After facing vacuity in realty transactions for the last few years, the real estate sector in the valley has gradually reviving and witnessing growing momentum from the beginning of this fiscal. This is evident from the impressive revenue collection from land and housing registration. The revenue was up by 30 per cent for the first quarter of this financial year as compared to the same period last year.

If real estate developers’ opinion is something to go by, the realty sector is improving and regaining its lost glory. According to housing developers, the housing projects have witnessed around 30 per cent growth in demand as compared to the last fiscal. Easily accessible home loans at lower interest rates and relaxed liquidity status in the market backed by high inflow of remittance have once again ignite the demand of house and land in the valley. Encouraged by the positive vibes seen in the sector, real estate developers are geared up to initiate new projects soon.

“At present, the over- all real estate cycle is experiencing a northbound trend,” said Bijay Raj-bhandary, Chairman of CE Construction, adding, “The industry is witnessing around 30 per cent growth in demand as compared to last fiscal.” Citing that the boost in development activities injected positive vibes in the industry, he said, “Flexibility on home loans with lower interest rates indeed encouraged buyers to purchase properties. However, declaration of income source for purchasing property exceeding worth Rs 10 million is still a hiccup for buyers.”

Stating that the demand for standalone houses is high, Bijay said, “We are in the process of land acquisition and within a few months we will come up with two new housing projects in both the high-end and affordable segments.” Informing that the deadline for the crusher industry shutting down is near, he said, “If the government does not solve this issue, once again the realty sector will suffer badly.”

As the price of land is expensive in core areas, periphery areas two to four kms away from the ring road have been the focal point of most housing developers. Bhainsepati, Kalanki, Chovar, Jorpati, Tokha, Balaju, way to Bhaktapur are some of the most sought after areas for projects.

“The growth in realty revenue collection, lower interest rates on home loans and introduction of new projects are evident proof that the industry is recovering at a considerable pace,” said Om Raj-bhandary, Chairman of Brihat Group. Citing that the turmoil in the sector has helped filter many players, he said, “Many unreliable players could not sustain in the period of realty crisis and now the sector will be organised with genuine professionals.”

According to Om, community living is fostering day by day owing to its quality, design, security, facilities and good neighbourhood. He claimed that the construction cost of housing projects is as low as 25 per cent compared to the cost of constructing an individual house. He also said that with the increasing demand for standalone houses, the company is planning to come up with a new project in Bhainsepati. Cluster Living at Maitidevi, Brihat Community Living at Balkhu and Ramkot are other on-going projects. Citing that the company is not planning to introduce apartment projects, he said, “The business for apartments is slow as compared to standalone projects. We will tap into the standalone segment rather than apartments.”

“The housing market has improved as compared to the last year and there is signs of sustainability,” said Gaurav Ratna Sthapit, Business Advisor at Civil Groups. The company has two on- going projects — Sitapaila Residential Housing and Civil Luxury Apartment and is also planning to launch Tower A Apartment at Dhapakhel. He said, “The perspective towards apartments has changed and people are gradually gaining confidence to purchase apartments.”

According to Sthapit, non-resident Nepalis are potential customers for apartment projects. Citing that the real estate situation is completely driven by the political scenario, he said, “Once the constitution drafting concludes and the country gets political stability, the real estate sector will definitely flourish. And we are optimistic about it.”

source: Himalayan News Service, The himalayan times, 7 dec 2014