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June 28: Experts and entrepreneurs have asked for government support to address the issues in the real estate and housing sector. In a programme organised to mark the launch of report titled ‘Outlook of Housing Market of Kathmandu’ in the capital on June 27, the stakeholders of the real estate and housing business emphasized on the importance of cooperative housing and apartments.
The report was presented by Sopon Pornchokchai, director of Thai Real Estate Business School (TREBS), Bangkok, Thailand. According to him, the trend of buying residential apartments in Kathmandu has increased in the recent years compared to the housing construction. The programme was attended by representatives of banks, architects, real estate and housing entrepreneurs, experts and government officials.
A panel discussion was held during the event where participants discussed on different aspects of housing business, problems and ways to address the issues.
Sarita Shrestha Maskey, deputy director general at the Department of Urban Development and Building Construction (DUDBC) said that there is a need to build infrastructures and facilities for housing in order to fulfill the growing demand. Similarly, Om Dharnanda Rajopadhyaya, board member at the Institute for Urban and Regional Studies (NIURS) highlighted the reliability of the apartments in Nepal. According to him, the apartments in the capital were able to withstand the destructive force of the earthquake three years ago and the damages to the infrastructures were of temporary in nature.
“Structural safety of the infrastructures must not be compromised. Cooperative housing can be an alternative for the present challenge posed by shrinking land availability for housing,” he said. According to him, cooperative housing has 90 percent potential in the housing sector.
Rajan Singh Bhandari, CEO of Citizens Bank International, said that the real estate is a fully secured sector for investment and the government should not take it as unproductive sector. “Wide roads and attractive infrastructures are the factors that ensure development,” he mentioned. Bhandari suggested to the government to allow FDI in the real estate sector in order to address the credit facilities demanded by the entrepreneurs.
In his concluding remarks, Om Rajbhandary, executive chairman of Brihat Group, thanked the participants. He said that urban development is integrally tied to the housing development. “The damages to the apartments during the 2015 earthquakes were nominal. There is a need to address legal issues to help foster the housing sector,” he noted.
According to Brihat Group, the report was prepared based on various facts and information from housing companies, concerned government authorities and stakeholders, institutions and customers. The research was conducted from March 17-23.
An average annual return on housing market shows that around 12.5 percent investment is done in housing and apartment sector. The study shows that average income of rental is increased by 3.2 percent and the property cost is increased by 9.5 percent.
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