Prior to 2007, Beijing had a shortage of high quality office and retail spaces therefore many large companies were forced to adjust their expansion plans in Beijing.  However, due to the upcoming Olympics Games in Beijing approximately $41 billion has been budgeted for the city’s transformation and a large portion of it has been invested in improving the environment. 

Many analysts have said that the Olympic Games will likely have a lasting and positive effect on Beijing’s real estate market due to the government’s efforts to improve Beijing’s development landscape and air quality.  This had led to an increase in supply of high quality office space for large companies to expand in Beijing.   

Demand drivers supporting this development will continue to grow because Beijing is a critical location for the expansion of businesses in China.  Moreover, new subway lines running through established commercial areas will also increase property values and will enable more convenient commuting for workers.