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China and India: Great Opportunities That Present
Great Obstacles
With both China and India offering the fastest growing
markets in the world, Cushman & Wakefield Inc. hosted
the "The Great Debate: China vs. India," in
New York City this week.
"Asia is the place in the world where you have
to turn your attention," said Bruce Mosler, the
president & CEO of Cushman & Wakefield. He pointed
out that India's gross domestic product ranges from
6 to 7%, China's ranges from 8 to 10%, the fastest in
the world. Additionally, the approximate 2.5 billion
combined inhabitants of the two countries give great
strength to their consumer markets as well as residential
and retail property.
However speakers concluded that while both China and
India offer great investment and development opportunities
for the various industries including property, there
remains serious barriers.
According to Dale Anne Reiss of Ernst & Young,
the need for a translator to conduct meetings or travel
from place to place makes working in China difficult.
Reiss said: "You need a translator when you hop
in a cab,"
On the other hand, India has the second largest English
speaking population in the world, according to Sanjay
Verma, a joint managing director for Cushman & Wakefield's
India operations. But India suffers from poor infrastructure
from the airports to the roads. "When you get off
the plane in India," she said, "you know you're
not in Kansas anymore."
The debate also revealed that it is estimated that
by 2050, the United States, India and China will account
for more than 70% of the world's GDP. It was also suggested
that the retail sector remains a strong property market
in which to invest or develop in both countries. However
the residential markets were deemed overheated in both
countries, while suburbanisation and development of
tier two cities is currently occurring in both countries.
In the short-term, Reiss concluded: "I'd rather
be an investor in China and a developer in India."
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