Exciting Journey of Real Estate Development in Gwadar

Did you know that Pakistan purchased Gwadar from Oman at £3 million? The city has an interesting story of how it transformed from being under the Omani Empire to one of the most important cities in Pakistan.

Gwadar is a beautiful city in the Balochistan province of Pakistan, located along the coasts of the Arabian Sea. It is situated on a vital sea trade route and is home to a small population and gorgeous beaches.

The city has been gaining a lot of attention from the world lately because of CPEC and the deep sea port project. Before we discuss the real estate development in Gwadar, let's look at the city’s history first.

Historical Overview of Gwadar

Gwadar In The Early Age:

The territory of Makran, which encapsulates Gwadar, was under the control of Bronze Age people who first settled here in a few oases. It later became a part of the Gedrosia region of the Achaemenid Persian Empire. The area remained under the control of the Persian Empire until 325 BC, when Alexander The Great conquered it.

Arrian (famous Greek historian) called its inhabitants Ichthyophagi, which means fish eaters. A common assumption here is that the name Makran is derived from the ancient Persian word Mahi Khoran, which means fish eaters.

After the fall of Alexander’s empire, Makran was under the control of Seleucus Nicator, one of Alexander’s generals. Later, he made a peace deal with the Maurya Dynasty and handed over the area to them in 303 BC.

Muslims, under the leadership of Hakim bin Amr Al Taghlabi, conquered the Makran region in 644 AD. But Hazrat Umar (RA) prohibited the troops from moving any further.

However, Muhammad Bin Qasim led Muslims and took control of Gwadar in 711 AD. Later, the area was ruled by Iranian, Indian, and Portuguese powers and local Baloch tribes at different times.

Gwadar Under The Sultanate Of Muscat And Oman:

The rulers of Muscat had a dispute within the family. Sultan Saeed Bin Ahmed fell out with his brother Saad Bin Ahmed and escaped from Muscat in 1783-84. During his asylum, Sultan Bin Ahmed contacted the Khan of Kalat, Mir Noori Nasir Khan I, and showed his interest in coming to Balochistan.

Khan of Kalat handed over Gwadar to the Sultan upon his arrival. The agreement was that he would give back Gwadar after securing the throne of Muscat.

Gwadar was the base for all his raids across the coast until 1792, when he got the throne of Muscat and he sailed back to his homeland. However, he violated the agreement and did not return Gwadar to Khan of Kalat.

Gwadar During The British Raj:

The control of the Sultanate of Muscat and Oman over Gwadar remained strong with the assistance of the British government. Major Goldsmith from the British government visited Gwadar in 1861, and a political agent for the region was appointed in 1863.

Gwadar and Pasni were the ports of call for the steamers of the British India Steam Navigation Company. Gwadar had its first telegraphic link and telegraph office in 1863 and post office in 1894. This was a historical step in the real estate development in Gwadar.

From 1895 to 1904, the Khan of Kalat and the British Government made proposals to purchase Gwadar. On the other hand, the Sultan of Muscat also tried to trade the area in exchange for military and financial support against rebels. But the efforts from both sides remained unsuccessful.

The area remained under the control of the Sultanate of Muscat and Oman till 1958-59. Besides Gwadar, two more fishing villages, Peshukan and Sur Bander, were also under the Omani rule.

The Power Shift In Gwadar:

By 1947–48, the majority of Balochistan had joined Pakistan. Surrounding areas of Gwadar, including Makran, Lasbela, Kharan, and Kalat, also became part of the country. But Gwadar remained under the control of the Omani Empire.

The Government of Pakistan, with the help of the United States, conducted a geological survey in Gwadar around 1954. Worth Condrick led the study and labeled Gwadar as a hammerhead peninsula, perfect for a deep sea port.

Due to its geographical location, the desire for a deep sea port, and people’s will, the Government of Pakistan formally requested the Sultan of Muscat and Oman to purchase Gwadar. Finally, after 4 years of negotiations, Pakistan bought Gwadar on September 7, 1958, for £3 million. It officially joined Pakistan on December 8, 1958.

Major Real Estate Developments in Gwadar

Construction Of Deep Sea Port in Gwadar:

Besides Karachi and Port Qasim, Pakistan has been willing to build a deep-sea port at Gwadar for a long time. However, an unfortunate series of events caused the delay in the port construction.

In 1988-92, a small-scale port was built in Gwadar to handle small cargo. KPT (Karachi Port Trust) announced the port construction in Gwadar in the same year, but it never started because of the lack of funds. The feasibility study of the deep sea port at Gwadar was carried out in 1993. In May 1999, China offered financial and technical support for port construction.

Pakistan’s president of the time, Pervez Musharraf, raised the issue in front of the then-Chinese PM Zhu Rongji during his visit to Beijing in May 2001. As a result, Chinese engineers developed a master plan in October of the same year. Unfortunately, the project got delayed again because of the US airstrikes in Afghanistan in reaction to the 9/11 attacks.

Finally, the foundation of Gwadar Port construction was laid down by the then-Chinese vice-premier, Wu Bangguo, in March 2002, and its first phase was completed in 2005. Gwadar Port hosted its first ship in May 2008, which brought 52,000 tons of wheat from Canada. It was a major breakthrough in the real estate development in Gwadar.

On February 8, 2013, the government of Pakistan officially granted the lease of Gwadar Port to a state-run Chinese company, China Overseas Port Holding Company (COPHC).

Although the port will remain Pakistan's property, COPHC has received the lease for 40 years. The second phase of port construction is underway; it will add 9 more berths to the port. The construction of Gwadar Port and its free zone has uplifted the real estate infrastructure of the entire Gwadar, as it is a part of CPEC as well.

China-Pakistan Economic Corridor (CPEC):

CPEC (China-Pakistan Economic Corridor) was officially launched on April 20, 2015, when the heads of the two nations signed about 51 agreements. Gwadar has seen enormous growth in its infrastructure since the CPEC started.

Gwadar Eastbay Expressway is constructed as the main transportation route, connecting the port and its free zone to the country's national highway network. Gwadar Smart Port City Master Plan is designed to uplift the city's existing infrastructure, conveniently integrate with the port’s master plan, and serve the economic growth of Gwadar.

Pak-China Technical and Vocational Institute is a vocational training center in the port city. A Pak-China Friendship Hospital has also been built to provide medical facilities for the citizens. A 1.2 MGD Desalination Plant is making seawater useful to fulfill the needs of the port city.

The ongoing projects include the construction of New Gwadar International Airport, a 300MW coal-based power plant, a 5MGD Water Desalination Plant, and a water distribution channel for freshwater treatment, supply, and distribution.

There are also some projects in the pipeline which include the construction of breakwaters for additional terminals at Gwadar Port, dredging of berthing areas & channels, fish landing jetty, fishermen boat making industry on the west bay, Gwadar smart environment sanitation system, and landfill projects.

Future Of Real Estate in Gwadar

Steps Taken By Government & Local Investors In Gwadar:

Gwadar has become one of the most appealing real estate markets globally in the last couple of years. Besides its significant geographical location and abundant natural resources, CPEC and deep sea port construction have made Gwadar much more important than it ever was.

It has skyrocketed the demand for residential, commercial, and industrial properties in the city. The government is also constructing road networks, highways, and an airport in Gwadar to amplify the real estate development in Gwadar.

Due to affordable prices, a legal framework for investors, and the government's initiatives for infrastructural development, the city has gained a lot of attention. Several local investors are attracted to capitalize on the city’s potential and construction work for different housing societies has already begun.

The Role Of Foreign Investors In Gwadar:

China has long-term plans for CPEC and the Belt and Road Initiative, which can be seen in its wholehearted investments. It wanted to revive the ancient Silk Road so both countries could take advantage of the trade route.

The benefits of the region’s development go beyond Pakistan and China. Gwadar is positioned at the intersection of three powerful economic zones of the world: Southeast Asia, Central Asia, and the Middle East. It can play a crucial role in the global trade and has multiple investment opportunities for the investors. That’s why multiple countries are interested in joining the CPEC.

In Summary:

In summary, the city’s real estate market has seen an incredible growth in recent times. It holds a lot of potential for investors as it ensures high returns on investments.