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Real estate developers have called for fresh financial support to cushion the housing sector from growing economic uncertainty triggered by the ongoing Iran-Israel conflict.
Industry leaders say rising costs and tight financing conditions are making it increasingly difficult for developers to sustain construction activity and for buyers to afford homes.
The Real Estate and Housing Association of Bangladesh (REHAB) has proposed the creation of a Tk 30 billion special fund and a reduction in home loan interest rates to single digits to stimulate housing demand and support the sector.
The proposals were made during a meeting with the Bangladesh Bank Governor on Tuesday.
After the meeting, REHAB president Md Wahiduzzaman said the Middle East conflict has triggered economic uncertainty globally, which is also affecting Bangladesh's housing and construction sector.
He said the association requested a Tk 30 billion special fund from the central bank to ensure that construction activities continue despite the ongoing economic challenges.
According to him, the governor listened to the proposals and responded positively.
Mr Wahiduzzaman noted that food, clothing and shelter are among the basic human needs, and affordable housing finance is crucial to meeting the demand for homes.
However, due to relatively high interest rates on home loans, many people are finding it difficult to purchase homes.
In this context, REHAB called for reducing home loan interest rates to a single-digit level.
The association also placed several other proposals, including the introduction of special financing facilities for green buildings, solar energy systems and environmentally friendly construction projects.
REHAB further suggested providing special financing for housing projects in district and upazila towns and offering low-interest housing loans in those areas to reduce pressure on Dhaka.
The association also pointed out that the housing and construction sector has been listed as an "unproductive sector" in a list provided by the central bank.
REHAB argued that the sector employs around 4 million people and has remained free from labour unrest. It therefore urged the authorities to recognise the housing sector as a productive sector.
According to REHAB, implementing these measures would help revitalise the housing sector, make home ownership easier for ordinary citizens and contribute positively to the country's economy.
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