Kathmandu : The Nepal Rastra Bank (NRB) has released a report on the status of the real estate market in Nepal today. The report has presented a trend analysis of Nepal’s real estate sector over the past three fiscal years, using the data from the Department of Land Management and Achieve, Inland Revenue Department and NRB’s banking and financial statistics would be published quarterly from now onwards.
The NRB has made the analysis based on ‘rajinama’ transactions, a category that reflects voluntary transfer or relinquishment of property rights and commonly used to capture property buy/sell activities.
The report has examined the trends in real estate and housing loans provided by banks and financial institutions, transactions volume, transacted areas and monetary values (declared value), according to the Bank.
As per the data, the real estate transactions in Nepal follow seasonal patterns, with lower transaction in the first quarter and peaks in the third and fourth quarters.
Based on total area of land transacted, Madhes province recorded the largest share, followed by Koshi and Lumbini provinces, whereas Karnali and Sudurpaschim registered the lowest.
By land size category, all provinces except Madhes recorded the highest proportion of transactions in the 2.5-10 ana range. In Madhes Province, however, most transactions fell under the category of more than 20 aana, indicating preference for large plot size primarily for agriculture or industrial purpose.
Based on declared value, Bagmati Province is on the top position while in metropolitan and sub-metropolitan areas, mid-sized land plots (5-10 aana) accounted for the highest number of rajinama transactions.
According to NRB, between the fiscal year 2077/78 and 2081/82, real estate loan grew by 72.41 per cent while residential loan by 61.55 per cent. Likewise, government revenue from real estate peaked at Rs 23.70 billion in the first quarter of fiscal year 2078/79, declined to Rs 8.20 billion in the first quarter of the fiscal year 2079/80 and has since shown a modest recovery, reaching up to Rs 15 billion in the fiscal year 2081/82.
The NRB has expressed belief that the report would help assess activities of real estate sector.
