Real estate in Bangladesh refers to the industry and market related to the buying, selling, and development of properties in the country. It is a fastest growing sector inBangladesh.[1]
Bangladesh's first real estate company isEastern Housing Limited (EHL),[2] established in 1964.[3] Country's first real estate housing project was started this year inPallabi,Mirpur, Dhaka.[4] However, the real estate industry in Bangladesh has been growing steadily since the 1970s, with the number of developers increasing from 5 in 1980 to 42 in 1988. The industry has been boosted by rapid economic growth, increased demand for real estate housing, and the emergence of a middle class.[5] During the years 1990-1992, Bangladesh underwent economic changes following a shift in government, resulting in a recession within the real estate market due to a decline in investor interest.[6] The Real Estate Housing Association of Bangladesh (REHAB) was established in 1991 to standardize industry practices and promote consumer confidence. The industry has had a positive impact on the economy, with millions of people benefiting from home ownership and rental opportunities.[7]
In 2004-2006, the real estate market in Bangladesh faced a significant increase in investment and a surge in supply, attracting both investors and new entrepreneurs. However, during 2006-08, the real estate sector experienced a downturn, due to a changed socio-political scenario, resulting in declining trends and causing many novice realtors to exit the business. During 2009-2011 the business sector saw a resurgence of investment and a subsequent boom, but unfortunately, this period of growth was short-lived.[8]
In 2012, the real estate business in Bangladesh faced a significant downturn, which was further exacerbated by political unrest in the next year, 2013. As a consequence, many real estate companies struggled to attract clients, despite reducing apartment prices. Additionally, numerous buyers canceled their bookings due to non-payment of installments.[6] However, The sector made a contribution of approximately 7.08% to the country's GDP in the fiscal year of 2014, and when factoring in its linkage industries, the overall contribution reached around 12%.[8]Finally, the situation gradually improved in 2016.[6]
In mid-2018, theGovernment of Bangladesh introduced home loans forgovernment employees at a 5% interest rate[9] and also reducedreal estate property registration costs in 2019.[10] These initiatives resulted in a positive trend in thereal estate business of Bangladesh.[6] The sector has contributed 7.8% to the country's GDP in this year, amounting BDT 1.415 trillion.[11]
In 2020, the real estate market value in Bangladesh wasBDT 50,000 crore with 15-17% of the market share.[12]
In 2021, the demand in the real estate sector is on the rise.[6] Around 1,50,000 Crore Bangladeshi taka was invested in this sector.[13] Considering the previous real estate history in Bangladesh, the highest number of flats were sold in 2021, surpassing the 10,000 mark.[14] Consequently, this sector contributed around 8% to the GDP in Bangladesh and employed 3.5 million people in this year.[15]
In 2023, the real estate industry in Bangladesh is still growing, but it is facing some challenges, such as the limited availability of land.[7] The sector has contributed 7.93% to the country'sGross Domestic Product (GDP) in thefiscal year of 2023.[16]
According to theBangladesh Bank's Monetary Policy Review Report, in 1975, the price of a one-katha plot of land inGulshan was 25,000Bangladeshi taka ($1,800 in 1975). By 1990, it had reached nearly 100,000 taka ($2,900 in 1990). In 2020, it was 50 million taka ($590,000 in 2020). Land and flat prices also increased inDhanmondi,Shantinagar, andUttara, although not by as much. According to the Institute for Planning and Development, land prices inDhaka increased by 2,740% between 2000 and 2021, and flat prices increased by 716% over the same period. The institute attributed the increase to "A lack of proper city development plans, ineffective regulations and lack of government initiatives for ensuring housing for all".[17]
The real estate industry in Bangladesh operates under various laws and regulations, including:
Real Estate and Housing Association of Bangladesh (REHAB) is a trade association of real estate developers.[23] It has organized real estate fairs in Dhaka and Chittagong.[24][25]
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