Tuesday, March 8, 2011

Weighing risk and reward in China at MIPIM 2011

China was the topic of one of the first panels of the day at MIPIM 2011, in a session looking at "Risk Versus Reward" in the country. Wisconsin real estate MBA students report on the discussion:

China’s strong economic growth, especially its sound performance during the global economic downturn, is driving more and more foreign investors to seek opportunities in China’s real estate market. A report from DTZ proves the point, showing that the proportion of foreign investors increased to 61% in 2010 from 29% in 2009.

However, there are risks in China’s market, including the uncertainty of government policies, a lack of high quality income properties, and the potential for competition from China’s own financial institutions which will become more important players as they explore increased economic freedom.

In addition to recognized opportunities in Tier 1 cities, the MIPIM panel opened a new window to second-tier city Chongqing, one of China’s fastest growing cities. Location, infrastructure, a solid industrial foundation, strong growth in science and technology are some of the elements creating a market with huge potential investment opportunities.

The Wisconsin School of Business is proud to partner with MIPIM World to bring you updates and developments from the show. For more coverage check in with us on www.wisconsinviewpoint.blogspot.com or follow us @UW_GraaskampCtr on Twitter.

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