What is happening in the current real estate sector of the country? February 2017 Update

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March 7, 2017 Real Estate Industry

Get the latest scoop in the industry from various dailies and stay up to date with the real estate market in Bangladesh.

“Real Estate Fair kicks off in Chittagong tomorrow”

Source:  The Daily Star Date: 7 February 2017

The article features the announcement of a four-day real estate fair organized by REHAB to be held from 8th February 2017 to 11th February 2017 at Radisson Blu Chittagong Bay View in Chittagong.  The fair will be inaugurated by Housing and Public Works Minister Mosharrof Hossain.

A press conference was held regarding the fair aimed to bring apartment buyers and real estate developers under one roof.  At the press meet, REHAB’s Vice President and Chairman of REHAB Chittagong  Regional Committee,  Abdul Kauiam commented that the real estate sector of Bangladesh has been on the revival owing to reduction in interest rate as well as government’s decision to sanction loans to expatriates.  He stated that sale of apartments have increased by 30% in 2016 from previous year and currently there are about 500 unsold apartments in Chittagong. He expected sale would further increase. The REHAB leader recommended reduction of registration fee as well as tax and VAT to further bolster the real estate sector of the country. The fair will include 90 stalls from 72 real estate companies in Bangladesh, 10 construction material firms and 8 financial institutions. The four-day fair is being co-sponsored by 22 real estate companies.

 “Apartment buyers interested in ready flats”

Source: Prothom Alo Date:  10 February 2017

The article talks about the most sought-after real estate property at the Chittagong REHAB fair held at Radisson Blu Chittagong Bay View hotel. The article reports that small and medium-sized apartments are in great demand by prospective buyers. The four-day fair featuring renowned developer companies in Bangladesh also showcased several big apartment properties.

EPIC Properties Ltd. displayed a total of 12 ongoing and ready flats available for sale in Dhaka and Chittagong. Senior Manager of the real estate company, Kazi Hamid spoke to Prothom Alo stating that customers were leaning towards ready flats with the decrease of interest rate on home loan and availability of home loan for 70% of apartment value. Another real estate company, Rangs FC Properties displayed 8 ongoing projects, most of which have apartment size of approximate 2100sqft. The manager of the organization, Nazmul Hasan stated that Rangs FC mainly targets higher middle-income and elite apartment buyers. He further commented that the company will also focus on middle-income people by undertaking feasible projects of apartments that are reasonably sized.

NZ Properties Ltd featured 7 projects in Chittagong at the fair. The company announced the sale of an apartment project in Lalkhanbazar Hillside RA with an apartment price of Tk 4500/sqft on five flats on the occasion of the fair. Tanvir Shahriar, chief director of Chittagong Division corresponded that 3 out of the 5 flats have been already sold.

Amin Mohammad Group also had a stall at the fair even though they did not have any project in Chittagong. The real estate company displayed two model town projects in Dhaka, Ashulia Model Town and Green Model Town. The company representative stated that the products were showcased as Chittagong residents were also interested in buying flats in Dhaka.

“Buyers interested in home loan on the last day of REHAB Fair” Source: Prothom Alo Date: 12 February 2017

The article features the activities on the last day of the four-day REHAB Fair in Chittagong. Prospective apartment buyers crowded stalls from reputed financial institutions for availing home loans. Entrepreneur Aminul Islam, who was close to finalizing a deal for purchasing a 1900sqft apartment in Mehdibag, was unable to proceed because of lack of funding. He visited the fair for home loan shopping and comparing interest rates from various financial institutions.  He commented most of the financiers are offering home loans at an interest rate of 8.75% – 10%. He stated that he would definitely give priority to the financiers offering the lowest interest rate.

The last day of the four-day fair also attracted visitors in stalls from building materials firms. Almost 18 such organizations participated in the fair apart from 54 real estate companies.

Another visitor, Mr Zunaid Izdani stated that all banks and financial institutions are offering a maximum loan period of 25 years for financing 70% of the apartment value. He also stated that interest rate on home loan has dipped significantly but needs to be further reduced.

Branch Manager of City Bank in Chittagong Division, Md Neyamat Ullah commented that almost 350 candidates have visited their stall for home loan purpose. Visitors also crowded in stalls of other financial institutions like Standard Chartered Bank, IDLC Finance Ltd, Lanka Bangla Finance Ltd, Eastern Bank Ltd, etc.

Fair visitors were also present in greater number in stalls pertaining to building materials firms, such as steel manufacturer KSRM and UPVC manufacturer SEM UPVC Ltd. Chief Director of SEM UPVC Ltd. stated that apart from flat buyers, real estate entrepreneurs, factory owners have also expressed keen interest in their products.

“Chittagong REHAB Apartment Fair- Sale of Flats and Plots worth Tk 460 crore”

Source: Prothom Alo Date: 14 February 2017

The article features the outcome of a 4-day apartment fair held in Chittagong which was organized by REHAB. The article reports that flats and plots worth Tk 460 crore have been sold in the fair, while almost fifteen thousand apartment buyers crowded in the fair. REHAB members consented that the real estate sector of Bangladesh has slightly revived after a long period of sluggishness.  An ending ceremony for the Chittagong fair was held at Chittagong Club last Sunday, where State Minister of Land, Saifuzzaman Choudhury was present as the chief guest. Others present in the event were REHAB Vice President Nurunnobi Chowdhury, Liakot Ali Bhuiyan, Abdul Kauiam Chowdhury besides others.

“Recommendation to increase loan in real estate sector and reduce interest rate”

Source:  bd360news Date:  24 February 2017

The article informs about an important decision taken by House Building Finance Corporation to increase loan tenure by twofold times and reduce interest rate. The proposal will be placed with the Finance Ministry soon. The board of directors of the organization also permitted 71 branches to facilitate its activities in division and subdivision level in the country.

The organization which was originally established in 1952 for solving housing problems currently offers maximum Tk 50 lakh loan for constructing buildings and houses.  This limit is applied to Dhaka and Chittagong residents only.

Since the government has announced to resolve housing problems in the country, the institution is granting 71 additional branches to the existing 29 ones. Apart from this, the organization also aims to reduce interest rate from 10% to 8% and provide digital loan application process. If a loan applicant gets approval, then he can receive the amount within 30 days. The organization will also offer loans to NRB, farmers and villagers.