The Bhutanese Leading the way.
The acute housing shortage in Phuentsholing is set to ease with the construction of three new housing projects under the National Housing Development Corporation Limited (NHDCL), funded by the Asian Development Bank (ADB). The initiative is part of the Green and Resilient Affordable Housing Sector Project (GRAHSP), aimed at providing safe and affordable homes for low and middle-income groups across the country.
The overall project, with a budget of USD 37 million (mn) comprising USD 24 mn in loans, USD 6 mn in grants, and USD 7 mn counterpart financing from the National Pension and Provident Fund (NPPF) was launched in February 2022 and is scheduled to be completed by June 2028.
Although the project initially targeted more than 1,000 housing units, with rising construction costs, it will now cover 801 units nationwide. Of these, three sites are under construction in Phuentsholing where the housing crunch has been most severe.
Lyonpo Chandra Bdr Gurung, the Minister of Infrastructure and Transport (MoIT), shared that the housing units will be allocated to Bhutanese citizens with a gross monthly household income not exceeding Nu 40,000. Priority will be given to vulnerable groups such as single female-headed households, municipal workers, and persons with disabilities.
Progress on the project is well underway. Thirty-two units in Trashiyangtse were completed and allotted in August 2025, while another 32 units in Samdrup Jongkhar (Dradulthang) will be completed in October and allotted by November this year. Other sites in Samdrup Jongkhar (Toed), Nganglam, and Phuentsholing are under active construction, while housing developments in Thimphu, Tshimasham (Chukha), Samtse, and Pema Gatshel are currently in the design phase.
The government confirmed that the project is on track to be completed within the specified timeframe despite inflationary pressures.
Alongside construction, the Department of Human Settlement (DHS) is working with international consultants to draft Bhutan’s first National Housing Strategy. This policy document will cover key aspects of the housing sector, including homeownership frameworks, condominium regulations, housing finance, database development, and needs assessment.
According to MoIT, the strategy is currently in its draft stage and when completed, it will provide long-term guidance to policymakers in addressing Bhutan’s growing urban housing needs.
