Future Prospects of Buying Property in Jammu and Kashmir

As soon as the news of Article 35A’s retraction poured in, now allowing non-native residents to buy property in Jammu & Kashmir (J&K), fake advertisements began flooding social networking platforms and real-estate websites. Netizens have warned each other from falling prey to such messages.

Earlier, Article 35A gave the state government power to decide who would qualify as a permanent resident, and only they were eligible to purchase land or property. The scrapping of Article 35A, which debarred non-residents from buying properties in J&K, is likely it open doors for non-Kashmiris to invest in immovable property within the proposed Union Territory.

While the legalities of the new situation are still being discussed, real estate dealers and brokers have started pushing classified advertisements for the buying and selling of plots and flats in the region. However, many of these are trying to cash in on the newfound interest in the region, with scams and fake advertisements.

There are certain procedural steps potential investors should keep in mind before taking the plunge.

• Since J&K will now be a Union Territory, all the rules and regulations of the central government will apply. However, the state does not have a RERA policy for now. The Real Estate (Regulation and Development) Act, 2016, was applicable to all states, except Jammu and Kashmir. The state, however, has in place its own version of the law. The Jammu and Kashmir Real Estate (Regulation and Development) Act, 2018, came into force in 2018. With the state opening up its doors to outsiders as well, the RERA rules may be tweaked, to keep the overall spirit of the law intact.
• J&K being one of the most scenic places in the world, with the scrapping of Article 370, real estate activity in the region is bound to increase. However, there’s not much clarity on how the move will pan out for investors, so property buyers need to be cautious for now. According to the latest news report the Union government will propose a domicile like option for J&K. This means the interests of the residents of Jammu and Kashmir will be protected by not allowing outsiders to buy agricultural land. Similar restrictions are already in place in hilly states of Uttarakhand, Himachal Pradesh and the entire northeast.

However, buying a piece of land or owning a home in the Kashmir Valley is not that easy. This could be easier in Ladakh and Jammu regions. Real estate activity has been limited in J&K in the past as the region is vulnerable due to cross-border conflicts. While there is no clarity on how the government’s move will impact investments in J&K, property prices are expected to spike over the next few months. Segments such as holiday homes, rental housing, and office and commercial spaces will now prosper in the region. Also, there is a need to come up with affordable housing. There are a lot of factors that are needed to be taken into account before making an investment such as how would one guard oneself against encroachment or property management remotely. There is potential for real estate to see growth in Jammu and Kashmir, but investors should wait for the cloud to clear.

Jammu has experienced some infrastructure growth with apartments, restaurants and stores coming up, and the region has been largely peaceful. With these factors, price trends in the Jammu region have gone up. According to Makaan.com price trends, the price of property in Jammu starts at Rs 2.8 lakh, while the average price is Rs 69.07 lakh. The average price per square foot is about Rs 2,300. However, dealers express concerns about the Kashmir region. Positive market sentiment is necessary along with job creation and infrastructural development by the government. A stable political atmosphere is important, even from an investor perspective. CII has also recommended a 10-point policy agenda advocating economic growth here, including sustainable industrial growth, creating a climate of investment and a boost to sectors such as tourism, infrastructure and connectivity, agriculture and horticulture, and renewable energy.