DOES ABOLISHING SPECIAL STATUS MEANS PROPERTY GROWTH IN J&K?
Will scrapping of Article 370 boost the vision of the Indian Government of a new Kashmir and Ladakh in real estate zone?
Text: Sreyasi Maity
T he vanquishing of Article 370 would now allow Indian citizens from across the nation to buy property in the state of Jammu & Kashmir. This has already fired the speculations over the properties in the state with many already dreaming of holiday homes in Gulmarg and Pahalgam.
Undoubtedly, local people of Jammu and Kashmir will advantage from an open realty market, as right now closed markets have kept property rates dismally lower than the rest of the nation.
“The significant move, in theory, opens up potential opportunities for the developmentled economic growth in the Union Territories of J&K and Ladakh. This will provide an impetus to the economic growth of the state and fetch better employment opportunities,” said Niranjan Hiranandani, Senior Vice President, Assocham and National President- NAREDCO
The hospitality industry is quite bullish on the revocation of Article 370, especially for places like Gulmarg, Srinagar, and Pahalgam, but they are unsure of whether locals would be welcoming because of their fear of demography changing with influx of Non-Kashmiris.
In terms of real estate, the developers across India are facing slow sales which restricts them to explore uncharted territories. Secondly, the investors would first want to be sure of J&K as a safe destination before deploying capital. Lastly, even if normalcy is restored in the state, the developers are unaware of consumer behaviour and purchasing power of the people of the region.
While, there is certainly an interest among citizens, developers and investors alike, a surge in ventures, residential and commercial properties in J&K and Ladakh is highly unlikely
With the present security situation of the state and the distress in real estate sector of the country, it seems it will be at least a year before we will see any positive real estate transaction happening in the newly formed union Territories of Jammu & Kashmir and Ladakh. Being a highly sensitive zone, we wish the political instability doesn’t become a reason for economic de-growth and negative market sentiments.