Commercial Real Estate - Nepal

Nepal

The Commercial Real Estate market market in Nepal is estimated to reach a value of NPR US$59.77bn by 2024.
It is projected to grow at an annual growth rate of 3.38% from 2024 to 2029, resulting in a market volume of NPR US$70.58bn by 2029.
In comparison to other countries, the United States is expected to generate the highest value in the Real Estate market, reaching US$25,280.0bn by 2024.
Nepal's commercial real estate market is experiencing a surge in demand due to increased foreign investment and government initiatives to attract businesses.

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

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Analyst Opinion

The Commercial Real Estate market in Nepal has been experiencing significant growth and development in recent years.

Customer preferences: In Nepal, there is a growing demand for commercial real estate properties, particularly in urban areas. Businesses are expanding and looking for suitable spaces to establish their offices, retail stores, and other commercial establishments. Many companies are also seeking to upgrade their existing facilities to meet the changing needs of their operations. Additionally, there is a rising trend of foreign investors and multinational corporations entering the Nepalese market, further driving the demand for commercial real estate.

Trends in the market: One of the key trends in the commercial real estate market in Nepal is the increasing popularity of mixed-use developments. These developments combine commercial spaces with residential units, creating vibrant and integrated communities. This trend is driven by the desire for convenience and accessibility, as people prefer to live, work, and play in close proximity. Another notable trend is the emergence of modern office spaces and coworking facilities. With the rise of startups and small businesses, there is a growing demand for flexible and cost-effective office solutions. Coworking spaces provide shared amenities and services, allowing businesses to operate in a collaborative environment. This trend is also fueled by the changing work culture, with more professionals opting for remote work or freelancing.

Local special circumstances: Nepal is a landlocked country with limited available land for development. This scarcity of land has led to higher property prices, especially in prime locations. As a result, developers and investors are focusing on maximizing the use of available land by constructing high-rise buildings and utilizing vertical space. This vertical expansion is evident in the increasing number of tall buildings and commercial complexes in major cities like Kathmandu and Pokhara.

Underlying macroeconomic factors: The commercial real estate market in Nepal is influenced by various macroeconomic factors. The country has been experiencing steady economic growth, which has resulted in increased business activities and investment opportunities. Additionally, the government has implemented policies to attract foreign direct investment and promote entrepreneurship, further stimulating the demand for commercial spaces. Furthermore, Nepal has witnessed a rise in tourism, with more visitors coming to explore its natural beauty and cultural heritage. This has led to a surge in the hospitality sector, creating a demand for hotels, resorts, and other tourism-related commercial properties. In conclusion, the Commercial Real Estate market in Nepal is experiencing significant growth and development due to the increasing demand for commercial spaces, the emergence of mixed-use developments, and the rise of modern office spaces and coworking facilities. The scarcity of available land and the country's steady economic growth are also contributing factors. As Nepal continues to attract foreign investors and experience economic expansion, the commercial real estate market is expected to further evolve and flourish.

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.