BFIs´ loan exposure to the realty sector stood at 14 percent when the central bank tightened lending into the sector in 2009. The NRB tightened lending to the sector responding to the heating land and housing prices across the country. [break}
Adhikari claimed the central bank´s step saved the economy from crisis.
“We haven´t seen any threat into the financial system from existing loans as investment into the realty sector has plunged to 8.7 percent compared 14 percent of total lending recorded some three and half years ago,” Adhikari said at a program organized to make public the report on latest situation of housing and real estate sectors in the country on Tuesday.
According to Adhikari, total lending in the realty sector (including individual land plots and homes) has reached Rs 153 billion. The lending stands at Rs 64 billion when lending on individual land plots and homes is excluded.
The ´Kathmandu Real Estate Market Outlook 2013´, which was published on Tuedsay, bas been prepared by Brihat Investment. The company prepared the report after conducting study at 66 apartment projects and 50 housing projects in the capital.
Presenting the report Om Rajbhandari, proprietor of Brihat Investment said, of the studied projects only 18 housing and 13 apartment projects have been completed and handed over so far.
According to the report, 467 units of homes and 2,107 units of apartment are on sale at present.
“Though housing and real estate sector is gradually limping back, demand for apartments is growing at a slower pace compared to demand for stand-alone houses,” said Rajbhandari.
According to Rajbhandari, housing and apartment projects covered by the study owe Rs 64 billion to different BFIs.
Ichchha Raj Tamang, president of Nepal Land and Housing Developers Association (NLHDA), urged the government and BFIs to liberalize lending policy for the realty sector.
Simiarly, Sudhir Khattri, vice president of Nepal Bankers Association (NBA), said the growing tendency of apartment developers investing in saving and credit cooperatives has emerged as a challenge in financial sector stability.
Suresh Prakash Acharya, joint secretary at the Ministry of Urban Development, said the government was preparing to come up with urban housing planning, making housing affordable to middle class people.
At present, stand-alone houses and apartments available in the markets are mostly meant for upper and upper middle class people.
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