Impact Of Real Estate Investment On The City Economic Growth

Real estate is a leading and fundamental industry to the development of national economy, while the city is an important carrier where industries aggregate and develop. Therefore, the real estate development and urban economic development are inseparable.30years since reform and opening up, China’s social economic system model has experienced the transition from planned economy to market economy. With the gradual deepening of the reform and opening up, China’s national economy has shown a good development trend. The process of urbanization and industrialization is continued to accelerate, forcing real estate industry to develop significantly. Especially after the housing system reform in1998, market forces in real estate industry has been further deepened and the real estate industry is showing the expansive development trend. At the same time, many problems come from economy development of urban and real estate because of the blind expansion in urban developing. There are many problems n urgent need to solve the problem, such as local economic over-depending on the real estate industry, in-coordination relationship between real estate and urban economic development and structural problems of the real estate investmentThis paper theoretically analysis the influential mechanism of real estate investment on the urban economic growth from investment total and the investment structure on the basis of exploring the relationship between investment and economic growth, uniting the course of China’s real estate market development with the current situation of urban economic development. This paper empirically analyses the impact what real estate investment has on economic growth by studying the70large and medium-sized cities, and also answers the related issues mentioned before and puts forward policy recommendations.Specifically, chapter one describes China’s urban economy development, current real estate industry market and existing problems, then introduces the topic background information, study subjects, research objectives and significance. Through classifying current state of related issues researches both abroad and at home, the author sums up the research methods and extract the innovation points in this paper. Chapter two defines the main concepts and explains the major theories referred to in the paper. The chapter three analyses theoretically the influence as per previous research ideas, what real estate investment has on the urban economy, from three aspects:the influential mechanism, relationships between the two together with exogenous forces of real estate investment. The chapter four begins with the classification of research subjects and empirically analyses the effect what different types of investment has on economic growth based on the analysis of the effect total real estate investment on that and integrated the need of real estate investment structure. The chapter five through the comparative analysis, the paper illustrates the structural problems of real estate investment, gets the related conclusions about the effect total real estate investment and investment structure on urban economy, answers the questions posed in the chapter one and puts forward the corresponding policy implications.