Revenue mobilization from land and housing across the country increased by more than 31 percent during the month ending mid-October compared to same month last year, indicating that that realty sector is gradually improving.

Country´s realty sector had been witnessing slackness for the last three years after the Nepal Rastra Bank (NRB), the central bank, tightened its screws on lending amid increasing loan exposure to this sector during the height of global financial crisis in 2010.

Data compiled by the Department of Land Revenue (DLR) shows that a total of Rs 500.7 million was collected as land registration fee from Land Revenue Offices (LROs) across the country during the review month, up from Rs 385 million mobilized during the same month last year.

LROs at Dillibazar, Kalanki and Chabahi of Kathmandu district collected Rs 95.8 million, Rs 42.5 million and Rs 34.7 million, respectively during mid-September to mid-October this year. Dillibazar, Kalanki and Chabahil LROs had mobilized Rs 74.1 million, Rs 39.3 million and Rs 29.2 million during the same month last year.

Similarly, the government land registration fee amounting to Rs 23.6 million and Rs 37.3 million in Bhaktapur and Lalitpur districts, respectively during the month. During the same month last year, Bhaktapur and Lalitpur districts had mobilized Rs 17 million and Rs 51 million respectively.

The government has set target of collecting land revenue worth Rs 4.5 billion in the current fiscal year. To meet the annual target, the government has made target to raise Rs 340 million each from mid-July to mid August and mid-August to mid-September. Similarly, it has set a target of collecting Rs 250 million and Rs 370 million, respectively, during mid-September to mid-October and mid-October to mid-November.

During the month ending mid-September, the government had collected Rs 77.5 million, Rs 25.6 million and Rs 43.7 million respectively from Dillibazaar, Kalanki and Chabahil LROs. LROs in Dillibazar, Kalanki and Chabahil had collected Rs 68.9 million, Rs 27.8 million and Rs 37.6 million in the same month last year.

Similarly, Bhaktapur and Lalitpur districts had collected Rs 20.1 million and Rs 40.5 million as land registration fee during mid-August to mid-September. In the same month last year, these districts had collected Rs 16.5 million and Rs 29.3 million respectively.

Property prices in Kathmandu Valley and major cities across the country had declined significantly after NRB imposed a ceiling on real estate loans in the beginning of 2010.Realty traders have been demanding that the government relax provisions on lending in land and housing sector to support additional investment in this sector.

source: republica,6 Nov 2013