Property in Shimla

Shimla is Himachal Pradesh’s capital and a famous hill station. Famed as the Queen of Hills, Shimla’s real estate is in hot demand. The hill station is in the process of acquiring a dual profile—one as a sought after tourism destination and second as an emerging business centre. Consequently property prices and rentals are jumping in Shimla.

Individual houses, cottages; restaurants, hotels, pubs, bars, warehouses, garages, retail space and agricultural properties are available at Shimla’s real estate market.

Residential properties are driven by local demand for housing within the municipal limits. In Shimla’s outskirts, cottage houses are in good demand from buyers outside the state. Places like Mashobra and Naldhera are famous for availability of luxury cottages. Built-up cottages in 150-200 sq m are sold between Rs 50 lakh to Rs 1 crore.

A real estate consultant observed, “In Shimla, all types of residential properties are in demand, including Plots and Flats. Most local people want to live within the city that is why New Shimla is having high demand for housing properties unlike Old Shimla that is too congested.

Huge investments are coming in hotels and lodges sector of real estate. The curbs on outsiders for investing in Shimla’s property market are a constraint. In commercial property that difficulty is got over by forging business partnerships with locals. Shimla real estate comes under the Zone A category and built up structures for sale in urban areas within this zone does not require any state permission. But permission is compulsory for property sale in rural areas. The limit for outsiders in purchasing property is up to 500 square meters or 5,376 square feet in urban areas.

Rentals are a good business in Shimla. The categories range from PG Accommodation; Residential flats, Apartments, Bungalows, Villas, Commercial shops, Showrooms, and Office complexes.

Some big-ticket residential projects are happening in Shimla. Top builder and developer DLF is investing Rs 200 crore in some ultra-luxury villa projects in Shimla under the Sama brand.