Kathmandu. According to the latest report of Nepal Rastra Bank, there are signs of improvement in Nepal’s real estate market in recent times. In the fourth quarter of the fiscal year 2081/82, the number of real estate transactions has reached an all-time high.
According to the report ‘Status of Real Estate Market in Nepal’ published by Nepal Rastra Bank, the total number of real estate transactions in Nepal reached 456,000 in the fiscal year 2081/82. This number indicates that the market is gradually recovering from the slowdown in the real estate sector, the report noted.
Madhes Province is in the first position in terms of number of transactions and area. Lumbini and Koshi provinces saw the highest transaction while Karnali and Sudurpaschim provinces saw the least transactions.
Although Madhes is ahead in the number of transactions, Bagmati Province is ahead in terms of transaction amount. Due to the high price of land in Bagmati, the total transaction value of Bagmati is higher than that of other provinces. In the fourth quarter of the fiscal year 2081/82 alone, land worth Rs 51.37 billion was bought and sold in Bagmati River.
In the country, land transactions ranging from 2.5 to 10 annas are the highest at 43 percent. However, in Madhes Province, the volume of plots larger than 20 annas is high, which indicates that there is a demand for large plots for agricultural and industrial purposes.
According to the report, the number of bank loans going to the real estate sector has also increased. During the fiscal year 2077/78 to 2081/82, real estate loans increased by 72.41 percent and residential home loans by 61.55 percent.
Similarly, the revenue collected from real estate transactions has also improved marginally to Rs 10 to Rs 15 billion. Among the metropolitan areas, Bharatpur Metropolitan City has the highest number of transactions, while Kathmandu and Lalitpur have the highest number of transactions. Overall, the real estate market, which was somewhat sluggish in the first quarter due to weather influences, is very volatile in the third and fourth quarters, according to the NRB’s analysis.
