Can a non- Himachali buy property in Himachal Pradesh?

Whenever you tell someone about investing in a property in Himachal Pradesh, the first thing that a non-Himachali will say is, “But I think there is some restriction regarding buying property in Himachal Pradesh by an outsider…”.There is much confusion about the legalities of buying property in this state. So let me try to put things in easy to understand terms so that the basic queries are resolved.

Can I buy a house/cottage/apartment in Himachal Pradesh if I am a non Himachali?

Yes you definitely can and moreover you will not need any special permission to do so. If you are an Indian citizen you can freely buy any built up structure or in other words any pre-constructed property in this state but there are two points you need to keep in mind:

1. The property is in an urban area and not on agricultural land.

2. You will be the owner of the built up structure only. The land on which the property is built will not be in your ownership.

The property on urban land can be of two types:

1. Property within Municipal limits:

If the constructed property is within the Municipal Limits a registered sale deed will be executed in your name and it will be a freehold property.

2. Property outside Municipal limits:

If the constructed property is outside the Municipal limits then it will be leased to you through a registered lease deed. The lease can go up to 99 years.

Since there are no restrictions on outsiders for buying pre-constructed property there are many projects by builders which are being lapped up by non Himachalis. Cottages and apartments in Shimla and Kasauli are very popular due to the easy accessibility of these towns, good infrastructure including medical facilities, wonderful climate and scenic views.

Can I buy land in Himachal Pradesh if I am a non Himachali?

As per section 118 of the Tenancy Act a non- Himachali cannot buy land in Himachal Pradesh.

In case you desire to buy land in the state you will have to do so in the following way:

· You may buy non-agricultural land by seeking permission from the state government.

· You will have to clearly specify the purpose for which you wish to acquire the land under Rule 38A (3) of Himachal Pradesh Tenancy and Land reform Rules 1975. You will have to state whether it is for residential /industrial/ commercial/ educational/ healthcare/ business/ agriculture based project or any other purposes.

· A certificate from the respective department will be needed to justify the amount of land required. Permission can be granted for upto 500sqmt of land for residential purpose and for other purposes it will be as per the requirement of the project

You cannot buy agricultural land if you are a non-Himachali person. Even if you are an agriculturist and you want to start your own farm or build a farmhouse you will not be given the permission to buy agricultural land.

I hope this article has been able to address the basic issues and clear some of the confusion regarding buying property in Himachal Pradesh. However for more detailed information you can check the following websites:

(i) Department of Town and Country Planning, Himachal Pradesh (http://himachal.gov.in/tcp/)

(ii) Application forms and criteria for acquiring/ transfer of land to non-Himachali (http://admis.hp.nic.in/hprevenue/PDFFiles/ExtractRule-38-A.pdf)

(iii) Chapter 10 of Section 118 of Himachal Pradesh Tenancy & Land Reforms Act (http://himachal.gov.in/tcp/chap10.htm)