Property Turnover Surges 87% to Rs 721 Billion in Last FY

Nepal's real estate market staged a sharp recovery in fiscal year 2025/26, with the value of property transactions surging nearly 87 percent to Rs 720.86 billion even as the overall number of transactions increased by just 4.74 percent.

The divergence between transaction value and transaction volume became even more pronounced in the final quarter of the fiscal year, according to a Nepal Rastra Bank report based on land transaction data from the Department of Land Management and Archive and real estate credit data collected by the central bank.

Total property turnover reached Rs 275.73 billion in the fourth quarter, compared with Rs 127.61 billion in the corresponding period a year earlier, an increase of 116.07 percent.

By comparison, the total number of property transactions increased 12.25 percent during the quarter. Transactions involving registered deeds rose 12.28 percent, while registered sale transactions, or rajinama, increased 22.88 percent. The total area involved in property transactions increased 15.41 percent.

The figures show that the increase in the monetary value of property transactions far outpaced growth in both the number of transactions and the area changing hands.

The NRB report, however, does not provide a property price index or enough detail to determine how much of the surge in turnover came from higher property prices, larger or more valuable transactions, changes in the geographic mix of properties sold, or higher values being recorded in official transactions.

For the full fiscal year, property turnover climbed to Rs 720.86 billion from Rs 386.15 billion a year earlier, an increase of 86.68 percent. In contrast, the total number of property transactions increased by only 4.74 percent. Transaction numbers had declined by 1.84 percent in the previous fiscal year.

Bank lending trails property turnover

The surge in property turnover was not matched by a similar increase in lending by banks and financial institutions.

Credit to the real estate sector, including residential property loans, increased 6.93 percent during the review period. A year earlier, such credit had grown 5.86 percent.

The difference between the growth in transaction value and formal credit suggests that property turnover expanded much faster than bank financing to the sector.

The NRB report does not identify how individual property purchases were financed. It therefore cannot establish whether the increase was funded by buyers' own resources, remittance income, accumulated savings, previously sanctioned credit or other sources.

Government revenue from property transactions also rose sharply as market activity strengthened.

Revenue collected from property transactions increased 48.26 percent in the fourth quarter from the corresponding period a year earlier, while capital gains tax collection rose 63.22 percent. In the corresponding quarter of the previous fiscal year, revenue and capital gains tax had increased 23.45 percent and 29.98 percent, respectively.

The revenue chart in the NRB report also shows quarterly revenue from property transactions reaching the highest level in the period covered by the series.

Bagmati leads rebound

The recovery was uneven across provinces.

Registered property sale transactions increased in all provinces except Madhesh. Bagmati recorded the strongest growth, with rajinama transactions rising 69.38 percent, while Madhesh recorded a 3.44 percent decline.

The difference was even wider in transaction values.

The value of property transactions increased in all seven provinces, with Bagmati recording the fastest growth at 175.33 percent. Madhesh posted the weakest increase, at 31.98 percent.

The total area involved in property transactions increased 50.24 percent in Bagmati, the highest among the provinces, while Madhesh recorded a 6.19 percent decline.

Plots measuring between 2.5 ana and 10 ana accounted for the largest number of transactions in all seven provinces during the review period.

Kathmandu transactions surge

The recovery was particularly strong in the country's metropolitan cities.

Kathmandu Metropolitan City recorded a 155.74 percent increase in the number of property transactions in the fourth quarter. Lalitpur followed with growth of 136.92 percent, Pokhara with 108.71 percent, Bharatpur with 63.04 percent, Biratnagar with 47.59 percent and Birgunj with 29.19 percent.

The total area involved in transactions increased in all metropolitan cities. Kathmandu recorded the fastest growth, at 208.22 percent, while Birgunj posted the smallest increase, at 13.31 percent.

The value of property transactions also increased across all metropolitan cities, with Kathmandu again recording the strongest growth, at 217.40 percent.

Among sub metropolitan cities, transaction numbers increased everywhere except Kalaiya, where they remained unchanged. Dhangadhi recorded the highest growth in transaction numbers, at 73.16 percent. Hetauda posted the strongest growth in transaction area, at 104.16 percent, and in transaction value, at 186.80 percent.

The data point to a real estate market that has moved out of the weakness seen in the previous fiscal year. But with transaction values rising much faster than transaction numbers, land area and formal bank credit, the latest recovery also raises questions about what is driving the surge in recorded property turnover and how transactions are being financed.

Key Real Estate Indicators

Indicator	Latest figure or change
Total property turnover, FY 2025/26	Rs 720.86 billion
Annual growth in property turnover	86.68%
Annual growth in total transaction count	4.74%
Fourth quarter property turnover	Rs 275.73 billion
Fourth quarter turnover growth	116.07%
Fourth quarter total transaction growth	12.25%
Registered deed transaction growth	12.28%
Rajinama transaction growth	22.88%
Growth in area transacted	15.41%
Growth in property transaction revenue	48.26%
Growth in capital gains tax collection	63.22%
Growth in real estate credit, including residential loans	6.93%
Bagmati, growth in rajinama transactions	69.38%
Madhesh, growth in rajinama transactions	3.44% decline
Bagmati, growth in transaction value	175.33%
Madhesh, growth in transaction value	31.98%
Kathmandu, growth in transaction count	155.74%
Kathmandu, growth in transaction area	208.22%
Kathmandu, growth in transaction value	217.40%

Source: Nepal Rastra Bank, Trend and Current Situation of Real Estate Transactions, fourth quarter FY 2025/26