Gwadar Industrial Estate (GIE) is a project of the Government of Baluchistan. It is for this purpose that the government has formed Gwadar Industrial Estate Development Authority (GIEDA). GIEDA is an autonomous body which – as the name suggests – has been given the task of developing industrial real estate in Gwadar.
The government is developing the industrial estate to meet the demand for industrial property in the port city. Not far away is the time when Gwadar will be the primary industrial hub of the country and industrial land is the one that is going to be the highest in demand or value. Not only will the establishment of a deep-sea port benefit Gwadar, the construction of major highways linking Gwadar with Karachi, Quetta, Iran and Central Asian countries is also taking place simultaneously. To add to its value, a railway connection is also in the plans establish a direct link between GIE and Gwadar.
PROJECT DETAILS FOR GWADAR INDUSTRIAL ESTATE
Location and area
Located about 40 kilometers from Gwadar, it is situated on Makran Coastal Highway. A total of about 3,000 acres have been earmarked for the project so far, each of which have been divided into three phases of 1,000 acres each. Phase I was launched in 2005, and it contains Blocks A, B, C, and D. Phase II was launched in 2006-7, and has Blocks F and G. Finally, Phase III was launched in 2017, and has Blocks H and J.
Gwadar Industrial Estate is primarily meant for Small and Medium Enterprises (SME), mostly based on value-added industries. The project features industrial and commercial plots. For industrial plots, the sizes are 1 acre, 2 acres, and 5 acres, while the commercial options include 1,000 and 2,000 yard2 plots.
Market Situation
Gwadar industrial Estate remains one of the top projects in Zameen Search Trends for Gwadar, however, there have been several factors contributing to bring its prices down, according to Estate 4U CEO Syed Khurram Gillani. For one, there’s the general market situation of the country. Because of the precarious political situation, the demand has been low and so have been the prices.
Still adding to this sluggishness in the market is the Ramadan factor, as the real estate market slows down during this month, and this has been the case in Gwadar as well. Yet another factor that added to the slight downward trend was the land transfer issue that arose in December 2017.
However, Khurram explained that this last factor is nothing to be concerned about. According to him, it is not the entirety of GIEDA or even the industrial plots in it that had issues, it was just some of the commercial plots and even those are being resolved. The authorities are taking swift and efficient action and matters will be resolved soon.
Prices
The prices currently stand as follows: 1 acre plots range between PKR 2.8 million and PKR 5 million; 2 acre plots are priced between PKR 4 million and PKR 7 million, while 5 acre plots range in price between PKR 15 million and PKR 25 million.
INVESTMENT
What makes Gwadar Industrial Estate a lucrative investment?
According to Khurram, one of the most important factors which make the project lucrative is the immense interest the government is taking in its development. He explained that the undeveloped state of Gwadar demands that provision of basic utilities like electricity, water, and roads will first be ensured in the areas where public interest demands it. Gwadar Industrial Estate is the government’s top priority. It already has electricity, it has roads, it will have a railway connection, and its prices will rise with Gwadar.
The prices in Gwadar Industrial Estate are at their lowest in the project currently, and once the factors mentioned above change, the prices will rise drastically. Once it sees significant development or even possession. They will simply shoot through the roof.
Khurram compared Gwadar Industrial Estate with Gwadar Free Zone. If you want to have any property in the Gwadar Free Zone, you can have it only on an annual lease. You can’t even buy any land there. A 4-Kanal warehouse there costs between USD 5,000 and USD 8,000 in the Free Zone. This is an incredibly high cost, if some local exporter is looking to store their goods in such a warehouse. What other options do they have? Gwadar Industrial Estate, where the prices are almost as spectacularly low, with the rents in Free Zone being very high.
Where to invest in Gwadar Industrial Estate?
Khurram recommended that if you are looking to obtain possession soon, you should go for investment in Phase I or II. They have seen significant development, and have electricity and road networks as well. So, as soon as possession becomes available, you may be able to begin construction as well.
On the other hand, if you are a long-term investor or looking easy, liquid trade, he recommended Phase III.
Are you looking to invest in Gwadar Industrial Estate? Do you have any questions about it? You can talk to us in the comments section.
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