Why Bangladesh? Why Now?
Why Bangladesh? Why Now?
Bangladesh is currently growing at an unprecedented rate, accommodating over 600,000 people per year. This means more than 120,000 household units are required to house the added population in this city. At present, the supply of housing in the city is around 25,000 units, of which 15,000 units are provided by the private sector contributors like (real estate development companies). Most of the families are now nuclear ones (parents and one or two children) who prefer to dwell in apartments with two or three rooms. Nearly half of the apartments are found to be between 1,000 to 1,600 square feet. On the other hand, only 2% of the residential apartments are less than 700 square feet, which indicates that more investment is wanted in this sector. Price hike of land and construction materials have added to the overall price hike. Increased land price has a direct impact on apartment price. Also, after 2005, price of bricks, granular sand, cement, rod etc. had a rapid, almost exponential, increase. Both these factors have raised the apartment prices. Higher apartment prices has attracted more investors in the industry with the incentive of more profit and also because as value of a real estate goes up so does the wealth of the owner. Thus- investing in this industry has high chance of certain rewards with a comparatively low risk.
In Figures :
Bangladesh’s real estate sector is growing steadily on the back of rapid development of the country, rising demand for housing, expanding middle class and soaring per-capita income. In 2017, interest rates from home loans had dropped to single-digit figures, which had caused a surge in apartment purchase by middle-income families. The demand in the real estate sector will grow steadily as the economy is growing at a healthy pace and per-capita income is increasing significantly. The building construction industry is considered as one of the fastest growing and largest sectors in Bangladesh. In 2008-2009, the construction sector employed 2.024 million people, which is expected to rise to 2.88 million by this year (2014) and 3.32 million by 2020. Land prices in Dhaka have been appreciating since 1975 and currently the price is USD 3566.14 per square meter on average. Apartment price in Dhaka has been on the rise since 2003 and according to the last updated statistics, it is USD 1,705.47 per square meter.