After braving stagnancy for the past three years, the realty sector is viewing this year with optimism for revival. To cash in on the upward trend of realty, developers are now trying to develop new concepts and projects for the year. Stakeholders state that hopes for political stability, banks and financial institutions (BFIs) showing interest to invest in real estate and most construction work starting in the months of January and February are some reasons to presume that 2013 will probably witness some reasons to cheer up the real estate sector.

“Nepal government is planning to provide housing units to civil servants. This will not only help boost sales but also play an important role in generating confidence among customers,” says Om Rajbhandary, executive director of Brihat Investments Pvt Ltd (BIPL).

According to him, new companies Pioneer Builders and Developers Pvt Ltd and Brihat Builders and Developers Pvt Ltd are being launched under BIPL to simplify and provide prompt service to its customers. The company is also preparing to come up with standalone housing projects. “We were researching for the last nine months and have come up with solid designs that will match the customers’ choice and needs. Along with reducing our investments, these designs will also minimise the price of products,” says Rajbhandary.

BIPL is also planning on investing in rental properties and conducting marketing campaigns. “Miss Nepal 2010 — Sadichha Shrestha — is our brand ambassador. While we have already started promotional work in theatres, we will soon launch an aggressive marketing campaign through other media,” he informs.

Krishna KC, marketing manager of Civil Homes Pvt Ltd, says that they have not finalised on any plans for the year. However, it would be their priority to handover ongoing projects like Civil Homes Phase III in Thecho; Phase IV in Sunakothi and Phase V in Dhapakhel that comprise of 198, 250 and 69 units of houses respectively.

“With the success and increasing demand for our projects, we will soon launch our mixed product project this year,” informs Bijay Rajbhandary, chairman of CE Construction Pvt Ltd. Adding that projects will include affordable standalone houses and high-end apartments, which will be located at Chappagaun, he says, “First we will launch affordable housing then gradually complete the whole project.” Reportedly, CE will introduce their standalone houses along with farming area in Chitwan.

Moreover, the company also plans to acquire more land area at Tokha to commence additional phases of existing projects. He also states that the company will increase the pace of work to turn static property into sellable products and help out problematic companies.

Om Rajbhandary states that pricing
methodology and timing of customer buying should be corrected in order to regain the lost glory of the sector.

According to him, this is the right time to buy property for investment as well as for end users as developers are offering products at minimum rates. “Customers should make the most of this opportunity as prices will escalate after two or three months,” he says.

But some experts believe that despite the demand, realty sector cannot grow because of low confidence. Om Rajbhandary says, “All stakeholders — including real estate developers, government, BFIs, customers and media — should join hands to uplift the sector and revive lost confidence. Only then the real estate can grow and with it other sectors will boom to benefit the country’s economy.” According to him, with increasing economic activity, the trend of investment for purpose of investment is also slowly increasing. However, their main focus will be on end users.

source: The Himalayan Times,5 Jan 2013