What is Happening in the Current Real Estate Sector of Bangladesh? January 2017 Update

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real estate update jan 17 699131
February 8, 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.

“IDB to give BHBFC Tk 800cr to expand its house loan to rural area”

Date: 14 January 2017

Source: businessnews24bd.com

The article talks about Tk 800cr home loan to be given to Bangladesh House Building Finance Corporation (BHFC) by Islamic Development Bank (IDB) to support housing loan program for rural areas of Bangladesh.

BHBFC chairman Sheikh Aminuddin Ahmed quoted that the home loan disbursement is expected before June of this year and it will be given to lower and middle-income people in underdeveloped areas for building residential projects.

He further stated that BHFC has sought home loan aid from both IDB and Asian Development Bank (ADB) so that a planned housing program can be implemented for development of rural areas. In the current real estate scenario, impromptu housing program is proving to be detrimental to arable lands in rural areas. The chairman said after receiving positive response from IDB, he is also hopeful for a similar response from ADB.

As per the article, BHFC has distributed Tk 118.06 crore as housing loan within the first half of FY 2016-2017. The chairman also stated that employees, officials of BHFC are being given special training to improve its loan services which has resulted in a positive outcome from borrowers.

“Real estate sector lacking trust”- Engineer Md Abdul Awal

Date: 23 January 2017

Source: Greenbanglanews.com

The article features an interview of Engr Abdul Awal, Sructural Engineers Ltd (SEL) Managing Director and ex-president of REHAB and BSTQM with a renowned weekly magazine of the country during which he remarked about current real estate market, socioeconomic conditions of the country, etc. Here are the highlighted parts of the interview.

Regarding real estate sector of Bangladesh, he stated there is a lack of trustworthiness in the sector which is why people are reluctant to invest in real estate properties in Bangladesh.  He believes developer companies in Bangladesh can be successful if they provide quality construction and on time handover to apartment buyers which will help to gain trust of customers. He attributes these two factors as the keys to the success of his company. He also believes that for a company to be successful, it needs to have trained manpower and right management so that quality is ensured.

Engr. Md Awal recommended that to facilitate the sector, banks need to lower their interest rate and increase loan tenure.  Commenting on other industries related to real estate sector of Bangladesh, Engr. Md Awal spoke that although there is correlation between real estate and other industries such as rod, cement etc, they are not that greatly affected due to involvement in development projects by Government. He stated to fulfill government’s promise to provide housing demand for all by 2021, there needs to be a working plan on implementation as well as increase in budget allocation in the real estate sector. When asked about Government Uttara Apartment Project, Engr Md Awal commended the government initiative. He stated government can also seek support from developer companies in Bangladesh in doing joint venture projects which will save financial resources of Government and bolster real estate sector of the country. Developer companies can sell flats of their portion to those looking to buy a home and government can allocate apartments among honest government employees with long term installment facility.

 “Real estate expo – Dhaka 2017”

Date: January 2017

Source: tradeindia.com

The article talks about upcoming Real Estate Expo to be held in Dhaka from 26 October -28 October 2017 at Bashundhara International Convention City. This will be the 18th Real Estate Expo in the country and will feature real estate companies in Bangladesh, land developers, banks, financial institutions, developers and building contractors, interior firms, insurance companies, government agencies, suppliers of building materials besides others. The exhibition is said to be an ideal platform for the participants to showcase their products to consumers as well as business patrons. The event aims to highlight the rapid developments in real estate sector of Bangladesh and related industries.

Apart from attracting potential customers, the exhibition will also be a ground for networking with business associates for the benefit of the investors. The expo will be organized by CEMS USA jointly with CEMS Bangladesh.

“40% Government officials will soon get apartment facilities”

Date: 31 January 2017

Source:  Samakal

The article features a talk given by Ministry of Housing and Public Works Engineer Mosharraf Hossain in the capital city of Dhaka on Tuesday. The talk was given in an inaugural ceremony of new residential projects construction in 3 different areas of Mirpur for government officials.

In his speech, he stated that 40% of government officials in Dhaka will get apartment facilities within the next 3 years. Currently only 8% government officials avail residential facility.

The inaugural ceremony was held for construction work in different building projects for government officials including ten 20 storied apartment buildings with 1064 flats, one 12 storied building and three 13 storied building with 288 flats as well as another eight 12 storied buildings with 608 flats. The projects are situated at Mirpur section 6 and Mirpur Paikpara. Also present in the ceremony were Chief engineer of Public Works Department Md. Rafikul Islam and Chief Architect of Architectural Department Kazi Golam Nasir.

Engr Mosharraf Hossain stated that to increase productivity of employees, their housing needs have to be ensured.  He further stated that old buildings in PWD office quarter can be demolished to create high-raised apartment buildings which will fulfill housing needs of approximately ten thousand government officials.