Is Kashmir's Real Estate Market Opening Up? Review by ANAROCK Property Consultants
The government’s recent decision to revoke Article 370 and Article 35(A) is expected to have a positive impact on Jammu & Kashmir’s overall real estate market, which has been quite dismal so far. Property prices in Srinagar, for instance, still hover between INR 2,200 - 4,000 per sq. ft. – significantly low for tier 2 & 3 cities in the country.
On the one hand, locals will finally see an increase in the value of their properties. On the other, the really exciting prospect is the opening up of opportunities for Indians from outside J&K to finally invest in immovable property here. In fact, in his recent address to the nation, the Prime Minister categorically invited various industries - including Bollywood - to make investments across the entire region.
That said, it is still too early to gauge the real impact of this move on Kashmir’s real estate market - as of now, it is still a highly sensitive region and security concerns may keep property buyers at bay. Once it stabilizes, it will need the benefits of RERA-level regulation.
Since Jammu & Kashmir will now, for all practical and legal purposes, be viewed like any other state/UT in India, all rules and regulations of the Central government will apply there as well. As for RERA regulations, the region will have to formulate its own policies, which may not be similar to other hill states that have their own respective laws.
RERA will make a difference here only when real estate activity picks up and people come forward to deal in property. Like in all other states, here too RERA must give an equal footing to both buyers and builders and prevent unregulated real estate activity.
If rules are in place from the very beginning, there will be little scope for manipulations later on. Moreover, transparent transactions will help build confidence of investors and buyers. Meanwhile, Ladakh - a major tourist hotspot which attracts scores of tourists all year round – will very likely see an uptick in hospitality sector activity over the coming months.