The Research On Development Relations Between Urbanization And Real Estate Industry

Urbanization is a process in which population and factors of production process to a regional gathering when the development of productive increase to a certain level. Urbanization is inevitable for the development of human society, and its specific aspects are as follows:the concentration of urban population, the increasing number of cities, the expansion of urban size and urban modernization. At present, China is in a period of accelerated urbanization, with the largest population, China is biggest developing country in the world, The process of urbanization in China must benefits our economy and the world economy well. However, we must also realize that some problems which arosed by urbanization, such as, the drastic growth of urban population, housing stress and weak urban infrastructure. In the background of the accelerated urbanization, China's real estate industry has also won a considerable development, but there are some deficiencies. What is the relationship between the current situation of urbanization and the development of the real estate industry? How to take advantage of urbanization and avoid disadvantages? Thus the research on the such relationship is significant.This paper will analyze the relationship between urbanization and real estate, from the perspective of basic theory of the urbanization and real estate, adopting methodologies of inductive and deductive, qualitative versus quantitative, system analysis and comparative analysis, under China's fast urbanization. Firstly, the paper will analyze the influence of urbanization on the real estate, and then it will be concluded that both of them facilitate with each other. Then, taking Xi'an as an example, the paper will analyze the relationship between urbanization and the development of the real estate industry as an empirical research. The index of urbanization is received by the analysis of the factors which influences the urbanization under the Interpretive Structural Modeling, and it will be concluded that economic growth is the most elementary and direct factor, That is the reason why the "Urbanization"-Urbanization rate and "economy of urbanization"-GDP are chosen as indexes. Respectively, with the urbanization rate and GDP empirical analysis of real estate investment, through the test of stationary time series, integration, cointegration, it will be obtained that there is long-term equilibrium relationship between Xi'an urbanization and the real estate industry. Then by the Granger causality test of the time series, the paper will obtain there is interaction relationship between Xi'an urbanization and the development of the real estate industry. Through all of the analysis, it is drawn that the relationship between the urbanization and real estate is interactional, needing coordinated development.