Yet at a time when realty loans are hard to come by, the middle class has been the focus of housing developers.

It started with the launching of Eastern Apartments at Kaushaltar, Bhaktapur by Ayusha Developers of Oriental Group. The venture received a good response, with more than 50 percent of the total apartments booked by the second day of booking.

After Eastern Apartments, a few more low cost housing projects were launched, notably Mero City and Downtown Apartments.

As more developers are targeting the middle class, you can now get one bedroom (BR) apartments starting from Rs 1.48 million to less then Rs 3.9 million, 2 BR in the range of Rs 1.38 million to Rs 5.3 million and 3 BR apartments between Rs 2.38 and Rs 6.6 million.

Developers even provide financing options like installment schemes of three and five year, which can be paid on monthly or quarterly basis. These schemes require customers to pay 50 percent of the total amount during the time of booking and the rest can be paid in equal installments in three or five years.

This eagerness on the part of the developers to invest in low cost apartments during a time when the central bank has put a cap on realty loans has left one wondering if the deal is really sweet enough. Despite this, the developers saw positive response from customers when they opened bookings.

One reason behind the decrease in price of apartments is the reduction in size. Sudhir Basnet, chairperson of Oriental Group, said size of apartments has reduced by almost half and this has significantly reduced prices.

Developers have used their expertise to use minimum space and deliver maximum output. In the Eastern Apartments project, the Oriental Group was up front in letting customers know that they would be responsible for few finishing tasks like painting walls, bathroom fittings and tiles.

"Sometimes customers are not satisfied with the color chosen by developers or the bathroom flexibility. That is why we have provided them more flexibility to choose what they want," Basnet shared.

Another reason behind the dip in cost of apartments is the current demand situation. The demand for low cost housing is high and the installment schemes provided by developers have helped customers get around the problem of getting realty loans from banks.

"Businesspersons who used to invest in apartments for its higher future value have been deflected by the cap on realty loans, but consumers who are really looking for housing apartments have been helped by our installment schemes," said Rajendra Kumar Shrestha, marketing manager of Oriental Group.

Prakash Bajracharya, director of Royal Orchid Developers, said there have been high demands for their apartments due to three factors -- price, location and layout. "People see this as a safe investment in Nepal in the present political and economic scenario," Bajracharya said.

When asked about the quality of the apartments, the developers said compromising on quality is not an option.

The quality assurance of housing development projects is monitored by the Department of Urban Development and Building Construction (DUDBC), concerned municipalities, and the Town Development Committee. DUDBC sets the building codes for housing projects.

"Low cost housing does not mean apartments made with low quality. Developers reduce the cost by using more affordable and quality construction materials and by decreasing the size of the units," said Chiranjibi Subedi, superintendent engineer at DUDBC Division Office Kathmandu.

The DUDBC has not found any compromise on the quality of the structure so far. It hopes that since developers have their name on line, they will refrain from developing housing that does not meet with its standards.

"Since the developers and apartment owners have the highest stake in the project, they are very keen to see that their investment is of a superior quality," Basnet argued.

Developers foresee this market segment growing as there are many more Nepalis who dream of owning their own space in Kathmandu. They also feel that the young population are more attracted toward apartment living.

Courtesy: Myrepublica