Because of the halt in purchases, the real estate industry decreased.

Compared to July of the current financial year, real estate transactions, sales and revenue have declined in August. The Department of Land Management and Land Management reports an 81.43 percent drop in the quantity of documents passed. In 620 municipalities around the nation, allotment has been at a halt since the beginning of August due to non-classification of land.

Subsequently, at its meeting on August 24, the Council of Ministers revised the Land Use (Second Amendment) Regulations, 081, directing that four forts be localized as open agricultural areas till the end of June 082.

The country's 133 municipalities with classified land are the only ones according to the Ministry of Land Management, Cooperatives, and Poverty Alleviation. According to businesspeople, there is less land in municipalities where land classification is not available. Only 7,738 tickets were passed in August compared to 41,684 in July. The agency reports that there was a 25.17 percent drop in turnover.

Only 32 thousand 798 transactions occurred in August, compared to 43 thousand 835 transaction documents approved in July. Additionally, the overall turnover has dropped. The department's figures show that there were one lakh twenty-seven thousand 206 transactions in July and one lakh fifteen thousand 642 in August. Additionally, revenue has dropped by 19.42%.

Despite the fact that businesspeople refer to June and July as the "off-season" for real estate transactions, in July of last year there was an increase in sales and revenue. July of this year saw a 31.77 percent increase in revenue and a 24.73 percent increase in the passage of bills of sale over the same month in the previous fiscal year. Document passing is only considered a new transaction or installment that occurs within the same month. Name changes, revisions, past tenses, land allocation, and other things happen in the business and stock markets overall. In this sense, the department's data demonstrate the rise in the passing of transactional documents.

August of the current financial year has seen a decline in the passing of business bills and bills of sale compared to August of the previous financial year. Based on departmental figures, revenue has increased by 1.45 percent. There has been a 78.18 percent decline in bills of sale and an 8 percent fall in bills of exchange. On June 23, 2007, the government released land use laws, which stated that the municipality may only utilize the land after dividing it into areas used for agriculture and non-agriculture. As a result of this policy, sales of real estate as a whole began to decline in July of that same year. The businesses said that a lack of distribution was the reason why the real estate industry could not grow.

The separation of agricultural and non-agriculture was put on hold since November 079 after the municipality postponed it. The government has allowed for the division of residential and commercial land up to an extent of 80 square meters by changing the legislation. Before, allotments of residential land could not exceed 130 square meters. As per the arrangement, individuals who have obtained planning approval would be given 80 square meters of land, while those who have not will be given 130 square meters. A clause that allowed for allocations in an area smaller than 130 square meters applied to both those who had obtained planning permission and those who had not.

For home loans up to 50 lakhs, Nepal Rastra Bank offers a 60 percent monthly installment income ratio. The federation claims that if someone is above that threshold, the rate drops to 70%, hence it wants that both be increased to 80%. The National Bank made arrangements in July 2008 so that individuals wishing to construct their first home could receive loans up to two crore rupees. Previously, loans up to 15 million rupees could be obtained.

According to Lohani, the percentage of monthly installment income received by project-based and general real estate business owners, respectively, from their loans is 60% and 50%, and it ought to be raised to 80%. He claimed that when the real estate industry grows, this will have an impact on the economy as a whole.