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By 2032, China will surpass US to become world’s largest economy: report

Country is a major force in US real estate market
December 26, 2017 10:10AM

Shanghai (Credit: Pixabay)

China will surpass the United States as the world’s largest economy by 2032, according to a report by the Centre for Economics and Business Research (CEBR), a London-based consultancy.

The CEBR report predicted that Asian economies would gradually surpass Western economies over the next 15 years and that by 2032, three of the five largest economies would be Asian. CEBR predicts India would shoot up from seventh to third over the next decade alone.

China is already a major driver of international real estate investment. Chinese buyers spent more than $50 billion on U.S. real estate investments in 2016, roughly half of all the money mainland Chinese buyers spent outside their home country that year. That was a 25.4 percent increase year-over-year and an 845 percent increase over 2011, Juwai Head of International Industry Marketing Sue Jong told RIS Media, going on to call the U.S. “a near perfect market” for Chinese investors.

Asian investors accounted for 71 percent of foreign buyers in California in 2016, up from 51 percent in 2015, according to a report by the National Association of Realtors.

But Chinese government capital controls are expected to put a significant dent in outbound real estate investments, at least in the short term. Chinese investors are expected to put $58 billion into U.S. real estate between 2016 and 202FIX, which is less than half the $110 billion spent between 2010 and 2015, according to the Asia Society.

Still, some Chinese nationals are finding ways to spend cash stateside. A Chinese buyer was reportedly behind the recent $91.1 million purchase of three units at Harry Macklowe’s 432 Park Avenue in New York [Bloomberg] — Dennis Lynch