Record High Revenue from Expensive Property Transactions in Asar Alone

The Government of Nepal collected over Rs. 6.55 billion in revenue from land and housing transactions in the final month (Asar) of the fiscal year 2081/82 BS, marking the highest monthly collection in the last two fiscal years.

According to data from the Department of Land Management and Archives, monthly revenue from property sales had not exceeded Rs. 5 billion since FY 2079/80. However, in Asar 2081, the revenue skyrocketed to Rs. 6.55 billion, despite a slight decline in the number of sale deed approvals compared to the previous month (Jestha).

Khimananda Acharya, spokesperson for the department, attributed this surge to the purchase and sale of high-value properties and apartments, especially in urban areas. “Urban transactions increased while rural transactions dropped,” said Acharya. “Revenue rose mainly due to high-priced property deals, which is the highest in the past three years.”

Annual Revenue Breakdown from Property Deals

In total, the government collected Rs. 49.04 billion in revenue from land and housing transactions during FY 2081/82. The highest collection was in Asar (Rs. 6.55 billion), while the lowest was in Kartik (Rs. 2.70 billion).

Monthly revenue trends included:

• Shrawan – Rs. 3.83 billion
• Bhadra – Rs. 3.09 billion
• Ashoj – Rs. 3.08 billion
• Mangsir – Rs. 3.87 billion
• Poush – Rs. 4.25 billion
• Magh – Rs. 3.87 billion
• Falgun – Rs. 4.12 billion
• Chaitra – Rs. 4.39 billion
• Baisakh – Rs. 4.54 billion
• Jestha – Rs. 4.72 billion

Although revenue and deed registration (kittakat) increased in Asar, the overall volume of transactions decreased compared to Jestha.

Transaction Volume and Deed Registration

In Asar alone, 55,524 new land and housing transactions were recorded, slightly down from 56,010 transactions in Jestha. The highest monthly transaction count was in Jestha (156,752), followed by Asar (154,720), Chaitra (147,416), and Baisakh (144,060).

A record-breaking 69,791 kittakat (plot division) deeds were approved in Asar. In comparison, Chaitra had 54,279, Baisakh had 57,928, and Jestha had 64,687. “Deed registration indicates new transactions or plot subdivisions within a given month,” the department clarified.

Policy Delays and Amendments

Since Bhadra 2081, plot subdivisions were suspended in 620 local municipalities due to lack of land classification. This affected overall transactions. On Bhadra 24, the Cabinet amended the Land Use (Second Amendment) Regulation 2079, allowing municipalities until the end of Asar 2082 to demarcate agricultural zones.

From Shrawan onwards, plot divisions and land-related administrative work were halted in municipalities that failed to classify land use. The department is yet to publish the complete list of affected municipalities.

Earlier, the Land Use Regulation 2079 restricted plot divisions until municipalities categorized land as agricultural or non-agricultural. This caused a sharp decline in transactions starting from Shrawan 2079.

In response, the government revised the regulation, allowing subdivision of residential and commercial plots up to 80 square meters. Previously, subdivision was permitted only for plots over 130 square meters, whether planning approval was obtained or not.

Revenue Collection Sources

The Department of Land Management collects revenue under various headings including:

• Service fees
• Registration charges
• Capital gains tax
• Delay penalties
• Municipal infrastructure development fees
• Chief Minister’s Cleanliness Fund
• Narayani and Rapti civilization charges

Among these, capital gains tax is the only portion directly going to the federal government.

Credit Policy Boosting Market

The Monetary Policy of FY 2081/82 issued by Nepal Rastra Bank increased the housing loan limit for private home construction and purchase from Rs. 20 million to Rs. 30 million. The Loan-to-Value (LTV) ratio for first-time home buyers was raised to 80%, up from the previous 60%.

For second properties, the LTV can now go up to 70%, compared to 50% earlier. This policy shift is expected to boost property transactions, says Bishnu Ghimire, President of the Nepal Land and Housing Development Association.

“From Shrawan onwards, transactions will likely rise due to the monetary policy,” said Ghimire. “Even gold and silver investors are showing interest in the real estate sector now.”