Investing In Rising Real Estate Of Gwadar
Gwadar is fast becoming the hub of real estate investments in Pakistan and there is no stopping it. What are the reasons behind the major price increase in first quarter of 2017 and will the trend continue?. Let us take a closer look at the realities on ground and the reasons for recent spike in prices.
Reasons For Rise In Property Prices in Gwadar
- Tax Amnesty : The property taxes implemented by the Government in 2016 halted the growth of the entire real estate sector in Pakistan, including Gwadar and investors were very cautious to jump in Gwadar. Tax amnesty was announced by the Govt in December which gave a needed assurance to investors to continue buying real estate. The confidence started building and the prices started to rise steadily after that.
- Governments Resolve : A lot of questions on the completion and validation were raised when the project was launched, however with the passage of time investors are now much more confidant about Governments resolve for a successful completion.
- Fast Paced Development : Government has started fast paced development works all across the country on the CPEC route and Gwadar itself. This has further bolstered the investors confidence in the entire project. A revised mater plan is under process, port is operational and we may soon get some positive news about the new airport.
- Killing Rumors : Recently GDA took a stricter stance against the rumors against societies such as Sanghar. A nation wide campaign was launched targeting the negative rumors against the Sanghar housing scheme. Following 3 steps were taken to bolster the investors interest in the Sanghar housing scheme:
- Starting of development work in Phase 1.
- Approval for the construction of a bridge from Marine drive directly to Sanghar housing scheme and releasing of finances for the said project.
- Rejecting rumors about the possible acquisition of Sanghar housing scheme by the port authorities.
- Gwadar As Winter Capital : Recently Baluchistan Chief Minister Nawab Sanaullah Khan Zehri announced plans to restore the status of Gwadar as winter capital and directed all provincial departments to establish their offices there.
- Real Estate Agents : Gwadar is seeing one of the biggest immigration by real estate agents. Real estate agents are the first to cash in on the newest and greatest opportunity in the history of Pakistan. Not only they bring investors along with them but they are also a reason for the increase in commercial activity in Gwadar. All these real estate agents who have moved to Gwadar need places to live, work and eat. This has given boom to the commercial and residential properties on airport road and New Town.
- Green Palms Society : We may not be in favor of this society but the truth is that its success has given hope to the other society developers. The 200% increase in the prices of raw land can be partially attributed to the success of Rafi group’s Green Palms society.
How Long Will It Last
Like every investment cycle, Gwadar real estate will have ups and downs, this is the first noticeable spike in the real estate of Gwadar since the start of CPEC and this may just be the beginning. I do believe that there is a lot of room for the prices to go up, specially in following areas as they are the center of present commercial activity which is being sparked by real estate sector.
I have mentioned these areas as they are the only developed areas in entire Gwadar and all kinds of commercial and residential activity is bound to happen here. Therefore i believe that while investment bubbles in raw land or other non-developed areas may burst in a a couple of months, these developed areas i mentioned above will continue to see sustained genuine growth in near future.
Where Should You Invest
Considering the select areas, my order of priority for investment is as under :
- Sanghar Housing Scheme as it is the safest, regulated and most secure society without any legal complications. It also benefits from the fact that it is the most secure area in Gwadar besides being its unique location. Sanghar housing scheme offers both residential and commercial plots suitable for all kinds of projects and hotels.
- Airport Road Commercials are our second priority as they are the only ones where commercial activity is present as of today. The only reason that they are second to Sanghar is the because of irregularities and raw land issues.
- Marine Drive Commercials are third in our list as we believe that these will be the next to develop commercial hub after airport road. The only reason for them to be in the third place is that presently there is no commercial activity and secondly irregularities in sale and purchase are the foremost concern.
- New Town Phase 1 is the last but not the least in our list as it is the only place which can meet the rising residential requirements. Commercials of New Town are also centrally located and will become the most sought after locations in near future.
- Jinnah Avenue Commercials offer another opportunity however it is last on our list as it is under developed as of now.
Imlaak is exclusively dealing in Sanghar Housing Scheme as agents and brokerage. We also provide consultancy for other areas but only on special request and for an investment value of at least 50 Million and above.
Captain (Retd) Shahnawaz Yaqub Bhatti
Investment Consultant and CEO at Imlaak
Mob : +92 333 1717170 ( Whatsapp)
