The property rates in Jammu and Kashmir are likely to see a significant jump after a presidential order, ending the special status according to the state provided under the Article 370 and Article 35A, comes into effect. Once the relevant provisions of Article 370 are scrapped, citizens from across the country will be allowed to purchase property in the hilly state. Previously, only recognised citizens of Jammu and Kashmir could purchase land there.
“Real estate transactions so far have been highly restricted in Jammu and Kashmir. As a result, market appreciation of property has been curtailed. Once it is opened to all, there will be a demand for purchasing properties and that may drive up prices,” Pankaj Kapoor, founder and MD at real estate consultancy Liases Foras told BusinessToday.In.
DEPRESSED PROPERTY PRICES IN J&K
Locals of Jammu and Kashmir will benefit from an open realty market as currently closed markets have kept property rates far lower than the rest of the country. Property rates in parts of Srinagar, which are considered prime, continue to be among the lowest in India, even lower than that prevailing in the outskirts of most tier 2 cities.
In Srinagar’s prime Pantha Chowk area, houses can be bought for as low as Rs 2,300 per sq ft. In Pacci Dhaki area of Jammu, near Mubarak Mandi Palace, prices are equally low at Rs 40 lakh for a 1,634 sq ft independent house. A similar house at such a location in a non-metro capital city would cost over Rs 60 lakh, while in a metro like Delhi or Mumbai it could cost in tens of crores.
The abrogation of Article 35A, which bars non-residents from owning property in Jammu and Kashmir, will invite investments in immovable property across the region. Besides, several high net worth individuals and hospitality companies are likely to purchase lands to build luxury mansions and hotels, giving a boost to the tourism industry.
Jammu and Kashmir also has the potential for attracting middle class and upper-middle-class to invest in second home/retirement home in scenic locations like Lonavala or Khandala.