falling to 2005 levels. The correction has erased much of the wealth created during the country's two-decade real estate boom. The slowdown accelerated after Beijing introduced the 'three red lines' policy in 2020 to curb excessive borrowing by property developers. Developers such as Evergrande and Country Garden struggled to repay obligations, and buyer confidence weakened. The property downturn is now one of the biggest drags on China's post-pandemic recovery. India's housing market is considered structurally different from China's, but analysts are monitoring warning signs such as rising property prices in major cities and increasing investor participation.
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