The Land Development Boom in Kathmandu Valley

Kathmandu Valley is facing unprecedented increases in the price of land, which are generating speculation. This phenomenon is being led by rural to urban migration, which in turn is driven by the relative economic development of the city and the displacement of large numbers of people by conflict in rural areas; by capital flows, including remittances from Gurkhas and other emigrant workers, asset transfers from other, less secure regions of Nepal and credit provided by domestic financial institutions; and by weak governance. According to the study, the impacts of these commercial pressures include declining food production; widespread unregulated and unplanned development; effective forced acquisition of lands; and social pressures on traditional farming communities.