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China's real estate investment drops 11.2% in Q1 2026

22 Apr 2026 12:15 reported by Ocean Qu

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China’s real estate investment fell 11.2% year on year in the first quarter of 2026, hitting CNY 1.77 trillion. That’s a slightly sharper drop than in January-February, according to the National Bureau of Statistics of China.

New commercial property sales slid 10.4% to 195.25 million square meters. While that’s less severe than earlier this year, and March brought some improvement, demand still looks weak compared to 2025.

Construction activity, a big driver of steel use, isn’t faring well either. Total floor space under construction fell 11.7% in Q1, and new projects plunged 20.3%. Even with a slower decline in March, the market remains stuck in a downturn.

Industry analysts say construction’s share of China’s total steel consumption dropped to 49% in 2025, down from 2020's 58%. Another decline, around 4.1%, is expected in 2026, though at a more moderate pace.

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