Kathmandu: Real estate transactions across Nepal saw notable improvement in Kartik (mid-October to mid-November), with over 33,000 properties bought and sold during the month. According to the Department of Land Management and Archives (DoLMA), a total of 33,514 deeds were approved, marking a 9.78% increase compared to Ashoj (mid-September to mid-October), when 30,527 transactions were recorded.
The rise in transactions was even more pronounced compared to the same month last year, with a 28.67% increase from the 26,046 properties traded in Kartik 2023.
Industry experts attribute this improvement to the beginning of the peak season for real estate, as economic activities tend to recover after the conclusion of major festivals in Nepal. The months of Shrawan to Ashoj are traditionally considered an off-season for property deals.
Lowering bank interest rates have also contributed to the uptick in transactions, as they make property investments more attractive. However, despite the higher volume of transactions, revenue from real estate activities declined by 12.24%. The government collected Rs 2.74 billion in Kartik, down from Rs 3.812 billion in Ashoj.
The drop in revenue is attributed to a shift in transaction patterns, with fewer high-value properties being traded in urban areas. Instead, the majority of transactions during Kartik involved lower-priced properties in rural regions, resulting in reduced revenue collection.
Market participants remain optimistic that the real estate sector will continue to expand as favorable economic conditions persist and the demand for property picks up during the peak season.