Re-rise in Real Estate Demands

Nepal, if we talk from a financial perspective, is a State run mostly by Foreign Remittances which are sent by the people residing and working across the globe. With the rise of Foreign Currency inflow, more and more investments were being infused in Real Estate of Nepal, more particularly in the metropolitan city and newly-being-developed cities of Nepal.

To curb such inflow of Capital in the Real Estate Sector of Nepal and to maintain stability in the National Economy, the government had taken several steps. The Government had shut the Kitta kaat which was required while selling the land in multiple partition. The Nepal Rastra Bank had also directed the banking Sectors to reduce the flow of Capital towards Real Estate. The situation is however better now. 

After the Massive Earthquake of 2015, there has been seen a Significant Increase in Housing and Plotting of Land across Nepal and particularly, Top Metropolitan Cities of Nepal. As we operate in Biratnagar, we have seen a nearly 150 percent rise in the Real Estate Demand before 2020. As there was a Worldwide Pandemic of COVID-19 in 2020, the Real Estate market was almost shrunked in Biratnagar.

Again, Post-Lockdown period was not as favorable as anticipated for the Real Estate Sector. There were only a few deals taking places over the phone. People were hesitant to visit-in-person to the new place and to new people. Also, many people have lost their Jobs and Business (within State and Overseas) due to this Pandemic. This pandemic had a negative impact on Global Economy, supply chain and flow of capital. As a result of which, people were unwilling to block their Capital and Cash Reserves in the Non-Liquid Assets.

However, in the last quarter of 2020, there has been seen a Slow and Steady rise in the Demands which is, in fact, very positive signal for the sector. A lot more rise can be anticipated once the COVID-19 Vaccine is out for the Common People. Besides this, we can also witness a political Instability in the Nation, which has, however, not affected the sector at the current moment but may have an adverse effect if the current situation worsens.

For the Growth of Economy in such a resilient time of Pandemic, only a Stable and Committed Government can help the nation.