Infrastructure Projects in China's Pearl River Delta to Boost Local Economies

 

Future cross-border infrastructure will enhance people, capital, and trade flows between Hong Kong and mainland China, according to CBRE's Greater Pearl River Delta Infrastructure Outlook report, which examines how infrastructure projects in the Greater Pearl River Delta (GPRD) will foster long-term development in the commercial real estate market and contribute to regional economic development. propertyfinder qatar

"The GPRD is strategically located on China's'southern gate,' which connects the country to the rest of the globe. This, together with the international business environment and government assistance, gives the GPRD region a bright future "CBRE Hong Kong, Southern China, and Taiwan's Head of Research, Marcos Chan, stated.

The GPRD's ongoing and planned infrastructure projects, which include several large-scale cross-border infrastructure projects implemented by the Hong Kong government, as well as a number of high-speed railway, intercity trains, and highway construction projects in cities like Guangzhou, Foshan, and Shenzhen, will be critical in driving city integration by enhancing the flow of capital, people, and goods.

"New infrastructure projects will help to better disperse resources in the GPRD, which will help to ease Hong Kong and Macau's space and resource shortages. Traditional industries would also benefit from their assistance in transforming and moving up the value chain. Furthermore, improved mobility can hasten development in peripheral areas while alleviating the pressures that come with megacities "Mr. Chan stated.

One example of how new infrastructure will benefit the region's commercial real estate sector is the Guangzhou-Shenzhen-Hong Kong Express Rail Link. As more Chinese enterprises pursue internationalization, more mainland corporations will expand in Hong Kong, resulting in long-term demand for office space. The Express Rail Link will reduce travel time between Hong Kong, Shenzhen, and Guangzhou from almost two hours to one hour for business travelers.

"The one-hour commuting circle across metropolitan areas and the two-hour commuting circle across the region will make it more feasible for businesses in Hong Kong to relocate their middle or back office activities to key PRD cities. It will also facilitate two-way labor mobility between Hong Kong and the rest of the Chinese mainland "Mr. Chan stated. "It will increase demand for business space in and around West Kowloon by providing a comfortable and quick mode of transportation between Hong Kong's West Kowloon and Guangzhou through Shenzhen. It will also encourage frequent travel and bridge the lifestyle divide between Hong Kong, Macau, and PRD cities."

This type of infrastructure development will aid the region's growth as an international megalopolis. Unlike other Chinese megacities, the GPRD contains three major economic centers: Guangzhou, Shenzhen, and Hong Kong, all of which are working together to propel the region toward becoming a vital economic hub for China as a whole.

"The development of the Guangdong Free Trade Zones will be aided by enhanced transportation facilities, which will provide smooth connections to Hong Kong and Macau, thereby driving population growth and enhancing the region's productivity. The GPRD will grow into a world-class megalopolis, attracting strong real estate occupier demand and providing significant opportunities for property investors "Mr. Chan concluded.

Beyond China, the GPRD will be critical to China's Belt and Road program, which will see a vast number of new cross-border infrastructure projects built spanning Asia, the Middle East, Africa, and Europe. CBRE forecasts that the GPRD might supply project engineering, arbitration, insurance, legal, and other professional services for the Belt and Road initiative, based on its significant experience in the development and operation of cross-border infrastructure.