EMI vs Renting an Apartment in Kathmandu, Nepal: Which One is Right for You?

One of the most important financial decisions you will make is where to live, particularly in a city as vast and busy as Kathmandu. Many people are considering renting a Apartment or making the risky decision to purchase one through EMI (Equated Monthly Installment) due to growing real estate costs and shifting lifestyles. Which choice, then, makes the most sense to you?
Let's use a Kathmandu-specific example to illustrate it clearly.
2BHK Apartment in Kathmandu
Let’s say you’re considering a 2BHK apartment in Kathmandu worth NPR 1.2 crore (12 million). Here’s how renting vs buying through EMI stacks up.
Buying Through EMI
If you decide to buy the apartment, you’ll likely finance it through a home loan.
Assumptions:
- Apartment Cost: NPR 1.2 crore
- Down Payment (30%): NPR 36 lakhs
- Loan Amount (70%): NPR 84 lakhs
- Interest Rate: ~11% per annum
- Loan Tenure: 20 years
💳 Estimated EMI:
Around NPR 85,000 – NPR 90,000/month
✅ Pros:
- You’re investing in an asset that may appreciate over time.
- No landlord issues — complete control over your space.
- After 15–20 years, you own the property.
❌ Cons:
- High upfront cost (down payment + fees).
- EMI can be financially demanding.
- Less flexibility if you need to move or switch cities.
Renting a 2BHK Apartment
Renting is a popular choice for professionals, students, and families who want flexibility without long-term financial commitment.
🏷️ Average Monthly Rent (for 2BHK in Kathmandu):
Around NPR 30,000 – NPR 50,000, depending on location (e.g., Jhamsikhel, Baneshwor, Boudha, Kalanki, etc.)
✅ Pros:
- Lower monthly cost.
- No loan, no interest.
- Easy to relocate or upgrade based on life changes.
❌ Cons:
- Rent money doesn’t contribute to ownership.
- Subject to annual rent hikes.
- Some restrictions (pets, modifications, etc.)
Quick Comparison: EMI vs Rent in Kathmandu
Feature |
Buying via EMI |
Renting an Apartment |
Monthly Cost |
NPR 85,000 – 90,000 |
NPR 30,000 – 50,000 |
Ownership |
Yes (after loan period) |
No |
Flexibility |
Low |
High |
Initial Investment |
High (NPR 36+ lakhs) |
Low (1–2 months deposit) |
Long-term Benefit |
Asset creation |
None |
🤔 So, Which Option is Right for You?
It depends on your lifestyle and financial goals.
Choose EMI if:
- You plan to stay in Kathmandu long-term
- You have enough for the down payment
- You want to build equity and create an asset
Choose Renting if:
- You need mobility or job flexibility
- You’re early in your career or building savings
- You want to avoid the burden of a long-term loan
Final Thoughts
The rent vs. EMI discussion is more about individual objectives than just statistics in a place like Kathmandu, where real estate is rising but not without hazards. Rentals are a good option if you value independence and financial flexibility. However, purchasing through EMI can be the best course of action if you're prepared to make a commitment and invest in your future.
Still not sure? Together, let's calculate the figures for your area of interest and budget. Sometimes following your instincts rather than following the latest trend is the best course of action.
Please let us know if you would want to purchase an apartment in the Kathmandu Valley or if you would like to list popular housing neighbourhoods with prices!
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