China’s property market has fallen back to 2005 levels, shaking its economy. Prices across 70 major cities have dropped sharply, with inflation‑adjusted values slipping nearly 23% between 2021 and 2025. Developers such as Evergrande and Country Garden have faced defaults, while unsold housing stock has risen steeply. Real estate once contributed about 25% of China’s GDP, but the crash has eroded household wealth and weakened consumer confidence.
The slump has sparked debate on whether India could face a similar housing crisis. Analysts highlight that India’s market rests on different fundamentals. Demand continues to exceed supply in many urban centres, driven by population growth, rising urbanisation and strong end‑user needs. Non‑resident Indian investments also support housing demand. Unlike China, India does not face the same scale of oversupply.
Risks remain for India. Slowing income growth and weaker rental yields could affect returns for investors. Job uncertainty and currency pressures may also weigh on sentiment. Experts caution that while India is unlikely to mirror China’s collapse, careful monitoring of affordability and demand trends is essential. For now, India’s housing sector appears resilient, but vigilance is needed to sustain stability.
