E-Pass System in Hill Station - Possible Influences on its Real Estate Sector | Hill Station Real Estate - New Dimension 5

Indian hill stations are unique not just in terms of their climate, altitude, and scenic beauty but also in their diverse real estate markets. This distinctiveness stems from varying state regulations and local laws governing construction and property ownership in these regions.

For instance, one can find more options of flats / apartments for sale in Dehradun, Shimla and Srinagar as state capitals compared to other hill stations, thanks to permissions for constructing multi-story residential projects. Conversely, farm house / villa / independent house for sale in Ooty, Kodaikanal, Lonavala, Panchgani, Mahabaleshwar, Munnar, Wayanad, Coorg, Chikmagalur, Nainital, Mussoorie, Darjeeling, Siliguri, Kull Manali and Solan are common rather than apartment which is due to stricter regulations on building heights.

Regulatory Landscape of Hill Station Real Estate

In India, laws for real estate in hilly areas are tailored to protect the environment and the interests of local communities. These laws differ not only from state to state but also across real estate categories. Here are some notable examples:

• Restrictions for Outsiders: In certain northern states, outsiders face limitations in purchasing specific types of properties.
• Government Approvals: In some cases, outsiders must secure state government approval before purchasing property.
• Agricultural Land: In states like Himachal Pradesh, agricultural land is often reserved for certified agriculturists from the same state.
• Tribal Lands: In many northeastern states, tribal lands can only be sold within the same tribe, restricting sales to non-tribal individuals or those outside the state.
• Special Provisions: In some southern states, government-granted lands to specific groups, such as economically weaker sections, come with restrictions on resale or long locking periods.

TN E-Pass System: A Novel Initiative

In May 2024, the Tamil Nadu E Pass system (epass.tnega.org), implemented in Nilgiris (which includes Ooty, Coonoor, Kotagiri, Gudalur and Many villages in this district) and Kodaikanal, marks a significant development. Unlike the COVID-era E-Pass, this system is not about restricting movement but aims to collect data on tourist and vehicle traffic.

The purpose is to enable institutions like IIMs and IITs to assess the adequacy of infrastructure, such as ghat roads and parking, for the influx of tourists. While there are no caps on the number of visitors or vehicles currently, the data collected will provide a clear picture of tourist footfall.

Potential Impacts on Real Estate

Scenario 1: Infrastructure Enhancement

If the TN e Pass data reveals a high influx of tourists, state authorities may invest in infrastructure like accommodation, sanitation, potable water, roads, etc. This could lead to a relaxation of construction norms, allowing for vertical expansion. The result would be a surge in Ooty & Kodaikanal property value and spouting advertisements for new flat / apartment for sale in Kodaikanal, Ooty, Coonoor, Kotagiri by builders and DTCP approved plot / land for sale in Ooty and Kodaikanal by promoters.

Scenario 2: Controlled Access

Alternatively, the E-Pass system might evolve to include daily caps on visitors and vehicles to prevent overburdening the infrastructure and weekend / summer choking. This could motivate prospective buyers to buy villa / farm house / independent house in Kodaikanal & Ooty, to gain local resident status and bypass entry restrictions so that they can visit Ooty & Kodaikanal and enjoy the climate and its nature whenever they want.

 Broader Implications

This initiative in Tamil Nadu could set a precedent for other hill stations across India. Similar systems might be adopted in other hill stations soon or later and similar impact on its real estate will be inevitable. www.hillsandwills.com being an exclusive property portal for hill stations experiencing increased search for house / Villa for sale in Lonavala, Panchgani, Mahabaleshwar, Munnar, Idukki, Wayanad, Coorg, Chikmagalur, Shimla, Kullu Manali, Solan, Darjeeling, Siliguri, Dehradun, Mussoorie, Nainital, Rishikesh and other hill stations of India apart from Ooty & Kodaikanal.

Conclusion

The TN E-Pass system is a groundbreaking step in monitoring and managing tourism in hill stations. Regardless of whether it leads to infrastructure expansion or controlled access, the real estate sector in hill stations like Ooty and Kodaikanal stands poised for significant growth. For those considering investing in hill station properties, now is an opportune time.

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