Good news for government officials who want to own a home! Read the April 2018 Update to find out!

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Real Estate Update
May 9, 2018 Real Estate Industry

“Rod prices to go down if transport problem eases”

Source: The Daily Star

Date: 2 April, 2018

The article highlights the scope for rod prices to go down by Tk 4,000 per tonne, given that Government forgoes the weight limit in transportation of goods and also depending on ease of traffic problems at the Chittagong port. The point was raised in a meeting where Commerce Minister – Tofail Ahmed – was present along with the leaders of the FBCCI (Federation of Bangladesh Chambers of Commerce and Industry), importers, and realtors, besides others at the ministry office.

Sources from Bangladesh Auto Re-Rolling and Steel Mills Association (BARSMA) revealed increase in rod prices to over 41% at Tk 73, 490 per tonne from Tk 52,000 per tonne in February. The article cites increase in transportation cost as well as rise in the price of scrap import as reasons contributing to the price hike, along with other factors like higher bank interest rate, fluctuations in exchange rate, and so on.

REHAB President Alamgir Shamsul Alamin commented that the increase in prices of rod and cement is irrational and the prices could further increase once the construction of mega projects is underway. Commerce Minister, Tofail Ahmed, mentioned that the duty structures would be revised after discussion with the Finance Minster.

 “Demand to lower registration fee to 7% by REHAB”

Source: Kaler Kantho

Date: 17 April, 2018

The article features demand by the REHAB members to bring down registration fee to 7% in order to make housing affordable for the lower-income and middle-income people. The demand was raised by the members in the NBR (National Board of Revenue) office in a budget related discussion for the fiscal year 2018-19. REHAB members also presented a 12-point demand to the NBR, including a 5-year provision to invest undeclared income in real estate sector as well as ensuring management of secondary market for the real estate sector. REHAB Vice President Liakat Ali Bhuiyan, Director Engineer Md. Mohiuddin Shikder, and Md. Zahir Ahmed participated in the discussion. Liakat Ali Bhuiyan also recommended establishment of a working group to solve problems in the real estate sector of Bangladesh.

“Scope for whitening money to continue in next budget: NBR chairman”

Source: The Daily Star

Date: 17 April, 2018

The article features declaration by NBR Chairman Mosharraf Hossain Bhuiyan, who said that the upcoming budget would have the opportunity to whiten undisclosed money to prevent laundering of money abroad. The NBR Chairman gave his statement in a budget-related discussion where realtors, cement manufacturers, besides others were present.

Currently, Anti-Corruption Commission and other related government agencies can enquire anyone about source of untaxed income when investing in real estate sector, which discourages apartment buyers. Realtors demanded the provision to invest in the real estate sector without any questions.

Meanwhile, Auto-Rerolling Mill Association President Manwar Hossain commented on the increase in price of rods and called to withdraw duty on scrap import and reduce advance income tax from existing Tk 800 to Tk 400.

“Win furniture worth Tk 2 lakh on Rupayan City Uttara apartment booking on Bikroy”

Source: The Daily Star

Date: 22 April, 2018

The article highlights a MoU signing ceremony between and Rupayan Housing Estate Ltd. to promote its gated community project – Rupayan City Uttara. The offer entitles Bikroy users to get BDT 2 lacs worth furniture from Hatil when someone books an apartment in the Rupayan project on The MoU signing event took place on the premises of the said project and the offer had validity till 30 April, 2018.

“A home of one’s own”

Source: Dhaka Tribune

Date: 22 April, 2018

The article focuses on the need to decentralize Dhaka to tackle the housing problem of the ever-growing urban population. The feature cites the customers’ growing interest in owning an apartment in cities like Dhaka and Chittagong, owing to their well-developed infrastructure and urban facilities. Some of the other reasons for an increase in demand for apartments include scarcity of land in cities, increased land and construction costs, as well as hassle of investing time and energy in constructing own homes. The article also highlights some of the challenges faced by the real estate sector of Bangladesh such as bureaucratic hurdles, skepticism among the buyers due to fraudulent property sellers, as well as high prices as deterrents to buying a property. However, the article sheds a glimmer of hope as Bangladesh has untapped potential in the outskirts of Dhaka which can be developed to build new residential areas. This will in turn reduce pressure on city infrastructure as it is already densely populated and at the same time, provide affordable housing to Bangladeshis aspiring to own a home. If the private sector can work collaboratively with the government and the realtors to make the buying process transparent and hassle-free, then the industry is likely to flourish.

“Public servants to get cheap home loans”

Source: The Daily Star

Date: 24 April, 2018

The article features the scope of government employees to avail home loans at low interest rates. This was proposed by the Finance Ministry at a meeting, where the amount of loan to be disbursed and loan policies were discussed. As per the report, the loans would be given in three categories based on location and the amount of loan would range from Tk. 20 lacs to Tk. 75 lacs. Here is a chart showing the official grades and amount of loans to be given in different locations.

Official Grade (based on salary) Loan amount in capital city, city corporation areas, and divisional cities (in Tk) Loan amount in district towns (in Tk) Loan amount in other areas (in Tk)
Fifth and above 75 lacs 60 lacs 50 lacs
Ninth to sixth 65 lacs 55 lacs 45 lacs
Tenth to thirteenth 55 lacs 40 lacs 30 lacs
Fourteenth to seventeenth 40 lacs 30 lacs 25 lacs
Eighteenth to twentieth 35 lacs 25 lacs

20 lacs