The Future of Residential Real Estate in Bangladesh
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The future of residential real estate in Bangladesh, including, is unquestionably bright.
- Tenant preferences have shifted.
- A reorganization of the historical intermediaries in the high-friction real estate transaction process.
- Real estate investment in Luxembourg is a flourishing sector.
- Year after year, the amount of money invested grows at a rapid pace.
- The corporate property sector in the country is drawing increasing international interest.
- Utilization of cutting-edge technology
- Maintaining a healthy lifestyle.
- In a hygienic environment.
- Assurance of a decent standard of living for all classes of people.
- Strict security measures are in place.
Real Estate is Classified Into 5 Categories:
What is Residential Real Estate? Is Our Main Focus: and The Future of It:
Residential real estate: Any property utilized for private purposes. Cases incorporate single-family homes, condos, cooperatives, duplexes, townhouses, and multi-family homes with less than five-person units.
Future of Residential Real Estate
Residential real estate is one of Bangladesh's fastest-growing and most dynamic industries.
Infrastructure development is critical for a country's ascent to become a developed nation and to provide adequate housing for its population.
The real estate sector is the engine that propels an economy forward.
As one of the world's most densely populated countries, Bangladesh has been suffering from a serious housing crisis.
Housing for everyone has been a misconception in Bangladesh, even though the majority of the population is divided between medium and low-income categories. In this case; rather the easy availability of buying a home is more important.
The Private Sector in Residential Real Estate Industry
In the last two decades, private sector housing real estate developers have only supplied a significant percentage of the national housing demand.
Despite insufficient governmental preparations, these real estate developers have been able to make a profit, even though middle and lower-income households remain untapped.
Many crucial variables, such as rising house rents, insufficient and expensive land, easier finance availability, and more, support the positive outlook.
Some of the Problems and Successful Future of this Sector are Discussed Below.
Factors Associated with & Affecting the Present Condition
Various factors are linked to and influencing the current status and pattern of residential real estate growth. Physical aspects, for example.
- The size of the units and the size of the plots vary.
- Rent and price of houses in various locations.
- The residents' socioeconomic situation.
- Patterns of land tenure and car ownership.
- The degree to which apartment owners are satisfied with the services offered by real estate developers.
- Issues that apartment owners encounter.
- Factors influencing apartment purchasing decisions, such as willingness to buy a second apartment, and so on.
The Socio-Economic Status & Attitudes of Apartment Owners
Apartment owners, on the other hand, make their decisions based on a number of factors. The project's locational advantages are given top importance in this regard.
These include improved transit and communication options, closeness to schools, colleges, and workplaces, and the neighborhood's residential environment. After deciding on a location, the next step is to choose a developer.
Important Difficulties in Real Estate Development
While providing affordable housing for city residents, real estate developers encounter a number of problems.
Real estate developers face issues such as high land prices, high construction material prices, unplanned and haphazard city development, high apartment prices, high home loan interest rates, and high property transfer and registration fees, among others.
An Extremely Expensive Apartment
As the age of the world increases, the price of apartments is also increasing at a geometric rate. The increase in apartment prices is a result of rising land values combined with rising construction material prices.
Since 2000, the price of an apartment has risen dramatically. Apartment value per square foot has nearly tripled in the last ten years.
Middle-income persons are frequently unable to purchase a suitable flat in the city without the assistance of a bank loan.
A Hopeful Future
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Considering the fact that the real estate market was in disarray, demand remained strong. Even during a pandemic, people were still moving and buying homes.
Businesses that were more digitally oriented were in a better position to meet these demands.
The government was also considering ways to aid the rehabilitation of the economy. The national budget permitted hidden monies to be re-invested in real estate, residential, and financial markets as part of the effort.
Many new investors entered the market as a result of the measure, resulting in unanticipated growth in a pandemic year.
Another notable component of the year was the Detailed Area Plan (DAP). Last year, the government also decreased the Land Transfer Tax on deed value, lowering it to 1.0 percent from 2.0 percent.
The Stamp Duty cost was also cut from 3.0% to 1.50 percent. All of these efforts have contributed to a beneficial shift in the real estate market. These adjustments have been well received by many developers and investors.
It is hoped that the administration would make a more unambiguous decision in the future.
Bangladeshi Real Estate Companies Recovering & Making a Significant Contribution to the Country's Economy
Real estate has recovered quickly as a result of policies such as allowing untaxed money to be invested, cutting interest rates, and lowering fees. Together with a swift economic recovery, all of these policies have aided the real estate sector in recovering quickly from the ravages of a global pandemic and its economic consequences.
With an annual GDP growth rate of 6.8% expected in Bangladesh between 2021 and 2025, the real estate sector will quickly return to its prior state. This year will see a rapid comeback in other real estate-related industries. Bangladesh's real estate sector will have a period of expansion and recovery in 2021.
Assure, Bangladesh's first total property solutions provider, is a notable example. Because of Assure's strong web presence, they were able to encourage and cater to people who were still interested in residential real estate.
Despite the hurdles posed by the epidemic in 2020, Assure witnessed a sharp increase in demand shortly after the quarantine was ended.
With most individuals staying at home during the pre-Covid period, they shifted more towards the digital sphere. And Assure reaped the benefits of this. Assure and its services were always accessible thanks to diligent customer care.
The real estate sector caters to the need for housing, which is one of the five basic human needs, while also contributing significantly to the country's economic development.
The real estate business in Bangladesh is unlike any other in the world. Proper application of planning policies can provide a bright future for this industry in the near future. To summarize, the real estate sector has the potential to significantly alter Bangladesh's future living conditions.
The affordability of middle- and low-income groups is threatened by this monopolization. As a result, the government should establish a strong regulatory system to make the housing market more accessible to those who are less fortunate.