From the Economic Stimulus Plan, the government has set aside Nu 1.5 billion to launch an affordable housing program that will help Bhutanese citizens purchase homes and solve the nation’s mounting housing shortage. In order to expand the housing stock, the government had promised to launch a flagship “Rent to Own” initiative. ‘Rent-to-Own’ will be the flagship housing scheme launched by MoIT. The suggested plans include retirement savings plans, rent-to-own programs, shared-ownership arrangements, and low-interest house loans. The government will grant construction subsidies, support financial institutions financially, and put policies in place to guarantee that the program is implemented smoothly. The MolT minister stated that important housing sector players will be consulted and industry experts would conduct additional evaluation of the draft proposal.
The Asian Development Bank has also agreed to help the Department of Human Settlement work with global housing specialists to improve the plans and create comprehensive suggestions. Village housing building will also receive assistance. Additionally, by allowing the leasing of state land for home development, including the private sector in housing development, and establishing special financing windows to support down payments and ensure monthly payments, the government had pledged to assist real estate developers. According to the National Housing Policy 2020, 58% of Bhutanese live in rental housing, and many households spend more than 30% of their income on rent—a figure that is higher than the global average.
