KATHMANDU, Oct 21: The overall turnover of the real estate sector has continuously decreased in the past two and a half years, with no significant improvement.
Although the banking system has excess liquidity and the interest rate of loans has been declining continuously, there has been no improvement in the turnover in the real estate sector. While other sectors of the economy are gradually advancing, the real estate turnover continues to decrease.
According to the latest statistics of the Department of Land Management and Archive (DoLMA), the turnover seems to be gradually decreasing. The turnover has gradually decreased since the beginning of the current fiscal year 2024/2025. According to the DoLMA, 43,835 houses were bought and sold in the country in the month of Shrawan (mid-July to mid-August). However, it has continuously decreased since then. Compared to Shrawan, there has been a decline in transfer of land and house ownerships by 25.17 percent in Bhadra (mid-August to mid-September) and 6.92 percent in Ashoj (mid-October to mid-September).
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The DoLMA said that 107,160 ownership transfers have been approved across the country in the first quarter of the current fiscal year. This represents a decrease of 6.68 percent compared to the same period of last fiscal year. A total of 114, 830 houses were bought and sold across the country in the first quarter of the last fiscal year.
Along with the turnover, the government’s revenue collection has also been affected by the slowdown in the real estate business. The government had received Rs 3.835 billion in revenue from real estate turnover across the country in Shrawn, the first month of the current fiscal year.
However, the revenue collection decreased in Bhadra (second month) and Ashoj (third month) with the decrease in the number of turnover.
The months of Asar-Shrawan of every year are considered off-season for real estate turnover. The DoLMA stated that the real estate turnover decreased further in the month of Ashoj due to the festive holidays.
The DoLMA reported that fewer turnovers were recorded in Ashoj due to Dashain holidays. Entrepreneurs said that the real estate business has not yet improved due to the continued economic slowdown. However, the turnover will gradually increase after Ashoj, the entrepreneurs assured.
In the month of Ashoj of the current fiscal year, Sunsari district recorded the highest number of real estate transactions. A total of 1,185 plots of land ownership were transferred in the review month. Similarly, 1,107 real estate transactions were reported in Janakpurdham-based Land Revenue Office of Dhanusha district, while Belbari of Morang recorded 1,016 real estate transactions followed by 909 in Rajbiraj, Saptari.
According to the DoLMA, 863 real estate transactions were recorded in Bhadrapur, Jhapa, followed by 821 in Bhaktapur, 718 in Taulihawa, Kapilvastu, 718 in Lagankhel, Lalitpur, 710 in Malangawa, Sarlahi, 702 in Nepalgunj, Banke, 701 in Biratnagar, 677 in Rupandehi, 665 in Siraha, 658 in Kalaiya, 639 in Butwal, 608 in Dhangadhi, 599 in Lahan , 560 in Jaleswar, Mahottari, 553 in Ghorahi, Dang, 546 in Kohalpur and 537 in Chitwan.
