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CPEC: The Ultimate Opportunity for Real Estate Investors

CPEC stands for China-Pakistan Economic Corridor. Primarily CPEC Pakistan is a network of infrastructural projects laid throughout the country, with China’s help.

China is landlocked from 3 of its sides by other countries. Pakistan is to its west, the southern part of China touches with the Indian border, and to its north is Mongolia. The one side open is towards east. So, if China wants to enter into trade with the Middle East and Europe, it will take a longer route from its eastern part. It costs China more. So China decided to spend money on developing CPEC Pakistan to take benefits from its land and port.

Why Is China Investing in Pakistan?

 

Pakistan was not the first choice for the development of this project. China has been trying for a long time to find a country to facilitate its trade. Malaysia moved out of agreement with China after entering it. Afterward, Kenya’s court rejected the project from starting in its land as well. Lastly, Sri Lanka wanted the control of its port back. After all these efforts, Pakistan came on the radar of China. From here, CPEC Pakistan started.

Why Is Gwadar Port Important to China?

 

The foremost reason for including Gwadar in CPEC Pakistan is that Pakistan’s seaport at Gwadar is a deep, warm water port. Such a port is an ideal one as it keeps operating all year long. It will not freeze in winters and will not make a trading halt in that period. Additionally, the speculation is that the port has tons of reserves of oil.

What Is the Length of Route of CPEC?

 

The CPEC route map describes that the western alignment of CPEC spreads over KPK, Baluchistan, and Punjab’s western part. It is about 1,153 km. It will incorporate some of the national highways in the way and will have some economic zones.

The CPEC Pakistan is not complete yet. It was allowed to be operational in some areas initially. So, the CPEC inauguration date is 13 November 2016. Some projects reached their finishing stages in 2017 and 2018. And a lot of work is still going on.

After the completion of the CPEC, China can enter Pakistan from the northern areas of Pakistan. And can then use its port to access the regions for its businesses.

Benefits of CPEC to Pakistan

 

  • Employment:

 The development of this economic corridor means that there will be several employment opportunities available within Pakistan. Pakistan is home to the unemployed and unskilled labor force. Seeking jobs in Pakistan is too difficult. So, the CPEC jobs will open doors for Pakistanis to polish their skills and earn bread and butter for themselves. The program will include the youngsters as well. The CPEC internships will train people with zero experience.

  • Cultural Exchange: 

 The CPEC is allowing the people of Pakistan to learn the Chinese language. The students are gravitated to learn this language to be able to get jobs at CPEC Pakistan. The increased connectivity between Pakistan and China is giving ground to their friendship to prosper. Plus, it is helping both nations to understand each other’s culture. It will help the labor force of both countries to be mobile between both countries.

  • Infrastructure Development:

 The CPEC Pakistan is linking the south of Pakistan, Gwadar, to Pakistan’s north, Gilgit. This route covering miles is bringing more and better infrastructure to Pakistan. It will improve the trade and communication among both the countries and with the world. 

  • Economic Development:

The launch of the CPEC will have many positive effects on Pakistan’s economy. Pakistan’s neighbors, such as Iran, Afghanistan, Tajikistan, Turkmenistan, and Uzbekistan, are landlocked. They don’t even have a port. As a result, they are losing out on foreign trade. They need some assistance. So, the extension of the route of CPEC Pakistan will bring bucks to the land of Pakistan.

Along with this, the increasing employment through this corridor is contributing to the GDP of Pakistan.

  • Pak-China Friendship:

The cross-cultural environment is bringing both countries together, and they are ready to support each other on different issues. Despite facing terrorism threats in the initial stages, Pakistan and China stood together and have come a long way. The Pak-China friendship is growing day by day.

  • Cheap Imports Availability:

The connectivity through CPEC Pakistan will allow Pakistan to import from China at cheaper rates in the world. And Pakistan is exporting goods and services to China as well.

  • Future Partnerships:

Pakistan and China have signed multiple agreements for the future. They include developing more economic zones on the land of Pakistan. They are ready to cooperate in the agricultural, industrial, and technological sectors. Both countries have started working on projects to produce renewable energy to facilitate industries in CPEC Pakistan. Therefore, these partnerships will help Pakistan’s economy to grow.

CPEC Pakistan and Real estate

 

The CPEC stretches over an extensive land of Pakistan. This path travels through several areas where housing societies have started recently or were previously operating. The real estate in Pakistan experienced the most investments since CPEC’s launch. Let’s take a look at some cities that have benefited from CPEC. And how this has affected real estate in Pakistan. 

  • Gwadar:

Gwadar is the first city that saw sky-high prices of its property after the start of CPEC. GDA (Gwadar Development Authority) has approved numerous societies since Gwadar port has become operational. We are naming a few of them, Canadian City Gwadar, Gwadar Golf City, Bahria Town Precinct 33, etc.

The Pakistan army is responsible for the security of the regions in CPEC Pakistan.  So, there will be no compromise on the security and safety of the residents. The residents will have access to every possible facility that they had in the big cities of Pakistan. Let’s not forget one of the world’s most beautiful cricket stadiums at Gwadar. With the revival of cricket to Pakistan, it will be a treat to watch a live match at this beautiful stadium.

  • Islamabad:

Islamabad is one of the beautiful capitals of the world. Since the development of the CPEC, uncountable Chinese immigrants have settled in Islamabad. The Chinese developers want to invest in Pakistan. The Blue World City is a perfect example of a housing society that started after the CPEC Pakistan introduction. Its developers are Chinese.

Also, a recently launched housing society, Nova City, is on the route of CPEC. People are intrigued about its location and are willing to invest in it. Consequently, the anticipation is that its rates will rise soon.

When Will CPEC Be Completed?

 

The competition of CPEC projects can’t happen in one go. So, they will take their time. Right now, Azad Pattan Hydel Project and Kohala Hydel Project are going to complete by 2026. It is an expectation by the government of Pakistan. Several other projects of CPEC Pakistan have been initiated.

 

 

 

 

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