Real Estate Transactions Surge by 9.78% in Kartik, But Revenue Slips
Nepal’s real estate market saw an upswing in Kartik (mid-October to mid-November), with over 33,000 property transactions recorded nationwide. According to the Department of Land Management and Archives (DoLMA), property deals grew by 9.78% compared to Ashoj, with 33,514 transactions approved—an increase of nearly 3,000 from the previous month's 30,527 deals.
Compared to Kartik last year, the growth was even more pronounced, with a 28.67% rise in transactions. In Kartik 2079 BS, only 26,046 properties were traded.
Seasonal Shift and Positive Market Sentiment
The rise in transactions is attributed to the end of Nepal’s major festivals, which traditionally mark the beginning of increased economic activity. Business insiders also point out that declining bank interest rates are encouraging more property deals. With the real estate market now entering its peak season, further growth is anticipated.
The months from Shrawan to Ashoj are typically considered a slow period for property transactions, often labeled the "off-season." Kartik, however, signals a shift toward higher activity levels.
Revenue Declines Despite Increased Deals
Interestingly, even with more properties changing hands, revenue from real estate transactions saw a 12.24% drop in Kartik. The government collected Rs 2.74 billion, down from Rs 3.812 billion in Ashoj.
This decline is largely due to the nature of the properties being sold. While Kartik saw a higher volume of transactions, most were for lower-priced properties in rural areas. Urban regions, known for higher-value deals that yield more revenue, experienced relatively fewer transactions.
Property Transaction Hotspots
Sunsari emerged as the most active district, with the Land Reform and Revenue Office in Inaruwa processing 1,246 transactions, followed by Morang with 1,112. Dhanusha (1,024) and Saptari (1,022) also recorded significant activity.
Other districts with notable transaction numbers included:
- Jhapa-Bhadrapur: 998
- Kailali-Dhangadhi: 863
- Bhaktapur: 677
- Rupandehi: 681
- Chitwan: 616
Leading Revenue Contributors
The Kathmandu Valley continued to dominate in terms of revenue, reflecting the higher value of properties in the area.
- Lagankhel, Lalitpur led with Rs 245.7 million.
- Chabahil, Kathmandu followed closely with Rs 214.25 million.
- Kalanki and Dillibazar, Kathmandu contributed Rs 178 million and Rs 157.7 million, respectively.
- Bhaktapur generated Rs 176.89 million, while Kaski added Rs 117.9 million.
In contrast, other regions like Sunsari, Chitwan, and Kailali collected between Rs 70 million and Rs 80 million.
Market Outlook
The real estate sector is expected to remain vibrant in the coming months, with peak season demand driving further activity. However, the trend of smaller transactions in rural areas might continue to influence revenue patterns. With bank interest rates on a downward trend, market participants are optimistic about sustained growth in property transactions.
