Investment in Gwadar – how is it different?

In many aspects, investing in Gwadar is not the same as investing in real estate markets of other cities. The reason is, the city has just started off its journey to becoming an international port city where the country will meet many of its trading needs. In this regard, the city is yet to see a transformation in its infrastructure, leaving many investors hopeful about scoring some of the greatest gains Pakistani real estate industry has ever offered.

To help you better understand how investing in Gwadar is not the same as buying property in any other city in Pakistan, we have spoken to realty experts operating in Gwadar.

No such thing as quick gains

According to Afzil Adil from Syed Associates, investors interested in Gwadar should know that almost all projects and societies here will take many more years to develop into their promised form. The process to extract maximum returns on their investments is essentially long-term. While Adil believes that seeing occasional gains in random projects and areas is a common phenomenon in the city, predicting the pattern of such hikes is hard at the moment. He recommends real estate investors heading to Gwadar to not have misconceptions about the investment duration or to fall for any fake promises.

Abid Hassan from Gwadar Hub believes that people buying land in Gwadar purely for investment purposes should not get bound by unreliable developers. Hassan is of the view that investing in open land, the rate of which is bound to grow in years to come, is a better option than buying smaller pieces of land at expensive rates in random housing societies.

Big is the right size

In many parts of the city, especially in areas located away from the Old Town, buyers may not be able to buy plots smaller than an acre, according to Adil. This is especially the case if you invest in open land owned by locals, he added. The reason behind this approach, according to him, is the fact that land owners here own several hundreds of acres of land, and only a part of it lies on the roads that are marked to become wide and spacious road avenues in the future. For them, selling small pieces of land facing marked roads is a bad deal, as it will devalue land that does not face the main road, Adil told us.

Therefore, buyers are left with no choice but to buy bigger pieces of land, which in some cases can be as big as a minimum of 50 acres. However, Hassan told us that around the planned road avenues located at a distance from the Old Town, buyers can buy relatively smaller plots but even those span over at least one acre of land. It has also been noticed that plots offered in smaller sizes are more expensive than bigger plots, according to Hassan.

Stringent verification criteria

According to the guidelines issued by the Gwadar Development Authority (GDA), buyers are required to verify the NOC issued for any project they intend to invest in, said Adil. He also added that following this instruction is very important, since many developers have sold their projects without acquiring necessary approvals from the GDA in the past.

In addition, while buying open land, the buyers should also confirm from the GDA if the land is allowed for resale, he suggests. In many parts of Gwadar, the GDA has placed a ban on property transfer, and buyers should make sure they don’t end up being scammed by buying such land, said Adil.

When you pay the  token money for a plot, the GDA recommends that you share the information via newspapers and ask anyone who may have an objection to you buying that piece of land to come forward within a period of seven days, Hassan told us. Any claims received after seven days are nullified, he added. If no objection is received within these days, the property owner and buyer take a patwari to the site and mark the area. Hassan recommend that when buying open land, the buyers must mark the area before finalising the property transfer deal. When doing so, chances are high that you will find out if the land is disputed, and you can thereon refrain from making the rest of the payment.

Tall claims vs. ground reality

No residential or commercial projects in Gwadar are being developed at a fast pace, according to Adil. The developers here have long-term plans and completion timeframes for their projects, he added. If a developer commits to offer property possession in the next couple of years, he is probably lying, Adil believes. The residential property buyers should have at least five years in mind for seeing the project on-ground, while some of these projects may be not available for possession even after that, he said. Adil recommends that you invest in societies that are backed by reliable developers.

Hassan believes that instead of making a decision based on 3D images and videos, one must visit the city and find out the on-ground reality. He is confident that once in Gwadar, potential buyers can make better decisions based on how things look in real.

If you have feedback on this article or a query for us, you can talk to us in the comments section below. You can also seek guidance from property experts of the Zameen Forum.

If you wish to speak to Afzil Adil from Syed Associates in person, please give him a call at +92-322-420-7200.