Real Estate on momentum, high time for investment

Experts in real estate sectors find the ongoing situation peak time for investing in the sector, observing it as the safe and permanent mode of investment.

The speakers come up with the views at a seminar on ‘Secure and Prospective Investment: Real Estate Industry of Bangladesh’ at a hotel in the city today. Real Estate & Housing Association of Bangladesh (REHAB) organized the seminar, says a press release.

REHABMr. Mukarram Hussain Khan, President (Acting) REHAB presided over seminar. Dr. Mashiur Rahman, Adviser to the Prime Minister, Economic Affairs, was presented at the program as the Chief Guest, Dr.SK Sur Chowdhury, Deputy Governor, Bangladesh Bank, A H M Habibur Rahman, chairman Sonali Bank, presented as the Special Guests. The program was started with the welcome speech by Mr. Md. Wahiduzzaman, the General Secretary of REHAB. Mr. Shafiq Rahman , Chairman, Seminar Standing Committee, REHAB presented the Key Note Paper. Major General MD. Abdur Rashid, psc, G (retd) , Vice president REHAB, gave speech on the seminar.

The experts said there is huge scope of business in the sector as demand of urban housing is rising rapidly.

At present, annual demand for housing in urban areas is around 30,000 units and within the next 5 years it is expected to cross 60,000 units. The private real estate developers are currently building barley 17,000-18,000 units annually. So, currently the realtors can provide maximum 50 % of the total.

The demand will remain some 25 percent in constant as different statistics show that some 4 million houses needed to be built to meet the housing demands in next 20 years.

The experts referred to the US and Dubai real estate market and said that those markets boomed again following the economic recession that hit globally.

They also termed the real estate business as the safest mode of investment as the investment offers physical position of the assets.

The speakers further said private real estate developers are contributing about 12.12 per cent of the country’s total GDP. Proper policy and financing support from the government can help the real estate developers to contribute double, some 25 percent of the national GDP.

More than 200 backward linkage industries related to the real estate sector are surviving as almost 70 percent of their products are being consumed by real estate developers. Commercial banks’ total investment counts some Tk50 thousand crore in real estate relevant industries like steel mills, cement, sanitary, tiles and so on.