The flat business has been booming for over a year now. Due to high demand, there are almost no flats for sale in the hands of real estate companies. The flats in the project area where the facilities are good are being sold quickly if left for sale. So the housing companies are also coming up with new projects. Undisclosed investment opportunities, reduced registration costs, and the provision of home loans to government officials at 5 per cent interest rates are having a positive impact on the flat market.
Of course, there is no good news for ordinary people. The price of flats has gone beyond the reach of most people due to high prices. However, the high cost of construction materials is raising new concerns. The price of the new flat has increased further. Fear is spreading again for the detailed zone plan (DAP) proposed by the Capital Development Authority (RAJUK) for 2016-35. Real estate traders say it is not yet clear where the flat prices will go if the proposed DAP is implemented. However, real estate traders say that if the proposed DAP is implemented without change, no one below the upper class will be able to buy flats. If that happens, the whole sector will be threatened.
When asked, Tanvirul Haque, managing director of the housing company Building for the Future, said, “Business in the sector is good at present. We are also undertaking new projects as there is demand. However, the cost of construction of flats has gone up due to increase in prices of construction materials. Much also depends on the proposed DAP. If the DAP proposals remain unchanged, the price of flats could double.
The real estate business is rooted in the idea of how to accommodate more people in less space. It was started by Zahurul Islam, the founding chairman of Eastern Housing. Following in his footsteps, others gradually became involved in the real estate business. At present the rehab has 925 members. Housing companies are handing over an average of 12-15 thousand flats to buyers every year. However, many buyers have lost confidence in the sector as some companies did not deliver the flats on time. The rate of non-availability of flats has come down a bit due to various rehab measures.
The recession in the housing sector started in 2012. The following year, due to the ongoing political unrest, it took a terrible shape. At that time many companies could not find a buyer even after reducing the price of flats. Booking of buyers of many flats is also canceled due to non-payment of installments. After that turbulent time, the situation improved a bit in 2016, but the crisis did not end completely. However, in the middle of 2017, it was announced to give home loan to government employees at 5 percent interest. Then slowly the business began to turn around. The housing sector was in crisis again early last year due to Corona’s push. After that, when the situation in Corona improved a bit, the business started growing in July-August.
Talking to officials of several housing companies, it is learned that at present, the demand for flats ranging from 1,200 sq ft to 1,600 sq ft with a price of less than Tk 1 crore is highest in Dhaka. The main buyers of the flat are doctors, government employees, businessmen and top officials of corporate organizations.
The housing sector is facing two challenges in this auspicious day of business. One. Prices of various construction materials, including rod-cement, are on the rise. In just one year, the price of rod