Real estate lucrative for foreign investment
KATHMANDU:
With the exploding urban population in Nepal, investment in the urban housing development can be lucrative for the foreign investors.
“In the next ten years demand for proper housing units will be growing,” pointed out Om Rajbhandary, coordinator of Urban Development Forum under Federation of Nepalese Chambers of Commerce and Industries (FNCCI) in a presentation on Urban Scenario and Investment Opportunity in Nepal.
“It is the right time to start investing in housing projects,” he said, adding that the valley, currently, is undergoing an urban explosion rather than managed urban growth calling for an urgent need to upgrade the quality of living with proper infrastructure and facilities.
“Investment in property in Nepal through buying apartments or by direct investment in housing company will easily reap better return up to 15 per cent even in the present scenario,” added Rajbhandary, who is also third vice president of Nepal Land and Housing Developers Association.
The foreign companies can easily get an approval for investment through Department of Industry (DoI). The investors can undertake the investment in the form of equity or loan both of which yield high return but are subjected to reasonable tax rate. Even disinvestment is easy and simple — the investors can either transfer their shares or liquidate and repatriate the amount.
The budget for the fiscal year 2011-12 has also allowed foreigners to buy apartments worth up to $200,000. They can sell the property after five years.
Foreign investors can acquire real estate in the name of the business entity owned. “It surely has created handsome opportunity for all the foreign investors as well as Nepalis since with foreigners’ inflow, tourism will also get a boost,” Rajbhandary explained.
Though the demand for properly planned houses is apartments are on rise, the number of companies involved in the sector is few — less than 150 companies. The number of companies registered as Housing Developers totals 53, according to Nepal Land and Housing Developers Association (NLHDA) record.
Rajbhandary also pointed out need for developing satellite townships to the nearest districts of the valley to manage the population.
“The growing urban population in the valley needs to be relocated and accommodated to the nearest district or township with required infrastructures and services,” he added.
Source: THT
With the exploding urban population in Nepal, investment in the urban housing development can be lucrative for the foreign investors.
“In the next ten years demand for proper housing units will be growing,” pointed out Om Rajbhandary, coordinator of Urban Development Forum under Federation of Nepalese Chambers of Commerce and Industries (FNCCI) in a presentation on Urban Scenario and Investment Opportunity in Nepal.
“It is the right time to start investing in housing projects,” he said, adding that the valley, currently, is undergoing an urban explosion rather than managed urban growth calling for an urgent need to upgrade the quality of living with proper infrastructure and facilities.
“Investment in property in Nepal through buying apartments or by direct investment in housing company will easily reap better return up to 15 per cent even in the present scenario,” added Rajbhandary, who is also third vice president of Nepal Land and Housing Developers Association.
The foreign companies can easily get an approval for investment through Department of Industry (DoI). The investors can undertake the investment in the form of equity or loan both of which yield high return but are subjected to reasonable tax rate. Even disinvestment is easy and simple — the investors can either transfer their shares or liquidate and repatriate the amount.
The budget for the fiscal year 2011-12 has also allowed foreigners to buy apartments worth up to $200,000. They can sell the property after five years.
Foreign investors can acquire real estate in the name of the business entity owned. “It surely has created handsome opportunity for all the foreign investors as well as Nepalis since with foreigners’ inflow, tourism will also get a boost,” Rajbhandary explained.
Though the demand for properly planned houses is apartments are on rise, the number of companies involved in the sector is few — less than 150 companies. The number of companies registered as Housing Developers totals 53, according to Nepal Land and Housing Developers Association (NLHDA) record.
Rajbhandary also pointed out need for developing satellite townships to the nearest districts of the valley to manage the population.
“The growing urban population in the valley needs to be relocated and accommodated to the nearest district or township with required infrastructures and services,” he added.
Source: THT
