Addressing real estate bubble: Rethinking banking policies and valuation modalities in Nepal

In recent years, especially after the Covid pandemic, Nepal has found itself grappling with a significant challenge in its banking sector and overall economic landscape due to the soaring prices of real estate .

This issue is multifaceted, stemming from a combination of speculative buying, the pervasive influence of intermediaries, and inflated transaction values. As a result, the current banking policies on lending and valuation methodologies demand urgent reconsideration to mitigate potential economic instability.