Ambitious infrastructure projects have profound effects on a country’s real estate market. As well as boosting the overall economy and providing employment within the construction sector, large scale developments also help boost property values in surrounding areas.
Pakistan’s best real estate website Lamudi.pk looks at five key infrastructure projects now under development in the emerging markets – and the flow-on effects for real estate.
King Abdullah Economic City (KAEC)
Location: Saudi Arabia
Cost: US$100 billion
This mega city built on unoccupied desert land is being constructed completely from scratch. It includes the King Abdullah Port and Industrial Valley, which will be home to more than 80 global and local manufacturing and logistics companies. The project aims to diversify the Kingdom’s economy away from oil and will also help address a considerable housing deficit. Seven residential communities will house more than two million residents once the development is complete in 2035, with 50,000 people set to move in within the next five years.
China-Pakistan Economic Corridor
Location: From Gwadar, Pakistan to Xinjiang, China
Cost: Over $46 billion
This 3000km project will connect Pakistan’s Gwadar Port with northwest China’s Xinjiang Uygur Autonomous Region. A network of highways, railways and energy projects will connect the two countries to transport oil and gas, and is expected to generate billions in revenue. The Pakistani government recently announced that the project has seen China become the top foreign investor in the South Asian nation.
Clark Green City
Location: Central Luzon, the Philippines
Cost: 200 billion Philippine pesos (about US$4.25 billion)
Billed as the country’s next big metropolis, this 288-hectare development will be the Philippines’ first technologically-integrated city. The development combines residential, commercial, industrial and information technology developments, while still offering a green and sustainable lifestyle for residents. The development will include about 2000 affordable housing units for employees of the city. According to Bases Conversion and Development Authority (BCDA) president and chief executive officer Arnel Casanova, Clark Green City is set to become “the center of economic development in the country”.