2024 is set to be a landmark year for urban transformation in major cities across the Chinese mainland. By the end of January, several cities have already rolled out special loans aimed at renovating informal settlements, marking a significant step towards modernizing urban landscapes.
These dedicated loans are designed to cover initial costs, compensation, and the construction of new resettlement housing alongside essential infrastructure. Operating on a closed-loop basis, the financing ensures low-cost and efficient support, all while maintaining a break-even principle.
On January 30, the China Development Bank made a substantial move by issuing 9.08 billion yuan ($1.26 billion) in special loans dedicated to village renovation projects. This funding is spreading across nearly 100 projects in cities like Guangzhou, Zhengzhou, and Xi'an, directly benefiting over 100,000 residents and facilitating the construction of 238,400 new resettlement housing units.
Specifically, Xi'an received 500 million yuan for two targeted village renovation projects. The Xi'an Housing and Construction Bureau highlighted their commitment to pushing the initiative forward, emphasizing its potential to boost urban functionality and drive economic growth.
Looking to the future, Huang Yu, CEO of China Index Holdings, forecasts that the renovation of informal settlements will spark investments totaling around 1 billion square meters over the next five years. This growth is expected to create an average of 44 million square meters of new residential demand annually. Overall investment, including land acquisition and construction, is projected to reach an impressive 10 trillion yuan, according to Huang's speech at a China News Services event in January.
