Whether you are looking to invest in a holiday home or want to buy a property for rental income, Hill stations in recent years have become a favourable choice among young property investors and business entrepreneurs. India, being a land of scenic beauty is home to many such beautiful hill stations that are also popular tourist destinations. Some of the famous hotspots among them are Shimla, Kasauli, Darjeeling, Mahabaleshwar, Uttarakhand, and Lonavala.
While investing in a property at a hill station is quite beneficial, there are few factors which must be kept in mind before finalising any deal. So, here are few handy tips for the property investors:
Location, Infrastructure and Connectivity
Before finalising any property in a hill station, always take a look at the location, civic infrastructure and connectivity of the place with the metro cities. Suppose if you are looking to buy a holiday home for you where the whole family can enjoy during weekends and holidays, then it must be closer to your city, so that you have to spend least time on roads. Also, the place should have well-developed infrastructure like roads, markets and must be connected via expressway or main highways.
For example, Lonavala is well connected to Mumbai and Pune via Mumbai-Pune Expressway. Darjeeling is well-connected to Siliguri, Bagdogra, Gangtok and Kathmandu via highways. In the same manner, Shimla is well-connected to Delhi and other Himanchal cities via well-developed roads. All these cities have presence of well-developed infrastructure like schools, markets, commercial space etc. in case you are interested to invest in a rental property.
The second important factor which must be double-checked is that the property or plot which you must be acquiring should be free from all the legal clearances as well as permissions for constructions. You should also check about the property from nearby population. The property must not be involved in any legal case and must have clear title ownership.
Check for Restrictions
Another major factor to be checked before investment is any restriction involve in property purchase by the Government or administration side.
For example, a non-resident cannot own a land or plot in Jammu and Kashmir. Similarly, if you want to invest in Himanchal Pradesh’s any hill station; you have to seek permission for the state government. In North-Eastern state, Meghalaya, transfer of land is under Government control. In Uttarakhand, if you wish to purchase a land plot bigger than 250 sq. m, then you have to first take permission from State Government.
Future Prospects and ROI
The final and one of the most important factors for any hill station property investment is the growth and return on investment factor. Obviously, you will not invest into a property where there is no growth in terms of property price and rental income.
For example, properties in Lonavala offer high ROI as they include premium and luxury units, row houses, and bungalows etc. that are best for holiday homes. The place is also well connected to Mumbai and Pune and hence the investors here have ample money to invest in hi-end properties. The property price in Lonavala starts from Rs 1.5 cr onwards.
In the same way, investing in Shimla, Darjeeling and Dehradun also offers good ROI to investors.