Commercial Real Estate - Bhutan

Bhutan

The Commercial Real Estate market market in Bhutan is anticipated to witness significant growth in the coming years.
According to projections, the value of this market is expected to reach US$1.78bn by 2024.
Moreover, it is estimated that the market will experience a steady annual growth rate (CAGR 2024-2029) of 7.54%, resulting in a market volume of US$2.56bn by 2029.
In comparison to other countries, the United States is projected to generate the highest value in the Real Estate sector.
It is estimated that the United States will reach a market value of US$25,280.0bn by the year 2024.
Bhutan's commercial real estate market is experiencing a surge in demand due to the country's focus on sustainable development and eco-tourism.

Key regions: Europe, France, Japan, Brazil, Asia

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Analyst Opinion

The Commercial Real Estate market in Bhutan has been experiencing steady growth and development in recent years.

Customer preferences: Customers in Bhutan have shown a growing interest in commercial real estate properties, particularly in urban areas. This can be attributed to the increasing number of businesses and the need for office spaces, retail outlets, and other commercial establishments. Additionally, there is a growing demand for modern and well-equipped commercial spaces that can cater to the evolving needs of businesses in the country.

Trends in the market: One of the key trends in the commercial real estate market in Bhutan is the rise in mixed-use developments. Developers are increasingly integrating residential, commercial, and recreational spaces in a single project to cater to the diverse needs of customers. This trend is driven by the desire for convenience and accessibility, as well as the need for sustainable and environmentally-friendly developments. Mixed-use developments also contribute to the overall urbanization and modernization of Bhutan's cities. Another trend in the market is the growing interest in sustainable and green buildings. Customers are increasingly looking for commercial properties that are energy-efficient, environmentally-friendly, and have a minimal carbon footprint. This is in line with Bhutan's commitment to sustainable development and the preservation of its natural resources. Developers are responding to this trend by incorporating green building practices and technologies in their projects.

Local special circumstances: Bhutan's unique cultural heritage and commitment to preserving its natural environment have a significant impact on the commercial real estate market. The government has implemented strict regulations and guidelines to ensure that development is carried out in a sustainable and responsible manner. This includes restrictions on building heights, architectural styles, and the preservation of open spaces. These regulations contribute to the preservation of Bhutan's unique cultural identity and natural beauty, while also shaping the development of the commercial real estate market.

Underlying macroeconomic factors: Bhutan's stable economic growth and increasing foreign direct investment have also contributed to the development of the commercial real estate market. The country's strategic location between India and China, as well as its growing tourism industry, have attracted both local and international businesses. This has created a demand for commercial spaces and has encouraged developers to invest in the market. Furthermore, the government's efforts to improve infrastructure and connectivity, such as the construction of new roads and airports, have also played a role in the growth of the commercial real estate market. These infrastructure developments have made it easier for businesses to operate and have increased the attractiveness of Bhutan as a business destination. In conclusion, the Commercial Real Estate market in Bhutan is experiencing growth and development driven by customer preferences for modern and well-equipped commercial spaces, trends in mixed-use developments and sustainable buildings, local special circumstances such as cultural and environmental preservation, and underlying macroeconomic factors including stable economic growth and infrastructure development.

Methodology

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.