Migration and Housebuilding as Engines of Becoming Middle Class in Pokhara

Year: 2025
Anna Røer Falch
Research Assistant, Peace Research Institute, Oslo (PRIO)

The physical, social and economic landscape in Nepal has undergone significant transformations over the past decades. The biggest export commodity of Nepal, its own people, plays a significant role in contributing to these transformations. Remittances account for more than thirty percent of Nepal’s total GDP, which is one of the largest ratios of remittances in GDP globally. Hence, undoubtedly, migration and remittances impact the economic and social spheres in Nepal.

In Nepal’s second-largest city, Pokhara, urban transformations are evident in the ongoing large-scale house constructions. When moving around in the city today, numerous housebuilding projects can be seen and heard from afar. Pokhara has developed into an urban city under the steep rise of construction and people in just over 50 years. The flows of remittances and migration have played a significant role in this urbanization. Ultimately, beneath the proliferation of families moving from villages surrounding Pokhara to the city, family members moving abroad and sending money back home, and housebuilding projects, is a growing number of families becoming middle-class.

This is a qualitative study, based on nearly three months of fieldwork in Pokhara during the fall of 2023. The data collection included informal conversations, observations and 11 semi-structured interviews, all of which allowed for a thorough exploration of families’ experiences with migration and middle-classness. The study seeks to analyze the role of internal and international migration over time in housebuilding processes and ultimately becoming middle class. The sizeable literature on migration and remittances in South Asia, not least Nepal, has explored its various impacts in social and economic spheres. Much scholarly attention has been given to Nepalese migrant workers abroad and quantitative studies on the economic and political implications of remittances. By basing the study in the context of a Nepalese city largely driven by the flows and processes of migration and remittances and linking it to housebuilding, the study underscores the significance of qualitatively examining their role in development and improving livelihoods in places of origin.

When appraising the interplay between internal and international migration, it is found that once a family member has moved abroad for employment to send remittances home, the remaining family may move to the city, rent a flat before having the opportunity to acquire a house. The house has various symbolic and practical functions, all playing into a pursuit and experience of becoming middle class. Enabled by the efforts and processes of moving and building among families, the findings reveal that migration plays a central role in becoming middle class in Pokhara, although not without challenges and sacrifices.

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