CPEC and Its Ultimate Impact upon Pakistan’s Real Estate Sector
Since Prime Minister Imran Khan’s recent successful visit to China, the CPEC has been ion news more than ever. It is an abbreviated form of Pak Economic Corridor, but normally known as CPEC. In fact it is a strong link between the economic borders of China & Pakistan. According to the world’s top economist forums it will no doubt convert into a stronger business dominance governed mutually by both the countries.
The Basic Need for CPEC
Apart from its economic importance we have a brother relationship with China spread over years of mutual understanding and sacrifices. CPEC is a fruit of that relationship which has nurtured at a time when China is already dominating world’s economy. In fact China has always faced economic and strategic hardships due to its odd geographical location. Especially in terms of receiving and sending out shipments China has always face. On the other hand Pakistan is always facing some sort of economic crisis. It resulted in the most astonishing agreement of CPEC, where two countries offered their financial and geographical aid to each other for a better future of both the nations. It is a fact that agreements like CPEC have converted Pakistan’s unused piece of land into an economic Paradise.
Some basic ground realties about this agreement can be summed up as follows.
Basic Infrastructural Facts
Physically, CPEC is a 3,218 kilometer long route, which will be built over next several years. It will comprise of the following infrastructures:
- Gwadar sea port
- Pipelines etc.
- Road belt links more than 70 countries with China.
- It connects Pakistan’s Gawadr port with China’s Kashgar.
- It will also be a connection with western province of China Xinjiang.
In short CPEC will open doorways of immense economic opportunities for Asia, Europe and beyond with both China and Pakistan.
Cost of the Project
The estimated current cost of CPEC is approximated to be US$75 billion. An additional cost of US$45 billion will be spent plus will to make sure that this economic corridor becomes functional by 2020. Rest of the sum will no doubt be spent on various other helping factors including the infrastructural development of the corridor and projects adjoining it.
CPEC’s Impact upon Real Estate Sector
This question is often asked with respect to the Gwadar Project which is the ultimate fruit of CPEC for the Pakistani Real Estate Sector. As mentioned above CPEC is a plan that comprises of variously scattered infrastructural projects Linking Gwadar with China. It will also allow the neighboring countries to make use of all these resources. It in turn will generate a huge agenda of real estate opportunities for not only Pakistan but also the neighboring countries.
Moreover Gwadar once becomes operational, at a belt and road comprising of 5000KM will no doubt reduce the time and cost at the same time.
In the light of above economic scenario, the impact of CPEC on Pakistan’s overall economy and real estate sector will be more than huge. As setting up a lot of industry in that area will open doors for people of various nationalities to move to Gwadar and they in turn would require a vast place for their accommodation needs. It in turn will create not only many job opportunities but also real estate will prosper in that specific area. Many people would sale their present properties in various parts of the country so that they can generate capital to buy land in Gwadar. It will open more opportunities for local agents and potential buyers. All this will also affect the overall progress of Pakistan’s real estate sector.
The impact of Chinese Immigration on Real Estate
As we all know that CPEC is a joint economic and infrastructural venture of China & Pakistan, it will welcome a great number of Chinese engineers and other officials who are somehow related to this long term project. Obviously they would also need their families which in turn will create vast accommodation opportunities and housing schemes in that area.
This will no doubt be good news for the real estate sector as well as overall economic sector of Pakistan.
From the above discussion we can easily conclude that CPEC will have the following major effects on the real estate sector of Pakistan:
- Overall Economic Growth
- Chinese Immigration
- An increase in GDP
Whatever the scene may be cities like Lahore and Karachi would become the epicenter for all that economic and property development.