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Realtors expecting quick rebound


Published : 18 Aug 2020 09:04 PM | Updated : 07 Sep 2020 08:19 AM

People involved in the real estate business envisage that the country’s housing sector is going to bounce back soon riding on the hope that people having undisclosed capital would invest in the real estate sector as the new budget has paved way for such scope.   

“In this current fiscal year 2020-21, an undisclosed amount of Tk 200 crore has already entered the housing sector. As a result, the housing sector is getting back to business,” Real Estate and Housing Association of Bangladesh (REHAB) President Alamgir Shamsul Alamin Kajal told Bangladesh post. 

The REHAB president went on to say, “Because of providing scope in the budget many buyers and entrepreneurs now showing interest in investing their undisclosed capital in the real estate sector.”

“Mostly expatriates and people having undisclosed capital buy our flats. It has been observed that expatriates’ income did not decrease during the pandemic which may result in positive outcome for our industry”, Sheltech (Pvt.) Ltd. Managing Director Tanvir Ahmed told Bangladesh Post adding that an opportunity to whiten black money by buying land or flat would definitely bring good news for the revival of housing sector. 

Metro Homes Development’s sales officer Abdul Kaiyum Chowdhury said, “In the face of our growing demand to reduce the registration fee for flats and plots to boost the housing sector, the government has taken steps to decrease it a bit. Hopefully, the registration fee will come down further to 10 percent which will certainly accrue the rate of sale in the housing industry.”

Newly married couples often buy medium and small-sized flats that witnessed a downward trend during the pandemic. However, as the normalcy is returning gradually, market seems to be stable and shows signs of improvement, he added.

Despite all these positive signs realtors feel the fact that private financial organizations have stopped disbursing loans in the housing sectors may threaten the recovery process. 

Bangladesh Land Developers Association (BLDA) Secretary General Mostafa Kamal Mohiuddin said, “Although buyers are enthusiastic about investing money in this sector, there is a lack of confidence. Banks are not cooperating in the expected way to provide loans on many occasions. Their behavior is not conducive to the housing industry.”

It is mentionable that the real estate sector contributes significantly to the economy. According to Bangladesh Bureau of Statistics (BBS), the real estate and housing sector has contributed 8.12 percent of the GDP amounting to 1 lakh 96 thousand 403 crore in the fiscal year 2018-19. The contribution was 7.67 percent in 2015, 7.81 percent in 2016 and 7.98 percent in 2017.