Karnali ahead in real estate price hike

Published On: November 20, 2021 11:06 AM NPT By: Republica  | @RepublicaNepal


KATHMANDU, Nov 20: The report of a study conducted by Nepal Rastra Bank (NRB) released on Friday has shown that the highest increase in real estate prices is in Karnali succeeding the federal capital, Bagmati.

According to the study, real estate prices rose by an average of 23.88 percent in Karnali and 5.95 percent in Bagmati Province in the first nine months of FY 2020/2021.

However, the study selected two districts each from the seven provinces and it covered only 20 places of each selected district. Prakash Shrestha, executive director of the economic research department of NRB, said that some places in the municipality where real estate transactions are more were selected for the study.

This type of study has been done for the first time in Nepal. After Karnali, real estate prices rose by 17.42 per cent in Province 2, 14.45 per cent in Lumbini, 14.20 per cent in Province 1, 11.83 per cent in Gandaki and 6.35 per cent in the Far West. This figure is based on data collected from the Land Revenue Office. Similarly, based on the assessment of real estate by commercial banks, Gandaki has witnessed the highest increase in prices.

On that basis, real estate prices in Gandaki rose by an average of 19.19 percent in the first nine months of the last fiscal year. Similarly, real estate prices increased by 19.02 percent in Karnali, 18.26 percent in Bagmati, 16.32 percent in Far West, 16.02 percent in Province 2, 15.14 percent in Province 1 and 4.32 percent in Lumbini. In the fiscal year 2019/2020, on the basis of banking valuation, the real estate price increased by 43.11 percent in Province 2.

The samples were collected from six banks of Nepal for the study based on the number of loan transactions and branch network. The banks were NIC Asia, Global IME, Everest, Rastriya Banijya, Prabhu Bank and NRB. The study was conducted to measure the fluctuations in real estate prices.


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