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Buying or Building a House in Nepal? Which is Better?

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In This Post
– Factors to Consider Before Buying or Building a Home
– Total Cost To Build a House in Nepal
– Frequently Asked Questions

Everyone wants to have their own house. They either want to buy their dream house or build one. People are often confused about whether to buy or build a house. In Nepal, the trend of investing in real estate is increasing day by day. Most of the people either invest in land or house. Are you considering buying or building a house in Nepal as well? Are you also confused? If yes, worry not. This blog covers the important factors to consider before buying or building a house.

What are the Factors to Consider before Buying or Building a House?

Investing in a house is a once in a lifetime thing. So, make sure what you do is correct. Here is the list of various factors that you need to keep in mind to either buy or build a house in Nepal.

Acknowledge Financing of Your New Home

In Nepal, various banks provides home loan. If you want to buy a house, you can request for a loan to your nearest bank. You may require for a single loan. In case of constructing a loan, you may require taking two loan. One for purchasing the land and other for constructing. But if you have the land and only need loan for constructing, single loan is enough.

For more home loan information, check this out Types of Home Loan that Bank Provides in Nepal

Cost of Buying or Building a House

Convenience or Customization?

Many people prefer to buy a house. This is because they want to get on with their life immediately. Also, it will be easier to move in. It is quite convenient for people to start their life after moving into a new home. Besides, there are people who want to customize their home. Having one’s own home is a dream. They may have a plan about how their room would look like. These people choose to build their home. So, be picky about your preferences.

Convenience of Buying or building House

Compare Costs of Buying or Building a House in Nepal

People often prefer to buy a house than to construct one. This is because it is less time-consuming, and it costs less. Also, you can move in quite easily. This way you won’t miss your office. In case you’re building a home, you might to live in rent for sometimes. Thus, remember about these additional costs.

However, while building a home, you will get exactly what you want. You can build a more energy efficient home. For example, you can build ventilation and cooling, insulation and heating services. This may be expensive at first. But in the longer run, they are cheaper.

comparision buying or building house

Consider Property Value of Buying or Building a House in Nepal

The value of recently built home is always greater. Majority of buyers in Nepal prefer to buy recently built homes. Therefore, know that, the newer the property, the greater its value. An older home does not bring a high return on your property investment. You need to consider this if you plan to sell the property in future.

valuation buying or building house

Inclusion of New Trends and Features

Every year, various new trends and features make its way in real estate business. Nowadays, various new houses with these features are available in Nepal too. For example, a house with secret room or even recreational spot. If you are a book lover, you can construct a library or study room. Including these types of features is best when you are constructing a home. In case of an already built home, it’s time-consuming and costly as well.

New trend of house

How Much Does It Cost of Building a House in Nepal?

In Kathmandu, the average cost to build a 1000 square ft. one storey building ranges from Rs 32, 00,000 to Rs 60, 00,000.   For the house with the following details, we have estimated the cost of various raw materials.

Area: House spread over 1000 square ft. in a 4 aana

No. of floors: 1

No. of rooms: 5

  • Iron: Rupees 5-6 Lakhs ( Requires 6 tons of steel)
  • Cement: Rupees 2.65 Lakhs (Requires 220-240 sacks of OPC cement (Rs 850 per bag) & 80 sack of PPC cement (Rs 780 per bag))
  • Bricks: Rupees 1.80 Lakhs (Requires 12 thousands (Rs 15 per brick))
  • Sand: Rupees 1.68 lakh (Requires 6 Tipper, (Rs 28,000 per tipper))
  • Pebbles: Rupees 2.10 lakh (Requires 7 Tipper, (Rs 30,000 per tipper))
  • Windows/Doors: Rupees 2.83 lakh (Requires 6 windows and 7 doors (Rs 25,000 per window, Rs 18,000 per door)
  • Bathroom: Rupees 60,000
  • Kitchen: Rupees 1.50 lakh
  • Coloring: Rupees 1.80 lakh
  • Contractor’s Fee: Rupees 4.50 lakh
  • Water Tank: Rupees 1.65 lakh
  • Safety Tank: Rs 40,000
  • Reserve Tank: Rs 80,000
  • Water Tank: Rs 45,000 (1000 liters)
  • Tank-Stand: Rs 15,000-Rs 30,000
  • Railing: Rupees 80,000
  • Electricity/Wiring Fittings: Rupees 2.50 lakhs
  • Pipe Fittings: Rupees 1.50 lakhs
  • Compound Gate: Rupees 50,000

Thus, the approximate cost of building a one storey house in Kathmandu per square feet starts from Rupees 32 lakh onwards. However, the price range may change according to location, time and area.

construction of house

Besides The Information Provided Above, Here Are Some FAQs That Might Help You More:

What is Cheaper- Buying or Building a House in Nepal?

Constructing a house in Nepal is cheaper than buying a house. However, this depends upon location and other factors. Before you decide on whether to buy or build, make sure to calculate the total budget.

How Long Does it take to Build a House in Nepal?

Generally, it takes 6 months to build a house. Experts suggest to start the work in the month of February. The availability of raw materials, work efficiency is easier during this period. Also, the month of June and July is inappropriate due to the monsoon season.  However, various other factors such as area, location and design of the house also determines the total time to finish the construction.

Can foreigners buy a House in Nepal?

No, foreigners cannot buy house in Nepal. The property in Nepal cannot be sold or gifted to any foreigner, foreign organization or foreign country, according to Civil Code 2021 BS.

Before ending this blog, know that it is your decision whether to buy or build a house. But before making any decision, consider the above mentioned factors. Also, there are various laws and regulation regarding both buying and building a house in Nepal. Ask questions and know your budget so that you don’t regret the decision you make.

Foreigner access to nepalese real estate

To get an estimate of the prices of residential plots and ready-to-move houses found in different cities across the country, visit

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