National 3 (Spotlight Weekly)

Building Boom

Even as the country's economy is passing through a gloomy cycle, the housing business is coming up with amazing strength

By SANJAYA DHAKAL

Call it an ironic twist. While almost every sector of the nation's economy is experiencing despondency, this very fact is stirring the business of housing schemes. "As people are left with few options of investing in other areas, they are doing so in the test-and-tried real estate and houses," said Udaya Shrestha, project manager of Sunrise Homes, a private residential housing scheme opened in Balkumari recently.

A fleeting glance at the daily newspapers is enough to prove how the housing business is picking up, despite the all-out assault faced by the wider economy. Every other day, advertisements of one housing scheme or the other appear in newspapers. On Nepalese New Year's Day, Oriental Construction and Development Company (OCDC) Pvt. Ltd, which is building the Sunrise Homes, opened its residential complex.

Sunrise Home : Will it attract enough buyers?

"Right now people with resources do not have much choice in terms of investment, so they are pouring money into land and buildings," said an economic analyst. "Besides, due to security reasons, there has been a surge in internal migration from rural to urban areas (read Kathmandu), triggering greater investment in the sector." It was no surprise that before even the official launching of the project, Sunrise Homes has already sold out around 15 percent of its units (houses/apartments).

The concept of residential complex, joint housing or apartment buildings is relatively new in Nepal. "It was after the passing of the Group Housing Act 2054 and Apartment Ownership Act 2054 that the concept gained ground here," said Shrestha.

After the two acts were passed, investors swung into action. A couple of housing complexes —like Sunrise Homes and Ansal Chaudhary Residential Buildings —materialized.

"Our business is a need-based one," said V. Rajgopalan, chief of the OCDC. According to him, the Sunrise Homes caters to middle class families that want to build medium-sized homes. "We are not building palatial buildings, but medium-sized houses, which most people want," he said.

Rajgopalan, an Indian Institute of Technology-trained and thoroughly experienced builder, said that the phase of development through which Nepal is passing through demanded investment in sectors like urban housing and apartments. "As land is getting scarcer, only concepts like housing and apartments complexes can provide answer to the burgeoning urbanization of Kathmandu," said the analyst. Besides, it also leads to more planned urbanization in Kathmandu valley, where haphazard construction has already ruined its aesthetic beauty.

The Sunrise Homes is located within the Ring Road in Balkumari. "We plan to build 103 units of houses/apartments blending the graceful elements of Spanish architecture with local living style," said Rajgopalan. The units include both independent houses and apartments. The amenities and services promised by the Sunrise Homes consists of round-the-clock security, well laid-out roads, 24-hours treated water supply, generator back-up for electricity, sewage treatment plant with high-tech treatment system.

"Our buildings can withstand earthquakes, as well," said Shrestha. He said customers would get what they are promised "unlike the prevalent practice of showing one thing and providing something different."

The prices of houses and apartments in Sunrise Homes range between Rs 1.6 million and Rs 3.7 million, depending on the quality and design of the unit. Buyers can take possession of the houses within 18 to 24 months from the date of booking. Payment is linked with the construction plan, with a 10 percent instalment due at the time of booking. "We are confident of selling out our units reasonably soon. The initial inquiries have been quite encouraging," said Shrestha.

At a time when the national economy is in the doldrums, even a small optimistic growth in one sector can act as an inspiration to the others.