Real estate boom in the time of pandemic (Source : The Himalayan Times)
With economic activities gradually picking up pace, the country has started witnessing a boom in real estate activities.
According to records of the Department of Land Management, altogether 76,532 houses and plots of land were bought and sold across the country just in the last one month (mid-December to mid-January). During this period, the government collected revenue worth Rs 6.65 billion from real estate transactions.
According to the department, the real estate business has been increasing of late. Altogether 56,838 plots of land were bought and sold in the three-month period till mid-October, while more than 50,000 plots of land were traded from mid-October to mid-November.
As many as 61,451 houses and plots of land were bought and sold from mid-November to mid-December.
In a yet to be released report obtained by The Himalayan Times, the department has stated that the major reason behind increase in real estate business is the gradual revival of the economy and the savings of the people. “Due to lack of other investment avenues because of the pandemic, the real estate sector has drawn the interest of investors.”
Excess market liquidity, which has prompted banks to offer loans at lower interest rates has also prompted people with regular income to expand their assets, the report adds. “Moreover, the recent bull run in the stock market has also encouraged investors to invest in the real estate to secure their earnings.”
Within Kathmandu valley, many houses and plots of land are being bought and sold in Suryavinayak, Nalinchowk, Duwakot, Changunarayan, Mulpani, Thali, Sankhu, Tokha, Godavari, Lubhu and Khokana. Buyers seem to be attracted to these areas as land is available at a cheaper price compared to areas within the Ring Road, localities are quieter than the main city, pollution is less, and roads and sewers are better managed, as per the report.