First Business News Portal in English from Nepal
KATHMANDU: Due to the coronavirus pandemic real estate transactions in Kathmandu valley have not seen any momentum and there are expectations for them to further drop.
Land Revenue Offices across the country had remained closed since March 24 after the government imposed the first phase of the nationwide lockdown. The offices did open towards the end of June but have again remained closed in August.
People involved in the real estate sector and the Land Revenue Offices have said that transactions have been very low and the price of land has also significantly dropped in recent days. However, due to the low number of transactions land prices in Kathmandu valley have remained quite stable.
Even though the government has already fixed the new valuation of land from fiscal year 2019-20, land prices have not risen due to the pandemic, said Resham Pandey, a businessman from Kathmandu who is involved in the real estate industry.
“Land prices are fixed based on the location. But at present the price has remained stable due to the second phase of the lockdown as there are no transactions,” said Pandey. He added that land prices in Kathmandu valley could drop in the coming days and new buyers will be able to buy property at a comparatively cheaper rate.
Previously, land that was purchased at Rs 3 million per aana could be sold at Rs3.5 to Rs four million per aana after a while but now the situation has completely changed and the price of land is much cheaper.
“Land prices may decline as banks and financial institutions put pressure on people to pay the loans and interests but I wouldn’t be willing to sell at a price that is lower than when it was bought,” said Pandey.
Dhan Bahadur Khadka was looking for a cheap plot of land to buy in Lalitpur and did find one but he has not been able to complete the deal as the Land Revenue Offices are closed due to the virus. “I am now looking for an even cheaper piece of land,” he added.
Meanwhile, Madan Parajuli, a land broker from Bhaktapur, shared that people who had earlier made bookings to buy land have started cancelling them and are looking for cheaper plots. “We have enough land for sale but the number of customers is very low due to the pandemic,” he said, adding that the flow of customers has dropped by 80 percent as compared to just before the lockdown started.
Parajuli mentions that about six months after the situation becomes normal there will be more people buying land. He added that the price of land has not increased due to the coronavirus and people in financial difficulties want to sell their land at a lower price.
“At the moment, some people are selling their land at a price that is five to 10 percent lower than what it was just before the first lockdown was imposed,” Parajuli shared.
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