The Paradox of Prosperity in Kashmir

Why rising land prices, expensive credit, and concentrated growth leave ordinary Kashmiris behind, even as India climbs global economic charts.

- Malik Daniyal

Recently, I had the chance to sit down with a respected politician from Kashmir. Our conversation ranged across politics, society, and, most of all, the economy. It was thoughtful, raising questions that, in their simplicity, go straight to the heart of what growth and dignity mean for ordinary people.

The first issue was deceptively simple: why are land prices in Kashmir so high? He asked whether these prices were driven by demand or by limited supply. On paper, land should behave like any other commodity. When demand drops, prices stabilize. And when economic conditions worsen, prices should even fall.

But in Kashmir, the opposite happens. Inflation climbs, businesses slow, people spend less and save more, and land prices keep rising.

This paradox exposes structural flaws in the economy. Speculation plays a major role. For those with disposable wealth, land feels safe and tangible, especially when other investments, like stocks, businesses, ventures, seem risky.

Add to this the rigid supply of land, shaped by geography, regulation, and bureaucratic bottlenecks, and prices face relentless upward pressure.

A stagnant economy with limited investment options ironically fuels a land boom, pushing ordinary families out of property ownership.