Shanghai tops Chinese cities in investment and development prospects

The report also highlighted respondents' growing interest in a number of specific market sectors, such as industrial properties. China is experiencing a shortage of high-quality modern warehousing and distribution facilities, partly because of the soaring demand from e-commerce.

E-commerce accounts for 6.1 percent of all retail sales in China, and transactions raised by 66.5 percent in 2012 to 1.3 trillion yuan ($212 billion), according to figures from China Internet Network Information Center.

Despite the strong interest in the industrial and distribution sector, real estate investors are finding it difficult to capitalize on this opportunity because existing assets and land zoned for industrial property are in short supply.

Urban Land Institute is a global nonprofit education and research institute. This is the third year the ULI has issued the survey.