KATHMANDU, Sept 15: Nepal’s real estate sector recorded transactions worth Rs 720.86 billion in Fiscal Year (FY) 2025/26, an 87 percent increase from Rs 386.15 billion in the previous fiscal year.
A report entitled “Trend and Current Status of Real Estate Transactions” unveiled by Nepal Rastra Bank (NRB) highlights notable growth in the real estate business last year. The total number of property transactions rose by 4.74 percent in 2025/26, while the number of transactions had declined by 1.84 percent in the previous fiscal year.
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All seven provinces witnessed an increase in real estate transaction values during the review year. Bagmati Province recorded the highest rise, with traded amounts surging by 175.33 percent, while Madhesh Province saw a 31.98 percent increase in traded land valuation.
The revitalization of the real estate market directly boosted government revenue. Revenue collected from property transactions rose by 48.26 percent, while capital gains tax generated from these transactions increased by 63.22 percent. In the previous fiscal year, revenue collection and capital gains tax had grown by 23.45 percent and 29.98 percent, respectively.
Recovery in the real estate market also spurred credit disbursement from the banking sector. Banks’ lending to the real estate sector—including loans for residential properties—expanded by 6.93 percent during the review period. In the fourth quarter of the previous fiscal year, such lending had increased by 5.86 percent.
In terms of provincial breakdown, Bagmati Province showed the most rapid activity. Real estate sales transactions there rose by 69.38 percent during FY 2025/26, while Madhesh Province recorded a 3.44 percent decline.
Bagmati also led in terms of the total area involved in transactions, with traded real estate area increasing by 50.24 percent. In contrast, Madhesh Province saw a 6.19 percent decrease in traded area.
