China's second quarter growth data this week confirmed a continued slowdown in the world's second largest economy, but the one sector that remains robust is real estate and Citi expects property developers to outperform the market in the second half of the year.
Revenues from property sales in the country jumped more than 43 percent in the first half of 2013 from a year earlier, and even though that was down from an almost 53 percent rise in January to May, the levels still remain high, government data showed.
Citi said transaction volumes grew nearly 29 percent year on year, while real estate investment spiked almost 21 percent in the first half, showing that China's property space remains one of the economy's most resilient sectors.
According to Citi, as the Chinese economy slows, policymakers will see the need to protect the health of the property sector and hold off on further cooling measures.
"Deterioration of China's economy suggests policymakers will be wary of any new measures that might harm the health of the property market," Citi said in a note on Monday. "Overall, we expect conditions in China's property sector to be similar to 2012 − characterized by steady growth amid general stability."
(Read More: Fundamentals No Longer Driving China Housing Market?)