Kathmandu: The affordable apartments loaded with facilities are what the homebuyers in Kathmandu are seeking today. Though, the attractive amenities made available by the developers in their buildings has made living in an apartment buildings the ‘it’ thing Nepalis, the buyers are still hesitant in buying due to lack of affordability, accessibility and financing facilities.

On the other hand the developers are claiming that it is the best time to buy property — independent house or apartment — as the prices have come down due to tight liquidity. “This is the right time to buy houses or apartments,” said coordinator of the Urban Development Council under Federation of Nepalese Chambers of Commerce (FNCCI) Om Rajbhandari. They are offering every facility in affordable price, he added.

“These apartments are available at the price of land and has facilities like elevators, gym and swimming pool,” said one delighted visitor of Panchakanya Real Estate Expo 2011 pointing to one of the buildings in the display.

Ramesh Dhakal — a 38 year old father of a three year old daughter — is looking an apartment situated not so far from capital’s centre so he can easily commute to and from his office at New Baneshwor. He is more than happy to learn that particular housing development will also has a park where his daughter can play.

“At about Rs 5 million I can get all these facilities but with that money I can not even buy a decent piece of land around Ring Road,” he added.

Though centrally located apartments can be little over the reach of average Nepalis, the housing projects in the Ring Road’s periphery have garnered popularity among the homebuyers lately for its affordability. To tap into larger base of homebuyers housing projects are venturing into constructing both expensive luxurious and affordable units.

“A unit’s price depends on the land price among other things,” chairman of Downtown Housing Min Man Shrestha said, adding that they are reducing the cost on unit by reducing the size and facilities along with choosing less expensive locations. His company is constructing affordable Downtown Apartments in Khumaltar and relatively high prices City View Apartments at Bakhundole.

The housing development has become quite popular among Kathmanduites since some time. All the hassles regarding construction are taken care of by the developers and assurance of 24 hour water supply, power supply along with security.

Moreover, the easy financing facility provided by banks is also another USP for the housing units rather than constructing house on one’s own.

However, the sector and the homebuyer both are hit hard by the credit crunch in the banking sector and the resultant escalating interest rate.

“It is difficult for the potential buyers to pay 17-18 per cent EMI for home purchase as it is difficult for the developers to access loans,” pointed out Shrestha, who is also general secretary of Nepal Land and Housing Developers Association that has been organised second edition of Panchakanya Real Estate Expo 2011, in Kathmandu on August 25-28. Once booming real estate and housing industry has gone into near-recession state in last one and half years after the central bank capped the credit floated to them fearing creation of asset bubble.

source: The Himalayan Times