Real Estate Expo Concludes with 80,000 Attendees, Signaling Market Rebound; Stakeholders Urge Policy Overhaul

After a prolonged slump, Nepal's real estate and construction sectors are finally showing promising signs of a rebound. The "9th CG Property Nepal Land, Housing, and Construction Exhibition," a four-day event held at Kathmandu’s Bhrikutimandap, concluded with a staggering footfall of approximately 80,000 visitors. This enthusiastic public turnout serves as a strong indicator of recovering consumer morale. However, to fully revitalize the sector and translate this optimism into economic growth, industry stakeholders have strongly urged the government to scrap impractical land ceiling regulations and ease bank lending limits.

Speaking at the concluding ceremony, private sector leaders lamented that despite being a crucial backbone of the national economy, the real estate sector has been paralyzed by policy instability. Deepak Kumar Malhotra, Senior Vice President of the Nepal Chamber of Commerce (NCC), argued that existing land ceiling laws have severely constrained developers, demanding an immediate legislative review. Furthermore, he urged the regulatory authorities to raise the Loan-to-Value (LTV) ratio for real estate loans to a minimum of 70 percent. According to developers, stringent credit limits have stalled the sale of completed apartments and housing units, which has subsequently trapped massive amounts of capital and affected the broader banking sector.

Acknowledging the private sector's valid concerns, policymakers at the event agreed on the urgent need for systemic reforms. Er. Ashish Gajurel, Chairperson of the Parliamentary Infrastructure Development Committee, noted that the government alone cannot bankroll the nation's infrastructure and housing needs, emphasizing that the Public-Private Partnership (PPP) model is the only viable way forward. He pledged parliamentary support to clear existing investment hurdles. Echoing this sentiment, Federal Member of Parliament Rukes Ranjit warned that restrictive policies—such as arbitrarily raising taxes and imposing rigid land caps—would only stifle business growth. He interpreted the expo's massive turnout as a clear "early indicator" of the nation's economy gradually getting back on track.

The stagnation of the real estate market over the past few years has had a severe domino effect on approximately 240 allied industries, including cement, steel, paint, and furniture manufacturing. Highlighting this multi-dimensional impact, Er. Deepak Kunwar, the program's chairperson, argued that the government must officially recognize real estate and housing as a formal "industry." He also suggested leveraging private-sector capital and technical expertise for post-disaster reconstruction efforts. Additionally, stakeholders urged the government to materialize its previous budget announcement of constructing 100,000 housing units for civil servants by bringing private developers on board.

Organized to mark the 75th Diamond Jubilee of the NCC, the expo was hosted by the Nepal Land and Housing Developers' Association and Federation. Bishnu Prasad Ghimire, representing the organizing committee, revealed that several apartments and residential units were booked and sold "on the spot" during the four-day fair. This immediate transaction volume paints a clear picture: the dark clouds that have been hovering over the economy are dispersing, and consumer purchasing power, along with investment confidence, is steadily recovering. The ball is now firmly in the government’s court—whether to harness this renewed private-sector enthusiasm through policy facilitation or to keep the economy trapped in outdated legal red tape.