Pire,

What increased prices in Butwal and Janakpur?

Foreign employment is what is increasing the land/house prices all over Nepal. Millions of foreign workers bring back money and they have nowhere to invest except in Land. For some time i wondered myself on how the Heck a foreign employment holder who makes RS. 15,000 per month in average was contributing to geometric price hike of land in Kathmandu.

Here is how it works, the millions who are working in the middle east are buying land where they can afford (sadarmukams), this caused a price hike at sadarmukam, the sadarmukam holders then upgrade themself to "Jilla" such as Janakpur, Biratnagar, Butwal, Hetauda, Narayanghat and such. Now those who are selling at "Jilla" are upgrading themselves to KTM. Thats where the demand keeps on coming.Then we have the banks with easy financing on Land/Housing adding fuel on the land prices on fire.

Now the government has put implemented stricter policy on banks on land/housing loans so this has slowed down the raging fire. But the fire will still be there as long as the foreign employment keeps on going for following reasons

1. People keep on pursing a "Nepali Dream" of owning a piece of land in KTM.

2. The limited supply but immense demand.

3. Land owners in no hurry to sell the land outside of their selling prices

4. Corrupt leaders wanting to invent their corruption money in KTM

5. Foreign Employment necessity/popularity

In last few months the housing prices seemed to have slowed down due to banking curbs but this has not brought down the prices. The transactions have reduced but the prices remain the same or even more.