Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Transactions - Bhutan

Bhutan

In the country of Bhutan, the market segment of Residential Real Estate Transactions market is anticipated to witness significant growth.
It is projected that the transaction value of this market will reach a staggering amount of US$97.27m by the year 2024.
Looking ahead, experts predict that the market will continue to thrive, with an expected annual growth rate (CAGR 2024-2029) of 1.41%.
This steady growth is anticipated to lead to a substantial increase in market volume, reaching a value of US$104.30m by the year 2029.
Residential real estate transactions in Bhutan are currently experiencing a surge due to increasing demand from both local and international buyers.

Key regions: Germany, Europe, Asia, United States, United Kingdom

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Analyst Opinion

The Residential Real Estate Transactions market in Bhutan has been experiencing significant growth in recent years.

Customer preferences: Bhutanese customers have shown a strong preference for investing in residential real estate properties. This can be attributed to several factors, including the cultural importance of owning land and property in Bhutan. Additionally, the limited supply of residential properties in the country has created a high demand, driving up prices and making real estate a lucrative investment option for individuals.

Trends in the market: One of the key trends in the residential real estate transactions market in Bhutan is the increasing number of foreign investors. Bhutan's unique natural beauty and commitment to environmental preservation have attracted international buyers who are seeking a second home or vacation property. This trend has contributed to the growth of the market and has led to the development of luxury residential properties catering to the preferences of these high-end buyers. Another trend in the market is the rise of urbanization. As more people move from rural areas to urban centers in search of better job opportunities and improved quality of life, the demand for residential properties in cities has increased. This has led to the construction of new residential complexes and the redevelopment of existing properties to meet the growing demand.

Local special circumstances: One of the unique aspects of the residential real estate market in Bhutan is the government's restriction on land ownership by non-Bhutanese citizens. This policy has been implemented to protect the country's cultural heritage and ensure that land remains in the hands of its citizens. As a result, foreign investors can only lease land for a maximum period of 99 years. This restriction has created a niche market for leasehold properties, with developers catering to the needs of foreign buyers looking to invest in Bhutan's real estate market.

Underlying macroeconomic factors: The growth in the residential real estate transactions market can be attributed to several macroeconomic factors. Bhutan has experienced steady economic growth in recent years, driven by sectors such as tourism, hydropower, and manufacturing. This has resulted in increased disposable income and improved living standards for the Bhutanese population, leading to a higher demand for residential properties. Furthermore, the government of Bhutan has implemented policies to promote investment in the real estate sector. These policies include tax incentives for developers and streamlined procedures for obtaining construction permits. These measures have attracted both domestic and foreign investors, contributing to the growth of the market. In conclusion, the Residential Real Estate Transactions market in Bhutan is witnessing significant growth due to customer preferences for property ownership, the rise of urbanization, and the influx of foreign investors. The local special circumstance of land ownership restrictions for non-Bhutanese citizens has created a niche market for leasehold properties. The underlying macroeconomic factors, such as steady economic growth and government policies promoting investment, have also contributed to the market's development.

Methodology

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.