CPEC to Boost Pakistan Real Estate Sector
The value of CPEC has already been jumped from $46 billion to $59 billion due to inclusion of new projects such as development of Diamer-Bhasha Dam, Peshawar to Karachi Railway Line, Karachi Circular Railways, Orange Line Trains for all provincial capitals, the Keti Bander Port, Special Economic Zones and three energy generating projects in Sindh. CPEC is expected to bring change in the economic profile of Pakistan as it is perceived a catalyst of economic revolution in the country. The connectivity that CPEC will provide to the central Asian states and few European countries will make Pakistan a hub of economic activity, with Gwadar facilitating trade with neighbouring countries.
It is also estimated that cash flow under CPEC will more than equal the Foreign Direct Investment (FDI) that is forecast to equal nearly 17% of the GDP. And they are likely to create more than one million jobs in various sectors of Pakistan by 2030. In addition to the direct economic impact of CPEC, economists believe that there will be a multiple effect as the volume of investment will increase in other sectors as well, specifically in real estate.
Planning Division of Pakistan believe that it will trigger a boom in real estate and the property market is likely to experience multi-fold increase in the existing volume of commercial and residential projects in the forthcoming years. Due to unregulated nature of the sector, official figures are hard to be found but real estate experts estimate the existing monetary value of real estate assets to be anywhere between $300 to $700 billion. And you must know that in the last five years, there has been a growth of around 118% due to launch of numerous high end real estate projects.
Industry experts believe that the immediate impact of CPEC will be a rapid rise in the property values along the CPEC route both in suburban and rural areas. This has proved to be true for a place called Havelian, where a dry port is planned and substantial Foreign Direct Investment (FDI) has been noticed in the acquisition of residential and commercial plots in the adjoining areas. Properties that were worthless just a decade ago have suddenly become the most sought-after properties in Pakistan after the announcement of CPEC project.