Real estate investors and developers in India have had their eyes on the Uttarkhand state for a while, but is possible to buy land in the region?
Uttarakhand is one of the most beautiful regions in all of northern India and many of the parcels in the area have a stunning view that overlooks the Himilayas. However, many people are skeptical as to whether buying land in Uttarakhand is even possible given the state’s real estate laws.
Yes, you can buy land in Uttarakhand. The pros of buying land in Uttarkhand are the natural landscapes, appreciation rates, loose restrictions, various property types, and clear regulations. Whereas the cons are high demand and real estate costs, as well as annual maintenance.
If you are considering investing in real estate or simply buying a second home in India, you need to be aware of what the property laws are for the state. There is often some obscurity as to what you can and can’t build in certain regions, given that real estate laws can vary throughout the country. Uttarakhand is a particularly popular state in India that a lot of investors and private developers are interested in. This is a beautiful region with incredible mountainous landscapes - making it a great place for the up-and-coming tourism industry, as well as a location for a second home. With that said, you need to carefully consider your development before you start buying and building in Uttarkhand. To help you understand this further, we are going to take a closer look at the pros and cons of buying land in Uttarkhand.
After extensively researching India’s Uttarakhand state, I have been able to gather enough information to determine the logistics of buying land within the region. My research has indicated that you should consider the pros and cons of buying real estate in Uttarkhand before you may any serious commitments to a parcel.
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Can You Buy Land in Uttarakhand?
Yes, you can buy land in Uttarakhand. This state’s real estate laws can be a bit obscure to outsiders, especially considering that the region was only carved out of its parent state in the year 2000.
As one of India’s newest states, Uttarakhand has been developing and updating its property laws regularly since the early 2000s. In 2003, the state government passed an amendment that allowed outsiders to purchase land.
The regulations for property acquisitions for residents outside of Uttarkhand have been updated since, which limits the parcel size that a person can buy to 820sq. ft. (250sqm) in rural areas. This restriction is not applicable to plots located within urban areas of Uttarkhand.
Pros: Buying Land in the Uttarakhand
If you are looking for a great place to buy land in India, Uttarakhand is one of the most attractive regions in the entire country. Investors and private developers are scrambling to buy up land in this region, as it comes with so many benefits and financial incentives.
The main reason why so many people want to invest in Uttarakhand is that the region is full of wondrous natural landscapes. Aspiring homeowners dream of owning a property that overlooks the Himalayas, and Uttarakhand has a huge variety of parcels with these stunning views.
Buying land in Uttarakhand near the Himalayas enables residents to have an easy vacation to the mountains, which is why this is a particularly popular region for building a secondary holiday home.
Whether you are buying land for a personal home or as an investment opportunity, a critical aspect of any real estate acquisition should be its appreciation rate. You want to see a reliable and consistent appreciation of your property’s value over the years so that you know you will see a return in case you decide to sell the land later on.
Given how popular Uttarkhand is for development and how beautiful the region is, real estate values have been appreciating consistently over the years. With the current demand for land in Uttarkhand steadily increasing, we can expect properties within the region to continue to appreciate.
Open to Outside Investors & Developers
Depending on the state in India that you are evaluating, you may potentially be barred from buying land there. Each state has specific regulations that dictate who is allowed to acquire real estate within that region.
As one of India’s newer states, Uttarakhand has been quite open to outside investors and developers. Since 2003, you can freely buy land in Uttarakhand with minimal regulations. While there are specific property laws and restrictions that need to be adhered to, the overall procedure of buying land is still very lax for investors and private developers residing outside of Uttarkhand.
Various Property Types
As a state with 115 cities and over 21,000 sq mi of terrain, most of which is mountain and forest, Uttarakhand has a lot of diversity and variation. This is reflected in the types of properties that you can find scattered throughout the region.
You can find developed properties within urban districts of Uttarkhand, which include apartments, condos, and homes. Or you can buy rural land that is either classified as agricultural or completely raw.
This implies that you have a lot of different property types to choose from when investing in land in Uttarkhand. You can pursue multiple different investment strategies and find the parcel that is ideal for your specific development project.
In order to attract outside buyers, the government of Uttarkhand has implemented clear and concise regulations to ensure that investors and developers know what they are in for when acquiring real estate within the region.
As stated by the Uttarkhand government, outside buyers are not limited by the property size that they can acquire within urban areas. When buying land in rural parts of the state, outside investors will be limited to 820sq. ft.
Lastly, all plots throughout Uttarkhand are sold as freehold properties. This implies that when a buyer acquires a parcel, they are the owner of the property outright, which includes any developments, as well as the land itself. Freehold properties simplify the buying and registration process for outside investors and developers.
Cons: Buying Land in Uttarakhand
While there are certainly a lot of advantages to buying land in Uttarkhand, it is also important to understand that there are certain drawbacks to real estate investments in this region.
Make sure that you carefully evaluate the cons of buying land in Uttarakhand before making any real estate commitments or acquisitions.
As I mentioned, the number of people looking to buy land in Uttarakhand is rapidly increasing. While this is a sign of a booming real estate market, it also implies that finding the right property is going to be more challenging.
Property acquisitions are competitive in Uttarkhand and you will likely have dozens of people evaluating the same parcel in some areas. This is particularly the case with attractive properties that have been developed in urban or scenic areas.
If the land has a nice home, a view of the Himilayas, or both - you can expect the demand for the property to be extremely high. On the other hand, a parcel that is located out in the countryside may have considerably less demand.
High Real Estate Costs
You may have already guessed it, high demand equates to high real estate costs. As more and more people rush to buy up properties in Uttarkhand, land prices have skyrocketed.
When regions like Uttarkhand start to become popular locations for developing and investing, it is best to buy in as early as possible. The land prices of this region have been steadily appreciating since 2003 and they will continue to do so for the foreseeable future.
If you want to buy land in Uttarkhand, you can expect the average price per sq. ft. to be quite high - especially in urban areas and places with natural landscapes. While buying a pre-developed parcel is a more straightforward way to acquire a property, it is also going to be a lot more expensive.
A great way to save on your investment is to develop your property from scratch in a location outside of urban areas.
If you are planning on moving to Uttarkhand as a permanent base, maintenance costs are not going to be such a huge issue. However, if you are simply interested in acquiring a second home for seasonal holidays, then you need to consider the annual costs required to maintain the property.
Hiring a caretaker to look after your home will most likely be mandatory. You also need to keep in mind that there are unexpected issues that can arise in your second home when you are away such as plumbing, roofing, or electrical malfunctions.
These are all factors that will contribute to how much you spend on your Uttarkhand home’s annual maintenance fees.
Factors to Consider When Buying Land in Uttarkhand
Uttarkhand is a thriving region in India for real estate acquisitions, which is why there is so much demand for buying land in the state. Depending on what your real estate goals are, you may find that the pros outweigh the cons of purchasing land in Uttarkhand.
If you are considering buying land in Uttarkhand, keep the following factors in mind as you weigh out your property options.
Before you buy any parcel, you want to ensure that you have conducted a thorough inspection of the property to confirm that it is suitable for your real estate goals. If you are considering a developed parcel, evaluate the specs of the home carefully.
The structure should be completely intact and the foundation should be solid. This can be a major issue with some of the urban housing in Uttarkhand - especially if the development has not been recently renovated.
Uttarakhand is a region that is notorious for water scarcity. The lack of access to a stable water supply is problematic for developers and aspiring homeowners in more ways than one.
Some parts of Uttarkhand do not have adequate utility access to reach a proper water supply, which can complicate having a stable water source in your home. However, this can also make developing a property very challenging.
The construction of a home requires a considerable amount of water. If there is no natural water source or utility connection near your parcel, providing enough water to develop the property may not be realistic.
Home insurance is not always a necessity, but you may want to consider buying some for your Uttarkhand property. This region can get battered by seasonal floods and intense rains, which can cause a lot of damage to your land - especially if you have a development on the property.
Given that natural disasters are very common in this region, it would be wise to invest in some home insurance so that you know you are covered in case of flooding or landslides.
Never trust a landowner’s listing for their property. Although this may not be as big of an issue with urban parcels, it is particularly common in rural areas.
Very few property owners who own agricultural land have paid to have their plots properly surveyed. This implies that you may be evaluating land with different specs than what is listed. To be on the safe side, always hire a professional to survey the land so that you can confirm that the deed matches the listing.
About THE AUTHOR
Brittany has been in the land business since 2020 when the world was starting to shut down. Since then, we’ve sold to dozens of people from ATV weekend warriors to camping enthusiasts to retired truck drivers. Our inventory spans mostly in the western United States. We’ve been trained by experience, land acquisition courses, and hundreds of hours meeting with county assessors and clerks, zoning officials, realtors, and land investors. We’ve answered hundreds of questions from people regarding the buying and use of land.Read More About Brittany Melling