Nepal Rastra Bank Releases Comprehensive Real Estate Market Data

Kathmandu. Nepal Rastra Bank has released detailed statistics regarding the current status and trends of real estate transactions today. The bank stated that the data is published using the fiscal year 2079/80 as the base year.

According to the bank, details regarding real estate transactions will now be published quarterly based on data collected from the Department of Land Management and Archive, the Inland Revenue Department, and its own sources.

The Rastra Bank has analyzed trends based on deed registration transactions. The bank stated that the analysis is based on indicators such as transaction volume, transaction value, area of land traded, revenue collection, and bank loans disbursed in the real estate sector.

According to the data, there is a seasonal trend in real estate transactions. Transactions tend to be lower in the first quarter and higher in the third and fourth quarters. Provincially, Madhesh Province leads in terms of transaction volume, followed by Lumbini and Koshi provinces.

Karnali and Sudurpashchim provinces have the lowest transaction rates. Madhesh Province also holds the largest share in terms of the total area of land traded. Based on plot size, it was found that plots ranging from 2.5 to 10 aana are traded more frequently in provinces other than Madhesh. However, in Madhesh Province, larger plots exceeding 20 aana are traded more frequently.

In terms of declared value, Bagmati Province leads, and it was observed that plots of 5 to 10 aana are traded more in metropolitan and sub-metropolitan cities. According to the bank, real estate loans have increased by 72.41 percent and residential loans by 61.55 percent from the fiscal year 2077/78 to 2081/82.

Government revenue from the real estate sector has also shown fluctuations. Revenue, which reached approximately 23.70 billion rupees in the first quarter of the fiscal year 2078/79, subsequently declined to 8.20 billion rupees in the first quarter of 2079/80. In the recent period, it has improved, reaching approximately 15 billion rupees in 2081/82.

The Rastra Bank expressed confidence that the publication of such data will help in assessing activities in the real estate sector. Additionally, it stated that preparations for the second phase, which involves the construction and publication of a real estate price index based on this data, are underway.