With many Bhutanese travelling abroad for better opportunities, people who are constructing houses on the outskirts of Thimphu are worried that there will be no tenants if the current migration trend continues. Some owners have noticed a decline in tenants booking flats before the completion of the house, which was more common in the past. Additionally, the Bank of Bhutan, where many construction owners apply for loans, is now restricting loans for construction on the outskirts of Thimphu.
More than 300 houses are under construction in the capital. Some are nearing completion while others have just started the construction.
According to some of the owners, constructing houses in Thimphu, especially on the outskirts of the city is not so promising compared to previous years.
According to the banks, the areas beyond Taba in the north and Babesa in the south are considered the outskirts of Thimphu city.
Many builders are concerned about repaying loans due to the increasing number of people leaving abroad. Some owners mentioned that even those residing in Thimphu prefer to live in core town areas.
“Youth migrating abroad is increasing yearly and the number of constructions is also increasing. In the long run, we are doubtful how we would be able to repay our loan without tenants. Due to the increasing number of constructions, we are also doubtful whether will there be any tenants,” said Gyembo, a house owner.
“I thought of moving but I was asked to find a new tenant as a replacement. Getting a replacement is very difficult. I have even posted it on social media and asked my few friends but to no avail. In the past, there used to be a rush before we vacated the house. I don’t know whether it is because of fewer tenants or more houses,” said Peaday, a tenant.
“Many are moving abroad which is very concerning. Right now, I am constructing a house and I am worried. Now, the tenants are becoming scarce and the situation has also reached a point where owners have to look for tenants,” said Kinley Gyeltshen, another house owner.
According to the Bank of Bhutan, they have approved more than Nu 7bn as construction loans in the capital over the past four years. Officials stated that there are currently seven loan defaulters.
On the other hand, the Bank of Bhutan has sanctioned more than Nu 2bn as education loans so far.
Ugyen Dorji
Edited by Tshering Zam
