Policy complication pushes real estate in crisis: NLHDF

Kathmandu, May 27

Business leaders said that the organised real estate sector, which has been making an important contribution to Nepal’s economic development and job creation, is currently in crisis due to policy complications.

Nepal Land and Housing Developers' Federation (NLHDF) said in a statement on Wednesday that the sector has not only kept the country’s economic activities dynamic for the past three decades but has also provided employment to thousands of people.

"However, the land ceiling regulations implemented since 2019 have caused significant difficulties for entrepreneurs," it said.

Under the new government rules, no company is allowed to hold more than 30 ropanis of land, and any land exceeding this limit is restricted from being sold or distributed.

According to real estate entrepreneurs, their core business is to purchase land, develop it, and then sell houses or apartments built on it. They consider land as their 'stock', and argue that imposing such a ceiling has brought the entire business cycle to a halt.

They further complained that when real estate activity slows down, hundreds of related industries are also affected. In particular, consumption in the steel rod and cement industries has declined, while employment—from unskilled labourers to engineers—has been directly impacted.

"In addition, entrepreneurs who have invested in real estate through bank and financial institution loans are being forced to continue paying bank interest because they are unable to sell land. They also report situations where land transfers cannot be completed," according to the Federation.

Meanwhile, many citizens who have purchased houses or apartments have also been unable to transfer ownership of the land into their names, even after making full payments.

The NHLDF expressed hopes that the upcoming budget will address this issue positively. Arguing that a 30-ropani ceiling is not practical for organised urbanisation and large-scale city development, it urged the government to relax the restriction and facilitate land transactions for commercial purposes.

Published in The Rising Nepal daily on 28 May 2026.