Nepal’s apartment construction sector is witnessing renewed momentum, nearly a decade after the 2015 Gorkha earthquake initially slowed growth in the vertical housing market. Several new residential apartment projects are either underway or set to begin soon in Kathmandu, driven by both established developers and new entrants seeking to capitalize on rising urban housing demand.

Among the prominent developments is a luxury apartment project in Jhamsikhel, Lalitpur, being built by API Infra Limited, a sister company of hydropower-focused API Power Company. The 10-story project, named API Infra One, involves an estimated investment of Rs 1 billion. According to company founder Guru Neupane, construction began two months ago, and the second floor slab has been completed. The firm aims to complete the structure within eight months and deliver finished units within a year.

The building will house 43 high-end units with two to three bedrooms each, all designed to ensure ample natural sunlight. Located on approximately four ropanis of land with direct access to the main road, only 42 percent of the land is being used for construction, while the remainder is allocated for gardens, driveways, and parking. The property will include upscale amenities such as a gym, restaurant, meeting and meditation halls, 24/7 power backup, EV charging stations, CCTV surveillance, and onsite water and sewage treatment plants. Neupane noted that 23 of the 43 units have already been sold, primarily to employees of large banks and corporate firms, with five more in the sales pipeline. The most expensive unit sold till date fetched Rs 40 million. Apartment buyers will receive joint ownership of both land and structure through a one-third property transfer model.

Another major development is taking shape in Chuchhepati, Kathmandu, where Min Bahadur Gurung of the Bhatbhateni Group has partnered with Kalu Gurung’s Roadshow Real Estate to construct an eight-story luxury apartment complex near the Hyatt Hotel. Spread over 3.75 ropanis, the project will offer 64 fully furnished units with one to three bedrooms. Prices are set at Rs 30,000 per square foot.

Meanwhile, a joint venture between KC Group and Kayal Group is building a high-end apartment complex in Bishalnagar. With an investment of Rs 3 billion including land, the project will feature two towers containing 46 units across eight ropanis. Each apartment will be a minimum of 3,000 square feet, with prices ranging from Rs 70 million to Rs 220 million.

Another development, One World Apartments, is under construction on Kantipath with Rs 1.5 billion in investment from Oasis Hotel Pvt. Ltd. The 13-story complex, located on 7.25 ropanis, will offer 40 units.

In Maharajgunj, developer Karma Tenzing is overseeing the construction of Karma Residences, a project comprising 162 units across three buildings. Each 15-story building will have two basement levels for parking, 12 residential floors, and one floor dedicated to amenities.

According to Bishnu Prasad Ghimire, president of the Nepal Land and Housing Developers’ Federation, the growing preference for apartments is largely driven by cost considerations. “Constructing a house has become prohibitively expensive. In many urban areas, it’s now nearly impossible to build a standalone house for less than Rs 40 million,” he said. Apartments, by contrast, are increasingly available starting at around Rs 10 million.

While apartment demand has grown, some concerns from the past remain. Federation Vice President Bidur Dhamala noted that public apprehension about living in apartments, especially post-earthquake, has eased over time. However, he pointed out that most current projects were approved prior to recent regulatory restrictions, as few new permits are being issued at present.

Despite those constraints, the shift toward apartment living marks a significant transformation in Kathmandu’s housing landscape, offering a more affordable alternative to traditional home construction in a rapidly urbanizing city.