The real estate industry in Bangladesh has made a remarkable jump since its emergence in the late 1970s. A total of 250 companies are working in the industry, and more than 200 apartment developers are active in the country.
Real estate has become a crucial part of urban development in Bangladesh. It provides physical expansion and economic development. But the government is not actively patronizing the industry.
Bangladesh is a densely populated nation with a population of around 200 million people. It has a limited land supply in the urban areas.
The housing shortage is a major problem in Bangladesh. It is exacerbated by a lack of proper land use planning. This is contributing to the high price of land in Dhaka.
The housing finance system in Bangladesh is also a critical area to examine. The House Building Finance Corporation (HBFC) is the only government institution dedicated to financing homes. However, the organization has been cash starved for fifteen years, and it hasn’t contributed much to the financing of the housing sector.
In order to address the challenges faced by the real estate industry in Bangladesh, the study identifies key factors that should be considered to increase private housing real estate coverage in the country. These include the ability to generate sustainable income from rental property, easier financing facilities, and wider scope for non-resident Bangladeshis.
In addition, the government should formulate a national policy for high rise development. In Dhaka City, the zoning law should be strictly enforced. Furthermore, a vacant land tax should be introduced in the inner city.