Real estate prices rose 26.45 percent In the fiscal year 2076/77
Real estate prices in Nepal have risen by 26.45%, according to the Nepal Rastra Bank. On Friday, the bank released a real estate price survey report, and it stated this point.
In the fiscal year 2076/77, the average annual rate of real estate inflation was 26.45 percent, compared to 19.73 percent in the previous fiscal year.
Similarly, in the first nine months of FY 2077/78, such inflation was found to be 16.31 percent and 12.57 percent respectively. The survey has shown that inflation has been lower in the first nine months of FY 2077/78 as compared to the previous fiscal year.
This report has been prepared by conducting real estate price survey keeping in view the main objective of monetary policy to be issued by Nepal Rastra Bank to achieve price stability and financial stability and the importance of real estate price index in terms of formulating macro-prudential regulation. This is the first time that real estate prices have been surveyed in the context of Nepal.
As part of the Financial Sector Development Strategy (2073/74-2077/78), the Nepal Rastra Bank is responsible for creating the real estate price index. To compile a real estate price index, data was collected from these resource centers by selecting 20 locations in 20 districts as a sample resource center based on their location, concentration of transactions, and access to available data.
Six metropolitan regions were instantly picked as data resource hubs after a survey of the two most traded wards in the selected districts, municipalities, sub-metropolitan cities, and metropolitan areas. The data for real estate prices has been gathered from the Land Revenue Office in the area where the land and real estate transactions were registered.
In the case of Nepal, real estate price index has been prepared by collecting data from two sources on the basis of availability of data. The value of the house and land has been collected on the basis of the “Thaili” amount to be kept while passing the registration from the Land Revenue Office and the valuation of the house and land to be kept as collateral by the other banks.
In addition, the weightage has been determined based on the total number of transactions of real estate registration of 2075/76 in determining the weightage for the construction of real estate price index. The weightage has been determined at the district, state and national level. At the national level, the weight of land alone is 76.67 percent and the weight of real estate is 23.33 percent.
Based on the Land Revenue Survey, 2,096 out of 18,920 surveys for real estate and 8,240 out of 81,956 for land were surveyed and a total of 10,336 transactions were taken as samples. Similarly, out of the data obtained from commercial banks, a total of 2,476 transactions including 1,332 and 1,144 transactions for real estate were taken as samples.
For the first time in Nepal, an index has been created to measure real estate inflation by conducting a real estate price survey with the objective of measuring the fluctuations in real estate prices. The real estate price index obtained following this process will be published regularly on a quarterly basis.