Commercial Real State - Nepal’s Urban Growth Play
We’re backing Nepal’s commercial real estate sector. Rapid urbanization and a growing middle class are pushing strong demand for modern office spaces, retail outlets, shopping malls, and residential apartment complexes, especially in Kathmandu and Pokhara.
The sector contributes about 8.3% to Nepal’s GDP. Prime commercial areas like Durbar Marg, New Road, Thamel and Thapathali enjoy occupancy rates above 90%, with rental yields of 8–10% annually. Kathmandu already has around 13 major shopping malls, and more are coming.
Because of severe land scarcity, developers are rapidly shifting to high-rise buildings and apartment complexes. Remittance inflows are further fueling this boom, as families upgrade to modern apartments. International brands entering the market are also driving up property values.
It’s a solid defensive growth play — steady rental income from long-term leases, strong urban demand, and economic expansion. Construction delays and political instability remain the main risks, but the long-term trend is clearly upward.
