Advertisement
Latest News:
Sunday May 28, 2017
Etios Colony
Home => Articles => Market Pulse

Demand for flats flattens out-Nepal's apartment industry

The earthquake not only shook Kathmandu’s tall apartment buildings, but also people’s confidence in them

[Views:4352 ][Comments:8]
1482488180apartmentstatusnepal-400.jpg

Everyone is selling, but no one is buying, or investing. That just about summarises the status of Nepal’s apartment industry.

Having suffered physical damage during last year’s earthquake, developers are struggling to assuage a wary public about the safety of their high-rises.

After the earthquake, not a single investor has sought permission to build new apartments in Kathmandu Valley. Those who had already obtained permits have postponed plans, others have cancelled projects. Those with damaged buildings have done patchwork repairs for their flats, but there are few takers.

“Builders have no confidence that they can sell apartments,” says an engineer at the Department of Urban Development and Building Construction (DUDBC), the government body that issues licenses for apartment construction.

The DUDBC had issued the first license to build an apartment in Kathmandu in 2004 and until last year’s earthquake, the DUDBC had issued licenses for 71 apartment buildings. But only 51 were actually constructed. As many as 20 apartment buildings suffered cracks, and even structural damage. Of them, 14 were deemed ‘safe’ after being repaired, but six are still ‘unsafe’.

Six apartment buildings were under-construction, and investors have not shown urgency to complete these projects after the earthquake. Eco Housing and Realty Company had obtained permission to build a high-rise building with 108 flat units in Babar Mahal, but has shelved its project. Orchid Holdings has also cancelled its plan to build an apartment with 48 flat units in Rabi Bhawan.

At least 2,000 units are waiting buyers, and many families who left their damaged apartments after the earthquake are still scared to return there. Nepal Land and Housing Developers Association (NLHDA) says Rs 125 billion has been invested in Kathmandu’s apartments, and a large portion of this investment is now at risk.

The earthquake did not damage all high-rises that form Kathmandu’s skyline. More than 30 of them withstood the jolt, and were deemed safe by a technical team of the DUDBC. But those that violated the building code and used substandard construction material suffered structural damage, and this frightened buyers and investors alike.

“People are now scared to live in high-rise buildings, and this is because of a few unscrupulous builders,” says Minman Shrestha of NLHDA.

Binayak Apartment in Baluwatar nearly collapsed and would have killed 20 families living there. A Detail Damage Evaluation revealed it flouted guidelines.

“Arbitrarily tinkering with the approved design can be disastrous,” says DUDBC engineer Sagar Krishna Joshi. The ISME Housing Company sold flats of Binayak Apartment without a project completion certificate from the DUDBC.

In Kuleshwor, two blocks of eight-storey apartments of Oriental Colony also suffered heavy damage. Their pillars on the ground floor were cracked and the building nearly collapsed. An investigation revealed that the builder had not used as many iron rods as cited in the approved design. The DUDBC slapped a fine of Rs 50,000, and asked its owner to submit a retrofitting design.

“We need a policy to award those who build by the rule, and punish those who risk people’s lives by arbitrarily altering the design and using low-quality material,” says the DUDBC Kathmandu Division Chief Basanta Rai. “If not, it would be difficult to restore people’s faith in high-rises.”

(Centre for Investigative Journalism)

source: nepalitimes, 22 dec 2016

2016-12-23

COMMENTS
Recommended Articles
Have your Say

At this time government needs to take steps and find ways to make model houses. I write my essay on this topic. This will help people to get confidence.

  • Barbara

The industry of the world is raising but the students can buy dissertations online to raise the issues they have and the integration they can make in their minds.

  • ulaxavusy

It is really shocking for the construction companies especially the apartment builders that the people have lost their confidence in them. Earthquakes have resulted in the collapse of a number of big apartments and this has been the reason for their lack of confidence in buying them. home remodeling contractor Los Angeles

  • lionel

paris walking tours It is a good thing right. Now the brave ones can get an apartment for a profitable amount and others can, well live wherever they feel safe. I don’t know what else to say. All these apartments are highly secured with all earth quake damage control techniques and still the people are scared.

  • Audra Mcgee

Nice info so greats for everyone By:http://peredam.simdif.com

  • Peredam suara

Nice info so greats for everyone By:http://peredam.simdif.com

  • Peredam suara

Book cheap flights to Abu Dhabi with DialAFlight?, the award winning Abu Dhabi flights specialist.comet car covers

  • comet car covers

trailer trash pictures Nepal has been facing a major issue with disasters and which had led to a huge decline in sale of flats. With the last earthquake making a huge damage to majority of apartments and flats in the area people are more insecure about flats.

  • Taylor Shaw

HAVE YOUR SAY

*NAME
*EMAIL
TOWN
In order to help us prevent automated submissions, please type the number shown in below picture
*Validation no.

* Required

Advertisement
Brihat Community Living Bhaisepati
Civil Homes
City View Apartment on rent
Scenic housing
Brihat Cluster Balkhu
Connect with us
Contact our advertisement team for advertising and sponsorship in Housing Nepal .com
All trademarks, logo and names are properties of their respective owners. All Right Reserved.
our associates
http://www.educatenepal.com     http://www.financialnepal.com     http://www.tourismthamel.com     http://www.tourismkathmandu.com