Nepal’s real estate market rebounds strongly: Over 538,000 land and housing deals recorded in FY 2081/82

KATHMANDU: After years of sluggish activity, Nepal’s real estate and housing market is showing strong signs of recovery, with significant growth in land plotting, private housing construction, and overall transaction volume across major cities — especially in the Kathmandu Valley, eastern towns, and other urban centers.

Data from the Department of Land Management and Archive reveals that a total of 538,128 property transactions were officially registered in the fiscal year 2081/82, reflecting a 0.15% increase from the previous year. Monthly transaction figures suggest a consistent upward trend, indicating renewed confidence among buyers and developers.

Market Momentum Driven by Policy and Digital Reform

The market revival is attributed to multiple positive developments:

Declining interest rates on housing loans

Improved access to credit and flexible banking policies

Digitization of land administration and deed registration systems, which has enhanced transparency and processing speed

These factors have collectively helped stimulate housing demand and ease the process of ownership transfer.

Record Transaction Spike in Asar: Over Rs. 6.55 Billion in Revenue

According to official data, Asar (mid-June to mid-July) recorded the highest monthly real estate transaction for FY 2081/82:

Month                      Transactions              Collected Revenue (Rs.)
Shrawan                      43,835                               3.83 billion
Bhadra                         32,798                               3.09 billion
Ashoj                            30,527                               3.08 billion
Kartik                           33,514                                2.70 billion
Mangsir                       43,379                                3.87 billion
Poush                           48,156                                4.25 billion
Magh                            46,069                               3.87 billion
Falgun                          46,061                               4.12 billion
Chaitra                         49,832                               4.39 billion
Baisakh                        52,423                                4.54 billion
Jestha                           56,010                                4.72 billion
Asar                              55,524                                 6.55 billion

The sharp jump in revenue during Asar alone marks a 20.23% year-on-year increase, highlighting a strong year-end rally in real estate transactions.

Monetary Policy 2082/83 Favors First-Time Buyers

In a further boost to the sector, the Nepal Rastra Bank’s Monetary Policy for FY 2082/83 has introduced housing-friendly provisions:

Housing loan limit for first-time buyers has been raised from Rs. 2 crore to Rs. 3 crore

Loan-to-value (LTV) ratio increased from 70% to 80%, allowing buyers to secure larger loans with lower equity

These changes will make home ownership more accessible, especially for middle-class families, by lowering upfront capital requirements.

Experts Forecast Continued Growth

Industry experts believe that these policy revisions, combined with improving sentiment and digital land services, will continue to propel real estate growth into the new fiscal year. However, they caution that long-term sustainability will depend on controlling speculative investments and ensuring infrastructure development keeps pace with urban expansion.