Mumbai: More than anything, Indians living outside Kashmir are excited at the prospect of buying property in the Valley.
While the change in status will certainly allow outsiders to invest in property in the two union territories, it is unlikely to lead to a scramble to buy residential, especially second homes and commercial properties.
Nonetheless, the development augurs well for the hospitality and the tourism sectors. But the impact would not be immediate, said a real estate expert.
The model that is likely to be followed is similar to that in Himachal Pradesh and Uttarakhand, where the permission comes with restrictions. But, more important, will be the ground situation in the Valley, which will determine the fate of new investments in border areas.
Eventually, investment will pour into infrastructure such as hospitals, schools, colleges, hospitality, retail and entertainment. Food processing industries could also get a fillip.