First Business News Portal in English from Nepal
KATHMANDU: All over the country, real estate transactions have decreased by 50 percent. According to the Department of Land Management and Records, a total of 562,294 houses were traded in the months of July, August, and October of the last financial year, but it decreased by 49.88 percent to 281,795 during the same period of the current financial year.
In the first three months of the current financial year, the real estate sales have decreased by 86.24 percent due to the decline in transactions. According to the department, there were 441 thousand 770 tickets in July, August and October of the last financial year and 56 thousand 360 tickets in the same period of this financial year.
With the implementation of land use regulations in real estate allocation, land allocation is decreasing even in urban areas and outside districts.
Bishnu Kumar Mahat, Information Officer of the Land Management and Records Department, said that the local levels could not classify the land according to the land use regulations, so there has been a decrease in transactions and transactions. He said that there has been a decrease not only in business and quota but also in revenue collection.
With the release of the land use regulations, the local levels have been entrusted with the allocation of land. According to the regulation, the land use council should only divide the land after classifying it. Mahat said, “At present, all the local levels have not classified the land according to the land use regulation.”
He said that the strictness of the loan arrangement made by the banks in the real estate business, the policy taken by the National Bank, the policy taken by the government to build new cities and the policy of capital expenditure also had a direct impact on the real estate business.
Mahat said that now it is necessary to identify the needs from the local level and separate the agriculture and housing sectors and come up with regulations. According to the land use regulations, transactions have been facilitated where the land has been classified by the local level through the land use council. The government has taken a plan to regulate land transactions through land use policy.
Along with the decline in real estate transactions and sales, the revenue collected by the government has also decreased. The department said that there has been a decrease of 62.63 percent in revenue collection in the last one year.
From July to October of the last financial year, 23.73 billion revenue was collected from real estate business, but in the same period of the current financial year, it decreased by 62.63 percent to 8.86 billion.
According to the land-use regulations issued by the government, there is a ban on allotment of land classified as residential in Kathmandu Valley with an area of less than 4 annas 1 dam (130 square meters) in the real estate auction.
In Kathmandu valley, land classified as agricultural area has been prohibited to be divided in less than 500 square meter area.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
© Copyright 2020. FiscalNepal.com. Website Design and Developed by Genesis Web Technology