The repealing of Article 370 and 35A of the Constitution of India by the government made significant changes in the land laws of the Union Territory of Jammu & Kashmir making a way for non-residents to purchase land properties in the region.
Article 35A Constitution of India debarred non-residents of Jammu and Kashmir from buying properties in the state has been revoked and people from other states can own immovable property in Jammu and Kashmir.
The central government said that the step is a way to fully integrate the region into India.
Jammu & Kashmir enjoyed a significant degree of autonomy for decades which included barring people who were not residents to buy property in the region.
Experts are of the view that the real estate activity in the region is likely to pick momentum.
Prashant Thakur, Director and Head Research of ANAROCK Property Consultants said it will be too early to predict how demand for real estate in J&K will pan out as it is still a sensitive region. It will take quite a bit of time for all ambiguities to clear. Even if some are keen to buy property there, they will first closely watch the political scene unfold in the future before taking the plunge.
He further added that the region definitely has a large untapped potential in the hospitality segment and unless safety is given paramount importance it will be difficult for real estate activity to pick momentum.
Experts believe investors will have to wait to invest in J&K’s real estate market and would like to see the situation in the Kashmir valley stabilize.
Pradeep Aggarwal, co-founder and chairman, Signature Global, a real estate firm based in Delhi, and chairman of ASSOCHAM National Council on Real Estate, Housing, and Urban Development, an industry body said that a lot of developers will now indulge in property development. Segments such as holiday homes, rental housing, and office and commercial spaces will now prosper in the region. After a few months, things will be in total control and people can actually think of investing in J&K. There is a need to come up with affordable housing and we would definitely like to contribute towards achieving it.
However, there’s not much clarity on how the move will pan out for investors.