Kashmir's Real Estate Sector in Turmoil
Demand Dwindles, Sellers Increase
The real estate sector in Kashmir is experiencing unprecedented turmoil, marked by a significant decline in demand. Brokers and property developers are grappling with a concerning trend: a rising number of sellers juxtaposed with a shrinking pool of buyers.
Economic Stress Cited as Primary Reason
According to insights from real estate firms, the percentage of property buyers in Kashmir is steadily dwindling. This downward trend is attributed to economic stress in other sectors.
“Kashmir’s real estate market is currently down. People do not have sufficient funds to invest in real estate.” - Imran Bhat, Property Dealer at Zakura
Bhat highlighted the unusual predicament where firms have far more sellers than buyers.
“Let me give you an example: I received up to ten queries today, six of which were from sellers. People are now selling their properties, but only a small proportion of the buyers are willing to buy.”
Impact on Property Prices
The sluggish demand has exerted downward pressure on property prices across all segments.
“Property prices have fallen. For example, if a seller has a property worth Rs 1 crore, they will only receive offers of Rs 70 lakh. Purchasing power has decreased significantly in the last few months.” - Imran Bhat
Market Decline Quantified
Another real estate agent, Javid Ahmad, quantified the market decline to over 30 percent.
“Several economic factors have influenced the current state of Kashmir’s real estate market. Potential buyers, deterred by economic uncertainties and a cautious approach to investments, are waiting and seeing, resulting in a supply and demand mismatch.” - Javid Ahmad
Optimism for Sector Revival
Despite the challenges, property developers remain hopeful for a sector revival, especially with the impending election season.
“Since it is election season, we hope for a revival of the sector; rates and demand are likely to rise with the start shortly.” - Javid Ahmad
Road to Recovery
As the Kashmir real estate market navigates these challenges, industry stakeholders await a turnaround. The sector’s fortunes are intricately tied to the broader economic landscape, with recovery contingent upon restoring consumer confidence and addressing the root causes of the current slump.