On 5th Aug 2019, in a historic move, the PM Narendra Modi led NDA government announced its decision to withdraw Article 370 and Article 35A form the Indian Constitution, which has given special status to Jammu & Kashmir. Following the announcement by Home Minister Amit Shah, the state is now separated into two union territories. Now J&K is a Union Territory with the legislature while Ladakh is a Union Territory without legislature.

What is Article 370?

Article 370 of the Indian Constitution is a 'temporary provision' which gives special autonomous status to Jammu and Kashmir. Under Part XXI of the Constitution of India, which deals with "temporary, transitional and special provisions", the State of Jammu and Kashmir has been accorded special status under Article 370. All the provisions of the Constitution that apply to other states are not applicable to Jammu and Kashmir.

Article 35A gave Jammu & Kashmir government the right to decide who qualifies as a permanent resident of the state and only these individuals were allowed to acquire or own land, can settle and seek government jobs in Jammu & Kashmir region. It clearly means that non-Kashmiri’s and the rest of the country did not have the right to invest or buy a property or even settle down in the state. However, withdrawing Article 35A would most likely open the door for real estate investments in Jammu & Kashmir from across the country.

What will happen to J&K and Ladakh now?

After Kashmir’s special status is gone, people from anywhere in India be able to buy a property and permanently settle in the state. This has fuelled fear in the mind of Kashmiri’s — they think it would lead to the state’s demographic transformation from majority Muslim to majority Hindu.

Yes, Jammu & Kashmir will be like any other Indian state or union territory now where anyone can buy or invest in property. But results of the move may take 6-months to a year to dry up and for people to decide if Jammu & Kashmir is a safe address to invest capital. The best time to invest in Jammu & Kashmir would be after the authorities make clear their policies and rules, regarding buying and selling of properties.

We all know very well that Jammu & Kashmir depends massively on the tourism sector. In October 2019, the investor’s summit being planned in Jammu and Kashmir. It may create opportunities in the field of healthcare, pharmaceuticals, hospitality, and agro-processing. Some experts believe that a change in the administration could support the economy and property market in Jammu & Kashmir. Guesswork often heads to fake price rise and this has already been seen in some parts.