Shanghai Lockdown: What Does it Mean for Real Estate?

May 19, 2022

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  • Shanghai’s lockdown to contain an omicron-driven surge in COVID-19 infections has had a significant short-term impact on its economy. The city’s GDP growth rate weakened to 3.1% y-o-y in Q1 2022, well below the national growth rate of 4.8% y-o-y. In addition to having a localised economic impact, the lockdown has exerted pressure on the broader Yangtze River Delta region by disrupting cross-city business activity and supply chains.


  • The government’s adoption of a dynamic zero-covid approach to containing the pandemic is likely to shield Shanghai’s economy from a deep and prolonged downturn. Supportive measures already introduced by city authorities include tax reductions, rent exemptions and financial support to small businesses.


  • As Shanghai enters the final stage of its effort to contain Omicron, this report by CBRE summarises the government, landlord and occupier response to the lockdown and identifies key real estate trends and opportunities as the city looks to return to normal.