Nepal’s real estate sector is showing early signs of recovery, with the government collecting an additional Rs 2.25 billion in land revenue during the first seven months of the current fiscal year.
According to data from the Department of Land Management and Archive (DoLMA), land revenue reached Rs 26.96 billion between mid-July 2025 and mid-February 2026. This marks a notable rise from Rs 24.71 billion collected during the same period in the previous fiscal year.
However, the pace of growth slightly eased in the seventh month. Revenue collected between mid-January and mid-February stood at around Rs 5 billion, marginally lower than the Rs 5.17 billion recorded in the preceding month.
During this period, a total of 50,837 land plots were transacted nationwide. The Kathmandu Valley accounted for 4,873 transactions, with the Bhaktapur Land Revenue Office registering the highest number—1,148 plots sold.
DoLMA attributes the recent rebound to the government’s decision in November to lift restrictions on land fragmentation. The policy change triggered a surge in activity, with 51,632 plots changing hands between mid-November and mid-December—almost double the volume seen in earlier months.
The real estate market had remained subdued in recent years due to a broader economic slowdown and the government’s initiative to classify land into categories such as agricultural, residential, commercial, and industrial. To address delays in completing this process, authorities introduced the third amendment to the Land Use Regulations 2022. The amendment temporarily allows land fragmentation and sets a new deadline of mid-July 2026 to finalize land classification, offering greater clarity and renewed momentum to the property market.
