The government has collected Rs 21.95 billion 49 million in revenue from real estate transactions in the current fiscal year from Shrawan to Pus. According to the Department of Land Management and Records, this is the highest in the last three years. The government had collected Rs 18.24 billion in the same period in fiscal year 2079/080, Rs 18.27 billion in fiscal year 2080/081, and Rs 20.83 billion in fiscal year 2081/082.

The Land Revenue Office, Land Reforms and Land Revenue Office have been collecting revenue under various headings including service tax, registration fee, door facility fee, capital gains tax, and delay fee, the department has stated. Out of this, only the revenue collected from capital gains tax goes to the federal government, while the rest is distributed to the provinces and municipalities, the department has stated.

According to the department, the highest revenue was collected in Poush in the current fiscal year. A revenue of Rs 5.17 billion was collected in Poush alone. The lowest revenue collection was Rs 2.75 billion 51 million in Kartik. Revenue of Rs 2.75 billion 85 million was collected in Asoj, Rs 3.14 billion 7 million in Bhadau, Rs 3.28 billion in Shrawan, and Rs 4.84 billion 81 million in Mangsir. 

While 1 lakh 4 thousand 218 real estate transactions were made in Shrawan of the current fiscal year, 1 lakh 2 thousand 971 transactions were made in Bhadau. However, there was a significant decrease in transactions after the Gen-G movement on 23 Bhadau. The Land Reforms and Land Revenue Office suffered the most damage in the protests on Bhadra 24. Despite the formation of an interim government in the country, real estate transactions did not gain momentum in Kartik and Asoj due to lack of enthusiasm among investors.

On the other hand, since the municipalities did not classify real estate, even the division of land was stopped. That is why businessmen say that real estate transactions have decreased. Although real estate transactions decreased in Asoj and Kartik, the data shows that they increased in Mangsir and Poush. According to the department, there were 79,736 real estate transactions in Asoj, 93,669 in Kartik, 158,899 in Mangsir, and 162,877 in Poush.

The division of land, which decreased since the beginning of Shrawan due to the lack of classification by the municipalities, has started increasing after Mangsir. There were 42,563 land lots in Shrawan, 37,553 in Bhadra, 35,349 in Asoj and 42,012 in Kartik. Land lots were stopped since the beginning of Shrawan as municipalities did not classify land. Land lots were opened after the government amended the Land Use Regulations, 2082 for the third time on Kartik 24. That is why land lots have increased sharply since Mangsiri. There were 112,618 land lots in Mangsiri and 133,568 land lots in Poush.

Bishnu Ghimire, President of the Nepal Real Estate and Housing Development Federation, said that real estate transactions have been active since Mangsiri because of the opening of land lots. ‘The land division was closed from Shrawan to the third week of Kartik,’ he said, ‘The land division that was done until Asar was bought and sold until Kartik, and since it opened at the end of Kartik, it has affected the real estate transactions and revenue since then.’ Ghimire urges to open it in the long term as the municipalities will be closed again from next Shrawan due to the non-classification of land divisions.

The government has already amended the Land Use Regulations, 2079 BS for the third time to open the land division as the municipalities did not classify on time. Since Bhadra 2081 BS, land administration work including land division had been stopped in 620 municipalities. At that time, only 133 municipalities had completely classified their land. Immediately after, on 27 Bhadra 2081 BS, the Land Use Regulations, 2079 BS were amended for the second time, giving the municipalities time until Asar 2082 BS to classify the land.

When the regulations were issued in Jestha 2079 BS, four forts had to be opened within 6 months and agricultural areas had to be designated. Until Mangsir 2079, only a few municipalities had allocated agricultural areas. After Mangsir 2079, land had to be classified into all 10 areas. However, since most municipalities did not classify land, the regulation was amended on 32 Shrawan 2080 and a provision was made to designate agricultural areas by opening four forts within a year.

The first amendment to the regulation allowed residential and commercial land to be divided into plots up to 80 square meters and agricultural land up to one ropani. Earlier, residential land could not be divided into plots less than 130 square meters. In the case of agricultural land, there was a provision that plots could not be divided into plots less than 500 square meters in the valley and 675 square meters in the Terai and inner Madhesh.

There are separate standards for agricultural, residential and commercial land classified by the government. The regulation states that local road standards must be met for commercial housing. After the municipalities did not classify the land even after the first amendment extended the period by one year, the ministry amended the regulations for the second time in Bhadra 2081.