Benefits of CPEC in the Real Estate Industry in Pakistan
By Space Coast Daily // November 1, 2021
There is a perception that CPEC has the potential to lead to a fundamental change in the economic profile of Pakistan. A road that will link Pakistan’s Gwadar deep, seaport to China’s Kashgar in western Xinjiang by way of CPEC will be a trade route for neighboring countries, which in turn, will be of benefit to many people in these countries.
The project will benefit many global industries and has the potential to directly affect the Pakistani economy. There is no doubt that CPEC will significantly contribute to Pakistan’s economy, as well as real estate markets, thereby opening up new avenues for economic growth in Pakistan, China and the rest of the world as well.
CPEC will open more opportunities for local property agents, builders, and real estate developers’
Ever since CPEC started, Pakistan’s real estate market has drastically changed. A CPEC perspective now serves to foresee the future of houses in Pakistan. People have been actively looking for investment opportunities in Pakistan’s real estate sector, which has attracted people from all over the world. Real estate projects have flourished as a result of this trend.
Is CPEC Good for the Real Estate Industry?
China and Pakistan have joined forces in the CPEC project, so there will be a lot of Chinese and Pakistani engineers in Gwadar and other points along the route. In the real estate market, this means that new small cities will be needed to accommodate them along the belt.
It would thus be necessary to have abundant land to develop safe housing societies equipped with all the amenities. Like Karachi, Gwadar would develop into one of the world’s major cities. Once the project is completed, Gwadar, Lahore, and Karachi will become the epicenters. Due to the fact that not only the citizens but also foreigners will demand housing in these major cities, real estate values will skyrocket.
In truth, CPEC will greatly boost Pakistan’s economic growth and eventually will affect our real estate sector as our GDP grows, as Chinese immigration increases, and as industries develop. We should see the direct effects of real estate in 3 to 5 years at maximum and in 7 to 10 years at most.
Thousands of Pakistanis are expected to experience an increase in property values, and prior trends in other countries suggest that China will be focusing its investments on residential and commercial properties, though it is not expected that Pakistan will impose too many restrictions on Chinese investments.
Gwadar, however, should experience the greatest impact given the relatively fewer restrictions, since the property’s appreciation would be more than multiple times what it is now.
When a trade route between Pakistan and China will be established, it will also be necessary to develop adequate road infrastructure. Road infrastructure boosts the value of the areas around it. As a result, prices will increase for houses, plots, and even rental apartments in the real estate sector.
By the end of the twenty-first century, Gwadar’s population should reach more than three million. Several kinds of commercial, residential, entertainment, cultural, and educational environments will be offered at Gwadar City, which will be built in a mixed-use gated development. It’s important to note that there is over 50% of open space in this area. Gwadar is expected to receive more schools, shopping malls, and hospitals as development increases.
The project will involve the construction of 1500 homes over an area of 3.5 million square feet. ft. In addition, Gwadar port is expected to witness an increase in land values with many immigrants arriving. Therefore, the real estate sector is expected to be boosted.