Assessment of Housing Finance and Home Strengthening Market in Nepal
A significant portion of Nepal’s population, around 78%, resides in rural areas. The National Construction and Housing Census of Nepal in 2021 has revealed that 51% of rural houses are constructed with stone/brick masonry in mud mortar, often referred to as vernacular houses. These traditional structures are non-engineered and have endured for generations.
However, their vulnerability was underscored by substantial damage during the 2015 Gorkha earthquake, highlighting the pressing need for strengthening and retrofitting techniques to enhance their resilience.
This project’s primary objective was to assess the housing finance and home-strengthening market in Nepal, with a specific case study in Dhungkharka. This included evaluating financing products for both new construction and renovation offered by government programs and private financial institutions. The focus was on incremental housing products, particularly for home strengthening.
Key tasks involved conducting market and cost studies through homeowner surveys to determine the number and types of vulnerable homes, financing needs, preferences, and borrowing capacity of low-income households for home strengthening. The project also examined the condition of indoor habitability in vernacular houses and assessed the willingness for improvements. Additionally, it evaluated the costs associated with quality and certified upgrades, such as retrofitting, and explored the potential for financing home strengthening through financial institutions.