Kashmir Real Estate Sector Takes a Hit Post-Pahalgam Attack

Srinagar, June 23: The real estate sector in Kashmir has been severely impacted by the recent Pahalgam attack, with investments plummeting by 50-60%. This sharp decline has sent ripples of panic through the market, halting the steady recovery that had been observed over the past two years.

Realtors in the region have expressed deep concern about the future of the sector. The Valley had been witnessing a resurgence in real estate activity, primarily driven by commercial investments from the tourism industry. Plots and buildings were being transformed into hotels, guest houses, and restaurants, particularly in prime tourist locations like Srinagar, Pahalgam, and Gulmarg. However, the recent attack has brought this progress to an abrupt halt.

“Real estate investment in Kashmir has largely been commercial. Most of our buyers were stakeholders in the tourism sector, converting 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 a palpable sense of panic in the market.”

The brief boom in the real estate sector was fueled by a rise in tourism and relative stability in the region. However, the security situation over the past month, marked by the Pahalgam attack and heightened tensions along the borders, has sparked fears and forced many investors to pull out.

“After the Pahalgam attack and the heightened security situation, people have stalled all investments. Some customers who had already paid advances are now demanding refunds. People are holding onto their money in case the situation worsens,” said another real estate agent, Mukhtar Abbas.

The prevailing uncertainty has frozen property transactions in popular areas such as Pahalgam, Gulmarg, and parts of Srinagar. Realtors report a significant drop in inquiries, with deals under negotiation either being paused or canceled altogether.

The prices of properties have also taken a hit. “Even if we do manage to find clients, they are offering much lower prices. Only a few deals are materializing, and we are seeing a 20 percent decrease in property values, even in prime locations,” Abbas added.

The Pahalgam terror attack has had a serious impact on multiple sectors, particularly tourism, which had been thriving in the Valley over the past few years. The subsequent war-like situation further exacerbated the situation, leading many tourists to choose other destinations over Kashmir.

However, there are signs of gradual recovery. Tourists are slowly returning to the region, which is bringing a positive mood among real estate agents. They remain hopeful that the market will stabilize and recover, provided the security situation improves and investor confidence returns.