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ResearchUrban and Regional Studies InstituteResearch projects

The Impact of the Real Estate Sector on the Regional Economy under Rapid Urbanization : The Case of China

Principal researcher

Honghao Ren

Type of research



Prof.dr. Henk Folmer

Prof.dr. Arno J. van der Vlist


Under China’s rapid urbanization, a large number of people move from rural area’s into cities. As a result, the demand of real estate sharply increases which leads to the dramatic rise of real estate construction. This raises the question: what impact of the construction of real estate has on the development of the regional economy? Increase of real estate construction stimulates economic development and employment through intersectoral linkage. In another perspective, investment and consumption in real estate has a negative wealth effect in China. Therefore, I will focus on the impact of the real estate sector on the regional economy, by analyzing the positive and negative effects.

Last modified:23 February 2015 3.17 p.m.