Is Gwadar Real Estate On Descend?

Gwadar is the coastal city located in Balochistan, Pakistan. Gwadar has taken the limelight because of its famous seaport called Gwadar Port. China needs to utilize this port to import and export goods. China has immensely invested into Gwadar Port and other projects like China Pakistan Economic Corridor (CPEC).

The Boom In The Market:

The first CPEC shipment from Gwadar was on 13th November 2016. From there on, Gwadar real estate has gone into a meltdown due to immense interest from local and foreign investors. Land prices have multiplied in only 4-5 months. This is because of the huge inflow of capital from investor and property dealers. People are running to Gwadar to secure hot properties/land to get high profits in near future. Huge investment has caused high property costs in Gwadar. A normal 1,125 square feet plot cost in Gwadar before shipment was PKR 400,000 but now it around PKR 800,000.

The Descend In The Market:

The recent wave of heavy investment in Gwadar real estate has created a bubble like that of 2003-2005 and results are no different. Investors and dealers are returning from Gwadar as the bubble is starting to burst. There are many explanations behind this. The first one is that numerous housing projects have no NOC's or endorsement as these tasks have no land on the ground. The second reason is the development work in Gwadar. Gwadar lacks infrastructure and it will take at least a decade or so to build the airport, railway, and other basic infrastructure. The third reason is the scams and frauds. Due to the fact that many housing schemes have no NOC's, it's highly advised to avoid these unregistered ventures. If you need to purchase property in Gwadar, you must inquire about each and every detail of the society from GDA; Gwadar Development Authority.