Real Estate Sector Faces Slowdown, Experts Urge Policy Reforms

Kathmandu. The real estate business has been sluggish for some years. With the slowdown in the real estate business, the overall economy is also in a recession.

The government has also not formulated policies to boost the real estate business. With the real estate business not picking up, some businessmen have changed their investment areas, while some are waiting for the government's policy arrangements.

Rato Pati has interviewed Vishnu Prasad Ghimire, Chairman of the Land and Housing Developers Federation, focusing on how the sluggish business is affecting the country's overall economy. Here is the edited excerpt of the conversation with Ghimire:

The real estate business is considered a major sector for driving the economy. What is its current state? Is the business really at a standstill?

The real estate business is not just a sector for individual profit; it is the backbone of the national economy. As long as the government does not make it regulated, transparent, and policy-wise stable, the country's economic prosperity will remain incomplete. We businessmen are ready to cooperate with the state, provided the government creates an environment for us to work.

Looking at the current market, it cannot be said that the real estate business has completely stopped, but it is extremely slow and sluggish. Looking at the statistics, more than approximately 6.37 billion rupees in revenue was collected last month.

Business is happening, but not at the pace it should be. For the past three to four years, this sector has been in a state of uncertainty. Due to local level elections, government changes, and some strict policies of the central bank, this sector has not been able to gain momentum.

The real estate business is not just about buying and selling land. It is a sector that mobilizes the country's capital and gives life to hundreds of other industries. Therefore, the current situation can be described as a wait-and-see situation.

How do you forecast the economy and the state of real estate in the fiscal year 2082/083?

Looking at the current indicators, we can hope for an improvement in the economy in the fiscal year 2083/084. Liquidity has increased in banks in the fiscal year 2082/083. Interest rates are gradually decreasing.

Thus, although there was not a very big improvement in the economy in this fiscal year, and interest rates remained low, the economy could not be very dynamic. It was also a politically unstable year. In this very fiscal year, along with political transformation, generational change has also been observed.

Due to the weakened morale of the private sector, investment in the country could not increase. Capital expenditure has also been weak. Weak capital expenditure is an example of the economy not being dynamic. The more the government can increase capital expenditure, the more dynamic the economy will become.

The internal economy remained sluggish, preventing the economy from becoming dynamic, while the