The real estate landscape in Jammu and Kashmir is on the brink of a major transformation. With the imminent completion of the Peer Ki Gali tunnel on the Mughal Road and the Nowshera Tunnel on the Jammu–Rajouri–Poonch National Highway, the region is set to witness a surge in connectivity, economic activity, and property investment. For buyers and investors, this means new opportunities for affordable plots in Rajouri and Poonch and participation in the next wave of real estate projects in Jammu and Kashmir.
Tunnel Projects - Round Access and Growth
Peer Ki Gali Tunnel
The Peer Ki Gali tunnel, estimated at ₹3,830 crore, will make the 84-km Mughal Road—linking Shopian, Rajouri, and Poonch—operational throughout the year. Heavy snowfall has been isolated from this route for nearly half the year, but the new tunnel will ensure uninterrupted access, reduce travel time, and bring these border districts closer to Srinagar and South Kashmir.
Nowshera Tunnel: Fast-Tracking Development
The Nowshera Tunnel on the Jammu–Rajouri–Poonch National Highway is also nearing completion, with 97% of work finished and handover expected by March 2025. This 700-meter tunnel will further enhance trade, tourism, and economic growth in the Pir Panjal region, benefiting both locals and visitors.
Real Estate Projects in Jammu and Kashmir
The improved connectivity is spurring a new wave of real estate projects in Jammu and Kashmir. Developers have announced over ₹18,900 crore in planned investments, including residential, commercial, hospitality, and infrastructure projects. The government’s relaxation of land ownership rules and the implementation of the Real Estate Regulatory Authority Act have made the region more attractive for both local and outside investors.
Key Project Highlights
19 Residential Projects: Affordable and mid-segment housing, with a focus on Rajouri, Poonch, and Srinagar.
8 Commercial Projects: Shopping complexes, office spaces, and retail hubs.
Hospitality & Tourism: Hotels, resorts, and eco-tourism ventures near new corridors.
Affordable Plots in Rajouri and Poonch
With the tunnels set to boost year-round access, affordable plots in Rajouri and Poonch are drawing attention from local buyers and other state investors. These areas offer:
Competitive Pricing: Land prices are significantly lower than in Srinagar, making entry easier for first-time buyers.
Rising Demand: Improved connectivity is expected to drive up prices and demand for both residential and commercial plots.
Government Support: Incentives for housing development and streamlined land acquisition processes.
Srinagar Property Rates 2025: Trends and Insights
The capital city remains the benchmark for property values in the region. Srinagar property rates 2025 show an average of ₹13,065 per sq. ft., with prices ranging from ₹11,428 to ₹18,518 per sq. ft. in prime localities. Some areas like Batmaloo and Buchpora command even higher rates, while emerging neighborhoods offer more affordable options. The surge in demand is partly driven by a housing shortage and increased interest from outside investors.
Property for Sale Near Mughal Road
The Mughal Road corridor is emerging as a prime zone for property for sale near Mughal Road. The new tunnel will ensure all-season access, making these properties ideal for:
Residential Plots: For those seeking tranquil living with easy access to both Jammu and Srinagar.
Commercial Land: For hospitality, warehousing, and retail businesses targeting increased tourist and trade flows.
Property Near Srinagar with Good Connectivity
Areas such as Rajbagh, Zakura, Eidgah, Humhama, and Padshaibagh are considered top choices for property near Srinagar with good connectivity. These localities offer proximity to the airport, highways, and the new tunnel routes, making them attractive for both homebuyers and investors1011.
| Area/Project | Avg. Price (per sq. ft.) | Key Features | Investment Appeal |
|---|
| Srinagar (avg.) | ₹13,065 | Capital city, high demand | Strong appreciation |
| Rajouri & Poonch | ₹3,000–₹6,000* | Affordable plots, new connectivity | High growth potential |
| Mughal Road Corridor | ₹4,000–₹8,000* | All-season access, tourism, trade | Commercial & residential |
| Top Srinagar Localities | ₹11,428–₹24,632 | Good connectivity, amenities | Premium & mid-segment |
*Estimated based on recent listings and market trends.
Frequently Asked Questions
Q1: How will the new tunnels impact real estate in Rajouri and Poonch?
The tunnels will provide year-round connectivity, reduce travel times, and open up these regions to tourism, trade, and investment, driving demand for affordable plots in Rajouri and Poonch.
Q2: What are the current Srinagar property rates 2025?
Average property rates in Srinagar are ₹13,065 per sq. ft., with some localities reaching up to ₹24,632 per sq. ft.
Q3: Are there new real estate projects in Jammu and Kashmir?
Yes, over ₹18,900 crore worth of projects are planned, including residential, commercial, and hospitality developments across the region.
Q4: Where can I find property for sale near Mughal Road?
Land and residential plots are available near the Mughal Road corridor, with prices expected to rise after the tunnel’s completion.
Q5: Which areas offer property near Srinagar with good connectivity?
Rajbagh, Zakura, Eidgah, Humhama, and Padshaibagh are among the best-connected localities, benefiting from proximity to the new infrastructure.
Conclusion
The completion of the Peer Ki Gali and Nowshera tunnels marks a turning point for real estate projects in Jammu and Kashmir. With enhanced connectivity, rising demand, and a wave of new investment, buyers can now explore affordable plots in Rajouri and Poonch, invest in property for sale near Mughal Road, and secure homes near Srinagar with good connectivity. Whether you are a first-time buyer, investor, or business owner, the time to act is now.