Himachal Pradesh has reinforced Section 118 of the Tenancy and Land Reforms Act, imposing stricter regulations on non-Himachali property ownership. The revised norms particularly limit homestay operations, affecting real estate investments in Shimla and other tourist hubs.

Under the updated guidelines, non-agriculturists must obtain special permissions to purchase land outside municipal limits. While urban property transactions remain unaffected, restrictions on homestay registrations have raised concerns among hospitality investors.

Experts predict that these tightened land norms will reshape Shimla’s real estate market, prompting developers to focus on local partnerships and alternative investment models. As the state prioritizes land conservation and local ownership, stakeholders anticipate long-term shifts in property trends.