Building a homestay in Bhimtal, Nainital or near Kainchi Dham

With visitors coming for the lakes and for Kainchi Dham through the year, homestays are now among the most common new buildings around Bhimtal, Bhowali, Naukuchiatal and the Kainchi valley. A homestay is a home first and a business second, and the rules are written around that idea. Get both the building and the registration right from the start.

What the 2026 rules say

In 2026 Uttarakhand notified the Tourism and Travel Business Registration Rules, which replace the 2014 registration rules and the 2015 homestay rules and bring homestays, bed-and-breakfasts, hotels and travel businesses under one framework. As reported when they came into force, the key points for homestays are:

• A maximum of eight rooms and 24 beds, up from six rooms under the old scheme.
• The owner must be a permanent resident of Uttarakhand and live in the house with their family.
• Registration is with the Uttarakhand Tourism Development Board and is valid for five years, after which it must be renewed.
• Homestays are graded gold, silver or bronze on facilities and service.
• Provisions on fire safety, parking and guest records apply, with penalties for violations.

In May 2026 the state also revised its Deen Dayal Upadhyay homestay scheme, which supports local owners and now includes community-run clusters of homestays. Check the current terms with the district tourism office before you plan your budget around them.

If you are not a permanent resident, homestay registration is not the route for you, and the land you can buy is limited too. Read buying land in Nainital or Bhimtal as an outsider before you commit.

Get the building legal first

A registered homestay has to be a legal building. That means an approved map, and on farmland, a land use change under Section 143 before that. Here is how naksha pass works in Nainital district. Tell your planner at the start that the house will run as a homestay: parking, access road width and fire safety are easier to plan in than to add later.

Design a homestay that works

• Separate the guest entry and rooms from the family's own space, even in a small house.
• Attached bathrooms for every guest room, with ventilation that works in the monsoon.
• Water storage sized for full occupancy. Supply can be irregular in the peak summer season, so plan tanks and rainwater harvesting.
• Hot water from solar heaters with a backup, since winter mornings are when guests notice.
• Parking inside the plot. Roads near Kainchi Dham and Bhimtal lake are congested at weekends, and neighbours notice guests' cars.
• Rooms placed for winter sun first and views second; a cold room with a view gets poor reviews.
• A septic system sized for guests, not just the family, where there is no sewer.

Many of the best homestays here borrow from the traditional Kumaoni house: stone, timber and deep verandahs. See designing a hill cottage in Ramgarh, Mukteshwar or Sattal for ideas that also keep the building warm.

Near Kainchi Dham specifically

Demand around the ashram has pushed land prices up sharply, and some of the land on offer should not be built on at all. Plots on the banks of the Shipra, on fresh fill beside the Bhowali–Almora road or on slopes that moved in the October 2021 rains carry real risk. Go through our checklist for plots near Kainchi Dham, Bhimtal and Sattal before you buy.

Budget for the whole project

A homestay costs more than a house of the same area: more bathrooms, more plumbing, bigger tanks, better finishes and furniture. Start with what decides construction cost in Nainital and Bhimtal, then add fittings, furnishing and registration.

We plan, get approval for and build homestays across Bhimtal, Bhowali and the Kainchi valley. See our building construction service, or send us your plot details on WhatsApp.

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