Affordable housing emerged as a key national concern during the National Council’s Question and Answer Session on June 10, with members seeking clearer timelines and concrete measures to address housing shortages, rising rental dependence, and limited home ownership opportunities, particularly in urban areas.
The discussion comes as housing affordability increasingly affects Bhutanese households, especially in Thimphu, where rapid urbanization, limited land availability, and rising property prices have placed home ownership beyond the reach of many families.
Speaking on behalf of the House, National Council Member Kesang Chuki Dorjee sought clarification from the Minister for Infrastructure and Transport, Lyonpo Chandra Bahadur Gurung, on government plans to expand affordable housing, allocate state land for housing projects, and improve access to home ownership for civil servants and retirees.
She noted that despite housing being a basic necessity, a large proportion of urban residents continue to rely on rented accommodation, with many struggling to purchase homes.
“Given the growing demand for affordable housing and the challenges faced by many citizens in owning homes, it is important to understand the government’s concrete plans and timelines for addressing housing shortages, allocating land for public housing, and supporting home ownership, particularly for civil servants and retired public servants,” she said.
In response, Lyonpo Chandra acknowledged that Bhutan’s housing challenges have persisted despite the existence of a National Housing Policy for more than two decades. He said implementation gaps and the absence of a dedicated institutional mechanism to oversee housing interventions have limited the policy’s effectiveness.
“Bhutan has relied on the National Housing Policy for over 20 years. However, implementation challenges and the absence of a dedicated institutional mechanism to monitor housing-related interventions have constrained our ability to effectively address housing affordability issues,” the Minister said.
To address these shortcomings, the government has finalized the National Housing Strategy 2026 and is preparing a National Housing Bill, which is expected to be submitted to Parliament during the upcoming Winter Session or the Summer Session next year.
According to the Minister, the new strategy will serve as the country’s primary framework for planning, implementing, and monitoring housing programmes. Scheduled for implementation from July this year, it focuses on increasing housing stock, improving access to land, expanding affordable housing programmes, and strengthening support for rental housing.
The urgency of these interventions is reflected in data presented during the session. According to the government, only about 17 percent of Thimphu residents own their homes, while the majority depend on rented accommodation. The figure highlights the growing imbalance between housing demand and supply in the capital, where population growth has outpaced residential development.
Access to land remains one of the biggest constraints to housing expansion. To address this, the National Housing Agency, with support from the Asian Development Bank, has identified approximately 20 acres of land across five dzongkhags for affordable housing development.
The government is also working with international experts to develop a Housing Ownership Scheme that will complement the National Housing Strategy. The initiative aims to create clearer pathways to home ownership and includes provisions targeting retired public servants, a group often vulnerable to housing insecurity after leaving government service.
While some retirees have been able to access housing loans through their provident fund savings, the Minister noted that there is currently no comprehensive mechanism to monitor home ownership among retired civil servants.
“The proposed scheme will help strengthen monitoring and support evidence-based policy interventions while creating more opportunities for retirees to own homes,” he said.
To support the initiative, the government has allocated approximately Nu 37 million, along with an additional Nu 1 million for technical assistance.
The housing sector is also receiving substantial international support. Bhutan has secured USD 30 million through the Japan Fund for Prosperous and Resilient Asia and the Pacific Poverty Reduction Project. The funding is expected to support the construction of 1,000 affordable housing units, strengthen institutional capacity, and facilitate the review of housing-related policies and legislation.
Progress is already underway. According to the Minister, 184 housing units have been completed, while 481 are under construction. A further 138 units are scheduled to begin construction from July across nine locations.
While these developments demonstrate growing government commitment, the challenge extends beyond simply increasing the number of housing units. Affordability is influenced by multiple factors, including land prices, access to financing, urban planning, and household income levels.
For many Bhutanese families, particularly young professionals and low- to middle-income earners, home ownership remains a distant aspiration. As urban populations continue to grow, pressure on rental markets is also expected to intensify.
Sherab Dorji, Thimphu
