In Nepal’s premium rental market, the dollar is everywhere but on paper
Summary
Premium apartments in Kathmandu and Pokhara are increasingly priced in US dollars, even though Nepali law requires rents and tenancy agreements to be in rupees. Landlords, realtors and overseas owners have built a shadow market that caters mainly to foreign tenants and expats, while regulators say no one has yet enforced the rules.
Key Points
- Premium rentals in Kathmandu and Pokhara are widely advertised in US dollars, especially in areas serving foreign tenants.
- Nepali law requires residential rent to be paid in Nepali currency, but the practice appears to persist without enforcement.
- Landlords and agents often convert dollar quotes to rupees only at the final contract stage, while some payments go directly to overseas accounts.
- The trend is spreading beyond Kathmandu into tourist hubs such as Pokhara, Mustang and Chitwan.
