On the quiet slopes of Dradulthang in Samdrup Jongkhar, rows of newly built houses are nearing completion. The air carries the sound of finishing touches—workers fitting windows, testing water systems, and polishing walls. For Bhutan, these are not just houses. They represent a new vision of urban living: one that is greener, more resilient, and inclusive.
This transformation is being driven by the Green and Resilient Affordable Housing Sector Project (GRAHSP), a landmark initiative supported by the Asian Development Bank (ADB). With an investment of US$37 million, the project will deliver 801 modern, eco-friendly homes across 12 locations, setting a precedent as Bhutan’s first large-scale housing program to adopt green building certification and climate-resilient design standards.
Earlier this year, Bhutan reached a milestone when the Trashiyangtse housing project, comprising 32 units, became the country’s first to earn green building pre-certification. The certification is based on the internationally recognized EDGE (Excellence in Design for Greater Efficiencies) framework, which measures performance across energy use, water efficiency, and embodied energy in materials.
Under EDGE standards, housing can progress from Certified (20% savings) to Advanced (40% savings) and ultimately to Zero Carbon, where renewable energy and carbon offsets make buildings fully carbon neutral.
Officials proudly note that GRAHSP homes already outperform conventional buildings. “They achieve 20% greater energy efficiency, save 73.5% of power through efficient lighting, and include solar water heating and rainwater harvesting systems. They are also built with M25-grade concrete, stronger earthquake resilience, and AAC blocks that provide high insulation,” said a project official.
“By contrast, traditional units rely on lower-grade materials, achieve negligible water savings, and lack slope stability analysis or renewable energy systems,” a National Housing Development Corporation Limited (NHDCL) official explained.
Behind the technical standards lies a simple truth. These houses are meant for people who need them most. Under the 2023 Housing Allotment Rules, only households with a combined monthly income of less than Nu 40,000 are eligible to apply.
For families often priced out of private housing markets, this project offers the promise of secure, dignified living in homes designed not only to withstand the impacts of climate change but also to reduce everyday costs through lower energy and water consumption.
When the project was first envisioned in 2021, the plan was to construct 1,000 housing units. However, with inflation surging by 22% since then, according to the National Statistics Bureau (NSB), the target had to be revised to 801 units.
Despite this financial challenge, progress has been steady. Today, 410 units worth Nu 1.28 billion (US$14.79 million) are under construction across the country.
At the Dradulthang site, 32 units are already 98% complete, while the Samdrup Jongkhar Toed site with 88 units stands at 89% completion. Both are expected to be handed over ahead of schedule in October 2025. In Phuentsholing, construction of 96 units is underway, though progress there currently stands at 13.29%, while the Amochhu housing project has just broken ground.
But the project is more than just brincks and mortar. Alongside construction, it is reshaping Bhutan’s housing sector at a systemic level. The Ministry of Finance (MoF) is the executing agency, while NHDCL is leading implementation. Together, they are introducing reforms that will have long-lasting impact.
Reforms include a new national housing strategy and review of government homeownership schemes, revised fire codes for safer urban living, creation of a Housing Management Information System (HMIS), development of green building guidelines for future projects, and review and update of condominium regulations.
“By supporting green certification, policy reform, and climate-resilient construction, the ADB-backed project is not only delivering homes but also reshaping Bhutan’s housing landscape,” an NHDCL official said.
She added, “It positions Bhutan as a regional pioneer in green and inclusive urban development, ensuring that low-income communities benefit from modern, sustainable, and resilient housing.”
Across Bhutan’s valleys and towns, the sight of these new homes rising from the ground signals more than just construction progress. It reflects a national commitment to provide dignified housing while staying true to Bhutan’s guiding principles of environmental stewardship and social equity.
As the first families prepare to move into their green-certified homes later this year, Bhutan is setting an example for the region: development that safeguards both people and planet.
Tashi Namgyal from Thimphu
