Impact of Article 370 on Real Estate of J&K

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In a major move by Govt of India, Article 370 and 35A has been removed from Jammu and Kashmir. There are lot of stories about real estate rates going up in the region or opportunities in real estate will grow. This is true for some sense but it is too early to predict the impact as it will take time to access the situation in whole region. Real Estate impact can be divided in 4 parts; Hospitality, Commercial/ Industry of Mall and entertainment industry like water part etc., Infra structure development and Residential development.

There will be impact on all 4 but on some area, impact will be immediate and high and on some impact will be slow and low and will move with time.

Hospitality Industry: This industry should move first and activities should start immediately. This whole region is one of the best for tourists across the globe. Once upon a time, tourism was the biggest attraction and film making was a regular affair. But in last 70 years, nothing much moved in this direction due to security issues and no control of Government.

If Govt announces packages and cheap land (or on lease) then big brand like; Taj/ Oberoi/ Hilto/ Radission etc. should be opening hotels in Leh-Ladakh/ Jammu / Pehalgram / Sonaberg etc. and some very good names should come in boat /cruise industry.

In my view, if Govt is proactive then rich heritage of this region can be developed as ‘LUXURY’ tourist destination of India. Within country, Leh and Ladakh is the only region which is having sure shot “SNOW” in winter in India and can be transformed in to another paradise for adventure tourism.

Commercial Mall/ Entertainment Park: Another immediately opportunity can be having good shopping mall or entertainment hubs like snow park or skiing HUB. Retail market of whole area is unorganized and it is more of local street so having good retail destination can be big boost and attract big players but yes Govt need to provide cheap land so that developers can find out viability to move.

Infrastructure companies and work: This will be a big boost for region. In My view to prove his decision correct, this BJP govt will boost infrastructure of whole region by connecting by roads/high way/ by Air as much as possible so there will be lot of opportunities for companies who are working in infrastructure area. So infrastructure companies should start putting their base and finding out the cost of area so that they are ready once bidding process will start.

Centre is inviting 2000 potential investors in the investors meet going to held in coming months where next course of action will be decided. Such summits will only draw growth graph of state. This is first of its kind activity happening in J&K that shows govt is serious about growth of state.

Residential Development: This is what people talking about most but in my view, it will take time to be in shape and growth month. Nobody from out of Kashmir is going to buy in Kashmir until there is employment, social infrastructure and opportunity of growth. With growth prospects only people will start buying real estate not immediately.

Residential development can start immediately but rates will not going to touch sky or multiply soon. They will grow in a balanced proportion and will take time. Residential segment is very sensitive and developers will not show any hurry in state when entire country has ample opportunity. Hence in my opinion, segment of developers and investors both will be specific in terms of residential growth.

 

Next one year will be very crucial for whole area in terms of security, stability, infrastructure and growth. Tourism and hospitality will be the fastest industry to grow followed by infrastructure.  Then after state will be able to generate good no of employment for local people and which will add to the growth of whole region.

Pawan Jasuja

Pawan.jasuja@findmyproperty.com

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