Real estate investment in China fell by 11.2% in Q1

Investment in China’s real estate sector fell by 11.2% year-on-year in January–March 2026, to 1.77 trillion yuan ($258.3 billion). The pace of decline accelerated slightly compared to the first two months of the year, according to data from the National Bureau of Statistics of China.

At the same time, sales of new commercial real estate fell by 10.4% year-on-year to 195.25 million square meters, marking a less severe decline than at the start of the year. Some improvement was recorded in March, but demand remains weak compared to 2025.

Construction activity, a key driver of steel consumption, is also showing negative trends. Total construction area in China for the first quarter fell by 11.7% year-on-year, while new construction projects dropped by 20.3% year-on-year. Despite the slowdown in the decline in March, the market remains in a downturn.

According to industry analysts, the share of construction in total steel consumption in China fell to 49% in 2025, down from 58% in 2020. Last year, steel consumption in this segment fell by 13%, and a further decline is expected in 2026, albeit at a more moderate pace—around 4.1%.

As a reminder, China recently outlined a plan to stabilize the real estate sector by 2026. It includes measures for specific cities to strictly control new supply while simultaneously reducing existing supply, accelerating the establishment of a new development model for the sector.