Land price likely to skyrocket

Thimphu, April 18, 2009: The land price in Bhutan is certain to skyrocket with government, during the cabinet meeting on Wednesday, increasing the compensation to land acquisition by almost 20 fold. 

The new prices will come into effect from May 1. According to this one decimal of wetland in remote areas will cost Nu 1939, which was only Nu 350 to date. 

The government has categorized land into three classes: A, B, C. One decimal of class A land, located within 2 km of municipal boundary will cost Nu 4,687 and the rate decreases as the distance increases from township. 

The rates for agricultural land will be different for each of the 20 districts, considering the productivity, market value and distance from town area of the land.

The proposed average value for agricultural land in all dzongkhags, except Thimphu, is roughly Nu 5000-7000 for land within 2 km, Nu 3000-4000, within 6 km and Nu 2000-3000 beyond 6 km.

Similarly, 10 percent additional compensation will be given to land at half an hour walking distance from the highway or feeder road.

Land within 2 km in major town like Thimphu, Phuentsholing, Gelephu, Samtse and Damphu, rates are different. In Thimphu it will be Nu 31,415 per square foot, Nu 28,395 in Phuentsholing and Nu 11,599 in Gelephu. Centrally located land in Thimphu will be Nu 1,383.8 per square feet.