At. 370, How can you make money out of it?

Here comes an intersting news(abolition of Article 370) for real estate enthusiast, an opportunity to buy a piece of land at a sub optimal market price and take a time bound risk. The one who head-on this risk will surely end up getting decent gains in due course. But mind you, it is not a nerds game to take on such a bet, you need to have a wisdom of real estate market or look for someone who has it and consult her. Being mindful of short terms risk and uncertainty is vital, particularly in this case.

The time ahead won’t be that exciting in terms of sentiment. Media won’t leave any stone untouched to frighten investors over the short terms shocks. They gain two things by doing so - one they get more TRPs(all scepticism sells great in the market) and another - media tycoons and all their related network would keep accumulating this asset(land) at lower and lower price(as they would know the real value) and will sell it at premium when people like you and me rush to buy. 

India and International so called activist organisations, vested interests and multiple other people and forces would keep shouting to reverse everything (at least partially). Mr Modi, won’t lend them ears for sure, but will allow them to create nuisance for sometime as a part of planned marketing activity.

So let me bring you towards some real numbers, what is the cost to buy a land in different parts of J&K. Does it cost a bomb or dirt cheap. Well, No one knows. As I said in the beginning, there is an option to buy at a sub optimal price and no one actually knows what the optimal price looks like. But knowing the entire drama and the history, my estimate is that prices must be too low currently and is expected to shoot up upto 4X-5X in next 5-10 years. 

Average price for some of the places are as below.(Authenticity not guaranteed, Pls do your market research).

Srinagar: INR 3000 Per Sq Ft

Jammu: 3200 per Sq Ft

Baramula: 2800 Per Sq ft 

So a land of 100 Sq yard(means 900 Sq feet) would cost around 27-35 lacs which is equally to today's land price in a tier 3(or lower) cities. Isn’t it great? Off course yes. If I would have a crore in hand, I would have definitely purchased a decent size land and have my holiday home made in Srinagar. But still I am quite under the budget :). All these calculation looks super cool, isn’t it? and there seems enormous potential of upside gains.

Let me tell you, these gains is not one sided(its a win-win), mind this again - On one hand it gives people like you and me, who are an outsider to J&K to build a house there and on the other hand it create a life time opportunity for landholder there to have real value of their properties which was never possible in past. Isn't it wonderful for those locals? I hope you still remember the era(just a decade back) of rage to riches stories of farmers and poor land owners in different parts of metro cities and many buzzing tier 2 cities(including nearby villages) when urbanisation happened at an unprecedented pace and every person who hold even a little piece of land became millionaire in a matter of days. 

Before I end, and before you jump on out of your chair(post reading this article) and book your tickets for J&K, please read the disclaimer. Disclaimer: Real estate is one of the most strategic investment, hasty investor seldom makes any money in real estate rather they loose quite a lot. The market cycle is really long and no-one could easily predict the length and breath of cycle. But situations likes this do create enough opportunities for buyers and sellers to earn decent gains. 

PS: This article is just for your good read and knowledge only. I am very much sensitive to difficulties and suffering of people there and wishing for them peaceful environment at earliest.