As of 2025, the Government of Nepal has implemented several policies to regulate and promote the real estate sector. These initiatives aim to attract investment, enhance transparency, and address housing needs. Here's an overview:
Land Ceiling Amendments
In January 2025, the government amended the Land Act, 1964, to ease land ceiling restrictions for real estate businesses. This change allows companies to acquire larger land parcels without previous limitations, facilitating large-scale development projects.
Foreign Investment Initiatives
Discussions are underway to permit Non-Resident Nepalis (NRNs) and foreign investors to own property in Nepal. This move aims to attract international investment and stimulate the real estate market.
Affordable Housing Programs
The Mahendra Narayan Nidhi Deprived Housing Scheme, launched in 2022, continues to provide affordable housing to the urban poor in Madhesh Province. Each unit includes essential amenities, with the government subsidizing construction costs.
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Taxation and Loan Policies
The Nepal Rastra Bank's monetary policy for fiscal year 2080/81 (2023/24) includes provisions to assist in housing construction. Additionally, adjustments in capital gains tax on real estate transactions have been made to encourage investment.
Housing Nepal
Promotion of Sustainable Development
Developers are increasingly incorporating eco-friendly features such as solar panels and rainwater harvesting systems into new housing projects. Government policies support these sustainable practices to promote environmental responsibility in real estate development.
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