Close to 65% of the chinese population lives in urban cities. This number was around 30-40% inbetween 2000-2005. During this period the GDP of china was around 4 Trillion USD. China boasts of a GDP of around 20 Trillion USD today. The average income has increased by almost 3 times since 2004.
This trend tells us that as the economy expands, the real beneficiary in terms of government spending towards developing the city / town is the urban population. In India cities like bangalore government spending is higher compared to the other towns. And betting that the boundaries of a city like bangalore expanding faster is a better bet than betting on a city / town that’s not closer to bangalore. Infrastructure plays a critical role in such instances.
We have a better understanding of how civilizations progress when the average income increases. The logical way will be increase urban spaces because the consumption is higher as the population density is higher, but this is because of the infrastructure which was set up earlier. A deeper study in terms of how much area from the centre of the city develops over time, is warranted. This will give insights into the real estate investing.
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