Properties without buyers: Kashmir's real estate faces worst slump in years
Srinagar, July 20: Kashmir’s real estate market is facing one of its worst downturns in recent years, with properties lying unsold for months and prices falling sharply. Dealers and developers say demand has dropped significantly, amid a broader slowdown in business activity and growing investor caution.
“This is the weakest the market has looked in at least a decade,” says Riyaz Ahmed, a property dealer in Srinagar.
“Properties that were priced at Rs 1 crore just a few months ago are now being offered at Rs 70 to Rs 75 lakhs—and still, there are no takers.”
According to realtors, the slowdown began building late last year but has deepened in recent months as market sentiment weakened across sectors. The impact on the property market has been swift: buyers have become scarce, new enquiries have dried up, and transactions have slowed to a crawl.
“I bought a house to sell it for a small profit, but I’m now staring at a 30% drop in value,” said Muhammad Shafi, a consultant in Soura. “This is not an isolated case. Everyone in the business has similar stories.”
Real estate agents say the shift is most visible in the mid- and high-end segments, where properties priced above Rs 1 crore are facing what they call “complete resistance.” At the same time, there’s a noticeable tilt toward smaller, affordable plots and homes under Rs 50 lakhs, which are seeing limited but steady demand.
“There’s a clear change in buyer behaviour,” said Javid Ahmad, co-owner of Javid Realtors. “Buyers are becoming extremely cautious. They want smaller investments, less risk, and more liquidity. It’s the expensive listings that are suffering.”
The slowdown has also hit the construction sector hard. Builders are shelving new projects and delaying launches amid low demand and financial uncertainty. Several developers have put planned housing colonies and commercial buildings on hold, citing the lack of market appetite.
“We’ve paused two of our biggest projects for now,” said a Srinagar-based developer. “Launching anything new in this environment would be financial suicide. Right now, survival is the priority.”
This construction freeze is having a ripple effect on associated industries—hitting daily-wage labourers, contractors, transporters, and suppliers. With work drying up, many in the workforce are facing reduced income and uncertain futures.
Experts warn that the ongoing slump is more than just a market correction. “What we are seeing is structural fatigue,” said Shahid Mir, a Srinagar-based economist. “There has been very little price appreciation in the past five years. Real estate was stagnating even before, and now the slowdown in broader business activity has triggered this sharp fall.”
With buyers sitting on the fence and developers pulling back, Kashmir’s real estate market finds itself at a difficult crossroads. Unless economic activity picks up and investor confidence returns, the sector may continue to drift through a prolonged phase of stagnation.
