real estate booms in kathmandu

In the last year or so, real estate in Kathmandu has skyrocketed. In some places by 100 to 200%. the speculation about its sustainability is a much asked question.

And a certain banker reasons with me:

“the real estate in Kathmandu valley is pretty much stable and will not collapse in the near future.”

His reasoning: If politics gets worse and uncertainties arise, everyone is pouring into  the safe Kathmandu valley (the only place of seemingly stability in Nepal) which in turn has a limited area because of it being a valley thus the prices will never crash. (but they might still go up)

If the situation of the country gets better, people will afford more and be able to purchase land at a premium value. and Kathmandu benefits from that being the commercial and political hub.

he concludes: “either way, investing in real estate in Kathmandu is a win win situation.”

but then, “what goes up, will come down”…