Potential in the real estate sector in Nepal

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Real estate refers to immovable property consisting of land and buildings and its natural resources such as water and minerals. Real estate is a significant and valuable investment. The process of purchasing and selling such properties is called real estate business.

The real estate business in Nepal has been on an upward swing since the 1980s. The ever-rising price of land has caused owning even a small area in urban parts of Kathmandu to be out of reach even for individuals with strong financial backgrounds, which is why understanding the financing options available and building relationships with financial institutions is important.

Nepal’s real estate market has been influenced by factors such as population growth, urbanisation, and economic development. Ongoing and planned infrastructure projects, including roads, bridges, and public facilities, can influence property values and the overall attractiveness of certain areas.

The valuation of real estate can be improved, and it solely depends on modification or improvement, e.g. adding a pool or having a backyard with a patio can help improve the value of the property. A beginner can easily invest in real estate since it does not carry many complex investment structures.


Since these properties are not liquid assets in case of emergency cash cannot be retrieved in the desired amount instantly. These properties require constant maintenance and dealing with tenants can be a tedious job for many investors.

Proper knowledge regarding legal and regulatory, market research and analysis, finance and investment as well as property valuation is needed.


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The business is a dependable source of passive income because it has limited liquidity compared to other investments.

Nepal is experiencing rapid urbanisation, particularly in major cities like Kathmandu, Lalitpur, and Bhaktapur. This trend creates demand for residential and commercial properties i.e. marts, restaurants and vacation properties purchase can be beneficial.

Real Estate Investment Trust (REIT) is also available to help individuals buy real estate in the same way they could purchase mutual funds.

Role of real estate in Nepal

The role of real estate in Nepal is crucial to the country’s economic and social fabric. As Nepal experiences rapid urbanisation, the sector becomes a key driver of economic growth, providing employment opportunities and contributing significantly to the nation’s GDP.

Additionally, this sector helps provide affordable housing to low-income families at minimum rates through the Nepal Housing Development Finance Company, established by the government of Nepal.

This sector is not only a driver of economic prosperity but also a key player in addressing the evolving needs of a growing and dynamic society.

The business in Nepal is very promising shaped by factors such as population growth in urban areas, infrastructure development, and the country’s growing tourism industry and with proper knowledge and skill, an individual can undoubtedly produce great results in the long term.

As Nepal continues to open to global investments and embraces technology in real estate services, the industry holds growth potential, offering diverse prospects ranging from hospitality development to eco-friendly housing solutions.

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Gartaula is a student studying BBA at Kathmandu University School of Management.

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