Nepal’s sluggish real estate market showed signs of recovery in the last fiscal year, with property transactions recording a notable increase. According to a report by Nepal Rastra Bank, total real estate transactions reached Rs 720.86 billion in fiscal year 2082/83.

The total number of real estate transactions increased by 4.74% compared to the previous fiscal year. Transactions during the fourth quarter alone increased by 12.25%.

The total area involved in real estate transactions also increased by 15.41% during the period. In the fourth quarter alone, property transactions worth Rs 275.73 billion were recorded, compared with Rs 127.61 billion during the same quarter of the previous year.

Alongside the increase in transactions, revenue collected from real estate transactions rose by 48.26%, while capital gains tax increased by 63.22%. Bank credit extended to the real estate sector also increased by 6.93%.

At the provincial level, Bagmati Province recorded the most notable growth in real estate transactions during the fourth quarter. Among metropolitan cities, transaction numbers increased by 155.74% in Kathmandu, 136.92% in Lalitpur and 108.39% in Pokhara.

According to Nepal Rastra Bank’s report, plots measuring between 2.5 and 10 aana recorded the highest number of transactions across all seven provinces.

Overall, the increase in transaction volume, land area traded, government revenue, capital gains tax and bank lending to the real estate sector indicates a recovery in Nepal’s previously sluggish property market.