Srinagar, July 13: Kashmir’s once-promising real estate sector is experiencing a severe downturn, with property owners scrambling to offload their assets at bargain prices.
The market for land, residential properties, and commercial spaces has hit a standstill. Many who invested in real estate hoping for lucrative returns are now facing a harsh reality as the economic landscape has shifted dramatically in recent months.
Local property agents and developers are grappling with significant losses as potential buyers become increasingly scarce.
“We’re seeing a complete reversal of trends. About 75% of our clients are now sellers, with very few looking to purchase. This slump has been ongoing for several months now. It seems the lack of disposable income has severely impacted investments in real estate, leading to a near-standstill in market activity,” explained Rashid Lone, Home Delights
Despite the gloomy outlook, Lone remains cautiously optimistic about a potential turnaround. “We’ve noticed a slight uptick in inquiries recently, although the numbers are still low. We’re hopeful for some positive movement in the coming months,” he added.
The lack of demand has had a ripple effect on property valuations across all segments. “Property prices have taken a nosedive. Potential buyers are making offers well below the actual value of properties. The demand has practically evaporated,” Lone remarked.
Sameera Bhat, a veteran property developer, estimates that demand has plummeted by over 35%. “We’re seeing a lot of hesitation from buyers. They’re adopting a ‘wait and watch’ approach, creating a significant imbalance between supply and demand. Even when we receive inquiries, very few translate into actual sales,” she explained.
Bhat believes that market stabilization hinges on overall economic improvement in the region. “Buyer confidence is crucial for a thriving real estate market. Addressing the underlying economic instability could help restore balance to the market dynamics,” she suggested.
As Kashmir’s real estate dream faces this unexpected hurdle, stakeholders are left wondering when, and if, the market will regain its former glory. For now, the once-booming sector continues to navigate through challenging times, hoping for a revival that seems distant but not impossible.