Srinagar, June 23: Post Pahalgam attack, Kashmir’s real estate sector has taken a massive hit with investments dropping by 50-60%.
Realtors said investor panic could prolong the slump. The Valley had been witnessing a steady revival in real estate activity over the last two years, primarily driven by commercial investments from those in the tourism sector. Plots and buildings were being acquired and converted into hotels, guest houses, and restaurants across prime tourist locations, particularly in the summer capital Srinagar. But all that progress has come to an abrupt halt.
“Real estate investment in Kashmir has largely been commercial. Most of our buyers were tourism stakeholders turning properties into hospitality ventures,” said Shamim Parray, owner of Kashmir Real Estate. “Since the Pahalgam terror attack, investments have dropped by nearly 60 percent. There is panic in the market.”
Realtors said the sector’s brief boom was powered by a rise in tourism and relative stability in the region. However, the security situation over the past month—marked by the attack in Pahalgam and heightened tensions along the borders—has sparked fears and forced many investors to pull out.
“After the Pahalgam attack and the war-like situation in May, people stalled every investment. Some customers who had already paid advances demanded refunds. People now prefer to hold on to their money in case things deteriorate further,” said another real estate agent, Mukhtar Abbas.
The prevailing uncertainty has frozen property transactions across popular areas like Pahalgam, Gulmarg, and parts of Srinagar. Realtors said inquiries have fallen drastically, and deals under negotiation have either been paused or cancelled altogether.
The realtors said the prices of the properties have also come down after the terror attack. “Even if we see some of the clients, they offer very little money. Only a few of the deals materialize. We are getting almost 20 percent low price of the properties even in the prime locations,” Abbas said.
The Pahalgam terror attack took a serious hit on many sectors, particularly the tourism sector, which over the last few years has been thriving in the valley. The following war-like situation further escalated the situation, thereby forcing the tourists to choose other destinations over Kashmir.
Now, gradually, tourists are again visiting Kashmir, which is setting a positive mood among the real estate agents.