Preventive steps before investment in Private Scheme in Gwadar?

Plot at Costal Highway is not enough? Plot book without seeing the location map of the scheme is dangerious? Or Plot in Zone B or fair in Zone A is also very risky!

Please read the following before investment in any location in Gwadar:

Real estate in Gwadar — a fortune or waste? Since the idea of developing a deep-sea port at Gwadar surfaced, people from across the country and even abroad started to hallucinate goldmines in place of deserted landscapes in this coastal town of restive Balochistan. The time was right and property dealers – not public – have cashed in on the opportunity. Where the excessive projection of Gwadar as a future counterweight to the resort city of Dubai played its part in attracting people, it were the future prospects of a duty-free port that is mostly being used by estate agents. “The day Gwadar port starts functioning, prices of land (in Gwadar) will increase by 40-50 per cent,” was how a dealer of one of those estate agencies, which have sprouted up in the last two to three years, convinced people into buying corner side or road-facing plots. These property dealers are not interested in telling their customers about the sources of water, power and gas for the schemes they offer and if someone argues, they ease the apprehension fabricating different stories. An estate agent earnestly told this scribe that water will come from Mirani Dam, which actually is designed to irrigate agricultural land alongside Dasht River. Property dealers do not disclose that Gwadar Development Authority (GDA) has bound builders to install desalination plants with their respective projects. GDA has decided in principle that water needs of the city will be fulfilled through desalinated seawater. Work on a proposed desalination plant, being set up by GDA, is yet to start. The colourful catalogues of numerous residential and commercial schemes carry little or no reference to desalination. Similarly, there is no clear explanation on how the future electricity needs of the city would be fulfilled. Even without any development, the prices of empty landscapes vary from plot to plot. For instance, a plot facing a ‘proposed garden’ costs 5 to 10 per cent extra. Similarly, if a 400 sq yd piece of land on commercial scheme is facing a 220 feet wide road, it will cost 10 per cent more than the regular price while the one looking onto the coastal highway is costlier by 20 per cent. Excluding the roads and highways to be built by the government, private sector is yet to start work on infrastructure in a big way, making the speculative investment all the more risky. Interestingly, only a few schemes, out of total 79 given NOCs by GDA, are selling developed housing units with facilities while the rest are selling vacant plots. But, Ather Mahmood, Managing Director of a housing company, defended the excessive projection of Gwadar’s real estate saying it took seven to eight years for some of the most sought-after residential areas in the country to develop whereas the first scheme in Gwadar is almost complete in just two-three years. He said GDA takes an undertaking from the builders to install desalination plants and captive power plants before issuing NOC. The builders and developers also have to pledge 30 per cent of the property to GDA, which Ather believes will ensure completion of all the projects. “Real estate prices have increased during the last few years. So, who would not want to earn a little more from the 30 per cent property.” Playing down the threat of insurgency and riots, Amir Samsaam, a property dealer, acknowledged that it is important to investigate why builders are not carrying out physical development of their projects being aggressively marketed?


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