Real Estate Transactions Continue to Rise in Magh, Signaling Gradual Market Recovery

Nepal’s real estate sector maintained its upward momentum in Magh of the current fiscal year 2082/83, extending the recovery that began in Mangsir. After months of slowdown earlier in the year, property transactions, land fragmentation, and related revenue collection have shown consistent improvement, indicating renewed activity in the housing and land market.

According to data from the Department of Land Management and Archives, a total of 193,920 property transactions were recorded in Magh this year. In comparison, only 132,031 transactions had been registered in the same month of the previous fiscal year. This reflects a year-on-year growth of 16.57 percent, highlighting a noticeable revival in market participation.

Land subdivision activities have also increased during the period. In Magh 2082, around 54,132 land parcels were divided into 120,426 individual plots. This compares with 51,027 parcels and 114,206 plots in the same month last year. The rise suggests that both developers and individual landowners are becoming more active, preparing properties for sale and development.

Government revenue from real estate transactions has risen sharply alongside growing activity. In Magh 2081, revenue from land and housing transactions stood at Rs 3.87 billion. This figure increased to Rs 5.01 billion in Magh 2082, marking a 29.37 percent growth. The continued rise in revenue follows similar trends seen in previous months, with collections increasing by 25 percent in Mangsir and 21.65 percent in Poush.

Experts attribute this improvement mainly to the government’s decision to lift restrictions on land fragmentation. The government had suspended plot division from the end of Asar 2082, which significantly slowed market activity and affected state revenue. However, the restriction was lifted in the last week of Kartik, allowing plot division until the coming Asar. This policy shift is widely seen as a major driver behind the recent surge in transactions.

With around six months still remaining under the current provision, real estate entrepreneurs expect continued momentum. Many believe that developers are rushing to complete subdivisions and sales before any potential policy changes, creating short-term pressure that has boosted market volume.

According to Rajkumar Rai, Vice-President of the Nepal Land and Housing Developers' Federation, the reopening of land fragmentation has been central to revitalizing the sector. “Since Mangsir, the market has become more dynamic, mainly due to the government’s decision to allow plot division,” he said.

Rai also pointed to falling interest rates as another major factor supporting the recovery. Over the past year, lending rates in the real estate sector have declined from 9.14 percent to 7.38 percent. Lower borrowing costs have made property investment more attractive for buyers and developers, encouraging renewed activity after a prolonged slowdown.

In addition, several social and economic factors have contributed to rising transactions. Prolonged stagnation in the market had kept land prices relatively stable, prompting some owners to sell property to manage personal finances. Many Nepali migrants returning home during festivals have invested in land before going back abroad. Stricter immigration policies in countries such as the United States have also encouraged some families to shift investments back to Nepal.

Despite the recent improvement, industry leaders caution against viewing the current growth as a full-scale boom. Rai described the ongoing rise as “normal recovery” rather than extraordinary expansion. “Only if transactions reach the levels seen around 2077 can we say that the market has truly rebounded,” he said.

The year 2077 is often regarded as the peak period for Nepal’s real estate sector. During that time, transaction volumes surged, and revenue reached historic highs. In Chaitra 2077 alone, government collections from land and housing transactions had crossed Rs 8.59 billion, far exceeding current levels.

Analysts note that while recent data signals renewed confidence, the sector has not yet returned to its previous peak. The present growth appears driven largely by policy relaxation and lower interest rates rather than strong long-term demand fundamentals. Sustainability will depend on stable regulations, consistent economic growth, and access to affordable credit.

For now, the steady rise in transactions, plot divisions, and revenue suggests that Nepal’s real estate market is slowly emerging from its downturn. Whether this momentum will continue beyond the current fiscal year will largely depend on future government policies and broader macroeconomic conditions.