Interest in Gwadar property investment has intensified since the start of 2019 and there are many reasons for that. This has been the busiest year yet in the development of this strategic port city with significant investment being poured in from separate outlets.
Gwadar is the most pivotal location in regards to the China-Pakistan Economic Corridor (CPEC), and the alliance is determined to reach its aims. Property enquiries are increasing at a rapid pace and, naturally, anyone who is hesitant over making a move will want to work their way through industry jargon.
A common term used in relation to real estate sales is Balloting and Allotment so let’s move on and ‘jargon bust’ that phrase for our readers.
How does a property balloting system work?
Essentially, a balloting and allotment system applies in property sales where demand exceeds supply. We see this in many countries across the world where there is a shortage of housing and the process is particularly evident when it comes to new build properties. When more than one party is keen to buy, there is an expression of interest (EOI) in the first instance.
In turn, each party will have to complete official ballot papers which are a confirmed commitment to buy should that ballot be successful. Now we come to the allotment stage where those properties are distributed.In the majority of cases, allotment is carried out as a completely random process. Lots are drawn from a box and the winning buyer can then carry out the purchase of the property in question.
It really is a lottery and there’s no doubt that the process leads to a number of unhappy buyers. Unfortunately, that is the scenario when demand outstrips supply but the follow up question is whether balloting and allotment will happen in Gwadar.
Should I be concerned about balloting and allotment in Gwadar?
CPIC Global are the market leaders in Gwadar real estate and one of the keys to their success lies in a wide range of properties. Currently, the company is overseeing sales for 3,000 properties across some 10 million square feet of land and there is a choice of locations.
Buyers can either pick from plots at International Port City or, they can invest in China Pak Golf Estates, a luxury gated community in the heart of the region.
At present, there is an increase in interest from potential buyers but that wide selection of thousands of properties means that supply is keeping up with demand. There is, therefore, plenty of plots available on a ‘first come first served’ basis.
The future holds no cast iron guarantees of course but developers of Gwadar will be aware of the need to avoid a balloting and allotment system. This process appears when there is no alternative but all it ultimately leads to is a loss of business and some unhappy investors.
The aim in Gwadar is to meet demand with supply and that position is set to stand for the immediate future at the very least.