Real Estate in Kashmir faces gloomy downturn amid waning demand

Syed Snowber
Srinagar, May 6: The real estate sector in Kashmir is navigating through turbulent waters, marked by a significant slump in demand. Brokers and property developers find themselves grappling with a predicament as they witness a growing number of sellers but a dwindling pool of buyers.

According to real estate firms, the percentage of property buyers in Kashmir has been steadily declining, a consequence they attribute to the stress prevailing in other sectors.

“The real estate market is down in Kashmir right now. People don’t have enough money to invest in real estate. Very few are turning up to buy properties in the form of plots now,” said Imran Bhat, a property dealer at Zakura. He highlighted the unusual situation faced by firms, where the number of sellers far exceeds the number of buyers. “I’ll give you an example: today, I received as many as 10 queries, out of which six were sellers. People are now selling properties, but there is a meager proportion willing to buy them,” Bhat added.
The sluggish demand in the real estate sector has exerted downward pressure on property prices across various segments. “The rates of property have come down. For example, if a seller has a property worth Rs 1 crore, they are receiving offers of only Rs 70 lakhs. The purchasing power has decreased significantly over the last few months,” Bhat explained.
Javid Ahmad, another real estate agent, claimed that the market has experienced a decline of more than 30 percent. “Several economic factors have contributed to the current state of the real estate market in Kashmir. Potential buyers, deterred by economic uncertainties and a cautious approach towards investments, are adopting a wait-and-see approach, leading to a mismatch in supply and demand,” he said.
The property developers, however, remain hopeful for a revival in the sector. “Since it is the season of elections, we hope for the revival of the sector. The rates, as well as the demand, are likely to go up with the commencement in the near future,” Ahmad expressed optimistically.
As the real estate market in Kashmir grapples with the challenges posed by dwindling demand and economic uncertainties, industry stakeholders anxiously await a turnaround. The sector’s fortunes are inextricably linked to the broader economic landscape, and a revival hinges on restoring consumer confidence and addressing the underlying factors contributing to the prevailing slump.