Comeback of real sector

KATHMANDU, Nov 1 :

The real estate sector, which had seen little progress in the last fiscal year year after three years, has shown significant growth in the first three months of the current fiscal year 2014/15.

Figures provided by the Department of Land Reforms and Management (DLRM) show that a total of Rs 2.17 billion has been collected in the first three months of this fiscal year. This figure is 49 percent increase compared to the same period of the previous fiscal year. A total of Rs 1.45 billion was collected in three months of the fiscal year 2013/14.

Section officer at DLRM Raju Basnet said after that land trade has surged this year after a slackness for nearly four years. Basnet termed the surge to increased liquidity in the market and growing remittance figures.

"Hike in land registration charge by 10 percent on an average and a separate hike in land registration charge to 3.5 percent from the previous 3 percent in VDCs that are soon to turn into municipalities have also contributed to higher revenues," added Basnet.

Kathmandu alone has collected Rs 660 million and Morang, Sunsari, Chitwan Kaski and Rupandehi have collected more than Rs 10 million each.

The real estate sector had seen stagnation after the Nepal Rastra Bank in 2010 instructed banks and financial institutions to cut investment in the sector.

Min Man Shrestha, general secretary of Nepal Land and Housing Developers Association, said people are confident that land prices will not decrease any further and have started to make purchases. He also attributed the surge in realty trade to the reduction in bank interests.

Source: Republica