High Hopes for Urbanization and Real Estate Sector in Nepal

 

In the post earthquake and post budget announcement period, all eyes are on the actions and reactions of the real estate stakeholders on how the market will be shaping up. Before that, let’s have a look at some facts about the devastations that left us and strengthened us along the way. A Home Ministry report showed 602,257 private houses have been completely destroyed, while 285,099 have been damaged partially due to the earthquake and aftershocks. The huge loss of human settlements and lives is also due to haphazard urbanization.  

The budget for the fiscal year 2015-16 has adopted various measures to ensure planned urbanization. One of them is the implementation of land use policy. Land will be allocated to develop new settlement by implementing the policy. Developers will require prior approval from local authority for plotting the land for residential purpose. Housing development will be permitted by establishing easy access of basic infrastructure in the area. Integrated and organized settlements will be developed by transferring those areas that were geologically weakened by the earthquake where there is no possibility of resettlement.

The government has provisioned to have Rs 2.5 million loans to construct completely damaged houses with minimal interest rate which will create employment opportunities as well as increase the volume of new housing products. The announcement to allow foreign nationals to purchase apartments has also provided some relief to developers.

To move forward for an organized urbanization and upgrade the quality of living in urban areas, we have to focus on implementing land use policy for residential area, incorporating earthquake resistant designs, mandatory approval for land plotting, and strictly enforcing building code and building by-laws. It is only natural for earthquake to happen, but it is the joint effort of the government with improved policies, developers with better and disaster resistance design and well educated citizens to create a better future for Nepal and be prepared for such natural calamities while maintaining a well urbanized city and the country as a whole. 

Editorial Team
Brihat Group