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.
Leading property, Lamudi Ghana, looks at five key infrastructure projects now under development in the emerging markets – and the flow-on effects for real estate.
Saglemi Housing Project
Location: Ghana
Cost: US$200 million
Located in the Greater Accra Region, near Prampram, the affordable housing project is ongoing in Saglemi and is expected to be completed in March 2016. The project is being undertaken by Construtora OAS Ghana Limited, a Brazilian construction company, where it will consist of 5,000 housing units. A number of features included are recreational centers, commercial facilities, roads, and drainage systems, among others.
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”.
Bogota Urban Renewal
Location: Colombia
Cost: About $50 billion
Approved in 2007, Plan Centro aims to improve living conditions in Colombia’s capital city. The goal is to encourage Bogota’s residents to live downtown through improved safety, better housing and a boost to commercial activities. Projects such as the renewal and pedestrianisation of Séptima between Plaza de Bolívar and Calle 26 have already been completed. Other key projects, including the ambitious Estación Central on Calle 25 at Caracas, a multi-modal transit station that is expected to take 10 years to complete.
Centenary City Nigeria
Location: Abuja, Nigeria
Cost: $18 billion
This 1300-hectare, master planned community, being developed by the Nigerian government, is the largest of its kind in Africa. Billed as a smart city along the lines of Dubai and Singapore, the plan for Abuja Centenary City includes a central business district, a financial center, a museum and cultural center, 13 hotels, and business and technology parks.
The development will also be home to the highest tower in Africa, the 308m-tall Africa Tower. For residents, there will be ample housing, an 18-hole golf course, sports and leisure facilities, and community amenities.
The impact for the local property market will be considerable, with about 60 percent of the development set aside for residential accommodation to help address Nigeria’s growing demand for housing. Once complete, Centenary City will house 137,850 residents. Moreover, the project is forecast to contribute about five per cent of Abuja’s gross domestic product.
