Story Behind Article 370: Real Estate Implications, Opportunities & More

When we study the map of India, our eyes go straight to the crown of India, Jammu and Kashmir, rich in natural beauty and hospitality. For years, people in Jammu and Kashmir have waited for a sun that will not burn but brighten their lives, and finally, it happened in 2019. 

Different leaders have tried to approach the situation. But, the vision of our prime minister Narender Modi has intended to bring back the white glow of J&K. It worked; do you wonder how? 

In the recently released movie “Article 370”, the makers have scooped the fray onto cinema curtains. Everything was aligned well with the issue’s sensitivity and seriousness, from the actors to the lines and cinematography. Such a movie lets laymen know that the world is on a path to be a “better place”. And supporting the ideology of our leaders, we have constructed this read. You can know how things have changed. From the rules to the real-life changes, everything is here. And since Square Yards is an online portal for real estate services, we have also mentioned the property purchase process in J&K. 

What is 370 All About? 

Article 370, added to India’s Constitution in 1949, gave Jammu and Kashmir unique autonomy. Under the law, the state can have its constitution and governance in all things, except in areas like defence and foreign affairs. 

This special status was because of its unique history with India since 1947. Over time, the central government gradually reduced this autonomy. On August 5, 2019, the Indian government officially removed Article 370. This significant move ended the region’s special status and divided it into two union territories, J&K and Ladakh, changing its political landscape.

Influence of Freedom on J&K

The abrogation of Article 370 has flung open the gates to a future filled with promise and prosperity for Jammu, Kashmir, and Ladakh. This bold step is not just a legal amendment; it’s a heartfelt embrace that the rest of the country enjoys. The changes introduced post-Article 370 have laid the foundation for a thriving real estate sector. 

Following are the developments post the announcement:-

Real Estate Opportunities 

The lifting of Article 370 restrictions has opened the floodgates for industry and private investment in J&K. This move is not just about property; it’s a catalyst for comprehensive growth and employment, promising prosperity for all. With industrialisation on the rise, the local youth can look forward to many job opportunities.

Industrial and Local Industry Boost

J&K’s industrial sector is on the brink of transformation, offering a fertile ground for horticulture, food processing, and the famed handicraft industry. The newfound ability to export and collaborate globally makes real estate an even more attractive investment in J&K.

Tourism: A Flourishing Pillar

Removing Article 370 is a boon for J&K’s panoramic landscapes, setting the stage for a surge in tourist infrastructure investment. From luxury hotels to adventure tourism spots, the region is poised to become a magnet for tourists worldwide. This is coupled with opportunities for public-private partnerships (PPPs). It has strikingly contributed towards increased tourist arrivals, enhanced job and earning opportunities for locals, further stimulating the real estate market.

Health and Educational Investment

With barriers removed, J&K is set to attract large investments in the health and education sectors. The entry of world-class healthcare providers and educational institutions is expected to transform the region into a hub for medical tourism and higher education. This influx of investment stimulates real estate demand as infrastructure grows to accommodate these sectors.

Social and Legal Reforms

Significant legal and social reforms mark a new dawn for J&K. The full application of Central Acts and Laws means an inclusive, equitable society where real estate ownership and other rights are fully protected, creating a stable environment for investment. Also, women’s property rights and legal protections have strengthened, making the state safer for everyone.

Strengthening Grassroots Democracy and Economy

Applying the 73rd and 74th Constitutional Amendments empowers local self-governments, ensuring direct funding and decision-making at the grassroots level. This democratic deepening and enforcement of anti-corruption laws set a transparent, accountable stage for real estate and other investments.

Cultural Integrity and Inclusive Growth

Contrary to concerns, integrating J&K with India’s mainstream legal framework has not diluted its rich cultural heritage. Instead, it ensures protecting and preserving its diverse traditions and religious practices, fostering an environment where economic growth and cultural integrity go hand in hand.

Graceful Growth of J&K Over Years

Like the snow, the future of Kashmir seems to be brighter than ever. These clippings below are not proofs; they are milestones in a historic legacy. 

2 February 2022

Jammu and Kashmir transferred 289-acre land for housing, Dubia realtors likely to invest. 

(Covered By: The Hindu)

Jammu and Kashmir’s real estate and housing sectors took a sweet turn with the Union Territory Administrative Council, led by Lieutenant Governor. Sanctioned the transfer of 2,318 kanal (289.75 acres) of land across Srinagar and Budgam districts to the Housing and Urban Development Department at no cost. This significant land transfer, coming from agreements with leading Dubai-based real estate firms, aims to satiate the growing housing demand within the region.  

It aligns with the broader goal of attracting investments into the Union Territory, underscored by the successful “Jammu and Kashmir Real Estate Conference” and the anticipated 18,300 crore inflow into the sector.

26 February 2022

First-time home buyers in Jammu & Kashmir to get 50% stamp duty remission

(Covered By: The ET Reality)

Jammu and Kashmir announced a 50% stamp duty remission for first-time real estate buyers in the housing sector for two years. This decision, approved by the Administrative Council under Lieutenant Governor Manoj Sinha, aims to stimulate the real estate market. This move follows the region’s first-ever real estate summit, part of efforts to attract investment and boost the sector.

23 July 2023 

After G20 summit, Kashmir sees increase in foreign tourists

(Covered By: DH)

Post-G20 summit in Srinagar, Jammu & Kashmir sees a rise in foreign tourists, with over 17,000 visits this year compared to 4,028 in 2022. The summit has highlighted Kashmir as a global tourist destination, significantly boosting the region’s tourism sector.

6 June 2023, 

Ground situation in Jammu-Kashmir has changed after the abrogation of Article 370 and 35-A: Union minister

(Covered By: TOI)

Union Minister Dr Hardeep Singh Puri emphasized the substantial improvements in Jammu and Kashmir’s security and development landscapes. Under the guidance of PM Modi’s administration, the region has seen a leap in investment across various sectors. 

Dr. Puri highlighted completing the technical survey for the 175-km Gurdaspur-Jammu gas pipeline. Further showcasing the region’s real estate potential. He pointed to the success of the inaugural real estate summit in Jammu in December 2021. The state is moving forward with anticipation building for another milestone event in Srinagar. 

6 September 2023

‘Nearly 5000 companies registered in J&K in last 5 years’

(Covered By: Greater Kashmir)

According to the Ministry of Corporate Affairs, nearly 5,000 companies have been registered in Jammu and Kashmir in the last five years. This development aligns with the StartUp India initiative’s goals to boost innovation and private investment in the region.

9 November 2023

KO Impact: Much-Needed RERA To Be A Reality In J&K Soon

(Covered By: Kashmir Observer)

J&K gears up to establish the Real Estate Regulatory Authority (RERA) to address grievances in the real estate sector. Following a notification issued by the Housing and Urban Development Department for key positions. Later, on 11 January 2024, The government appointed retired Indian Administrative Service (IAS) officer Satish Chandra as chairperson of the Jammu and Kashmir RERA. 

13 January 2024

J&K Govt inks MoUs worth Rs.3,000 crore

(Covered By: Kashmir Reader)

During the Vibrant Gujarat Global Summit, Lt Governor Manoj Sinha discussed Jammu & Kashmir’s investment appeal with business leaders, highlighting recent MoUs worth Rs 3,000 crore. He emphasized J&K’s infrastructure, skilled manpower, and sectors like agriculture and tourism, assuring full support from the UT Administration for investors.

23 February 2024

Admin approves seven industrial estates worth Rs 8700.16 cr in JK

(Covered By: Freepress Kashmir)

J&K’s Administration has approved the creation of seven new Industrial Estates worth Rs 8700.16 crore, spanning 5290 kanals. Announced on February 23, 2024, these projects across locations like Budgam, Srinagar, and Pulwama, are expected to generate 28,376 jobs, signalling a major push for industrial growth in the region.

Property Purchase in J&K

With the adaptation of central laws, buying a home in Jammu and Kashmir (J&K) has entered a new era. The changes have significantly impacted the real estate landscape, opening the region to investors and homebuyers across India. Here’s what you need to know about the updated process:-

• Eligibility Expanded: Removing the “permanent resident of the state” clause now allows any Indian citizen to buy land in J&K.
• Land Law Reforms: Key land laws have been amended or repealed, including the Jammu and Kashmir Alienation of Land Act and the Big Landed Estates Abolition Act. This has simplified the legal framework for buying property in the region.
• Development Zones: New legislation introduces “development zones,” where the government’s declared areas are exempt from previous land laws, facilitating easier development and purchase of property.
• Agricultural Land: While agricultural land remains reserved for agriculturalists, with government permission, it can now be repurposed or sold, offering more flexibility to landowners.
• Non-Agricultural Use: Land sold to non-agriculturalists must be used for the stated non-agricultural purpose within five years, subject to extensions and penalties for delays.

End for a New Start 

We may not acknowledge it sometimes, but there is a lot to discover in J&K. Snow is a plus, but the beauty these states carry is beyond words. Tourists worldwide are seeking out the potential; what are you waiting for? 

You can connect with our experts to explore the gold mine of real estate in Jammu, Kashmir, and Ladakh.