Land Transactions Decline, But Government Revenue Increases by 8%

Despite a notable decline in real estate transactions, land revenue collection has increased in Jestha (mid-May to mid-June) of the current fiscal year. According to the Department of Land Management and Archive, land and housing transactions have decreased by 12% compared to the same month last year, but revenue collection rose by 8%.

In Jestha 2082 BS, a total of 156,752 real estate transactions were recorded nationwide. Among these, 56,000 transactions were formally registered. In the same month last year, there were 175,620 transactions with 61,161 registrations. The drop in transaction volume, despite an increase in revenue, indicates that high-value properties were traded, and land prices may have increased in key areas.

The government collected NPR 4.72 billion in revenue from real estate transactions this Jestha, compared to NPR 4.33 billion in the same period last year. This growth in revenue, despite the drop in transaction volume, points toward increasing property valuation and stronger compliance in tax and registration systems.

Land plotting (kittakat) activity has also declined. Last year, 72,675 parcels were subdivided into 165,400 units, while this year only 64,465 parcels were split into 145,908 units. This suggests a slowdown in land development, possibly due to reduced speculative buying or tighter regulations on land plotting.

Looking at the busiest land revenue offices, Bhadrapur in Jhapa tops the list with 7,127 transactions, followed by Inaruwa (Sunsari) with 5,215, and Belbari (Morang) with 4,528. Bhaktapur and Janakpur both recorded 3,844 transactions, while Lagankhel, Dhangadhi, Chitwan, Butwal, and Rajbiraj also featured among the top ten.

The rise in government revenue despite a fall in transaction volume may seem positive at first glance, but deeper implications are emerging. It suggests land prices are surging, making property acquisition increasingly unaffordable for the average citizen. At the same time, reduced plotting and development activities indicate a cooling of the real estate market.

In the long term, this trend could further strain housing accessibility and urban planning. The government and policymakers must pay close attention to this shift in the real estate landscape to ensure sustainable growth and equitable access to land and housing.