Housing Federation Demands Land Act Revisions to Unblock Stalled Property Transactions
A legal impasse surrounding land ceiling laws has halted ownership transfers (pass) for approximately 2,000 completed houses, apartments, and plots across Nepal, primarily in the Kathmandu Valley. Speaking at a press conference, the Nepal Land and Housing Developers' Federation (NLHDF) stated that strict enforcement via the online Land Records Information Management System introduced in 2019/20 has blocked property transfers for land exceeding specified limits. Under Section 12(c) of the Land Act, 1964, entities granted land ceiling exemptions are barred from selling or transferring land ownership, trapped in a dual policy bottleneck that directly impacts real estate developers who acquired land legally for commercial housing construction.
This structural deadlock has left buyers anxious as properties remain un-transferred despite full or partial advance payments. Meanwhile, developers including established companies such as CE Construction face mounting bank interest expenses and heightened legal risks of fraud accusations or detention due to delayed transfers. The issue traps billions of rupees in private investment, while the state incurs heavy revenue losses from halted transaction fees and taxes.
To resolve the crisis, NLHDF President Vishnu Prasad Ghimire urged the government to immediately amend the Land Act to exempt approved real estate developers from land ceiling restrictions and reopen blocked property transactions. The Federation called for an integrated Land Code and Urban Development Act, streamlined planning permits via a one-stop system, and authorization for the private sector to engage in land and house pooling.
Furthermore, the Federation urged the government and Nepal Rastra Bank to launch a targeted real estate revival package. Key proposals include easing project-level banking credit, offering individual mortgage financing based on personal guarantees, revising capital gains and value added tax policies, and resolving administrative barriers to allow developers to resume normal market operations and contribute to economic growth.
