Real estate companies plan to invest Rs 18,900 crore in Jammu and Kashmir as the Union Territory opens up for the development of housing and commercial projects.
Developers signed 39 memoranda of understanding with the UT government, agreeing to build 19 residential, eight commercial, four hospitality, three infrastructure, two finance, and three film and entertainment projects.
The agreements were signed at the Real Estate Summit 2021 organised in Jammu by the ministry of housing and urban affairs, the government of Jammu & Kashmir, and the National Real Estate Development Council.
The planned projects are expected to boost real estate development in the UT after the government relaxed rules in October 2020 to allow people from outside to buy land and property. However, not much has moved on the ground since the amendment in the rules.
Housing and urban affairs minister Hardeep Singh Puri said this first real estate summit will help rectify the past and will have a multiplier effect in J&K in the coming years.
This will create innumerable opportunities in J&K in terms of employment, investment and hence, economic growth, the minister said in his address at the summit, according to a statement from the ministry of housing and urban affairs on December 27.
Demand for real estate construction in J&K is not only in housing but also in tourism, hospitality and warehousing, the minister said.
“Signing of the MoUs will help in exploring new development opportunities in untapped locations that hold huge potential for real estate development in terms of residential, commercial, hospitality and retail, warehousing, logistics and healthcare projects,” said Rajan N Bandelkar, president of NAREDCO.
“This also reflects the enthusiasm of the government to welcome developers for mutual and equitable growth.”
Demand for second homes
Real estate developers expect demand from users and for second homes in J&K, given the nearby pilgrimage and tourist destinations.
“There is significant demand from people living in Srinagar to buy a house in Jammu to spend their summers,” said Niranjan Hiranandani, vice chairman of NAREDCO.
“Similarly, we expect people from other parts of the country to buy homes in Jammu as their second homes. Incentivisation will go a long way in accelerating real estate growth in Jammu & Kashmir.”
Pradeep Aggarwal, founder of Signature Global, plans to invest Rs 2,000 crore in Jammu & Kashmir to develop 10,000 housing units.
“Like other cities, there is a demand for affordable housing units in Jammu & Kashmir. We are looking forward to tapping this opportunity,” said Aggarwal. Signature Global has developed housing projects in Gurgaon.
Real estate developers said increasing urbanisation and economic activity and upward mobility will enable growth of the sector in this new location. Also, the prime objective of ‘Build in J&K’ led by the Housing and Urban Development Department and the government of Jammu & Kashmir will ensure all possible support, including a conducive business and regulatory environment.
Puri said the implementation of the Real Estate Regulatory Authority Act and the Tenancy Act in J&K will help in the ease of doing business in the UT.
Puri launched the J&K Real Estate Regulatory Authority website along with the auction of assets portal, affordable rental housing complexes scheme at Sunjwan in Jammu, housing schemes and the J&K housing mission Portal.Puri thanked J&K Lt. Governor Manoj Sinha for taking up developmental projects for the people in a short span of time and creating industry-friendly policies on multiple fronts.