Land transactions in Itahari have declined due to the central bank's restriction on lending to the real estate sector. Transactions have plunged by 30 to 50 percent.
Various financial institutions have invested Rs. 9 billion in the real estate business in Itahari and adjoining areas. The government financial sector holds an investment share of more than Rs. 1 billion.
Land plotting for housing construction has been started even in village development committees (VDCs) like Hansposa, Khanar, Sonapur, Pakli and Bhadgaun Sinwari, said Raju Thapa, a real estate dealer. Transactions have also come to a halt in Itahari Municipality and adjoining areas where there used to be more than 200 land transfer registrations daily.
Ishwari Parajuli, proprietor of Pathibhara Residence Company, said that buyers were taking a step back from sellers. He added that it had resulted in a drop in business transactions for financial institutions and revenue collection for the government. "In a state of high demand and potentially high transactions of around Rs. 20 million per day.