Kathmandu. The real estate business, which has been making a significant contribution to Nepal’s economic development and employment generation, is now facing crisis due to the policy-level complexities.

The sector, which has been operating regularly for the past 30 years, has been providing employment to thousands of people and accelerating the country’s economic activities. However, the land demarcation system implemented in 2076 BS has caused a lot of trouble to the entrepreneurs.

As per the new rules introduced by the government, a company cannot own more than 30 ropanis of land.

According to real estate entrepreneurs, their job is to buy land, develop it, build houses or apartments and sell it. Entrepreneurs complain that the land is like a ‘stock’ for them and the business cycle has come to a halt due to the limitation of it.

According to businessmen, hundreds of other industries related to the real estate business have also been affected due to the closure of the real estate business. In particular, the consumption of rods and cement industries has decreased, and employment from unskilled workers to engineers has been directly affected.

In addition to this, the entrepreneurs who have taken loans from banks and financial institutions have not been able to sell their land, so they are compelled to pay only bank interest. Entrepreneurs say that there is a situation where even the land is not approved. It also puts the entire financial sector at risk.

Thousands of people who have bought houses or apartments have not been able to get the land ownership in their name even after making full payment. Entrepreneurs say that this has increased mental stress and financial insecurity among the general public.

Entrepreneurs have high hopes that the government will solve this problem positively through the upcoming budget. Stating that the ceiling of 30 ropanis of land was impractical to make urbanization systematic and for the development of big cities, they demanded the government to relax it and facilitate in the purchase and sale of land for commercial purpose.

Entrepreneurs believe that if this policy knot is untied, the loans of banks and financial institutions will be recovered, new projects will be started and the country’s economy will be revived.