Why did not increase the real estate business?

7 billion 249 million rupees revenue was raised from real estate business in 9 months of the last financial year. According to the Department of Land Management and Records, during the same period of the current financial year, the revenue of Rs. According to the department, in March, compared to February, the turnover has decreased by a normal number, while the share of land has increased. The data of the department shows that the revenue has also increased. According to the

department, there have been 1 lakh 31 thousand times in Chait. In February, 1 lakh 29 thousand 53 times were distributed. There were 146 thousand 708 transactions in February and 146 thousand 650 transactions in March. Compared to February, the revenue has increased by Rs 355.54 million more in March. The government collected 3.59 billion 2.6 million rupees from real estate business in February and collected 3.94 billion 81 million rupees in March.

Bhesraj Lohani, the president of Nepal Real Estate and Housing Development Federation, said that although it was expected that the real estate business would improve since last November, it did not happen. Since the month of November, it was expected to increase due to the season of real estate transactions, but it is in normal condition.

There was a general increase in revenue in March compared to February,' he said, 'Even when the government eased the policy, the results were not seen.'

The government issued a land use regulation on 079 June 23, according to which the municipality could do land use only after separating agriculture and non-agriculture. Due to this policy, from July of the same year, the overall real estate business started to decrease. The businessmen had been saying that the real estate business could not increase due to lack of distribution. At that time, Prime Minister Pushpa Kamal Dahal, the then Finance Minister Prakasharan Mahat and the then Minister of Land Management, Cooperatives and Poverty Alleviation Ranjita Shrestha, among others, claimed that the economy would be viable with the opening of the land market.

After the municipality delayed the separation of agriculture and non-agriculture, Kittakat was halted since November 079. The Council of Ministers meeting on July 30 decided to open the lottery again. The government has amended the regulations and provided that residential and commercial land can be allotted up to 80 square meters area. Earlier, residential plots less than 130 square meters could be allotted. It has been arranged that 80 square meters of land will be allotted to those who have received planning approval and 130 square meters to those who have not. Previously, there was a provision that both those who took the planning permission and those who did not were allowed to plot in an area of ​​less than 130 square meters. However, according to the government and businessmen, real estate transactions have not increased.

Businessmen say that real estate transactions have not increased as expected due to Rashtra Bank's strict policy recently. Lohani argues that in a slow economy, the National Bank should adopt a loose policy and make the real estate business viable.

Although both parties are ready to take and give loans, the main reason for the real estate business not increasing is the strict policy of Rashtra Bank, he informed. Customers are ready to take loans, banks are also ready to give, but the policy of the Rashtra Bank has become an obstacle,' he said In the case of housing loans up to 1 lakh, the monthly installment income ratio has been increased to 60 percent. Earlier, the monthly installment income ratio was 50 percent. Lohani, the president of Nepal Real Estate and Housing Development Federation, demands that it should be increased to at least 80 percent at the present time. In July, the National Bank had arranged for a loan of up to Rs 2 crore for those who want to build their first house.

Earlier, there was a provision to get loans up to 15 million rupees. Even if the risk weight of real estate loans has been increased from 150 percent to 125 percent, he demands that it should be increased to 100 percent. According to Lohani, the monthly installment income ratio is 50 percent in case of real estate loans ranging from Rs 50 lakh to Rs 2 crore. He demands that it should be increased to at least 80 percent. He said that it would be difficult for the real estate business to proceed with the current policy of the National Bank.