Occupancy Issues of Apartment Housing in Kathmandu Valley

Abstract

Nepal is urbanizing at a rapid pace. Kathmandu Valley shares the highest urban population. Growing population has per immense pressure on land and housing situation in Kathmandu Valley. Apartment came into picture to accommodate large no. of people in less horizontal space but all income groups of people could not afford to utilize the facilities of it. Considering the particular features of high rise; it should be managed and constructed in proper way. It saves our land to provide more greenery and open spaces for other infrastructural activities. Apartment plays vital role to optimize high-dense area, expensive and scarcity of land. The objective of the report is to understand the occupancy level of apartments, causing factors behind the vacancy of apartments, and others related occupancy issues of apartment and its practicality in Kathmandu Valley. Case study approach has been adopted through selecting some apartments of Kathmandu Valley. It was found that only higher income group (HIG) and middle income group (MIG) are residing in apartment and most of them are businessman. The developers make investments in the construction of apartments as a commercial activity rather than to upgrade housing scenario. Despite, due to the high interest rate, formal collateral in the form of land and house and high income of people to repay loans proffered by commercial banks, economically weaker section and lower income group of people are not able to get excess for loan because they don’t have enough collateral for loan. Apartment is far beyond EWS and LIG to afford. Before earthquake, apartment like Rio, Kuleshwor, Guna…etc had very nice occupancy rate more than 85%; but it decreased highly after earthquake except few apartment. High-rises should be for all income groups. Cross subsidy schemes as well as encouraging private developers by providing incentives can maximize the EWS and LIG dwelling units. Government with the collaboration of private sectors can play vital role for its flourish through the improvements in policy and incentives by making long term plan to establish actual image of vertical living.