Positive economic growth and increase in per capita income are also playing as boosters on their current and upcoming sales of flats, office space, and land
Realtors hope to make a strong comeback this year after years of a cooling property market, as political stability and home loans for public servants have now made their business outlook brighter.
Positive economic growth and increase in per capita income are also playing as boosters on their current and upcoming sales of flats, office space, and land.
The Dhaka Tribune talked to several real estate companies who took part in Rehab Fair 2018, and they said business will see a favorable jump in the current year.
Industry insiders at the REHAB fair said political stability, the government’s enhanced home loans for public sector officials, and the likely reduction in registration fees on property purchases would have a positive outcome in the real estate business.
The five- day Real Estate and Housing Association of Bangladesh (REHAB) fair was held between February 6 and 10 at Bangabandhu International Conference Centre (BICC).
“For the last few years, sales were not as good as expected, which is set to rise in the current year as the response of visitors to the Rehab expo was very positive and they have made commitments to buy flats,” SM Arfat Ullah, senior manager marketing and sales of Hamid Real Estate Construction Ltd, told the Dhaka Tribune.
Since the government decided to sanction enhanced home loans for government employees, the decision has created a new opportunity for the sector.
“This year, we are hoping for better sales. Visitors have shown keen interest in placing orders for flats and some of them have almost decided to buy,” he added.
According to Rehab, at the last Rehab Fair it got bookings of about Tk 917 crore. The organizers hope it will cross Tk1,000 crore this time.
REHAB will soon make this year’s figure public, an association leader said.
“Since the government has increased the home loan amount to Tk75 lakh, now I can decide to buy a flat,” Mohammad Zamir Uddin (not real name), a government official, told the Dhaka Rehab Fair on Saturday.
But the prices of flats are not quite within reach for many, as it costs at least Tk1 crore to buy a medium size flat, he added.
As per the government decision, a government official can avail a government home loan maximum of Tk75 lakh.
Currently, developers are offering flats ranging from Tk20,000 to Tk6,300 per square feet, depending on the location in Dhaka.
Meanwhile, the prevailing political stability has created an opportunity for the sector as people had been unwilling to buy flats amid uncertainties before the national elections which ended peacefully on December 30.
“Political stability is a big issue for the real estate sector as people are unwilling to book flats or plots in any given political heightened situation,” said Sheikh Sabbir Ahmad, Senior Executive of Marketing and Sales for the Amin Mohammad Group.
“As we all know, the share market also plays an important role in the economy, which had been unstable the for last few years after the crash in 2010. It finally came back to normal,” said Masud Rana, Assistant Sales Manager of Eastern Housing Limited said.
“Now the market is stable compared to the past few years, making it possible for people to buy a flat,” he added.
“In response to our long pending calls, the government has given positive indication on reducing registration fees on the purchase of flats,” said Liakat Ali Bhuiyan, Vice president of Rehab.
“If the government does so and also brings down bank interest rates between 7 to 8%, apartment sales will see a sharp rise,” he added.
A total of 168 developer companies participated in the expo. 20 building materials and 14 money lending organizations also took part.