Special Economic Zones – Impact on the Realty Market

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With the China-Pakistan Economic Corridor (CPEC) now a reality, many infrastructural changes are to be witnessed. There are bound to be many positive aspects to this kind of development. With the seven notified zones currently being worked upon, it will not be long till the spill-over effect is witnessed.

However, what does this all mean for the realty sector of Pakistan? Let us pick the Punjab-China Economic Zone, Sheikhupura as the prime example. Setting up a Special Economic Zone comes at a cost. You need manpower, materials, equipment, and much more among other things. When these requirements become the centre, the result is infrastructural development. This also means that for the manpower working there, basic shelter needs are also compulsory which translates into housing schemes and apartments within the near vicinity.

After a quick stakeholder analysis, one can see that there are many parties that are directly influenced by the development in these economic zones. Let us explore them briefly and see how the developments affect those involved.

Ancillary industries

Development within this area means that multiple related industries will also prosper. For example, if a construction company is set up, this automatically means that raw material like cement, bricks, paint etc. will be supported. Not to mention, sales and marketing industries will also thrive. Similarly, if a manufacturing plant is set up, it will bring with it a positive influence on its ancillaries.


When it comes to making a decent profit, investors always look for places where they foresee enough development to know that the area will go up in terms of value. When an area is designated as a special economic zone, it enables it for certain privileges which aid in the development of the area. This means that the investors can make a decent amount on their investment, and the ROI is both safe and favourable.

Feudal landlords

Within these less developed areas, the age old system of landlords still prevails. With the demarcation of some of these areas as a part of the economic zone, it offers a plethora of opportunities to the landowners whose land falls in the economic zone. They can sell it, rent it out, or establish their own business. This provides them with the chance of upward social and economic mobility.

End buyers

Last but not the least, the decisive player in all of this is the end buyer. Whether they are looking for a job, to set up a business, or to purchase something, they are the most important of all since the money flow begins with them. So the right prices and facilities will attract the end buyer. If you are successful in attracting more end buyers to your product offering that means your hard work has paid off.

Impact on the realty market

With all the stakeholders discussed, we can now come to the following conclusion – a special economic zone will always benefit the overall economy of a country or an area despite the attached costs. According to Mr Zahid Rana of Pak Estate & Builders, there have been developments in and around Sheikhupura in the recent years. This clearly shows how the developments impact the realty sector. Keep in mind that this is just one of the seven notified economic zones. There are 46 other proposed zones and even if a mere 5% of those get approved, that would mean a big boom for the realty sector. Such a trend can already be witnessed in Gwadar where the price for 1 Kanal has seen a rise.


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On November 7, 2017

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