Land markets in southern Bhutan are undergoing a period of rapid change, with Tsirang and Gelephu witnessing unprecedented price escalations over the past year, while Dagana shows early indications of a gradual shift. The surge in property values is closely tied to development expectations surrounding the Gelephu Mindfulness City (GMC) and improved regional connectivity.
Tsirang has recorded one of the steepest land price hikes in recent memory. In several gewogs, plots that once sold for Nu 30,000–35,000 per decimal just a few years ago are now commanding up to Nu 150,000 per decimal.
Along the Tsirang–Gelephu highway, land in Kikhorthang currently ranges between Nu 175,000 and Nu 190,000 per decimal, while Gosarling Gewog has also seen a significant jump in valuations.
Three to four years ago, landowners used to charge Nu 30,000–35,000 per decimal. “By last year it reached Nu 80,000 and this year it shot up to Nu 150,000,” said a resident of Gomsoom Chiwog, Tsholingkhar Gewog.
The surge is being driven by a combination of speculative investment, limited availability of land near Thromde areas, and spillover demand from Gelephu as anticipation grows over the GMC project.
In Gelephu, the epicenter of the development boom, land prices have reached record levels. Plots in the core urban zones are now priced between Nu 700,000 and Nu 850,000 per decimal, making it one of the most expensive land markets outside Thimphu.
Under Lap 3 of Gelephu Thromde, prices had earlier touched around Nu 350,000 per decimal, but market activity has temporarily slowed following the land transaction moratorium.
While the moratorium has cooled speculative trading, analysts believe pent-up demand will likely trigger a new wave of price hikes once the restrictions are lifted, especially in areas adjacent to the GMC project site.
Dagana, in contrast, has not experienced the same price volatility. However, property listings and bank auctions indicate that the market is slowly warming up.
A plot in Tshangkha, for instance, with a three-bedroom cottage, is listed at around Nu 3 million — roughly Nu 300,000 per decimal, though negotiable. Bank auctions of plots suggest a modest increase in activity, potentially signaling future price adjustments.
Observers note that Dagana’s market may not be driven by speculation yet, but spillover effects from Tsirang and Gelephu combined with improved road connectivity could gradually reshape its real estate landscape.
The sharp increase in land prices across southern Bhutan reflects a mix of speculation, regulatory influence, and uneven regional development. Tsirang’s rapid price surge signals growing investor confidence linked to the anticipated economic impact of the GMC, while Gelephu itself remains the focal point of price escalation despite a temporary moratorium that has only delayed, not defused, market pressures.
In contrast, Dagana is experiencing slower, more gradual growth, offering potential for more balanced regional development. These shifting dynamics also raise concerns over affordability, equitable land access, and the adequacy of existing valuation systems. As the GMC project moves forward, land markets in the region are expected to stay volatile and closely shaped by policy choices in urban planning, infrastructure, and land regulation.
Tashi Namgyal
From Thimphu
