First Business News Portal in English from Nepal
KATHMANDU: Although there have been some land transactions after the lockdown and prohibitory order were eased by the government, the real estate sector has not been able to record many sales.
Real estate agencies say that the number of sellers is three times more than the number of buyers in the market.
According to Dilip Neupane, vice president of The Realtors, among all the customers who are in the market at present, 75 percent want to sell their property while only 25 percent want to buy any land or house.
“The number of people who want to sell their property has increased as many investors who are involved in the real estate business have not been able to pay back the bank loans after their income took a massive hit,” he stated.
Echoing a similar view, Binit Sharma, co-founder and CEO of Basobas.com, mentioned that many people are trying to sell their property for fear of being in trouble due to the bank loans. He said that the number of people trying to sell houses and apartment units in Kathmandu valley has also increased recently.
Right now the scope for investment in many areas has narrowed and only a few people are investing in real estate with the hope of earning more profit later when things get back to normal, said Neupane.
Chief Executive Officer of Global Bank, Ratna Raj Bajracharya, stated that borrowers whose income has been affected are trying to sell their property to clear their loans. “Many clients who have taken home loans have requested for an extension in the payback period,” he said, adding, “Bankers also need to be responsible and consider such requests because the situation right now is very critical for many people even though the interest rates have gone down.”
Real estate agents have said that many customers are waiting for prices of real estate to decline before making any purchases as they feel that it will take some time for the sector to rebound.
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