𝐎𝐰𝐧𝐢𝐧𝐠 𝐚 𝐇𝐨𝐦𝐞 𝐑𝐞𝐦𝐚𝐢𝐧𝐬 𝐚 𝐃𝐢𝐬𝐭𝐚𝐧𝐭 𝐃𝐫𝐞𝐚𝐦 𝐟𝐨𝐫 𝐌𝐚𝐧𝐲 𝐁𝐡𝐮𝐭𝐚𝐧𝐞𝐬𝐞

…𝒔𝒐𝒂𝒓𝒊𝒏𝒈 𝒓𝒆𝒂𝒍 𝒆𝒔𝒕𝒂𝒕𝒆 𝒑𝒓𝒊𝒄𝒆𝒔 𝒂𝒏𝒅 𝒔𝒕𝒂𝒈𝒏𝒂𝒏𝒕 𝒘𝒂𝒈𝒆𝒔 𝒅𝒆𝒆𝒑𝒆𝒏 𝒊𝒏𝒆𝒒𝒖𝒂𝒍𝒊𝒕𝒚 𝒂𝒏𝒅 𝒕𝒖𝒓𝒏 𝒓𝒆𝒏𝒕𝒆𝒓𝒔 𝒊𝒏𝒕𝒐 𝒂 𝒈𝒆𝒏𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒅𝒓𝒆𝒂𝒎𝒆𝒓𝒔

By Yeshi Dolma

Owning a home has long symbolized stability and success. But for many Bhutanese in growing towns, that dream is slipping away as property prices rise, incomes stagnate, and loan conditions tighten, redrawing who can afford a roof of their own.

A decade ago, a modest two-bedroom apartment in the capital could be purchased for around Nu. 1.5 to 2 million. Today, that same unit costs anywhere between Nu. 3.5 to 4 million for a small two-bedroom, hall, and kitchen (BHK), while larger three-bedroom apartments in main towns can cost one crore. Prices in other towns like Bebesa and Samtse range from Nu. 3.5 million in Samtse to Nu. 7.5 million in Bebesa, with typical market variations of 2 to 5 percent.

According to the National Statistics Bureau’s 2024 Labor Force data, the mean monthly income stands at roughly Nu. 25,820. This figure represents what an average worker earns across all sectors, from civil servants and drivers to shopkeepers and service employees. When compared to the cost of housing, the gap is alarming.

A simple calculation shows that if one were to save 20 percent of their monthly income, about Nu. 5,164, it would take roughly 57 to 65 years to accumulate enough for a small two BHK apartment costing Nu. 3.5 to 4 million. Even before factoring in inflation or daily living costs, the math itself tells a story: homeownership is increasingly a privilege rather than a possibility.

Developers say prices have surged due to higher construction costs, limited urban land, and rising demand from returning migrants and investors.

Sonam Jigsel Wangchuk, Chief Executive Officer of Rigsel Real Estate, has spent more than a decade tracking property trends. “I have over 10 years of experience in the real estate sector. The current property prices in the main town cost around one crore for a three-bedroom apartment, in Bebesa around Nu. 7.5 million, and in Samtse approximately Nu. 3.5 million. There’s usually a 2 to 5 percent variation in market rates,” he explains.

These figures show how sharply prices differ by location. A flat in the capital costs nearly three times more than one in southern towns. Yet demand remains concentrated in urban centers, where schools, hospitals, and jobs are located. Migration into towns has far outpaced the supply of affordable housing. Families moving for better opportunities often find themselves competing for limited urban units, while young professionals increasingly face the reality of long-term renting.

For many, the only possible route to homeownership is through a bank loan. Yet even that option excludes most wage earners. Housing loans carry interest rates between 8 and 9 percent depending on the bank and repayment period.
For a Nu. 7.5 million loan over 25 years at around 9 percent interest, monthly repayments would be roughly Nu. 64,000. To manage such a loan, a borrower would need to earn close to Nu. 100,000 a month, nearly four times the national average. This makes long-term home loans inaccessible for most workers.

Those who manage to secure loans often find themselves under intense financial pressure, forced to sacrifice other needs just to keep up with payments. For many, the promise of stability turns into decades of debt.

The growing housing gap is also creating new social divides between those who inherit property and those who must buy. Private-sector workers and small entrepreneurs are among the hardest hit.

In the capital’s bustling commercial area, Dorji Lhamo, a shopkeeper, shares her frustration. “Even if I want to buy a flat, I can’t afford one. I came from the village to work here, but prices keep rising while my shop income hasn’t improved. There are too many shops and not enough customers,” she says.

Her story reflects a larger reality. While construction cranes dominate the skyline, few of those buildings are meant for ordinary earners. Developers, driven by market demand, focus on mid to high-end apartments where profits are higher. Affordable housing, though recognized in national policy, remains scarce.

The 2024 draft of the National Housing Policy acknowledges the affordability crisis and calls for low-cost housing projects and rental support programs. Yet progress has been slow, limited by fiscal constraints and the scarcity of serviced urban land.

Economists warn that this imbalance could deepen inequality. When most of a household’s income goes toward rent, savings decline and financial insecurity rises. Rent inflation also ripples across the broader cost of living, driving up food, transport, and education expenses.

The burden of high housing costs is most visible among the young working population, many of whom now see homeownership as an unattainable goal. Young professionals have become the face of this new housing divide. Many enter the workforce with limited savings or small businesses, making down payments nearly impossible.
“I’ve been working for five years,” says a civil servant in her early 30s. “Even if I save for another ten, I won’t have enough for a down payment. By then, prices will be even higher.”

This sentiment defines what urban researchers are calling a generation of renters. For many, renting is no longer a temporary phase. It is becoming a permanent lifestyle shaped by economic reality. Without targeted policy intervention, the housing gap risks creating a cycle in which only those with family assets or inherited land can own property.

Meanwhile, landlords face little regulation. Rent prices rise unpredictably, pushing many low-income families to the outskirts of towns, far from workplaces and schools. The absence of rental control mechanisms leaves tenants exposed, while speculative property buying continues unchecked.

Housing affordability is not just a personal problem. It is an economic one. High real estate prices drain household savings that could otherwise support small businesses or education. When workers cannot live near their jobs, urban congestion worsens and productivity suffers.

High rents also discourage young people from settling permanently in cities, increasing internal migration and contributing to housing shortages elsewhere. Developers, meanwhile, face rising construction costs due to imported materials and stricter building standards, which further feed into property inflation.

The situation creates a feedback loop. Higher costs lead to higher prices, which push more people into long-term renting, weakening the foundation of homeownership that once anchored the middle class.

Experts suggest that breaking this cycle will require coordinated policy measures. Expanding serviced land in satellite towns, incentivizing developers to build affordable units, and reforming lending criteria for lower-income households could help narrow the divide. Introducing rent-to-own schemes or shared-equity models, already practiced in other small economies, may offer an alternative path to ownership.

But for now, the gulf between income and housing cost remains vast. In a country where the average salary is barely enough to cover rent, the idea of owning a home has become less a goal and more a lifetime aspiration.

Standing outside a new apartment complex in the city’s northern suburb, a young teacher sums it up quietly. “We teach our students about dreams, but for us, owning a home feels like one we may never reach.”

Unless incomes rise or affordable housing expands, that dream will remain out of reach for the majority- a symbol of the growing divide between those who can buy and those who can only look up.