Housing sector inspires hope  

Real Estate and Housing Association of Bangladesh (REHAB) organised a Winter Fair on December 24-28 at the Bangabandhu International Conference Centre in the capital. Addressing the ceremony as chief guest, Housing and Public Works Minister said that a cut in flat registration cost will be finalised soon. He also said the government is planning to provide local developers more opportunities in various government projects. The minister requested REHAB members to be aware of the fraudulent practices in the real estate sector. A total of 230 stalls and 30 building material companies took part in the fair. A number of financial institutions also participated in the fair.

REHAB president said the government should utilise the experience of realtors by involving them in public infrastructure projects. He also urged the government to complete the procedure to reduce apartment registration fee as soon as possible. The first vice President of the association said, housing sector is directly linked with many other sectors, so if the housing sector improves, other sectors will also advance simultaneously. Housing sector of the country is coming out of a prolong depression. The sale of flats is gradually increasing. Developers are taking up new projects. But the price of flats is quite high. There is no good news for the low income group. Housing sector market will be in a better position if registration cost and interest rates are reasonably reduced.

Housing loan has been raised to Tk 20 million. This is a positive development. But the rate of interest is high. There is a demand for long term housing loan at low rate of interest. There is little possibility of loan default in housing sector.

Banks and financial institutions are helping the potential buyers of flats. They are providing long term loans. As a result, middle income people are becoming owners of flats. These institutions approve loans following simplified procedures. Loans are now available at even the upazila level.

Most of the REHAB members are Dhaka-based. As a result, price of land and flats is going up. There is scope for new thinking. There is unhealthy competition in the market. The government has an important role to play in improving the situation. Dhaka city is now extended to Keranigaj and Purbachal. Initiative has to be taken for providing roads, good hospitals and schools in those areas. In order to reduce pressure on Dhaka, it is necessary to move to the neighbouring areas. Good school, college and hospitals will attract people.

These days people's interest is growing in condominium housing. More facilities are available in such housing projects because of the size. Condominiums are commercially more profitable. Middle class people are showing more interest in condominiums. This concept is already popular in India, Singapore and Bangkok.

A number leading realtors are building condominium projects. These projects are commercially viable too.

The housing sector is currently stable. Business is gradually growing. The government has taken initiatives to improve the sector. Government employees can take loans up to 0.75 million for 20 years at a reduced rate of interest. A leading realtor has been reported as saying that if the government offers land to companies through tender at concessional prices, it would be possible to provide flats at a far reduced rate.

It is the dream of each individual to have a house or flat. But customers must enquire about companies before booking flats. This will reduce chances of fraud. The REHAB fair is the appropriate place to find out the right kind of flats. Customers can visit project areas before deciding to buy flats. They should make sure whether the plan is approved by Rajuk or not. They have to check if the flat is built according to the approved plan. In order to buy flats, customers must have tax identification number (TIN).

Middle income people look for small flats. Housing companies are also inclined to build such flats. Service holders and lower middle income people normally want a three bed room flat in the range of Tk 6.0 to 8.0 million. There is thus a great demand for such flats. If flats are purchased outright, 20 per cent concession is available. At the fair, companies not only offered flats and plots, they also displayed materials used in the flats, such as -- bathroom fittings, floor tiles, electric cables, bricks, lifts etc.

Winter Housing Fair saw a surge of visitors. The sector saw at least 9 per cent growth in 2019. Many Bangladeshi expatriates visited the fair and enquired about flats and plots. Things looked fine for the housing sector.

Syed Jamaluddin is an economist and columnist. [email protected]