China Pak Economic Corridor, widely known as CPEC is an economic belt between Pakistan and China aimed to provide a way for China’s trade route and Pakistan’s future development in real estate industry. It is a trade-off opportunity for both countries but the advantage is with Pakistan as it will grow economically and industrially.
Future possibilities for Real Estate Sector:
This project will attract many countries along with real estate investors especially those who are geographically landlocked with other countries. With CPEC many industries are expected to set up in Gwadar and there is every possibility that people with different nationalities will move to this area and ultimately increasing the need for accommodation which is expected to be fruitful for Pakistani real estate industry. CPEC comprises of different infrastructural projects connecting Gwadar with that of China.
CPEC’S Effects:
This project will definitely create many job opportunities and in response the real estate industry will boost as majority of people will opt to buy land in Gwadar knowing the bright future of this area. This will create employment opportunities for local people and many potential buyers will invest, resulting in the real estate industry of Pakistan to progress. CPEC will have two major effects.
1- Chinese Immigration
Due to CPEC joint venture between China and Pakistan, several Chinese and Pakistani engineers are going to settle in Gwadar. This is a good news for the real estate industry to establish accommodations and different settlements along the belt. Henceforth, more land is needed to build communities with all the amenities.
As it is predicted that Gwadar will develop into an ultimate city like other major cities across the country, after the completion it will be a landmark project of Pakistan. As the need for accommodation increase, to accommodate foreigners and citizens, the real estate industry will show boom and property prices will also increase. The impact of Chinese influx on rental rates will grow more. We can clearly see the impact even the Chinese investors does not buy land directly in major cities.
Relation with Real Estate Industry
After the completion of CPEC, Lahore would be the target as it is in the middle of Punjab. It also has the second largest lucrative investment opportunities, as they will invest to set up their industries and accommodation. Higher rental indicates a higher property price and the reasons for the hike in prices of apartments is all part of the change yet to come. The Pakistani real estate market is comparatively cheaper than the international market. There is a higher probability that rich Chinese investors will invest and a few billion dollar investments in Pakistani real estate will create a huge impact.
2- Economic Growth
CPEC will have a huge impact on Pakistan’s Economy. It will establish more industry, thus creating more job opportunities. According to Harvard International Development Research Department, Pakistan’s development rate will increase to 5.07% over the next 10 years. This will become the second-highest development rate in Asia.
With the economic development, the demand for housing and real estate sector will increase correspondingly. The demand for more land will also increase. Real estate will prosper as more people can afford to buy property. We can observe the real impact on the completion and functionality of belt.
Conclusion
Due to CPEC Pakistani real estate industry has experienced a boost and has become a promising sector to invest. Many new companies in this market such as Sapphire Builders & Associates are entering the market to cater the need. But the federal capital Islamabad has also experienced significant growth in residential and commercial projects. There will be a direct impact of CPEC on real estate sector. And we can always experience a huge increase in property prices in the coming years.
Previous international trends suggest that residential and commercial property will be the main focus for a big Chinese investor. We can expect that the government will impose restrictions on foreign investment so it will prevent the country from negative impact.
