Real estate is a great area for investment in Kashmir since it provides both a security blanket and significant returns over the long and short terms. Being a tangible asset with less volatility exposure than the stock market, real estate is a generally safe investment choice for investors.
Purchasing property in Kashmir may offer excellent prospects for diversification. By incorporating a variety of diversified assets, the investing technique known as diversification aims to spread out the risks in investment portfolios.
Kashmir’s real estate markets are comparatively stable, with steady demand for both residential and commercial properties over time.
Another benefit of investing in Kashmir property is that it has potential to deliver the highest returns in both short-term and long-term terms. While stocks and bonds can provide higher returns in shorter periods, real estate can provide higher returns in longer periods. This is because real estate values generally increase over time, and investors may also receive revenue by renting out their properties
Since Kashmir’s real estate portfolio is one of the safest and most lucrative ones, many investors choose to invest there. People have expressed interest in Kashmir’s real estate market since it has tremendous potential.
Investors should buy properties that provide them an advantage over rivals in order to make a big impact on Kashmir’s real estate market. Real estate is one of those industries that provides profits to consumers regardless of times, even though inflation has been rising quickly. As a result, real estate is currently regarded as one of the top long-term investment diversifiers.
It is one of the most important features of a successful asset portfolio. By investing in real estate, investors can claim deduction under Section 24(b) on account of interest on loan taken for the purpose of purchase, construction, repair, renewal or reconstruction of the property.
The deduction limit on the interest of a loan is ₹2,00,000 and an exception of one lack fifty thousand under Section 80(c) on the repayment of principal amount of loan.
Due to growth in tourism, investments, and growing real estate, Kashmir’s local housing market has remained reasonably steady despite the volatility in the price of gold and other commodities globally. As a result, a lot of investors are now concentrating on real estate investments rather than equities and commodities.
Furthermore, given that it offers safety nets and the highest profits over a brief period of time, NRKs are increasingly considering the Kashmir real estate sector as a desirable alternative for their investments.
The value of real estate can increase over time for a number of reasons, including population growth, economic development, and infrastructure upgrades. For instance, if a brand-new, large-scale development project, like an airport or a shopping centre, is put forward in a certain location, it may increase demand for real estate there and raise prices.
We can better comprehend this by taking a look at the Peer Bagh neighbourhood in Kashmir close to the airport in Srinagar. This is the first region where a closed gated community or the flat system has been implemented. Two years ago, a two-bedroom apartment that started at 30 lakhs cost 70 lakhs today. Additionally, land prices have increased dramatically, by a staggering 12500% over the course of 30 years, from 10 thousand per marla in the 1990s to 12.50 lakhs in the present.
Real estate markets can be cyclical and can be impacted by a variety of factors such as government policies, economic conditions, interest rates, etc. It is crucial to remember that previous success is not necessarily a reliable predictor of future performance. Before making any real estate investment decisions, it is usually advised to conduct extensive study and get professional assistance.
Last but not least, the government’s recent emphasis on the area’s development as well as rising tourism and infrastructural development in Kashmir may potentially be factors. The region’s government activities would also boost the economy, generating more jobs and raising demand for both residential and commercial real estate.
Overall, Kashmir’s real estate market is a great one for investors since it provides security, the best returns for both short- and long-term investments, diversification, and growth potential.
With the right research, investors may find properties that are likely to increase in value over time and make money by renting them out or selling them for a profit. Before making a financial commitment to any real estate project, it is usually advisable to talk with experts.
Arshid Bashir Akhoon is an investment advisor, and currently works as the Vice President of a leading real estate company.
Views and opinions expressed in this article are those of the author’s and do not necessarily reflect the editorial position and policy of Free Press Kashmir. Feedback and counter-views are welcome at [email protected]