Real Estate Booms In Bangladesh After Covid-19 - Jamider City Development

The construction of flats served as the impetus for the beginning of Bangladesh’s foray into the real estate market in the 1970s, and the country’s market value has been on the rise ever since. One of the most important factors contributing to overall economic expansion is the construction of apartment buildings, which has recently broadened its scope to include the creation of model villages, shopping malls, and other commercial facilities. The sector has had a substantial impact on the development of new jobs, and it directly provides around 5.0 million Bangladeshi taka to the yearly revenue of the government each year.

As a result of rapid population growth, Dhaka and Chittagong have emerged as two of the most populated metropolitan cities in Bangladesh, drawing the bulk of the country’s construction projects. According to the Bangladesh Bank, the demand for home finance would increase in the fiscal year 2020–21 compared to the previous year. At the end of June 2020, private banks will hold the lion’s share of outstanding housing loans. This sector’s expansion was slowed by the nationwide lockdown that took place a year ago; nevertheless, with the massive aid provided by the government, it is gradually making a comeback. In addition to that, the abundant liquidity that resulted in a reduction of interest rates within the banking sector had a big influence on this front as well.

The flourishing real estate industry has been presented with a multitude of new prospects, one of which is the expansion of new and vast regions located outside of Dhaka, which calls for the creation of urban infrastructure. They will get the chance to examine places that are not considered to be the mainstream as a result of the creation of new roads and railroads. The rising number of people who fall into the lower middle class has led to a rise in the demand for houses in that class. In addition to the help from the government that was discussed before, considerable contributions are also being made by banks and NBFIs.

Regrettably, the pandemic is not the only barrier that the real estate market must contend with at the present time. The displeasure of customers may sometimes be traced back to poor management on the part of a few developers. The situation is made much worse by the fact that development authorities do not work together, and urban planning is a complete mess. As a consequence of this, the government and the various players in the sector are going to have to collaborate in order to fulfill the needs of the people. In addition, the real estate industry should begin to emphasize low-cost and affordable housing in order to better accommodate the influx of families with incomes in the lower middle class.

Contribution to the functioning of the economy

The rapid economic development of Bangladesh, along with increased housing demand, an expanding middle class, and increasing per-capita income, are driving the rapid expansion of the country’s real estate sector. In the 1970s, there were just five registered enterprises when everything got started. In the 1980s, city residents in Bangladesh’s middle class embraced apartment building, and by the late 1980s, it had become a regular practice for individuals of all economic levels. In recent years, apartment development has grown more popular in Bangladesh. At the time, the idea of real estate is broadening to include not just the construction of private dwellings but also the building of model towns, shopping malls, important infrastructure, and commercial settings with the intention of generating substantial margins of profit. In the late 1980s, there were a total of 42 of these developers working in Dhaka.

In 2013, there were around 800 businesses; however, there are now 1073 registered companies engaging in this industry. Of these 1073 companies, 879 are enrolled corporations with the Real Estate and Housing Association of Bangladesh (REHAB). There has been a noticeable upswing in the quality of the real estate market in Chittagong over the course of the last two decades. The demand for apartments in Chittagong was a contributor to the overall demand for items related to real estate. The whole real estate industry is impacted significantly by the activities of a sizeable number of unregistered businesses.

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