REAL ESTATE STAKEHOLDERS EXPECT THE NEW YEAR TO BRING GOOD TIDINGS AND RECOVERY
The Himalayan Times Daily, April 14, 2012: Page 13
By Sujata Awale, Kathmandu
After a two-year transitional period of ups an down, the real estate sector is finally stabilising and stakeholders expect the new year to bring good tidings and recovery. Those involved in the sector believe that dipping of interest rates by banks and financial institutions (BFIs), government’s new flexible rules, budget, transparent policies of developers and awareness among genuine customers will see real estate expand and revive this year.
…Buddhi Narayan Shrestha, President of International Real Estate Federation (FIABCI) Nepal Chapter, says: “The new year will see upward growth in transactions of housing and remain static in land development.” Informing that real estate takes at least six years to regain a cycle. Shrestha maintains “after two years of turmoil, the new year should initiate a bright future for the industry.”
He proposes deducting customs rates on required materials for the industry, controlling unauthorised brokers and making soft home loans more accessible. “Nepal has not rules to regularise brokers, which results in artificial demand and market fluctuation. Concerned authorities should think about this problem seriously,” he suggests. According to him, there is a genuine demand for 23,000 units of housing per year in Kathmandu valley and till date housing companies have only been able to develop 10,000 units.