The president of the Nepal Real Estate and Residential Development Federation, Bhesraj Lohani, has called for real estate businesses in the country to operate through companies rather than individual transactions.
Speaking at the annual meeting of the Kaski Real Estate and Residential Development Association, Lohani stated that creating an environment for businessmen to work on large projects through joint companies is necessary. He expressed concern over the negative view of real estate businessmen when dealing with real estate.
Lohani emphasized the need for the government to open the doors for land pooling, which would create an orderly and transparent real estate transaction process. With the land use policy implemented in 753 local levels, he urged local governments to develop master plans for city development accordingly.
"An orderly city can be created when the private sector works through companies in the plans made by the local levels," Lohani said. He stressed the importance of small businessmen forming companies together and merging small companies to create larger entities with substantial capital to undertake major projects.
In his remarks, Lohani pointed out that in other parts of the world, real estate businesses are typically established by wealthy individuals, but Nepal lacks such capital. "Nepali businessmen do not engage in personal business with dispersed capital. It is necessary to work as a joint company," he stated.
To facilitate this transition, Lohani called on the government to open land pooling and create an urban law. "For that, it is necessary to create an urban law," he added.
The comments from the Nepal Real Estate and Residential Development Federation's president highlight the need for reforms and a more organized approach to real estate development in the country.
