The Bhutanese Leading the way.
In response to growing concerns over housing affordability and emigration, the government has announced a major push toward housing reform through a Nu 1.5 billion (bn) strategy aimed at promoting homeownership and improving the national housing situation.
During the 16th Meet-the-Press session, the Minister for Industry, Commerce and Employment (MoICE), Namgyal Dorji, speaking on behalf of the MoIT Minister, acknowledged that affordable housing and the aspiration for homeownership are national priorities.
He said the government is working under the guidance of the National Housing Policy, which outlines objectives, such as promoting homeownership, improving housing affordability, and ensuring equitable access.
However, Lyonpo Namgyal Dorji said that a clear, implementable strategy is now required to translate policy into action. To that end, the Department of Human Settlement (DHS), with technical support from the Asian Development Bank (ADB), is currently drafting a comprehensive National Housing Strategy, set for completion by September 2025.
A core component of the strategy includes homeownership schemes. One such proposal involves a savings-linked mechanism, where individuals save toward purchasing homes while the government supports them through financial incentives, such as bonuses and subsidies.
He shared that the government has committed to a Nu 1.5 bn allocation to support the initiative, although the specific implementation modalities are still being developed.
The housing strategy would also address sector-wide concerns, including supply-demand analysis, affordability studies, and the identification of systemic gaps.
Further, he said that updates provided by the National Housing Development Corporation Limited (NHDCL) on 3rd June 2025, on “Green and Resilient Affordable Housing Sector Project” financed by the ADB and other development partners, is currently being implemented.
The total financing for the project stands over USD 37 million (mn) (including a USD 24 mn loan, USD 6 mn grant, USD 1 mn from ADB, and a USD 7 mn counterpart contribution). An additional USD 3 mn grant from the Japan Fund for Poverty Reduction (JFPR) has been approved and is under negotiation. The project’s loan is set to close by 30th June 2028.
The project aims to construct 1,000 affordable rental housing units, and strengthen institutional capacity, housing policy, and regulatory frameworks.
So far, 32 housing units in Trashiyangtse has been completed.
378 units are under construction in 2025, 391 units under procurement and construction to start from 2026 and 50 units proposal under negotiation with the JFPR grant. Locations of the housing units will be in Trashiyangtse, Samdrupjongkhar, Nganglam, Denchi in Pemagatshel,, Phuentsholing in Chukha, Samtse and Thimphu.
As part of ongoing policy and capacity-building initiatives in the housing sector, the government has completed the green building guidelines for affordable housing. Several other key reforms are currently in progress, including the development of a national homeownership strategy, a housing information management system, condominium rules and strata guidelines, and a new fire code. The Department of Human Settlement (DHS) aims to complete all these initiatives within the year.
Meanwhile, questions have been raised regarding the Nu 1.5 bn housing allocation, with concerns that the funds may disproportionately benefit civil servants and corporate employees, potentially overlooking other sections of the population.
The concern emphasized that such public sector focused resource allocation could deepen the public-private wage gap and limit broader economic benefits.
In response, Lyonpo said that the housing strategy would stimulate the economy through increased activity in the construction sector.
