Is the ratio of real estate to gdp as large as possible?

First, the real estate industry is an enterprise with no real technical content. The greater its proportion in GDP, the lower the economic level of this country. The real estate industry is related to traditional industries such as cement and steel. The typical characteristics of these traditional industries are low added value and low technology content.

Second, the real estate industry is based on real estate. The greater the proportion of real estate in GDP, the lower the international economic mobility or economic activity. During the Japanese real estate bubble in the 20th century, the real estate value of a Ginza district could buy the whole of new york. However, this inactive economic form will lead to the stagnation of the whole national economy once the funds occupied by external factors are too large. This is the reason why Japan's economy has not improved for 20 years after the Plaza Agreement.

Third, the greater the proportion of real estate in GDP, the higher the cost for citizens to buy real estate. The emergence of house slaves in China has seriously restricted the transformation of China's economy from investment-driven to consumption-driven. It can be said that since 20 12, China's economy has stagnated, and the real estate industry is the chief culprit.