KATHMANDU, January 3: Real estate transactions across Nepal witnessed a notable increase in Kartik (mid-October to mid-November), with 33,514 properties changing hands, marking a 9.78 percent rise compared to the previous month, according to the Department of Land Management and Archives (DoLMA). 

This represents an increase of 2,987 deeds from Ashoj (mid-September to mid-October), which saw 30,527 transactions. Year-on-year, the growth was even more significant, with a 28.67 percent jump compared to Kartik last year, when 26,046 properties were transacted nationwide.

Industry experts attribute this rise to the end of the off-season for property sales, which typically spans the months of Shrawan to Ashoj, and the conclusion of major Nepali festivals, which is expected to spur economic activity. Falling bank interest rates are also anticipated to further stimulate the real estate market.

Despite the increased volume, government revenue from property transactions declined by 12.24 percent, dropping from Rs 3.812 billion in Ashoj to Rs 2.74 billion in Kartik. The DoLMA attributes this decrease to the lower value of properties transacted, with a higher proportion of rural and lower-priced property deals in Kartik compared to urban, high-value transactions in previous months.

Sunsari district led the country in property transactions, with the Land Reform and Revenue Office in Inaruwa processing 1,246 transactions. Other top-performing districts included Morang (1,112 transactions), Dhanusha (1,024), and Saptari (1,022). Meanwhile, the Kathmandu Valley, known for its high-value property deals, contributed the most revenue. Lagankhel, Lalitpur, generated the highest revenue of Rs 24.57 million, followed by Chabahil, Kathmandu (Rs 214.25 million), and Dillibazar, Kathmandu (Rs 157.7 million).

As the peak season unfolds, the real estate market is expected to further expand, driven by favorable interest rates and increased economic activities following the festival season. However, sustaining revenue growth may require a shift in focus toward urban property markets with higher valuation.

(Source: My Republica)