# Since a property bubble burst in 2021, sales, prices and investment in residential and commercial real estate have tumbled.

*business · news · 2026-05-08 · Livemint*

## Key points

- Over 40% of grade-A offices are empty in some inland Chinese cities like Wuhan.
- In March, AI firm demand for prime office space in China tripled year-on-year, per UBS.
- Vacancy rates in Hangzhou and Shenzhen's high-end offices peaked at 30% in late 2025.
- Hangzhou's local government is offering rent subsidies to innovative firms to boost occupancy.
- Recent AI-related office demand is mostly for support staff, not engineers, who are at risk of automation.

**Companies:** Alibaba, Tencent, Hang Lung Properties
**Countries:** China

[Read the full story on Livemint](https://www.livemint.com/global/deepseek-and-alibaba-rescue-china-s-office-landlords-11778232591518.html)

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