KATHMANDU: The government is set to introduce a new legal provision that will allow the division of individual floors within a house for ownership and inheritance purposes.
This is part of the Economic Reform Action Plan, 2025, which outlines a series of reforms aimed at addressing urban housing challenges and land fragmentation.
According to the plan, a new law will be issued within one year to prevent the widespread fragmentation of land, which has contributed to inefficient land use and urban sprawl.
In addition, the government has announced it will implement a land consolidation program within the next two years. This initiative will support urban development and affordable housing in city areas, while also promoting the consolidation of agricultural land in rural regions to boost farming efficiency.
To better control real estate prices and transactions, the action plan also includes the implementation of policies and guidelines related to cooperative housing. These are intended to help middle-income families access affordable housing.
Moreover, the plan proposes allowing foreign investors—who either invest or deposit at least USD 200,000 in Nepal—to purchase apartments for residential use, under specific conditions. The government plans to establish standards and procedures to implement this provision.
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