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The Impact of China-Pakistan Financial Corridor (CPEC) on Real Estate Sector

Posted by admin on May 27, 2014
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Published by FXPROPERTY360-  SOURCE: 23 June 2017

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China-Pakistan Financial Corridor (CPEC) is an important project to boost Pakistan’s economy. The CPEC defined route goes from Kashgar in China to Gwadar via Karachi and reaches Turkey via Iran. CPEC is reviving the old Silk Road initiative which will operate under the new initiative of “One Belt, One Road.” The new route will not just connect China and Pakistan for mutual benefits, but it will be a source of progress for the 26 connected countries. Moreover, CPEC includes a number of projects which includes a railway line construction which will connect Kashgar with Gwadar and road networks for different countries. It also includes an optic-fibre cable project, different energy production units and a dry port.

Pakistani real estate has seen a tremendous increase in property prices since the agreement. It has not only grabbed the attention of investors, but the demand for land has increased significantly. Prices run into the millions in Gwadar, so we can say it has touched the sky. And, soon after the government announcement to construct a deep-sea port, the remote fishing town of Gwadar witnessed a significant boost in prices. The initiative has given rise to housing schemes in Gwadar, not only for accommodating Chinese officials but for buyers across the board.

The initiative has given rise to housing schemes in Gwadar, not only for accommodating Chinese officials but for buyers across the board.‘Made in China’ is the name given to Gwadar where everyone wants to cash-in. Also, the number of online search inquiries on Lamudi.pk for Gwadar properties increased since the government announced in 2014. There are expected to be knock on effects for other critical sectors, which will ultimately improve the economy of Pakistan.

Read: Pakistan and China’s 46-billion-dollar Visit

Gwadar Development Authority (GDA) is actively working on residential and commercial schemes to make Gwadar a modern city. Housing schemes in the area are equipped with modern facilities with top-notch infrastructure to make residents feel safe and at home.

Prices have gradually increased since the revival of CPEC. One of the rising stars among various housing schemes is Palm City Gwadar. The size of plots varies from location to location. 5 Marla, 10 Marla, 15 Marla, and 20 Marla are available. The price for a residential plot is as low as eight lacs while the highest it could reach is 20 lacs. Furthermore, a few commercial plots are up for sale. On average, a 5 Marla plot costs 22.5 lacs and a 8 Marla plot costs around 33 lacs.

Another housing scheme that caught our eye is Sangar Housing Scheme. It covers a gigantic area of 2,500 acres. The residential society is equipped with ultra-modern facilities, equipment, and infrastructure that match any high-end housing scheme that appears in your mind. Your options for a residential plot can range from 400 square yards to 1,000 yards in size. And, if you are thinking of doing business, 100 square yards to 5 acres commercial plots are available for a profitable investment. The highest a residential plot might reach is 5.25 Crore, whereas, a commercial plot can cost as high as 7 Crore. Don’t be alarmed, affordable plots are also present, grab them before it is too late.

cepc

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Don’t be alarmed, affordable plots are also present, grab them before it is too late. Invest here to enjoy a favorable return on investment. You can see the fast-paced developments underway which will add to the future value of your property.

However, there is a downside. For the purpose of constructing roads, the government had to acquire land that was previously owned by locals. Various affected groups protested and forcefully halted the construction work in different districts until their demands were accepted. Later, the government paid a fair price to those affected for the smooth completion of the project. Major protests in Tharparker appeared when the government dam construction began. A few protest groups called the initiative harsh, but in certain respects, they are not thinking about the future growth of Pakistan’s economy. Non-payment of compensation is a major issue for the smooth running of the project but, the government is doing its best to please all affected parties.

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