The Bhutanese Leading the way.
Commercial properties across Thimphu are facing significant challenges in renting out spaces, with some property owners struggling to repay their loans. Businesses report a decline in revenue by 50 to 70 percent, depending on the type of business.
Namgay Dorji, a building owner in the Changlam core town area, said, “As of now, the tenants we have are the old tenants. Nowadays, spaces remaining empty with people leaving is a common thing, but for me, it is the first time that the space has remained empty for the longest in the last fifteen years. Before, if we put up an ad for empty space, we would be able to rent the place out within a week, however, this time for me, the place has remained vacant for a month.”
He mentioned that inquiries are few and far between, with potential tenants expecting lower rents, which he cannot afford to offer due to his loan repayment obligations.
Some property owners are even attempting to sell their buildings and apartments as they struggle to pay back loans. Namgay noted that the commercial spaces are going empty as business slows down with fewer customers each day.
“Most people are looking for residential spaces, and if we turn them into residential spaces, I know it will have more customers. However, we cannot charge as much as we want for the residential spaces than for the commercial spaces,” he said.
Nima Lhamo, Manager at O Plaza, shared similar sentiments. “These days, the market for commercial spaces is really down. We are leasing spaces, lowering the rent, and it has been three months that we have lowered the rent for the tenants. We have given them ten percent off, and we planned to keep it that way if the situation remains the same,” she said.
Despite the loss incurred to keep the spaces booked, they have had to lower the rent. “Usually, what used to happen was that businesses were able to pay rent at date five of the beginning of the month, but now, we have shops paying rent at only at date twenty. And this situation continued, and the landlord decided to lower the rent,” she said.
This trend has persisted for over a year, with occupants setting up their businesses and leaving when they could not sustain them. 2 shops are vacant. “These two years have been the worst for us,” she said.
Business owners are also struggling. Tashi, who has been running a mobile and shoe shop at Norling Complex for over thirty years, said that business is down by 60–70 percent, making it increasingly difficult to pay the rent.
“I started renting this place at Nu 5,000, now it is Nu 36,500, and it is very difficult for us to get that also, and it is getting difficult for me to make a profit like before and pay the salary for my employees,” he said.
The owner of T.G. Tshongkhang, a mobile shop, noted a 50 percent decline in business, making it challenging to save money. Similarly, a stationery shop Panglung Enterprise and K.D. Sales and Repairs reported a 50 percent decrease in business.
Tashi Wangmo, a textile business owner on Norzin Lam, said her business is declining daily. “There are no customers, and apart from that, people have become wiser as they tend to go to Jaigon to buy cloth pieces and then use them to stitch, and there is also increased competition because of which we are not able to make as much,” she said.
Pema, a grocery shop owner, shared that business is not like before, with fewer customers and shorter operating hours. “If this continues, it will be difficult for me to continue as they are not going to lower the rent and it is going to increase by 10 percent every year,” he said.
Leki Choden, a clothing shop owner, reported a 90 percent drop in business. “It is the lowest point for me in 20 years of business,” she said, citing increased competition from online stores and fewer customers.
Areas like Taba are also facing similar challenges, with businesses planning to leave due to losses. However, some shops, such as hardware stores and religious shops, are doing well despite the overall downturn.
