Himal Press 
KATHMANDU: The real estate sector showed signs of recovery in the previous fiscal year 2025/26.
According to a study report released by the Nepal Rastra Bank (NRB) on Tuesday, the total number of real estate transactions increased by 4.74% in 2025/26, compared with a 1.84% decline in the previous fiscal year.
The recovery gained further momentum in the fourth quarter of the fiscal year when the number of real estate transactions rose 12.25% compared with the same period a year earlier. However, the quarterly growth was lower than the 14.65% recorded in the fourth quarter of 2024/25.
Transactions involving deed registration increased by 12.28% in the review quarter, compared with 15.45% in the same quarter of 2024/25.
The total area of transactions increased by 15.41% in the fourth quarter of 2025/26, reversing a 2.98% decline recorded in the same period of 2024/25.
The increase in transaction activity was accompanied by a substantial rise in the value of property transactions. Real estate transactions worth Rs 720.86 billion were recorded during the entire 2025/26 fiscal year, up from Rs 386.15 billion in the previous fiscal year. This represents an increase of about 86.7% in transaction value.
The fourth quarter alone accounted for property transactions worth Rs 275.73 billion, more than double the Rs 127.61 billion recorded in the same quarter of 2024/25.
The sharp increase in transaction value suggests that the recovery in the property market was not limited to the number of transactions. The average value of properties changing hands also appears to have increased.
Meanwhile, revenue collection from real estate transactions increased by 48.26% in the fourth quarter, compared with a 23.45% growth in the corresponding period a year earlier.
Similarly, capital gains tax (CGT) collected from real estate transactions increased by 63.22% in the review quarter. CGT collection had increased by 29.98% in the same quarter of 2024/25.
The improvement in property-market activity was accompanied by stronger bank lending to the sector. Bank credit extended to the real estate sector, including residential real estate loans, increased by 6.93% during the review period. Such lending had grown by 5.86% in the fourth quarter of 2024/25.
Province-wise, Bagmati recorded the highest 69.38% growth in property transactions in the fourth quarter of 2025/26, while Madhesh recorded a decline of 3.44%
The central bank report shows that the total value of property transactions recorded the highest growth of 175.33% in Bagmati, while Madhesh recorded the lowest growth of 31.98%.
