Looking For A Property In Shimla? Here’s What You Must Know

Locations that have cool climate throughout the year, are emerging as sought-after real estate destinations among investors looking for second homes. Himachal Pradesh’s capital, Shimla, is one such destination.  

Shimla’s cool climate and availability of land, make it a popular choice for industrialists, orchard owners, businessmen, HNIs and NRIs looking for luxury homes in the hills, says Yashpal Agnihotri, managing director and founder, Amila Group.  

Sensing the demand, his company has launched a luxury housing project in the city, named Amila Hills, on a 54-acre mixed-use land. This gated community boasts of a 360-degree view of the Himalayas, a lavish 26,000-sq ft clubhouse, a multi-level parking facility and a helipad. 

Several other large developers, including DLF, Tata, ATS, Sliverglades and Auramah Valley, have also launched their projects in the city.   

Dos and don’ts for property buyers in Shimla 

Can someone who is not a resident of Himachal Pradesh, buy a property in Shimla? The answer is, yes. However, people who are not from the state cannot buy agricultural land here. 

According to the Himachal Pradesh Apartment and Property Regulation Act, 2005, non-domiciles can buy a plot of land or apartment from a licensed builder, without seeking any approvals from the government but limitations exist for non-agriculturists buying land used for agricultural purposes. 

While booking a home, buyers must ensure that the project has been built according to local construction norms, cautions Agnihotri. “Our project, for instance, has been approved under Section 118 of the Tenancy Act, Himachal Pradesh. It entitles us to sell it to anyone, who is also not a bonafide resident of Himachal Pradesh. It will be like purchasing an apartment or villa in any other planned development in this country. Any person of Indian origin, even with a foreign passport, is eligible to buy a property in our township. It allows the buyer to get the property registered in the buyer’s name,” explains Agnihotri. 

Home buyers should also check whether the property is RERA-registered.   

Property prices and yield in Shimla 

According to makaan.com data, property prices are in the range of Rs 15 lakhs to Rs 4.50 crores. Popular localities include Mashobra, Mall Road, Longwood, Bagh and Vikas Nagar. For residential plots, Shimla Bypass, New Shimla, Mehli, Panthaghati and Bemloi are some areas. As for rent, a luxury property can reap high yields. A 4BHK villa should yield a rent of approximately Rs 75,000 to Rs 1.25 lakhs per month, informs Agnihotri. 

Shimla-based realty agent, Vasant Pancham talks about the income-generating potential of houses here. “Rental yield is especially good, if you are letting out your house as a homestay. For others, you could expect 2-3 per cent as yield per annum. However, if you wish to invest in a second home, this is the best place to be, as it is cut-off from the pollution that exists in some of the big cities of India,” he says.