Buy Land in Kathmandu

Lots of questions and doubts come to your mind while buying land, especially your first one. If you are interested to buy land in Kathmandu, then you are in the right place.

At times the surrounding atmosphere and welcoming neighborhood might enchant you to invest immediately on land, sometimes the whole process of choosing the right place at the right times seems daunting and stressful. To make things easier here we have cited some entrancing ideas and convenient tips for you to start in the real estate business and make you able to buy land in Kathmandu.

How Land Costs are Determined

Real estate is similar to the share market, the price is completely driven by demand and supply. The only difference is the Land price is unlikely to go down from its current price, of course, there can be some exceptions. So, what increases the price of the land? The more demand of the land and the more people are interested in a particular land, the higher the price. We can take the examples of city areas, where the plots of lands are very limited but the number of people interested is way more, this increases the price of the land and the most important part is the price is likely to go up and up.

Similarly, in the slightly remote areas, the prices are significantly way lesser as the population and development work is less in that area. Most businessmen buy a lot of land in such remote areas and when roads and development works start to grow, they sell it for a very good price.

The Rise of the Real Estate Market

The real estate market in Nepal is growing rapidly, especially since the last decade. Many businessmen and the general public are also keen to invest in the land as a future security scheme. The taxes for buying and holding a piece of land is comparatively lower in Nepal than other businesses, one of the reasons many people are interested in this field. The other major factor is the value of land once it starts going up, rarely depreciates.

Lots of students who go abroad for studying and ultimately start to work there are also found interested in buying land in various parts of Nepal and use it as a business. So, lots of dollars from abroad are invested in the real estate market which is positive news for the economic growth of the nation. When lots of people show their interest in buying land, in some ways, it becomes like a bidding industry, where the highest bidder gets the prize.

The Price Range

It’s obvious the price is higher in the cities and keeps on decreasing as we move away from the cities. To make it simple we have made some comparisons on what to expect:

The prices of land in the heart of cities may reach more than Crore for one Aana. Of course, the prices are outrageous but it seems fair considering the high demand and craze for real estate.

• The average price of land in major cities like Kathmandu, Airport side, etc. is around 60-80 lakhs per Aana
• The average price of land in popular residential areas like Bhaisepti, Sanepa, etc. is around 50+ lakhs per Aana
• Major suburbs areas near Swayambhu, Thali, etc. is around 30+ lakhs per Aana
• As you move away from the city to southern Lalitpur the prices can be as low as 5 lakhs per Aana with road access

Property Taxes (Payable to Government)

Property Valuation (Land+Home)	Tax Rate in Nepal
Up to NPR 1 million	No tax
NPR 1 to 2 million	NPR 300 only
NPR 2 to 3 million	0.05%
NPR 3 to 5 million	0.25%
NPR 5 to 10 million	0.50%
More than NPR 10 million	1.50%

Registration fees for the seller

If you want to buy/sell land then you have to pay a certain amount to the government as a registration fee:

Property Valuation in NPR	RATE
Up to 10,000	NPR400 only
10,000 – 25,000	NPR1,000 only
25,000 and above	4.50%

Learn more about HOUSE AND LAND TAX RULES IN NEPAL.

10 Things You Should Know Before Buying Land in Kathmandu

1. Budget

Budget is the first thing you need to consider while buying land in Kathmandu. Of course, without a healthy budget in the bank, you rarely jump into buying land for yourself. If you are in the real estate business of buying and selling land in a short interval of time, then taking a hefty loan shouldn’t be a problem. But when you are buying land to build your home then you must have a certain budget in your bank beforehand. One of the considerable things to keep in mind is to point out what features you are looking for in an area. It’s possible your first land might be the final land you buy, so search for the major needs you and your family want in the first place.

Another crucial thing to discuss beforehand is “Will the facilities available near the land area satisfy your family's needs or not?”

2. Think twice before committing

If you wanna buy land in Kathmandu then you must think twice before committing. Sometimes you might be highly enchanted by the property and location but if the deal is too expensive and not worthy, it is always a good idea to walk away. One of the important things in the real estate business is to discover a bad deal as soon as possible. Avoiding bad deals is always beneficial for you and your family. Before committing, always make sure all of your demands and terms are fully met.

3. Check the surrounding

Even if the land is situated in the right place and beautiful location, it always takes some time to know the surroundings. Check the neighborhood and see to ensure there is not any land-related conflict with the neighbors. Check the plot carefully, take the help of your lawyer if needed. Make sure the development works don’t affect your land in the near future. Check the surrounding is the must before buying land in Kathmandu

4. Work with experienced professionals

Buying the land certainly is an important achievement in your life, especially your first one. So, taking the help of experienced professionals is always a good idea. The professionals might you’re your relatives, parents too as they already might have some experience dealing with land in the past. If not, paying some amount to the professional is not a bad investment if you can save lakhs buying the land in Kathmandu. Having the lawyer stand by to seek help is highly recommended.

5. Negotiation is the key

How much of a negotiator are you? This will, for obvious reasons, determine how much you can save up from the deal. Negotiation is the major step in the real estate business, be it land or house. Hiring a negotiator to negotiate for you is also an option, but if you are not careful they might end up taking a big sum of money instead, so having your mind focused is very crucial. Always search for an opportunity, if the buyer is desperate to buy the land, you might end up getting some discount as well.

6. Location

Let’s be honest here, buying land in a major city will cost you a fortune. Either you have to be super rich or run a real estate business to be able to buy land in Kathmandu. So the best option to go for is the suburbs near major cities. Finding a land within 10-15 kilometers from the major city will not surely cost you less, plus you would be surrounded by nature as well, which is a win-win for you. But make sure you have access to schools, shops, groceries, hospitals, etc. nearby.

7. Rental rates in the area

Having an option to rent the house is always best to consider beforehand. If you build the house on the property then you might as well rent some rooms for extra income as well, which is also the main source of income of most landlords of Kathmandu. So, choosing a place that provides decent rental value should also be your priority.

8. Water supply and sewage systems

After safety, water should be your main priority. Always choose a location that is a good, if not decent water supply facility. Most of the places in Kathmandu and nearby places are equipped with Melamchi Water supply facilities, so buying land near these areas is a good option. Moreover, the sewage system also plays a vital role while buying land in Kathmandu as well. If the sewage management system in the area is not good enough, then it might as well escalate in the near future and cause lots of problems. So, take some time analyzing that as well.

9. Buy property for a reasonable price

Taking a hefty loan without proper auditing and calculation is the worst decision and dump investment. If you are buying your first land to build your home then taking extra loans will only add more stress. Always buy land in Kathmandu when you have enough money in the bank, especially if you desire to build your home. However, if your aim is to buy and sell lands then taking some loans wouldn’t be a bad decision, to say the least.

But you get the point, spending more than you can afford, this decision, might haunt you badly if your salary isn’t enough to pay a mortgage.

10. Visit as many places as possible

Even when we go shopping, we immediately buy clothes as soon as we find them attractive. But after a few days we found that we could get the same cloth for a much cheaper price in another place. The same is with the real estate business. If you hurry to buy the first land you see, you might miss out on some good deals waiting for you just a few kilometers away. So, being choosy is not a bad thing, especially in the real estate business, when you have nothing to lose doing so.

Best place to buy and sell land in Kathmandu

Ghar Sansar

If you want to buy land in Kathmandu for, a home, or an Apartment in Kathmandu and all over Nepal, Gharsansar is the best online real estate and rental marketplace in Nepal that guarantees the best valuation for your property. Ghar Sansar is the leading real estate company that allows you to gain detailed knowledge about the real estate market and provide access to the latest prices of land and houses all over Nepal. If you want to buy land in Kathmandu, Buy a house in Kathmandu, or Buy an Apartment in Kathmandu, contact us, we are available online 24/7.

Q) Can Foreigners buy property in Nepal? | Can Foreigners buy houses in Nepal?

As per the Civil Code 2021 BS, the government of Nepal doesn’t allow any foreign citizen to buy a property in Nepal. Likewise, gifting a house or property to foreign citizens is banned as well.

However, as per the Foreign Investment and Technology Transfer Act 2059, any foreign organization or company has the legal right to buy and sell property in Nepal.

Q) Can NRN buy property in Nepal? 

Any NRN, living in any foreign country, can buy a property for his/her own purposes or can buy a property through the family members having Nepalese citizenship.

Q) What is the land tax rate in Nepal? 

Property Taxes (Payable to the Government of Nepal)

Property Valuation (Land and Home)	Tax Rate in Nepal
Up to NPR 1 million	No tax
NPR 1 to 2 million	NPR 300 only
NPR 2 to 3 million	0.05%
NPR 3 to 5 million	0.25%
NPR 5 to 10 million	0.50%
More than NPR 10 million	1.50%

Q) What is the land buying process in Nepal?

• Search for the land on multiple venues
• Consult the professionals (if necessary)
• Do the negotiation (whether you like it or not)
• Purchase the land if it satisfies your needs
• Pay the taxes to the government and sign contract
• Now the property is legally yours

Q) Is it good to invest in land in Nepal? 

The pandemic has seen rapid growth in the share market and real estate business in Nepal. Unlike the share market, the land value will rarely depreciate once it grows. Most of the remote areas in Nepal have access to roads, lots of development works are going on all over Nepal. Considering this, currently and for many more years, investing in Land in Nepal is the best investment for all people.

Q) How much land can you own in Nepal? 

According to the Land (Eighth Amendment) Act-2020, signed by President Bidya Devi Bhandari, a person can own as much as 10 Bigha land in the Terai region, 25 ropani in the Kathmandu Valley, and mammoth 70 ropani in the hilly areas.

Q) Why is land price so high in Nepal?

The demand for land in major cities is at an all-time high. Due to this reason, many people are already focused on rural areas which also increases the demand for land in remote areas too. When the demand increases and the availability is way less, many people fight for one piece of land. Obviously, the price will go up and skyrocket in no time.

Q) Why is land so expensive in Kathmandu? 

Being a centralized country, Kathmandu, the capital city, houses all the major government offices in Nepal. This makes Kathmandu the busiest and populated city. As the population increases, the demand for land is way higher than what is available. All these factors make the land in Kathmandu valley very expensive and almost unpayable. For reference, the price of land in the Durbarmarg area is over 2 crore per Aana.

High demand and less availability is the reason for High land price in Kathmandu.

Q) How many square feet is an aana? 

1 Aana = 342.25 square feet.

Q) How much is 1 Dhur? 

1 Dhur = 182.25 Sq. Ft. which equals 16.93 m²

Q) How many square feet is equal to one Bigha? 

1 Bigha = 72900 Sq.  Ft.

1 Bigha = 6,772.63 m²

Q) How many Katha are there in Bigha?

1 Bigha = 20 Katha = 72900 Sq.  Ft.

Q) How do you calculate Ropani? 

1 Ropani = 74 feet × 74 feet. = 5476 Sq. Ft