Nepal's urban popula tion, which is currently around 15 per cent of the nation's total popu lation, is expected to reach 18 per cent by 2015 and touch 30 per cent by 2030, data compiled by Comfort Housing have shown.

"Undoubtedly, the demand for housing has shot up but with the Nepal Rastra Bank (the central bank) directive, the housing industry is being pushed backwards. This may impact the overall progress of the nation," said Om Rajbhandari, real estate expert and CEO of Comfort Housing.

In Kathmandu alone, the urban population is projected to increase by 54.5 per cent -- out of the total 15 per cent. "Thus, by 2020, Kathmandu Valley only needs around 21,000 units to fulfil the ever-increasing urbanisation demand," he said, adding, "With in creasing demand for the housing units, the developers should bring products accordingly."

Before the NRB directive -- that was till last December -- the hous ing industry was in its prime, with many new projects being launched every other day. After the NRB directive, the situation has changed for the housing sector and it is facing a controlling mechanism.

The housing industry to day is dependent on the demand and supply. The alarming question is which real estate product the devel- opers should bring for the sustain- able growth and retention of this in- dustry.

On one hand, with our social as- pects we still consider separate indi- vidual stand-alone houses as a 'Home' and on the other community living or apartments are also the need of the day because of the con- straints of land and its skyrocketing price in the valley.

Community living concept has found wide acceptance and thus the secondary sales of such housings are also very good. Developers of today should also encourage such Com-
munity Living concepts. Apart from business also — to be socially aware and responsible — the developers have to adapt with changing times.

“Today, with the world going for 'Eco-friendly' concept, we should also address this issue,” Rajbhandari said. “It will help minimise the effect of global warming — that would be our small yet modest effort — and keep the industry floating too.” Some real estates have already started the concept of 'Eco-urbani- sation' concept. “To be eco-friendly these homes could incorporate a range of eco-friendly products and concepts like Solar Electricity provi- sion — for street lights as well as in- dividual homes; rainwater harvest- ing for water conservation; proper garbage disposal system for waste reduction; use of UV protection glasses; use of concrete lightweight blocks in place of bricks — for reduc- tion of carbon monoxide emission and conservation of clay,” he sug- gested from his experience gained from seven previous projects.

At a time when developers are scared to come up with any new pro- jects, such new products may help keep the sector going until the finan- cial sector feels more secure.

Till confidence is regained pricing of such projects should also accord- ing to the comfort level of customers which nd will definitely be less than the available market rate of other housings.

“The NRB directive, and its long term impact may damage the just- booming yet huge revenue generat- ing industry for the country,” he opined. “Even banks should act as facilitators and ease the consumers as well as developers in lending and provide flexibility.” “Because of the high interest rate for both the con- sumers as well as developers, people have started losing confidence and this is pulling sales down. This will ultimately decrease the asset cre- ation demand,” he said.

Courtesy: Himalayan Times News Service (April 4, 2010)