Nepal Real Estate Value Hits 720.86 Billion Rupees

Total value of property transactions in Nepal reached 720.86 billion rupees during the 2025-26 fiscal year. This figure marks a sharp rise from the 386.15 billion rupees recorded in the previous fiscal year. The market reversed a prior contraction of 1.84 percent to post a 4.74 percent increase in total transactions. This recovery followed a period of stagnation in the sector.

Nepal Rastra Bank data shows a sustained improvement in economic activity through mid-July. Transaction volumes rose by 12.25 percent year-on-year in the final quarter. This growth compares to a 14.65 percent increase in the same period of the previous year. Officials attribute the shift to easing liquidity pressures and renewed buyer confidence.

Quarterly transaction metrics show steady growth

Property transfers under ownership deeds expanded by 12.28 percent in the fourth quarter. Outright land sales under relinquishment deeds registered a rise of 22.88 percent. The total land area transacted increased by 15.41 percent, reversing a previous contraction of 2.98 percent. These figures indicate a broad-based recovery across different types of property transactions.

Government revenue from these transfers also increased significantly. Capital gains tax collections surged by 63.22 percent in the final quarter. Total revenue gathered from real estate transactions grew by 48.26 percent. This fiscal boost reflects the higher volume of registered property transfers throughout the year.

Credit expansion supports renewed market activity

Bank lending to the real estate sector expanded by 6.93 percent during the fourth quarter. This credit growth compares to a 5.86 percent rate in the prior year. Easier access to residential home loans has helped drive transaction volumes. The central bank notes that capital is gradually returning to the market.

Regional performance varies across the country. Bagmati province led the recovery with a 69.38 percent increase in land sale deeds. Madhesh province recorded a slight decline of 3.44 percent. All other provinces reported positive growth in transaction numbers. Bagmati also saw the highest expansion in total land area transacted.

Data confirms shift in buyer confidence

Satyendra Timilsina from the Nepal Rastra Bank Research Department confirms the data trend. He states that economic activity started picking up gradually by mid-July. Real estate transactions typically increase in the final quarter of the fiscal year. The current data aligns with this seasonal pattern while showing structural recovery.

The report highlights improvements in the number of transactions and land area traded. Officials view the sustained increase in registered transfers as a key indicator. The market is moving away from its previous stagnation phase. This trend supports the view of a stabilizing property sector.