1 minute read
Real Estate
REAL ESTATE REAL ESTATE
The nationwide lockdown imposed by the government on 24 March, 2020, did not seem to inflict strain on Kathmandu’s real estate market. Although the market underwent some major shocks in the first few months into the pandemic, a gradual boom was noticed in the buying and selling of houses and plots of land across the country. The government has come up with rules to strengthen the land and renting policies.33
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Boom in Kathmandu’s real estate
market: Kathmandu’s real estate market has witnessed a boom amidst the pandemic. According to reports, between mid-December to midJanuary, 76,532 houses and plots of land were bought and sold across the country. The pandemic resulted in lack of other investment avenues such as excess market liquidity, which has prompted banks to offer loans in low interest rates. Lastly, the gradual revival of the economy and consumers' savings are few of the major reasons behind the increase in real estate.
No dual ownership of land: The Ministry of Land Management, Cooperatives and Poverty Alleviation has decided to end the dual ownership of land. The dual ownership of land between the landowners and the tenants has been a long standing problem in the country. The government will facilitate in resolving the dual land ownership if both the parties cannot reach an agreement.34
New standard for the use of
public land issued: The Nepal government has introduced a new standard regarding use of public land to make the existing provisions more systematic. As per the new standard, public land can be used by government hospitals/health facilities and community schools for 30 years depending on the need. The period may alter on the basis of its rationality and any non-governmental organization or private sectors are not eligible.35
OUTLOOK
With the economic activities resuming to normalcy, it can be predicted that the real estate market will experience a boom in Kathmandu and areas adjacent to Kathmandu. The government has to come up with more policies to regulate the buying and selling of the assets.
