2025 China Investment Market Outlook Mid-Year Review

Welcome to CBRE’s 2025 China Real Estate Investment Market Outlook Mid-Year Review; a report in which we look back at the predictions we made at the beginning of the year and evaluate what we got right, and what we got wrong.

• While commercial real estate investment volume increased by 19% y-o-y in H1 2025, the number of transactions fell by 29%.
• Institutional investors displayed a strong interest in consumption and living related assets. Retail and rental housing investment volume doubled in H1 2025. Data centre demand also increased.
• The cumulative expansion of yields in tier I cities narrowed compared with H2 2024. However, short-term pressure for expansion remains.