Revival of Gwadar's Property Market in 2019

Posted on 2019/03/04

Gwadar, the port city is attracting the real estate investors across the country towards itself after the completion of the China Pakistan Economic Door (CPEC). The Gwadar port is set to be one of the biggest ports in the world which will open the doors of development and prosperity for Pakistan. CPEC affected the real estate industry much. The real estate business in Port city, Gwadar is increasing day by day, as in the result of significant developments in the city. Gwadar is now considered to be the business hub, and local and foreign investors have the eye on it to invest. Gwadar property prices increasing manifold during the last few months – said by the Gwadar Development Authority.

Business situation in Gwadar is changing day by day as compared to the past; many people are investing in Gwadar properties now, as the investments are giving a fair ROI due to the sharp increase in land prices. Multi-billion dollar trades will happen in the future as the more investments come into being. The real fact of the sharp increase in Gwadar’s property prices is the CPEC, as the project started, different investors, stakeholders, constructions companies continued to buy lands, construct buildings and initiated housing society. For now, there are a lot of plots for sale in Gwadar and buyers have the eye on it.

Gwadar is going to be the next Dubai for Pakistan. In spite of China, different other countries are also interested in the investment in CPEC projects in Gwadar. Saudi Arabia, Russia and other countries supported Pakistan regarding the CPEC. It’s all due to Pakistan’s Geographical location importance and Gwadar’s port importance with its deep warm water throughout the year.

The CPEC project has offered the upgrades and renovation to the transportation infrastructure of Pakistan which starts from Khunjerab Pass to the Gwadar port, passes through the different provinces of Pakistan. Under the CPEC project, China has announced funding of $10.63 billion for infrastructure in different areas of Pakistan. For the construction of $ 6.1 million, "early harvest" (CPEC Roadway Project) has been allocated with the interest rate of 1.6%. Pakistan's government approves the agreement to give such interest rate and to construct road projects when the remaining plans are still in the planning phase.

Upcoming Master Plans for Gwadar

Gwadar has been blessed with many natural resources. The primary one is the deepwater port through which all the trades will happen. As China will get many advantages from the CPEC, so China is investing massive money on the different operational projects in Gwadar and other fields linked with CPEC through which Gwadar Property rates increased. Pakistan and China have spent mutually on the various plans as follows:

  • International Airport Gwadar
  • Coal Power Plant
  • Gwadar East-Bay Expressway
  • Construction of Breakwaters
  • Pak China Friendship Hospital
  • Pak-China Technical and Vocational Institute at Gwadar
  • Development of Free Zone
  • Oil refineries and petrol chemical complex
  • An atomic powerhouse of 600MW

Effect of Oil Refinery

In another significant development, China and Saudi Arabia are going to build an oil refinery at Gwadar to fulfil the country’s oil shortage and saves the billions of dollar. Recently, Saudi technical team visited Gwadar to inspect the site for the oil refinery. These refineries will produce up to 300,000 barrels per day, once completed. The effects of these oil refineries are that Pakistan will save almost $3 Billion per year.

After the arrival of Crown Prince, Muhammad Bin Salman, there is an enormous investment in the oil field. Pakistan agrees on a deal to build an oil refinery and petrochemical complex at Gwadar deep-sea port, during the first phase. Pakistan cuts its crude oil imports by up to $3 billion yearly; also, this project will provide thousands of job opportunities for the natives of Baluchistan. Different projects with budgets are being followed:

  1. Installation of two re-gasified Liquefied Petroleum Gas (RLNG) plants with an estimated cost of $4 billion
  2. $10 billion oil refinery
  3. $1 billion petrochemical complex
  4. $2 billion investment in the mineral development sector

Construction of International Airport Gwadar

The development of Pakistan’s biggest International airport has a span of 4,300 acres. The total budget for the construction of the airport is $246 Million. Both Pakistan and China are now engaged to complete all the formalities to start the construction of the airport in April this year. The soil testing has been done on the surface of the allocated land in January through 300 boreholes made on various locations. The full name of the AirPort, according to the agreement is 'New Gwadar International Airport'.

Baluchistan Government has already added the airport in Master plan of Gwadar that includes multibillion-dollar projects to convert this area into the centre of business activities.

Upcoming Turkish President in Pakistan

Turkish President, Tayyip Erdogan planned to come in Pakistan in March 2019 officially announced by Turkish General Counsel in Pakistan. Erdogan would formally invest in the visit. Turkey and Pakistan have a remarkable bond which will grow more by the passage of time. Erdogan has planned to make considerable investments in different sectors of Pakistan, which will try to stabilise Pakistan’s economy. The general counsel said that the investment could rise to $10 Billion

According to the recent interview of the general counsel of Turkey in Pakistan, he said about the CPEC that

The Turkish government was fully interested in projects under China Pakistan Economic Corridor (CPEC), adding that Turkish authorities were already in talks with Pakistan’s side for participation in these projects.

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