Higher Transactions of Small Land Plots of 2.5 to 10 Aana in Provinces Outside Madhesh
News Summary
Prepared after review.
- According to Nepal Rastra Bank, provinces outside Madhesh show higher transactions of small land plots ranging from 2.5 to 10 aana.
- In Madhesh Province, transactions mainly involve larger plots exceeding 20 aana, and Madhesh leads in total traded land area.
- Housing and land loans have increased by 72.41% from fiscal year 2077/78 to 2081/82; the central bank is preparing to publish a housing price index.
Chaitra 30, Kathmandu – Data indicates that small fragmented land plots are more actively traded in provinces other than Madhesh. In contrast, Madhesh Province, with its agricultural suitability, shows higher transactions of large land plots.
According to the latest real estate status report by Nepal Rastra Bank, small plots of 2.5 to 10 aana are most frequently traded in all provinces except Madhesh. Meanwhile, Madhesh Province records more transactions of large plots exceeding 20 aana. Based on total traded land area, Madhesh Province holds the largest share, followed by Koshi and Lumbini provinces.
By the value of total transactions, Bagmati Province ranks highest. In metropolitan and sub-metropolitan areas, plots sized between 5 and 10 aana are the most commonly traded.
The central bank has been publishing quarterly real estate transaction data based on information collected from the Land Management and Records Department and the Inland Revenue Department. In previous years, the bank had also attempted to publish quarterly data on housing and land transactions and track prices, and it is now preparing to reinitiate this effort.
The central bank analyzes real estate trends based on transaction data, including the number of transactions, prices, traded land area, revenue collection, and loans disbursed to the real estate sector by commercial banks.
The study includes analysis at national, provincial, metropolitan, and sub-metropolitan levels and categorizes traded land area by various scales, presenting transaction counts and values accordingly.
Quarterly data shows a seasonal pattern in housing and land transactions, with lower activity in the first quarter of the fiscal year and peak activity during the third and fourth quarters. The highest number of transactions occur in Madhesh Province, followed by Lumbini and Koshi provinces, while Karnali and Sudurpashchim provinces experience the lowest activity.
The study further reveals that housing and land loan amounts have risen by 72.41%, and residential loans by 61.55%, from fiscal years 2077/78 to 2081/82. Government revenue from housing and land reached NPR 2.37 billion in the first quarter of fiscal year 2078/79, decreased to NPR 820 million in the first quarter of 2079/80, but has recently recovered to approximately NPR 1.5 billion in 2081/82.
Based on these data, the central bank is currently working on the second phase of developing and publishing the housing price index.
