How does the Real state market work in Nepal

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8 Jul Business
How does the Real state market work in Nepal
Real estate is an asset that has appreciative value over a course of time.

Real Estate can be illustrated as tangible real properties which possibly include land and buildings. A deserted piece of land somewhere on the countryside is also considered as a real estate property, similar to the house you own. A real estate can be bought and sold, it might be owned by an individual, government or by a corporation. The real estate business in Nepal is very promising and investing in real estate with proper knowledge and consistency will undoubtedly be beneficial in the long run. An individual with a steady income and seeking to enhance their portfolio can start with real estate to attain rewarding income. Real estate is an asset that has appreciative value over a course of time.

Why is Real Estate Lucrative?

Real estate value will increase as the demand of real estate market is very high in Nepal due to the rapid growth of physical infrastructures, road expansions etc. Real estate can generate a passive source of income and is a good investment for a long term. The valuation of real estate can be improved and it solely depends on you, for e.g. adding a pool or having a backyard with KOI ponds can help you improve the value of the property. A beginner can easily invest in real estate since it doesn’t carry much complex investment structures.

Real estate provides a better return than that of a stock market due to the less risk associated with owning a property; however in a stock market there are numerous factors beyond your control that can influence the valuation of share. For instance, a new car decreases in value over a period of time but a real estate property value is always an appreciative value.

Real estate properties are accepted widely as the best collateral for financial services.

Drawbacks of Real Estate

In all aspect, real estate is not leveraged over everything and has its own drawback that needs to be considered before purchasing real estate properties. Real estate properties are not a liquid asset, so in case of emergency you will not be able to cash in the desired amount instantly. Real estate properties require constant maintenance and dealing with tenants can be a tedious job for many investors.


Property Law

Property law in Nepal has been protected under Part 4 of the Muluki Civil Code, 2074, any disputes arising related to property are resolved under the same. However, the law regarding real estate business is new to Nepal and has many shortcomings. The property law of Nepal basically deals in the following sectors:

1. Ownership: Under the section, any issues related to owning the property or other disputes arising from the same is handled with possible remedies.

2. Public Property: Any property that is enlisted as a public property or that of the Government is strictly prohibited from being transferred to an individual’s name.

3. Name Transfer: An owner of a property holds the right to sell, giveaway or transfer his/her property to any individual, however in case of a joint property all involved parties consent is mandatory.

Law for Women in Nepal.

The Government of Nepal made some changes in the law regarding land acquisition and ownership specially dedicated for the women. In Nepal, only 19.7% of women own lands, and to increase the percentile, the Government now provides a discount up to 50% on registration fee if a land is registered under a women’s name. The land right convey security, confidence and independence for the women of the nation.


Trilegal Nepal is a one stop solution for all real estate/land related matter and with a team of professional practicing lawyers; Trilegal can be your legal confidant.