AuthorTanya Soni
If you dream of having a home with a scenic view of mountains covered with snow and green
hillocks, then you must explore properties in hill destinations such as Nainital, Ooty, Coorg,
Lonavala, Kodaikanal etc. Demand for properties in hilly areas is growing as people desire to
take a break from the fast-paced life in cities.
The prices of residential properties near metros are flying up high nowadays. So the people are
looking for properties in new locations closer to the metros. If you want to invest in real estate,
then the hilly areas are best for it as they offer attractive investment opportunities.
Restriction on Buying Property
However, a buyer firstly needs to check if buying property is legal in these hilly destinations or
not. Non-locals are not permitted to buy land in some states. In Jammu and Kashmir, only local
residents can buy and own properties due to historical reasons. In Himachal Pradesh, people
who belong to the non-farming community cannot buy agricultural land and non-locals cannot
buy land there without state government’s permission.
In Uttarakhand, non-residents cannot buy more than a prescribed limit of land and if you buy a
bigger area of land, you will have to take permission from the state government. In Arunachal
Pradesh, Sikkim, Mizoram and Nagaland, non-locals are not allowed to buy property. In
Meghalaya, non-tribals cannot buy land or property, except for some regions. The clearance
from the local government is still required if the buyer is a tribal from outside the state.
How to Pick a Property
Buyers prefer those hill properties as their second homes which are closer to their first homes.
In case of Mumbai and Pune, Lonavala, Khandala, Baneshwar and Alibaug are preferred
destinations. In the northern and the eastern parts of the country, the places of choice would
include Darjeeling and other non-restricted areas around Dehradun, Mussoorie and Nainital.
To take advantage of the growing market, many developers are selling plots, apartments and
villas in these hilly destinations. One can easily find a suitable property in these hilly areas
starting from few lakh for apartments and plots to several crores for fancy villas.
But the question arises that how to find the right property from a long list of properties in hilly
places?
The factors that you should look out while investing in these areas are social infrastructure,
connectivity and closeness with the main city and view from the site location. A property with a
scenic view gets high value. Buyers should do proper investigation before making any
purchase. Invest in the location and project that assures you sufficient resale value. Make sure
that all necessary permissions and clearances are available and one must inquire about local
property rates.In case of buying plots, buyer should check whether the plots in question are being marketed by
known developers and have clear titles. The plots should be properly demarcated and fenced
off and also have the basic infrastructure such as water and electricity. Further, it should be
checked whether these plots are part of a bigger scheme or are stand-alone plots including
security measures being offered for the developer.
Advantages of Buying Property in Hilly Destinations
? Multiple Options for Buyers: In hilly destinations, properties are available across
categories - from apartments and villas to plots and agricultural land. The hilly areas
have developed as a residential-cum-vacation destination with options for all kinds of
buyers. The modern buyers who are desiring to buy a second home with their available
money, are particularly attracted to these areas.
? Constant Increase in Property Rates: The established areas and the areas which are
developing have witnessed the constant increase in property prices across categories,
except for land. Mussoorie has seen the biggest jump in property prices over the past
two to three years, due to the rise of the hospitality and tourism industries.
? Freehold Property: In some states like Uttarakhand, all plotted developments are sold
as freehold properties where the renovation and transfer of property is easy, with the
less paperwork attached. This makes the registration of properties easy for the new
buyers.
? Leasehold Properties becoming Famous: With the rise of the hospitality and tourism
industries, the rents for the rooms have also gone up outstandingly. For the number of
second home buyers and investors, these residences are now a source of rental income.
The concept of homestays have now become popular in various hilly destinations now.
Disadvantages of Buying Property in Hilly Destinations
? High Property Prices: In famous areas where there is a lack of space, the house may
be priced higher than your primary home. The properties located across the hills come at
a higher rate due to high demand. Furthermore, there is a difference between
ready-to-move-in apartments and under-construction ones. Prices will also vary across
different destinations.
? Less Demand for New Properties: Ready-to-move-in and old properties are in high
demand. The sales volume for new and under-construction properties is low in
comparison to the old ones. If you wish to build a property after buying a land in any hilly
destination and then sell it, then there are chances that you will have to wait for a long
time.
The completed projects or resale properties are the safer options to invest. You should invest in
hilly destinations only if you have some business there or if you have plans to visit the place
frequently. A property in the hilly area with the possibility for good rental income could be a good
investment option for second home buyers.
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