With this monthly boom, the government's total real estate revenue for the first 10 months of the fiscal year has reached Rs 43.54 billion.
Interestingly, data reveals a divergence between the total volume of transactions and actual revenue. While the overall number of real estate activities (including structural procedures) slightly declined from 176,771 in Chaitra to 169,538 in Baishakh, the revenue graph climbed.
This upward trajectory is driven by a rise in high-value transactions involving expensive and large plots of land. This is further supported by an increase in finalized property deeds (documents passed), which rose from 55,531 in Chaitra to 58,886 in Baishakh.
Out of total revenue of Rs 6.26 billion, the government collected registration fees of Rs 3.31 billion, Capital Gains Tax (CGT) of Rs 2.55 billion, Chief Minister's Sanitation Campaign Fund Rs 44.8 million and service tax of Rs 34.4 million
Land Revenue Offices inside the Kathmandu Valley dominated the highest revenue collections for the month. Outside the valley, Pokhara and Chitwan remained the top real estate hubs.
To bring transparency to the booming sector, the government has enforced a rule stating that any property transaction exceeding Rs 30 million within Metropolitan and Sub-Metropolitan cities must be executed exclusively through licensed real estate companies. However, independent traders argue this cap limits market liquidity for smaller investors.
Despite the record month, real estate expansion faces a major bottleneck which is land classification. Under the Land Use Regulations, only 44.89% (338 out of 753) of the country's municipalities have fully classified their land plots. Meanwhile, 47 municipalities have yet to begin the process, causing persistent administrative delays and sluggish trading in those regions.
