Impact of CPEC on Pakistan Real Estate Sector’s Future
China Pak Economic Corridor, also widely known as CPEC is link between two countries China & Pakistan forming an alliance for the future business dominance. The need for CPEC comes at a time when China has already captured world’s production market but due to its geographical location faces hardships when sending out shipments. When you put your land to use, it has a dominant impact on the entire region. The project’s impact on Pakistan’s economy will be huge and so will be on the real estate sector. The 3,218 KM long highway is under construction and still requires a lot of time and patience to complete.
Impact of CPEC on Pakistan Real Estate
CPEC is a one belt, one road plan that comprises of a series of interstates, railroads, pipelines and electricity. Linking Pakistan’s Gwadar deep-sea port with China’s Kashgar in western Xinjiang, will allow neighboring regions to make use as well and reduce their trade routes with the rest of the world. Approximately 83% of China’s oil is transported thru Strait of Malacca to Shanghai. The area it needs to travel is approx. 16ooo KM which requires 3 months owing to traffic and weather conditions. With Gwadar operational, 5000KM will be reduced cutting down time and cost at the same time. Estimated cost of the project is around US $ 75 Billion. About US $ 45 Billion will guarantee the project gets operational by 2020 while the rest will be spent on upgrades and to manage overhead costs.
Economic Boost in Pakistan
The effect of CPEC on Pakistan’s economy will be huge. It would be a reason for setting up a lot of industry thus creating many jobs. As per the findings of Harvard International Development Research Department, the next 10 years annual development rate of Pakistan would rise to 5.07%. It will be the second most elevated in Asia.
With an economic boost in the country, the demand for accommodation would certainly rise and a huge demand of land would be needed to fulfill. With more individuals being able to buy property, the real estate sector would thrive. The true impact would be witnessed after 2020 when the road belt is complete and becomes functional.
Chinese Immigration in Pakistan
The fact that CPEC is a joint venture between China & Pakistan means that many Chinese & Pakistani engineers would be deployed in Gwadar and along the lengthy belt. This is good news for the real estate sector as accommodating them would require establishment of small cities along the belt. The land thus would be required in plentiful to build safe housing societies with all the amenities. Gwadar being the ultimate port would develop into a major city just like Karachi. Gwadar, Lahore & Karachi would be the epicenter of after the completion. Property in these major cities will witness an enormous boom as there would be a need to accommodate not only the citizens but foreigners as well.