Real Estate Market of Nepal that has been put to slow motion since the massive 2015 Earthquake, has not been able to spread its wings fully and prosper in the past few years. There have definitely been some changes in the policies. Local bodies have formed all over the country making it easier for concerned to go through the system. To get the real picture of the market, there needs to be thorough research conducted by reliable source. The findings from such research are not only helpful for developers and buyers, but for policy makers and banks and financial institutions (BFIs) as well.
Dr. Sopon Pornchokchai, President of Thai Real Estate Business School has been coming to Nepal and conducting such research from time to time. Dr. Sopon along with Brihat Property Solutions conducted the comprehensive survey on housing and apartment projects in Kathmandu Valley as of March and June 2018. This was the fourth time he has conducted such research. As per his findings, some 2961 units were sold or booked by buyers out of 3875 units covered by the survey. In the market, as of the end of June 2018, there were only 914 units i.e. 24% available for sale. Each month, some 3.1% of the total units were sold. Since there were 914 units available, the number of months need to sell out all units is only 8 months. This implies that the market is quite active at this moment.
New offers from BFIs for the attractive lower interest on home loans also brings out the message that even BFIs are being positive and trying to take advantage of the moment to cash in. Another strategy some BFIs’ are applying recently is tying up home loan with other essential products such as home insurance, life insurance, vehicle loan, shorter transaction period etc., which are beneficial to both parties.
So, all in all, these are the good time for home buyers as well as developers.