Residential Real Estate - Nepal

Nepal

The Residential Real Estate market market in Nepal is projected to reach a value of US$0.38tn in 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 2.98%, leading to a market volume of US$0.44tn by 2029.
In terms of global comparison, China is anticipated to generate the highest value in the Real Estate sector, reaching US$112.9tn in 2024.
The demand for residential real estate in Nepal has been steadily increasing, driven by population growth and urbanization.

Key regions: Europe, Brazil, France, Asia, United States

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Analyst Opinion

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

Customer preferences: One of the key reasons for this growth is the changing preferences of customers in Nepal. As the country continues to develop and modernize, there is a growing demand for high-quality residential properties that offer modern amenities and conveniences. Customers are increasingly looking for homes that are well-designed, spacious, and located in prime locations. Additionally, there is a rising trend of customers preferring eco-friendly and sustainable housing options.

Trends in the market: The Residential Real Estate market in Nepal is witnessing several trends that are shaping its development. Firstly, there is a growing trend of vertical living, with the construction of high-rise apartment buildings becoming more prevalent. This is driven by the scarcity of land in urban areas and the need to accommodate the growing population. Additionally, there is an increasing demand for gated communities and housing complexes that offer security and a sense of community. Another trend in the market is the rise of affordable housing. With the government's focus on providing housing for all, there has been a surge in the construction of affordable housing projects. These projects aim to cater to the middle-income segment of the population and provide them with affordable and decent housing options.

Local special circumstances: Nepal's unique geography and topography present special circumstances that influence the Residential Real Estate market. The country is prone to natural disasters such as earthquakes, which has led to the adoption of stricter building codes and regulations. Developers are now incorporating earthquake-resistant designs and technologies in their projects to ensure the safety of residents.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the growth of the Residential Real Estate market in Nepal. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and purchasing power. This has fueled the demand for residential properties, as more people are able to afford their own homes. Furthermore, the government's focus on infrastructure development and urbanization has also played a significant role. Investments in transportation, utilities, and other infrastructure projects have made previously inaccessible areas more attractive for residential development. This has opened up new opportunities for real estate developers and investors. In conclusion, the Residential Real Estate market in Nepal is experiencing growth and development due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for high-quality residential properties, affordable housing options, and modern amenities is driving the market forward. With the government's focus on infrastructure development and urbanization, the market is expected to continue its upward trajectory in the coming years.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. 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.