The Dynamics of Residential Real Estate Sector in Bangladesh: Challenges Faced and Policies Sought
Journal of Management Studies, Department of Management Studies, University of Dhaka Issue: December, 2009
The Dynamics of Residential Real Estate Sector in Bangladesh: Challenges Faced and Policies Sought
Muhammad Saifuddin Khan1 Suborna Barua2
Abstract: Real sector is the growth centre for the development of an economy.
Bangladesh, being one of the densely populated nations in the world has been experiencing severe inadequacy of housing shortage for its citizens. Although majority of the population are segmented into the middle and low income groups, still the housing for all has been a fallacy in Bangladesh. The private sector housing real estate developers have contributed a small proportion in the national housing demand and supply gap for the last more than twenty years. Despite inadequate policy preparations, these real estate developers have been successfully making business although the middle and low income households are still untapped. With the larger proportion of people living in this income group, the private housing real estate sector has a huge scope to grow in this country. The positive notion is supported by many key indicators such as increasing house rent, inadequate and costly land, easier financing availability and more. To pave the way for the organic development of the industry, the problem of long existent inadequate financing availability at flexible terms and costs must have to be removed immediately, and wider scope has to be created for Non Resident Bangladeshis. With many other issues, this study attempts to identify the current status of the private housing real estate in Bangladesh, presents deeper insights of the critical factors for increasing its coverage, and thus finally recommends some immediate policy measures. Keywords: Housing, Real estate, Housing finance, Urbanization, Real economy, Housing market, Real estate apartment, Non Resident Bangladeshis, Population, Density, Inadequate Housing, REHAB.
1.0 INTRODUCTION
The Dynamics of Residential Real Estate Sector in Bangladesh: Challenges Faced and Policies Sought
Muhammad Saifuddin Khan1 Suborna Barua2
Abstract: Real sector is the growth centre for the development of an economy.
Bangladesh, being one of the densely populated nations in the world has been experiencing severe inadequacy of housing shortage for its citizens. Although majority of the population are segmented into the middle and low income groups, still the housing for all has been a fallacy in Bangladesh. The private sector housing real estate developers have contributed a small proportion in the national housing demand and supply gap for the last more than twenty years. Despite inadequate policy preparations, these real estate developers have been successfully making business although the middle and low income households are still untapped. With the larger proportion of people living in this income group, the private housing real estate sector has a huge scope to grow in this country. The positive notion is supported by many key indicators such as increasing house rent, inadequate and costly land, easier financing availability and more. To pave the way for the organic development of the industry, the problem of long existent inadequate financing availability at flexible terms and costs must have to be removed immediately, and wider scope has to be created for Non Resident Bangladeshis. With many other issues, this study attempts to identify the current status of the private housing real estate in Bangladesh, presents deeper insights of the critical factors for increasing its coverage, and thus finally recommends some immediate policy measures. Keywords: Housing, Real estate, Housing finance, Urbanization, Real economy, Housing market, Real estate apartment, Non Resident Bangladeshis, Population, Density, Inadequate Housing, REHAB.
1.0 INTRODUCTION
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