Mostly agree Kasto_Manche.

This market has seen exponential growth for a long time. Economic conditions, political instability, business environment and all other dire fundamentals seem to have no impact on the strength of this market. We know that the major tangible driving forces behind this are 1. Remittance and 2. Lack of productive investment opportunities 3. Lack of security and opportunities in other parts of the country 4. Limited Supply and not to mention extreme speculation. I am not sure how much leverage there is in real estate investments in Nepal. Even with such factors going for it, the price must be justified by what the population can afford. If the average price of a house in Ktm is 1 karod or something close to that, how many families can afford to buy at that price ? I am of the opinion that the market will correct itself to reflect the affordability and other fundamentals but what will trigger this correction? Anyone has any idea on real estate exposure of commercial banks in Nepal? Maybe a localized credit crunch like the one seen in the international markets will trigger it.