Hedging Real Estate Investment Risks In Nepal

You buy a high-priced commercial real estate in Jhamsikhel. Recession hits and no one is willing to pay NPR 5 lakhs per month for an apartment in rent.

You buy a low-priced commercial real estate. Actually, you buy lots of it. Recession hits and everyone still pays you NPR 5,000 per month because that’s the lowest typical rent anyone can pay in Kathmandu.

In practice, you buy both kinds of real estate and that is how you apparently hedge your investment risks when working with commercial real estate.

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