Kathmandu. There has been a significant improvement in the real estate business in Nepal. According to the data released by the Nepal Rastra Bank on Tuesday, the total real estate transactions in the country increased by 4.74 percent in the fiscal year 2082÷83.

According to a study on ‘Trend and Current Status of Real Estate Transactions’ released by the Economic Research Department of the Nepal Rastra Bank, the number of real estate transactions had decreased by 1.84 percent in the previous fiscal year 2081÷82. However, the turnover increased in the last fiscal year.

In the fourth quarter of the financial year 2082÷83, the total number of real estate transactions increased by 12.25 percent compared to the same period of the previous financial year. Such transactions had increased by 14.65 percent in the same period of the previous year.

During the review period, the number of resignation transactions under instruments increased by 12.28 percent. Similarly, the resignation transactions under instruments increased by 22.88 percent, according to the Rastra Bank. In the fourth quarter of the previous fiscal year, the resignation transactions had increased by only 8.15 percent.

In the first year of the last fiscal year, the total real estate transactions were worth Rs 720.86 billion. In the previous financial year, such transactions were only Rs 386.15 billion.

Similarly, in the fourth quarter of the fiscal year 2082÷83, real estate transactions worth Rs 275.73 billion were transacted. Such transactions were worth Rs 127.61 billion in the same period of the previous fiscal year.

The revenue collected from real estate transactions increased by 48.26 percent during the review period. Similarly, the capital gains tax increased by 63.22 percent. In the fourth quarter of the previous financial year, the revenue collected from real estate transactions increased by 23.45 percent and capital gains tax by 29.98 percent.

With the increase in real estate transactions, the number of loans issued by banks and financial institutions has also increased in this sector. According to the Rastra Bank, bank credit to the real estate sector, including residential real estate loans, increased by 6.93 percent in the fourth quarter of the fiscal year 2082÷83. Such loans had increased by 5.86 percent in the same period of the previous fiscal year.

In the last fiscal year, Bagmati Province has been ahead in real estate transactions. In the fourth quarter of the fiscal year 2082÷83, the number of resignation transactions in Bagmati Province increased by 69.38 percent.

During this period, resignation transactions in Madhesh Province decreased by 3.44 percent. According to the Rastra Bank, resignation transactions have increased in all other provinces. The total area of real estate transactions has also increased by 50.24 percent in Bagmati Province. In Madhesh Province, such area has decreased by 6.19 percent.

The total value of transactions has increased in all seven provinces. The total value of real estate transactions has increased by 175.33 percent in Bagmati Province, while the minimum increase has been recorded in Madhesh Province by 31.98 percent. According to the Rastra Bank, plots with an area of 2.5 to 10 annas have been traded in all seven provinces during the review period.

In the same period of the previous fiscal year, Madhesh Province had the highest turnover of plots with an area of more than 20 annas. In other provinces, plots of 2.5 to 10 annas area were transacted. According to the data of the metropolis, there has been a significant increase in real estate transactions in Kathmandu Metropolitan City.

In the fourth quarter of the fiscal year 2082÷83, the total number of real estate transactions in Kathmandu Metropolitan City increased by 155.74 percent. This was followed by Lalitpur Metropolitan City by 136.92 percent, Pokhara by 108.71 percent, Bharatpur by 63.04 percent, Biratnagar by 47.59 percent and Birgunj by 29.19 percent.

The total area of transactions has also increased in all metropolitan cities. The area has increased by 208.22 percent in Kathmandu Metropolitan City and 13.31 percent in Birgunj.

The total value of real estate transactions has also increased in all metropolitan cities. According to the Rastra Bank, the total value of transactions in Kathmandu Metropolitan City has increased by 217.40 percent.

The number of real estate transactions has increased in all places except Kalaiya in the sub-metropolitan city. The number of transactions has increased by 73.16 percent in Dhangadhi Sub-Metropolitan City.

Hetauda Sub-Metropolitan City is ahead in the total area transacted. The total area of business in Hetauda has increased by 104.16 percent during the review period.

Similarly, the total value of real estate transactions has also increased in all the 11 sub-metropolitan cities. According to the Rastra Bank, the total value of transactions in Hetauda Sub-Metropolitan City has increased by 186.80 percent.