Rs 421.75 crore for a ghost mall in Srinagar: How a stalled commercial project became J&K’s biggest real estate hotspot

A largely unused stretch of land around Srinagar’s stalled Sangarmaal City Centre has turned into one of Jammu and Kashmir’s most valuable public property deals, with a consortium placing a staggering Rs 421.75 crore bid for the 45-kanal parcel, a TOI report stated. The auction, which began at 11am on August 25, continued deep into the night before the bidding finally closed at around 1.48am on August 26. The final offer was more than double the Rs 200 crore valuation officials had expected for the property.

Parmesh Construction Company Ltd, a consortium involving Pahalgam Green Hotels, a Jammu and Kashmir-based firm and Bhutani Infra Ltd, emerged as the successful bidder.

The property is being offered on a full-lease basis and includes land located in front of and behind the Sangarmaal complex. Its location has made it particularly attractive to developers.


The site sits just behind the Kashmir Golf Course, opposite the popular Polo View market and close to some of central Srinagar’s busiest commercial and tourist areas. One side of the property reaches the Chunt Khul stream, while Dal Lake is around 1 km away. Lal Chowk is also nearby.

For a parcel that had spent years looking more like unused land than a commercial asset, the transformation in its fortunes has been striking.

From ambitious commercial hub to deserted complex

The Sangarmaal project dates back to 2015, when then Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed announced plans for a modern commercial centre that could give Srinagar a new urban landmark.

The project was designed with several features associated with a large shopping and commercial destination. It included landscaped areas, fountains, basement and surface parking, lifts and escalators.

The commercial component was sizeable too. It had 62 shops in the main commercial module, 38 spaces in the Craft Bazaar, 11 kiosks, two food courts, a restaurant and 11 office spaces. But the expected rush of shoppers and businesses never materialised.

Many of the shops remained closed even after being allotted or purchased. The premises gradually lost their commercial appeal, while weeds and overgrown vegetation took over parts of the complex. A project that was expected to become a busy commercial destination instead became an underused property in the heart of Srinagar.

Why the land attracted such a high bid

The latest auction has changed that picture. The combination of location, available land and redevelopment possibilities appears to have attracted strong interest from bidders. The property is positioned close to major commercial areas and tourist landmarks, while its size gives a future developer considerable room to redesign and expand the site.

Plans for the property include a multiplex and other commercial facilities. The scale of the final bid also surprised officials overseeing the auction.

One official described the experience of watching the bidding climb beyond expectations as tense, saying the price kept rising through the night. The official also viewed the outcome as a potential signal of renewed investor interest in Jammu and Kashmir.

The Rs 421.75 crore figure has therefore become more than just an auction number. It is being seen as a sign that strategically located public land in Srinagar can attract substantial private investment when redevelopment opportunities are opened up.

Batamaloo property auction follows

The Sangarmaal auction was followed by another major property bidding exercise in Srinagar. At Batamaloo, around six kilometres from Sangarmaal, nearly 70 kanals, or about 8.75 acres, of bus-stand land is being offered for redevelopment.

The property has remained largely underused and has also faced concerns over encroachment. The Srinagar Development Authority is now looking to put the land to more productive use.

Bidding for the Batamaloo site opened at Rs 95 crore on August 27. By the evening, the offer had risen to Rs 305 crore. Construction Engineers, another Jammu and Kashmir consortium, emerged as the highest bidder.

Like Sangarmaal, the Batamaloo property is being offered on a full-lease basis. The proposed redevelopment is expected to include shopping and office facilities as well as housing.

Together, the two auctions mark a sharp change in the fortunes of some of Srinagar’s long-underused commercial properties.

For Sangarmaal in particular, the extraordinary auction result offers the possibility of a second life for a project that once struggled to attract even ordinary footfall. What was once dominated by empty shops and weeds is now at the centre of a deal worth hundreds of crores.