Housing in Bhutan

Bhutan has no single nationwide route to housing. Formal rental and purchase contracts exist alongside family-based and informal arrangements. The Household and Living Standards Survey (HCES 2025), referring to 2024, covered 159,808 households: 59.8 percent lived in a house, 34.4 percent in an apartment, 4.6 percent in a partial house or shared apartment, and 1.1 percent in other forms of housing. Owner-occupied housing accounted for 53.2 percent. The share was 75.8 percent in rural areas and 16 percent in cities; 66.9 percent of urban households lived in apartments, while 82.2 percent of rural households lived in houses. This indicates the strong importance of ownership and family housing in rural Bhutan, and of rental apartments and apartment purchases in cities. The Tenancy Act applies to private or government housing rentals and certain land leases. Short-term or commercial rentals of up to one month are not covered. A tenancy agreement should be concluded in writing before moving in or at the start of the tenancy, signed by the parties and two independent witnesses, legally stamped, and prepared in three originals. One copy goes to each party, and the third must be submitted within two weeks to the responsible authority in the district administration (Dzongkhag), municipal administration (Dzongkhag Thromde), or local administrative block (Gewog). The agreement describes, among other things, the parties, the housing unit, the duration, the rent, the purpose of use, and the condition at handover. Bhutanese citizens and foreign citizens with a valid residence permit may rent a home; before signing, the owner checks the information of foreign tenants with the Department of Immigration. When buying, transferring, gifting, or inheriting property, buyers check the local land register (Thram) and the land ownership certificate (Lagthram). The review also includes land and building data, existing mortgages, a valid occupancy certificate, and, where applicable, the construction file. Sales and other transfers use prescribed instruments, required consent from family members or co-owners, two witnesses, legal stamping, and the eSaKor land-registration process (eSaKor). After a 30-day public inspection, the National Land Commission Secretariat finally registers the transfer. Written family consent is required for family land; for subdivision of land, thresholds of less than 10 decimals in rural areas or less than 13 decimals in a Thromde may trigger additional review, depending on the land type. An apartment in a strata development includes exclusive ownership of the unit and shared rights to the land and common areas. The documented access of foreign citizens concerns renting and does not automatically create a right to acquire ownership. Anyone constructing or altering a building uses the Construction Approval System, or CAS. Building approval alone does not permit occupancy: a valid occupancy certificate is required for the whole building or part of it. The certificate initially lasts five years during the first 15 years and then lasts three years; for buildings more than 50 years old, the responsible authority also requires a safety report from a certified engineer and annual renewal. Construction and housing standards take safety, resilience, and traditional Bhutanese architecture into account. The National Housing Development Corporation Limited, or NHDCL, provides affordable housing and related services. Applications, status checks, housing allocation, and maintenance are intended to be available online. One subsidized project plans approximately 2,500 apartments; the first project stage comprises approximately 1,026 to 1,062 units in selected Dzongkhags. The concept targets low-income households, including approximately 70 percent low-income public-sector employees and 30 percent low-income employees outside the public sector, including people working in informal settlements. Rent-to-own arrangements and other reforms depend on the specific project, availability, and criteria; there is no general entitlement to an NHDCL apartment. Banks grant housing and home loans after their own review of income, collateral, Citizen Identity Document, current ownership certificate, site plan, approved building plan, municipal or dzongkhag approval, insurance, and, where applicable, the purchase deed. Collateral alone does not guarantee financing. The respective lending institution determines the term, interest rate, and additional costs. There is no reliable nationwide rent comparison, so individual city listings cannot be applied to Bhutan as a whole. Owners must ensure a safe and habitable unit, basic services, and written payment receipts. They generally bear the cost of repairs caused by normal wear and tear or natural events and may not unlawfully evict tenants, lock them out, or cut off necessary services. Tenants are entitled to privacy and peaceful use under the agreement. They keep the unit hygienic, pay the agreed utility and municipal charges, do not alter structural or building elements without written consent, and sublet only if the agreement permits it. For repairs, inspections, or a contractually permitted reason, the owner generally gives at least one week's notice before entering; this advance notice does not apply in emergencies. The owner may increase the rent no earlier than two years after the tenancy began or after the last increase, and by no more than 10 percent per month. Written notice is given three months in advance. The security deposit may not exceed two months' rent and may be requested only once. When the tenant moves out, the owner refunds it less documented damage beyond normal wear and tear; unjustified withholding may trigger compensation of 24 percent per year in addition to repayment. A claim for repayment must be made within two months. For a regular end of the tenancy, personal use, or a legally recognized ground for eviction, the owner generally gives two months' written notice. Two months of rent arrears, refusal to move out, breaches of contract, and serious disturbances or hazards may justify eviction. Tenants generally give one month's written notice. If the property is sold, the existing tenancy continues with the same use; otherwise, written notice with two months' notice may be required. Six months may apply to certain land leases. Disputes should preferably begin with an amicable resolution and may then be submitted to the local Dispute Settlement Committee or the responsible authority in the Dzongkhag, Gewog, or Dzongkhag Thromde. The Department of Human Settlement in the Ministry of Infrastructure and Transport oversees and supports implementation, while the specific administration may vary between local levels. When moving out, the parties prepare a joint condition report, hand over the unit no later than midnight on the final day of the tenancy, remove personal property, and settle outstanding utility payments. The owner stores abandoned items for no more than two months and then handles them under the applicable rules. The Department of Civil Registration and Census (DCRC) operates a separate move and household-registration service in the Bhutan Civil Registration System (BCRS) for Bhutanese citizens and certain special-status cases; forms as well as signatures and consents from adult household members may be required. Creating a new household generally requires a Lagthram document, an entitlement, and a legality review and does not arise automatically from a tenancy agreement. Evacuation centers and emergency shelters operated by local authorities serve disaster relief only, not ordinary renting or ownership formation; in emergencies, 999 is used for disasters and 110 for fire.