The numbers are interesting, and both Richard Middleton, a managing director for C&W China, and Sanjay Verma, who carries the same title in India, presented strong cases for their locales. While China's GDP growth approaches 10% annually (and the government spends roughly 4% of that on infrastructure improvements), India is close behind with nearly 7% annual growth. Both executives predicted that that growth rate would continue for the next 15 years. In fact, Middleton stated that the Chinese government is "imposing restraints--including a real estate tax--to control growth."

Suburbanization seems to be a key in both markets as well. For China this is especially true around Shanghai. The city is expected to see a 10-million-sf increase in its office stock in the next two ears and a rise in rental rates, which should push more space seekers into the outer regions, Middletown said.

Much the same is true in India, which, said Verma, is undergoing "rapid suburbanization." Overall, he noted, the office stock was growing by 10 to 15 million sf annually.

The challenges of each market are as clear as the benefits, and both men admitted that both countries suffer from a reputation for corruption and bureaucracy, labeling it "a serious issue." While China suffers from a language barrier from which India is free (Verma called it the world's second largest English-speaking nation), India's infrastructure is woefully behind that of China.

For its part, the panel of experts agreed that the choice for offshore players is not black and white, but rather is a decision colored by the company's needs. United Technologies' Zappile, whose company's offshore business favors China over India, stated that while his firm's own growth prospects lean toward China, it is ultimately a question of "which is the more sustainable model."

For Reiss, "right now, I'd rather be an investor in China and a developer in India."

Instant Insights /

China, India Promise Years of Growth

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