The Real Estate Business in Bangladesh

The Building, Construction, and real estate industries encompass a broad spectrum of interests. These include the traditional players such as owners, investors, developers, lenders, and engineering and construction firms as well as non-traditional players, such as banks, insurance companies, and special servicers. From the early 1980 the real estate business started to flourish and showed robust growth. By 1990 the REHAB established and in 1991 there were listed members was 11. At present, more than 1,500 companies are active in the real estate sector with 1,191 of them registered with REHAB. In the last two decades, private developers have supplied more than 100,000 units of apartments to the nation will be supplying 25,000 more units in the next three years. The approximate turnover of the real-estate sector is BDT 28, 000.0 million.

With a rising population and increasing housing demand, apartment culture has grown up in Divisional regions such as Dhaka, Chittagong, etc. sharply. The growth in this sector is also facilitated fast growth in many linkage industries like the glass industry, bricks industry, cement industry, ceramic industry, iron industry, steel industry, etc. over the last decade. Such consistent growth in the real estate sector is mainly due to a consistent demand at the customer end High charge in the financial sector has also increased the cost of business. The real estate sector is often used as an indicator to measure a nation's economic growth. The housing industry in Bangladesh, especially in Dhaka and Chittagong, has made remarkable progress in the last ten years. Real estate industry growth has been slowed down by various risks and challenges faced by all players in the industry due to Bangladesh’s economic and policy-related issues. The major risk and challenges that our real estate industry facing today include- Non-availability of utility connection, Lack of urban planning policy, high rate of the cost of debt finance, the Price hike of land, and rising material and labor cost, etc. Amid today’s turbulent economic landscape, all players in the real estate industry face increasingly complex challenges. Thus, to maintain a competitive edge company need to ensure they are taking calculated risks and seizing the right opportunities.