By Marzan Jamia
On the Basics
The Federal Democratic Republic of Nepal homes 26.4 million dwellers. It has a diverse geography comprising of plains for agriculture and subalpine forested hills. The region is also known for having 8 out of 10 of the tallest mountains in the world, along with the Mount Everest. This multiethnic nation is famous also for welcoming tourists from all over the world into its capital Kathmandu and other picture-like beautiful cities. The tourist industry of the country did not cease to thrive even after the unfortunate Gorkha earthquake in 2015.
Similarly, The People’s Republic of Bangladesh has also been blessed with abundant natural beauty of greenery and water. It’s rich in historical heritage and culture attracting tourists. The economy of the country is progressive in spite of being a developing nation and with better government policies, its busy cities are becoming lucrative spots for industry BPO and structural investments. A house for sale in Dhaka has become more desirable given that the real estate industry is doing a good job at allocation to its 163 million people.
Digging deeper, Nepal and Bangladesh may be compared on the following grounds in order to understand how the real estate sector of the respective nations operates.
In Bangladesh, the GDP growth has been dramatic in recent years with a 5% to 6% rise rate. They are being labeled as revolutionary for being the second fastest growing economy in South Asia, especially in the year 2016. Earning the 33rd position in the world economy, the statistics of the country is noticeably impressive in comparison to the past.
In Nepal, the annual GDP growth rate in 2008 was 4.5%, but 2016 has witnessed a growth rate of 6.5%. Overall, looking back from 1993 to 2016, the growth had been an average of 4.38% with a maximum and minimum of 8.60% in 1993 and 0.10% in 2001 respectively.
Globally, Bangladesh is perceived as a poor country with questionable Purchasing Power Parity (PPP). Yet in 2018, its capital has become the hub for modernization, starting from having Uber to get around with, to luxurious one-day celebrations of life where realtors push with “Buy apartment in Dhaka!” banners. People have an access to better lives, supported by statistics, all of which have been possible due to wage increases in education, healthcare, administration and public sectors.
An 11.09% rise in industrial sector growth and 6.25% rise in service sector growth are some amongst many other reasons why it costs $152 monthly to rent one bedroom apartment in Dhaka. According to World Bank, real estate played a significant role behind this as in 2015-2016 fiscal year, there has been a decline in the number of unsold flats resulting in an auto price correction; reducing rates of interest on home loans.
The economy of Nepal is dominated by agriculture and tourism. The cost of living in Nepal is 0.21 % lower than Bangladesh, with 21.03 % less in terms of rent. In Nepal’s capital Kathmandu, the World Bank acknowledges poverty reduction and social mobility, stating that the standard of living has improved in last two decades, although not enough to move to a more secure area. This is the reason why the majority population of Nepal is vulnerable in falling back under the poverty line, or struggling to hold on to their economic stability.
On Property Investment
Sky high prices of each Katha of land (0.084 acres) in Dhaka was the initial scenario in the first part of 21st century, making the real estate corporates to heighten prices in order to cover the complete project cost. This directly affected the completed flats as more people demanded a high-paced urban life. It was predicted that there will be a demand for 100,000 flats, putting the real estate agencies under the duty to accommodate more for less for housing satisfaction. However, with a drop of apartment costs in Dhaka for as much as 25.92%, it took around 3 years to recover from the high price challenge.
In 2014, the price of an apartment unit in a residential development project started at $20,735 in Nepal. One location that is perceived as ideal for buying property in Nepal is Bhaktapur. It is an ancient Newar town in the East corner of the capital, considered as the ‘cultural gem,’ mostly with Hindu and Buddhist corners of architectures and arts. Bijeshwari, Katanju, Nilbarahi and Balkot are some other potential investment options. Foreigners may purchase properties, but in their business’s name and not in their own.
Summing It Up
It’s safe to say that while Bangladesh is a developing country trying its best to elevate its status, Nepal is one of the least developing countries statistically. According to February 2018 statistics, it has been agreed to that the main sector of the respective economy is agriculture, employing 70 % of the entire population who happens to be accountable for 33 % of GDP. The nation is highly dependent on foreign aid.
However, both for Nepal and Bangladesh, their population and nature are an advantage. Both of these counties have the chance of having better real estate sectors than their existing respective ones. In order to make the right investments, www.lamudi.com could be just what one needs to find out more.