KATHMANDU, Feb 17: Nepal's real estate market is showing signs of a slow but steady recovery, with the government collecting an additional Rs 2.25 billion in land revenue over the first seven months of the current fiscal year.
Data from the Department of Land Management and Archive (DoLMA) shows land revenue reached Rs 26.96 billion between mid-July 2025 and mid-February 2026. This is a notable increase from the Rs 24.71 billion collected during the same period last fiscal year.
Diversifying Government Revenue
However, the monthly momentum declined slightly in the seventh month. Revenue collection between mid-January and mid-February was approximately Rs 5 billion, a small dip from the Rs 5.17 billion recorded in the previous month.
During this latest period, 50,837 land plots were transacted nationwide. The Kathmandu Valley saw 4,873 of these transactions, with the Bhaktapur Land Revenue Office leading the way with 1,148 plots sold.
According to DoLMA, the market rebounded after the government lifted restrictions on land fragmentation in November. This policy shift caused a surge in transactions, with 51,632 plots changing hands between mid-November and mid-December—nearly double the volume of previous months.
The real estate sector had been sluggish in recent years due to a broader economic slowdown and the government's initiative to reclassify land into categories like agricultural, residential, commercial, and industrial. To address delays in finalizing this land-use categorization, the government amended the Land Use Regulations 2022. The third amendment temporarily permits land fragmentation and sets a new deadline of mid-July 2026 to complete the classification process, providing much-needed clarity to the market.
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