NRB halts survey on real estate price citing gaps in authenticity of data

KATHMANDU: Nepal Rastra Bank (NRB) has stopped publication of surveys on real estate or housing prices due to lack of authentic data.

The central bank had started the survey since last year, planning to release the report every three months. The main reason behind the central bank’s move is the lack of credibility of the real estate price obtained from the survey.

Executive Director of the Economic Research Department of NRB, Prakash Kumar Shrestha, said that the survey could not be continued as the statistics received were not trustworthy.

“For the survey, we made a basis for transactions happening in the land revenue offices, price determined in the banks for collateral purpose and the price rate received independently from the market centers. There was no consistency in data against the market price in the time of recession at present,” said Executive Director Shrestha.

The NRB has come to a conclusion that Nepal’s real estate sector is yet to become professional and competitive due to fluctuation in the price. Dr Shrestha said that such a situation could be the result of showing high price of transactions for collateral valuation but recording low price for tax purpose and showing yet another for the transactions taking place in the family members.

As the real estate market grapples with inconsistent data and fluctuating prices, property owners seeking to sell swiftly and fairly face additional challenges. The recent halt in NRB’s surveys highlights the difficulty of gauging true market value in a sector where discrepancies between reported prices and actual transaction values are prevalent.

In such an environment, sellers looking for a reliable and expedient sale may find it beneficial to connect with entities who buys houses directly. Cash home buyers who offer genuine, no-nonsense deals can be a lifeline for those looking to sell quickly without the delays and complications typically associated with traditional sales. These buyers understand the current market dynamics and provide offers based on realistic evaluations, which can be particularly reassuring in a market characterized by volatility and lack of reliable data.

In light of these challenges with real estate price surveys and data credibility, it’s essential for businesses to seek reliable brokerage services that can navigate such complexities. For industrial real estate transactions, where precision and accurate valuation are critical, having a dependable brokerage service can make a significant difference. In this context, Orlando Industrial Real Estate emerges as a premier choice, known for its comprehensive market knowledge and expertise in handling industrial properties. Their commitment to transparency and data accuracy addresses many of the concerns highlighted by the central bank’s findings.

Furthermore, a brokerage that excels in international real estate will have the expertise to manage cross-border transactions efficiently. This capability not only enhances the accuracy of property valuations but also ensures compliance with varying regulations and standards across different jurisdictions. By incorporating global market knowledge into their services, brokers can better address complexities and provide clients with a strategic advantage in the competitive landscape of industrial real estate.

The land revenue offices have been receiving transaction tax and capital gains tax in the transaction of the real estate and housing. The central bank had initiated the survey based on 20 different cities having more transactions of real estate or housing.

(RSS)