The decision to revoke special status for Jammu & Kashmir is likely to increase the property prices for locals as prices in Srinagar has been hovering very low in a range of Rs 2,200-4,000 per sq ft, property consultant Anarock said on Monday. However, the consultant said that security concern may keep prospective property buyers at bay for now. "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," Anarock chairman Anuj Puri said in a report.
Property prices in Srinagar, for instance, still hover between Rs 2,200 and Rs 4,000 per sq ft – significantly low for tier 2 & 3 cities in the country, he added.
"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," Mr Puri said.
The Anarock chairman mentioned that Prime Minister Narendra Modi in his recent address to the nation, categorically invited various industries - including Bollywood movie makers - 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 stabilises, it will need the benefits of RERA-level regulation," Mr Puri said.
The new realty law RERA would 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," Mr Puri said.
If rules are in place from the very beginning, there will be little scope for manipulations later on, the consultant said.
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.
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