Government Lifts Land Ceiling for Housing Developers

The government has removed the land ceiling restriction for real estate and housing developers through the Ninth Amendment to the Land-Related Ordinance, 2025, clearing long-standing legal hurdles. The amendment, now sent to the President for authentication, allows developers to sell housing units built on land areas that previously exceeded the legal limit.

With this change, stalled housing and apartment projects are expected to move forward. The Nepal Land and Housing Developers Federation (NLHDF) stated that properties worth over Rs 200 billion had remained unused due to the inability to transfer ownership of units constructed on land above the ceiling. The amendment will now enable buyers to register their homes and obtain ownership certificates.

Developers believe the decision will revive construction activity and support industries such as cement, steel, brick, aluminum and timber. They have also requested the government to fast-track land classification work, which has been delayed at the local level.