Construction output value in China 2000-2022

In 2023, the construction industry in China generated an output of over 31 trillion yuan, representing an increase of almost 100 percent from a decade ago.

Stimulus from the real estate sector and government-funded projects

With the liberalization of the housing market in the late 1990s, China's real estate industry enjoyed a 20-year boom since the early 2000s. Amidst the surge in housing prices, local governments across China received considerable non-tax revenue from land leases and in turn, invested the funds in infrastructure development projects. This led to the continuous prosperity of the country’s construction industry.

A vital segment of China’s economy

Thanks to the stimulus from housing developments and infrastructure projects, the construction industry is now one of the pillar industries of China's economy, accounting for around seven percent of the country's GDP. However, with the recent difficulties experienced by many major real estate enterprises, and the stagnation in infrastructure construction owing to local governments' debt situation, China's construction sector faces a somewhat uncertain future.