WELCOME TO OUR
PRESENTATION
Housing real state sector in
Bangladesh: Present status
and Policy implications.
GROUP PROFILE
SL Name ID No. Reg No. Marks Signature
01. MD. 1603012 06580
Alauddin
02. Dilshad 1603024 06592
Nagnin
03. Suranjit 1603040 06608
Karmoker
Shuvo
04. Umme Mahin 1603058 06626
05. K.M Arif 1603069 06637
06. Sharmin shila 1603084 06652
07. Abida Arobi 1603086 06654
Ohee
INTRODUCTION
• In Bangladesh, the real estate business is one of the fastest expanding and most dynamic
industries.
• Infrastructure development is key for a country's development as a developed nation and to ensure
housing facilities for the citizens of the country.
• The business of real estate is the profession of buying, selling or renting land, building or
housing.
• The growth in this industry also faciliated a fast growth in many linkage industries like glass &
glass products industry, brick industry, cement industry, ceramic industry, iron and steel industry
etc over the last decade.
BACKGROUND OF THE STUDY
• Owners of vacant land or land with low building structure have been tempted
to be millionaire or multimillionaires by inviting property developers to go for
constructing high rise buildings over the landed properties on a sharing basis.
• The real estate sector is one of the fastest growing and thrusting sectors in
Bangladesh.
• In Bangladesh low- and middle-income people try to land and build house for
their own uses.
OBJECTIVE OF THE STUDY
• To identify how many real state companies are operating in
Bangladesh and how many of them are the member of REHAB
• To determine the major factors which are affecting customer’s
apartment purchasing decision.
• To know the cost of the apartment construction.
• To explain the risks which are perceived by the customers
METHODOLOGY OF THE REPORT
• Real estate market is booming, demand is soaring, and industry is
shaping very fast in Bangladesh.
• The output of the study is an exploratory report which can be used in
further detail studies of the real estate sector and consumer attitude and
preferences related to this sector.
• The topic has been selected for study as it is a very interesting one in
current context of Bangladesh
SCOPE OF THE STUDY
• This is an exploratory and cross-sectional study which might not capture
the trend or changes in the market.
• This study was done based on secondary information and focused on
Dhaka region real estate companies.
• There are so many real estate developer companies in Chittagong and all
over the country, with huge and growing customer base, different target
customers, and with different business strategies.
FINDINGS
• The current scenario of real estate business in Bangladesh.
• There are different types of real estate companies have been operating business in
Bangladesh. And they are the member of REHAB organization.
• There are different types of major factor which is affecting the customers decision for
purchasing the apartment.
• Cost is one kind of burden for apartment construction in developing countries like
Bangladesh.
• A lots of risks are perceived by the customer
TO IDENTIFY HOW MANY REAL STATE COMPANIES ARE
OPERATING IN BANGLADESH AND HOW MANY OF THEM ARE
THE MEMBER OF REHAB.
• The concept of real estate in Bangladesh is emerged after liberation. After the agriculture
and garments industries, real estate generates the greatest number of jobs. Bangladesh is
the 8th largest population country in the world and due to its lack of enough
accommodation space this industry is a potential attractive market, in Bangladesh, for
investment. According to Bangladesh Bank, the housing finance demand in the fiscal year
2019-20 is BDT 1496 billion, which will be BDT 1,544 billion this year. The total
outstanding housing loan from banks and financial institutions was 8.5% of total credit to
the private sector in the year 2020.
TO DETERMINE THE MAJOR FACTORS WHICH ARE AFFECTING
CUSTOMER’S APARTMENT PURCHASING DECISION.
• The purchase of a residential property is a complex decision because it involves lot of major factors such as
location, facilities, size, and price. In terms of location normally customer prefers those locations where the
communication and security system are high. In the aspect of facility, the standard living facilities is desired
need for modern community such as availability of educational facilities, broad road, greenness, medical
facilities, environment of the building. The larger the apartment size, the higher the price of apartment. In
terms of size, majority of the consumers prefer between 1250 to 1550 Sft. Also, there seems to be a strong
demand for even smaller flats by the middle and lower middle-class buyers. But there are some buyers who
prefer very large flats of sizes more than 2500 Sft. In terms of cost structure, it is not only important for
consumers, but also important for the developer company. There are three types of costs associated with
apartment project development. There are: 1) Development Cost 2) Construction Cost and 3) Utility Cost.
TO KNOW THE COST OF THE APARTMENT
CONSTRUCTION.
• Apartment construction cost associated with
various types of cost while establishing an
apartment such as: acquiring land, leveling,
clearing and transportation, raw material, bricks
and blocks, steal bar, cement.
TO EXPLAIN THE RISKS WHICH ARE PERCEIVED
BY THE CUSTOMERS.
• Perceived Risk refers to the customer’s perception of the risks associated with any
purchase and is mostly associated with products that are expensive such as houses or cars
or products that are complex. When buying products that have a higher perceived risk,
Consumers often consult experts for making their decision. there are some published
researched literature: such as i) Functional risk ii) Service risk iii) Monetary risk etc.
Functional Risk is the risks associated with the functioning of the product. When there
are some doubts arises about the safe usage of the product come under Physical risks.
And financial perceived risk arises when the consumer thinks about their Return on
Investment.
POLICY IMPLICATIONS
• The sector has extensive potential to attract investment to its various
segments.
• The government must provide favorable policies to developers to build low-cost and affordable
housing for the masses.
• Realistic and long-term policy guidance for the real estate sector must be taken by the
government to encourage investment and development in Bangladesh’s real estate.
• Without proper accommodation, we cannot develop a capable workforce for contributing to the
national economy.
CONCLUSION
• The real estate sector is growing and shows tendency of future growth.
• Rise in house rent, increasing demand for housing, getting easy financing facility, rapid
urbanization, inadequacy of land and many other factors are creating huge scope for this
sector to grow.
• Though inadequate, supply of apartments with the number of real estate developers also
has shown rising trend and suggests future growth.
• this study finds a very promising and positive tone of growth, provided this sector is
given proper attention and facilities.
THANK YOU
