December 21: Although Nepal Rastra Bank has time and again warned Nepali citizens through public notices against investing money abroad, it has done little to deter Nepalis from investing in the real estate business in Australia.

According to a report published by the Australian government, Nepalis have invested more than Rs 13 billion in Australia’s real estate in one year.

According to the report on foreign investment published by the Treasury Department of Australia, Nepalis invested USD 100 million in Australian real estate business through 126 investment proposals in FY 2022-23. According to the exchange rate set by Nepal Rastra Bank on Wednesday, the investment amount is equal to Rs 13.34 billion.

The report also mentions that Nepalis invested USD 100 million through 140 investment proposals in the year 2021-22.

Similarly, in the first quarter of the current fiscal year, Nepali citizens have submitted 58 investment proposals in Australia’s real estate sector.

The report mentions the names of the top 10 countries which invests in Australia’s real estate business, and Nepal ranks eighth. Numerically, Nepal’s investment in Australia’s real estate falls behind China, Hong Kong, Vietnam, Taiwan, India and Singapore. Below Nepal lie Indonesia, the UK and Malaysia. Based on the amount of investment, Nepal is at the bottom.

According to Jyotindra Kadaria, who works as a sales manager in Australian real estate agent company Land and Lease, Nepalese investment is increasing because real estate investment in Australia is safe and returns are good.

"The real estate business in Australia is highly regulated and it is considered safe to invest because the returns are guaranteed," he told New Business Age, adding, "Nepalis are investing in this sector because their income is good. Nepalis also insist on investing in this sector because they think that they can settle in Australia only after buying real estate."

Australia is becoming an attractive destination for Nepalis for higher education, employment and overseas stay. Kadaria says that the number of Nepalis who are established in various professions and businesses is increasing in Australia. This has made it easy for Nepalis to invest in this sector.

According to the Ministry of Home Affairs of the Australian government, as of June 2021, a total of 129,870 Nepalis have received permanent residence permits. In 2011, this number was only 27,000.

The Government of Nepal has made a legal provision to allow Nepalis living abroad to invest abroad from their earnings during their stay, but they are not allowed to take investment from Nepal.

The Foreign Exchange Regulation Act 2019 prohibits Nepali citizens living in the country from investing abroad. According to the same provision, the central bank has been issuing notices from time to time and has been cautioning against buying real estate, securities, property, making deposits in foreign banks and financial institutions, etc. However, the huge investment in the real estate business in Australia raises concerns of illegal capital flight from Nepal. It is assumed that those who migrated to Australia with their families sell their property here and buy in Australia.