China's property bust holds lessons for India

India and China are on the opposite end of the economic cycle in real estate

China’s property market is in its worst slump since private property markets were created in the country in the mid-1990s. Sales are stuck at 80 per cent of the pre-pandemic levels and, while they may have hit bottom, show no signs of picking up. The bust began in mid-2021, as the government clamped down on property developers in an attempt to rein in leverage and protect the financial system. There were fears of systemic risk if the unbridled borrowing of the property developers was not brought under control.

Already weakened by their restricted access to credit, the Covid shutdowns further decimated