Real estate transactions plummet nationwide, revenue falls sharply

KATHMANDU: Nepal’s real estate market is facing a sharp decline as property transactions continue to fall for the third consecutive month, with land and housing sales dropping significantly across the country. According to the Department of Land Management and Archive, the number of registered property transactions decreased in Ashoj (mid-September to mid-October) compared to the previous month of Bhadra.

The latest government data show that only 23,353 land and house deeds were registered across all Land Revenue Offices in Ashoj, down from 27,494 in Bhadra and 30,527 during the same month last year. This slowdown has also led to a notable drop in government revenue collection from the sector.

Revenue Falls by Over Rs 400 Million

In Ashoj, the government collected Rs 2.73 billion in revenue from property transactions — a sharp decline from Rs 3.14 billion in Bhadra. In the earlier months, Rs 3.28 billion was collected in Shrawan, while Rs 6.55 billion had been collected in Ashar, indicating a consistent downward trend.

Within Kathmandu Valley, the decline is visible across all key offices. In Ashoj, Dilli Bazaar recorded only 150 transactions, Chabahil 377, Kalanki 9, Sankhu 330, Manmaiju 153, and Tokha 124, reflecting a steep fall from previous months.

Strict Rules and Land Parceling Ban Blamed

Real estate experts and entrepreneurs attribute the slowdown primarily to the government’s tightening regulations and a continued suspension of land plotting (kittakāt). The new rule prohibiting individuals from selling properties worth more than Rs 30 million without going through a company has also created confusion and slowed market activity.

Bishnu Prasad Ghimire, president of the Nepal Land and Housing Developers’ Federation, said the government’s decision to halt land classification and extend deadlines for reclassification has significantly disrupted transactions.

“The government extended the classification deadline by a year, which expired in Ashar. Since Shrawan 1, land plotting has been completely halted,” Ghimire said.
“Now, even reopening approvals has become bureaucratically complicated — every ministry’s consent is required. The process is stuck between the Land Ministry, Finance Ministry, and legal approval channels. This delay has severely impacted the economy. The government must act immediately.”

New Regulatory Framework Under Implementation

The Ministry of Land Management, Cooperatives, and Poverty Alleviation has started implementing new property transaction rules requiring approval for large-scale real estate deals. Ministry spokesperson Ganesh Prasad Bhatt explained that approval is mandatory for property transactions exceeding Rs 30 million when conducted by or between companies.

“Any company or individual conducting property transactions worth over Rs 30 million must obtain prior permission,” Bhatt said.
“However, person-to-person transactions below that threshold do not require such approval.”

The rule is based on Clause 26 of the Land Revenue Act, recently published in the Nepal Gazette. It stipulates that individuals or entities must obtain a license to carry out property transactions exceeding the defined value or area limits. Applicants are required to submit necessary documents and fees to the designated authority — currently, the Director General of the Department of Land Management and Archive.

According to the same clause, the license will be valid for five years and may include specific terms and conditions. The provision also aims to regulate high-value real estate dealings and ensure transparency in ownership transfers.

Sector Warns of Economic Consequences

Real estate professionals warn that prolonged restrictions on land classification and the added bureaucratic hurdles could further depress the housing and land market, impacting government revenue, employment, and the broader construction sector.

“Land and housing transactions contribute a significant portion of local and federal revenues,” Ghimire said, adding that the slowdown is directly affecting the economic momentum. “If the government fails to address this quickly, the real estate sector — a key driver of Nepal’s urban economy — could face a severe downturn.”

With land plotting halted, large projects delayed, and new regulations complicating transactions, Nepal’s once-booming property market is now showing clear signs of stagnation — a warning signal for both the government and investors watching the country’s fragile economic recovery.