In recent years, property values in Kathmandu Valley have been rising steadily. Compared to alternative forms of investment … gold, dollar, or stock market, property in Kathmandu Valley has outperformed all of these by a substantial margin.

Price increases of 200% and 300% in 3- 5 years are not uncommon. These increases cover the whole spectrum of property – from residential to commercial - Perhaps the largest increases in the Valley have been recorded for property located in or near the existing and the proposed Ring Road areas. We see no reason for the reversal of this trend in the foreseeable future.

READ ABOUT NEPAL

Bill Gates to invest in Nepal Bill Gates, the world’s richest person, will invest in Nepal through the Bill and Melinda Gates Foundation. The foundation will invest about NR 13 million in rural electrification in northern Solukhumbu district. The United States company E & C and the local Beni Electric Company will launch a project to combine the transmission of Mopung and other micro-hydel plants in the district. It is reported that William Gates, father of Bill Gates, had shown interest in helping the area get electricity when he came to Nepal a few years back and went trekking in the area. The Bill and Melinda Gates Foundation has already provided more than US$ 24 billion in various countries, especially Africa, to fight HIV/AIDS, on education and other development activities. (Source: www.gorkhapatra.org.np, April 13, 2005)

Based on this most fundamental concepts of economics, “the price level of a good essentially is determined by the Point at which quantity supplied equals quantity demanded” …..”The law predicts that the price level will MOVE toward the point that equalizes quantities supplied and demanded…”

That being the case, Property in Kathmandu Valley obeys to those laws.

To the rear of Bhatbhateni Departmental Store	Heavy Machinery at site
At Bhatbhateni Departmental Store	Other view of site
MORE PICTURES OF BUILDING BOOM

DEMAND OUTSTRIPS SUPPLY IN GREATER KTM
As long as imbalance exists between the Supply and Demand factors, price of a square foot in Kathmandu Valley will only move one way: up! True to form, this upward trend In Kathmandu, mirrors the trends evident in so many other city centers in the world…..

Ratnapark Construction site	At work

WHY THIS TREND IS UNLIKELY TO CHANGE SOON?
No reversal of the trend is expected any time soon because of the exodus of local people who continue to move away from their mountain or rural areas, coming to the big city in search of better pay, jobs and economic opportunity. While rural villagers are being emptied, the city is facing overcrowding. The result is that Land in Kathmandu is now becoming scarce….and scarcity leads to still higher prices for both land and housing.

Materials	Construction site in Naxal (near NAFA)

KATHMANDU POPULATION TO DOUBLE

"At a projected growth rate of 2.25% per annum, the Experts predict that the population of Nepal will double in 31 years " - Source: THT July 12, 2005

AND WHAT IF PEACE SHOULD COME?
The most plausible answer is that if peace is restored in Nepal, property prices may temporarily pause but over the longer term, we believe they will soon again resume their upward trend (specially in Kathmandu Valley) This would be consistent with the upward pressure on prices that has developed for real estate in almost every capital of the world.

Workers on Site	Construction site in Jamal

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