[🇧🇩] Real Estate Industry of Bangladesh

Saif · Dec 26, 2024

REHAB fair gives realtors a reality check

A stall attendant of a real estate developer briefs a visitor at REHAB Fair-2024 at Bangabandhu International Conference Centre in Dhaka yesterday. Photo: Star

Real estate developers in Bangladesh participating in REHAB Fair-2024 were unsure of the event's potential outcome until yesterday, when the sparse presence of visitors, let alone potential buyers, gave a reality check of the persistent economic challenges.

However, they still wish to keep up their hopes, claiming that though the industry may not get to meet its expectations, there was a rise in participation at the five-day fair organised by the Real Estate and Housing Association of Bangladesh (REHAB) at Bangabandhu International Conference Centre since last Monday.

In essence, there was a good number of queries regarding midrange flats, but none for high and low-end units, they continued.

"Only the upper middle-class who badly need an apartment to escape from their monthly house rent are coming to search for affordable ones," said KM Shapnik Mahmud, assistant general manager and cluster head of sales at Rangs Properties Limited.

He said they had anticipated that there would be a low number of potential buyers prior to participating in the fair.

"It is true that we are yet to get any response," he said.

However, he hoped for a last moment miracle, saying they may get some on-the-spot bookings as a number of people inquired about flats.

Mahmud said clients of high-end flats rarely visit the fair, but this year none have arrived.

Talking to The Daily Star, Liakat Ali Bhuiyan, senior vice-president of REHAB, said the response of visitors gave them confidence about the business for the future.

"We were really apprehensive over the slowdown of the business as sales of apartments and assets declined substantially during the last five months," he said.

However, he said the fair gave them a bit of a relief as inquiries and bookings have given hope to the realtors.

According to him, the clients and realtors got a scope for networking among asset buyers, sellers, financiers and backward linkage industries through the fair.

But he could not provide any figure about the number of on-the-spot orders received from clients.

Mohammad Akhter, managing director of Akhter Properties Ltd, said there were a lot of queries for flats in Uttara as it has a metro rail station that helps in commuting through the capital Dhaka.

Some people were looking for flats in Mirpur due to their comparatively low prices, he said.

He said the housing sector would be able to make a turnaround through the fair if the Detailed Area Plan of Rajdhani Unnayan Kartripakkha (Rajuk) was amended.

Abdul Latif, managing director of Basic Builders Ltd, appeared at the fair with small to midrange projects.

Latif, also a vice-president of REHAB, said he did have high-end flats, but the customer segment was very low, for which queries involved a personalised approach and not through events like fairs.

He was optimistic of securing a booking on the concluding day of the fair today.

Real estate company Haque Home and Builders Ltd participated in the fair.

The company's managing director, Imdadul Haque, is hoping to receive a better response today because it is the last day of the fair and a weekend.

"All things considered, I would say that this fair is successful and will help us overcome our crisis," he said.

Tropical Homes Limited, a top real estate company in Bangladesh, is showcasing an under-construction Tropical TA Tower at the fair.

Meant to be 45-storey high, Tropical TA Tower in Malibagh, which has been approved by Rajuk, could be the tallest building in Bangladesh, standing at 529 feet once erected.

Already 50 percent space of the building has been booked by high-end commercial clients, claimed Razibur Rahmann Rony, additional general manager (sales) at Tropical Homes and in-charge of the company's stall at the fair.

Sharma Ji · Dec 28, 2024

Couldn't come up with a better acronym ?

Saif · Jun 5, 2025

Fiscal measures may hit real estate, construction sector hard

Several fiscal measures outlined in the proposed national budget for FY 2025-26 could severely impact the country's real estate and construction sector, which is already grappling with rising costs and declining demand, industry insiders have warned. As per the proposed budget, value added tax (VA

thefinancialexpress.com.bd

Fiscal measures may hit real estate, construction sector hard

Saif Uddin
Published :
Jun 05, 2025 14:59
Updated :
Jun 05, 2025 14:59

Several fiscal measures outlined in the proposed national budget for FY 2025-26 could severely impact the country's real estate and construction sector, which is already grappling with rising costs and declining demand, industry insiders have warned.

As per the proposed budget, value added tax (VAT) on services of construction companies and linkage accessories like iron products, plastic and paint would go up considerably, leading to further hike in construction cost, they added.

Besides, proposed move to ensure the land registration at actual market value would also fuel building construction costs, both for residential and commercial.

Realtors and allied industry people said construction of new buildings is directly linked to more than 250 other sectors including steel, cement, ceramic, and plastic.

"As a result, any tax hike would create burden on both the customers the linkage industries," said a top executive of a real estate company.

He said the proposed hike in the taxes would cause an adverse impact on the prices of rod and different other iron products, especially those are used for construction purposes.

Presenting the proposed budget on Monday, Finance Adviser Dr. Salehuddin Ahmed said the VAT rates have been slightly increased.

About 20 per cent higher tax has proposed at the production stage of different "MS Products" in the budget for FY'26.

In the case of production of various types of screws, joints (connectors), nuts, bolts, electric line hardware and pole fittings including nails and bait, the VAT rate has been fixed at 7.5 per cent instead of 5.0 per cent, according to the budget proposal.

The rate of VAT on the services of construction companies has been increased to 10 per cent from 7.5 percent, it said.

The VAT rate at the production stage of all types of tableware, kitchenware, household goods, hygienic and toiletries, and other similar products made of plastic has been fixed at 15 per cent from 7.5 per cent.

When asked, Senior Vice-President of Real Estate & Housing Association of Bangladesh (REHAB) Liakat Ali Bhuiyan told the FE that they are deeply concerned over the proposed hikes in the tax rates.

"We are very much concerned over the proposed tax measurers as prices of many key ingredients would go because of it," he said.

He further said: "We are analysing the possible impact of the proposed tax measurers and would to come up with our feedbacks after Eid-ul-Adha," he said.

According to sources, the country's real estate sector has been facing a blow due to the prevailing economic downturn.

Besides, realtors find themselves in a difficult situation to undertake new projects due to some provisions of the latest Detailed Area Plan (DAP).

Realtors and land owners have been trying to press home their demand for necessary amendment to the DAP.

Saif · Dec 7, 2025

Mid-range apartments prop up ailing property market

Premium segment buyers largely missing after the political changeover, while low-end customers beaten out of market

www.thedailystar.net

Mid-range apartments prop up ailing property market
Premium segment buyers largely missing after the political changeover, while low-end customers beaten out of market

Representational photo: Star/file

Mid-segment apartments sustain struggling property market
Premium demand plunges amid political uncertainty
Low-end buyers retreat under inflation pressure
Stable home loan flow supports mid-range

Sales of mid-segment apartments now appear to be the saviour of a property market that has been struggling for nearly three years amid economic turbulence and political uncertainty

Realtors say they once sold around 1,000 units a year, but annual sales have fallen by half after gradual fall over the years.

Even so, upper-middle-income families and professionals continue to buy flats priced between Tk 1 crore and Tk 2 crore. These homes, mostly in Dhaka and Chattogram, are roughly 1,200 square feet in size.

"The upper-middle-income group still shows some interest," said Aysha Siddiqua, executive director for brand and communication at real estate developer bti.

Commercial banks also report a stable flow of home loan applications thanks to buyers in this segment.

Meanwhile, demand in the premium market has fallen sharply, according to Shihab Ahmed, chief sales officer at Shanta Holdings.

He said sales in that category, mostly driven by political figures and businesspeople, have dropped by more than 60 percent.

Premium flats are generally over 2,000 square feet and cost more than Tk 2.5 crore.

Developers say wealthy buyers are either in hiding or keeping a low profile following the mass uprising that removed the Awami League government in August last year.

They also noted that the interim government's move to remove the option to legalise undeclared income by investing in property has further deteriorated investment. That provision had previously encouraged part of the wealthy class to purchase large homes.

"People are hesitant to spend under the current economic climate," according to Siddiqua. "Uncertainty is directly affecting apartment sales."

At the lower end of the market – flats measuring 850 to 1,050 square feet and costing less than Tk 1 crore – demand has weakened due to persisting high inflation and bank interest rates.

Apartment sales boomed in fiscal year 2022-23 (FY23) after the Covid pandemic, when pent-up demand pushed the market to a peak. The momentum faded the following year as the wider economy began to show signs of distress.

EVEN THE MID-RANGE DIGESTS A HIT

The mid-range segment may now be propping up the sector, but it has not escaped the property slowdown.

Sales have fallen by 40 percent to 50 percent compared with the FY23, said Ahmed of Shanta Holdings.

He described this category as the main source of cash flow for developers and the lifeline of the entire industry. "When this segment suffers, the entire sector faces trouble."

Meanwhile, bti's Siddiqua said demand for homes has not vanished, but has shifted and become concentrated among mid-range buyers. Low-end customers remain somewhat absent from the market.

She said buyers in the mid segment expect competitive prices, but developers find it difficult to meet that expectation due to the high cost of land and construction materials.

Siddiqua added that discounts are rarely offered publicly. "In real estate, any negotiation on price typically happens one-on-one with the customer."

Despite the fall in sales, especially in the low and high brackets, banks say demand for home loans has stayed stable.

The head of mortgage at a leading private bank said mid-range buyers remain active and group housing initiatives are becoming more common, with professionals joining together to buy land and build homes.

Current home loan interest rates range from 11 percent to 12 percent. The maximum tenure is 25 years, with a ceiling of Tk 2 crore, the official said.

NEW PROJECTS DECLINE

Liakat Ali Bhuiyan, senior vice-president of the Real Estate and Housing Association of Bangladesh (REHAB), said the industry agrees that sales have fallen sharply.

"The market is likely to remain stagnant until uncertainty over national-level decisions is resolved," he said.

The new Detailed Area Plan (DAP 2022-2035) has also affected the sector, as the Rajdhani Unnayan Kartripakkha (Rajuk) has reduced building height and floor area ratios in many locations.

Bhuiyan said this has slowed new projects and stalled some ongoing developments.

Ahmed of Shanta Holdings said declining sales have put many small and mid-sized developers under financial pressure.

He added that high lending rates and liquidity shortages in banks are making it difficult for companies to raise capital.

According to Anup Kumar Sarker, senior executive director of Concord Group, diversified companies are coping better, while those focused on narrow segments face greater challenges.

Sarker said no one can predict when the sector will recover. Once demand returns, however, prices may rise.

REHAB' Bhuiyan said fewer new projects mean supply is shrinking. "Every year there is a natural demand in the market, but when the supply drops below that threshold, pressure builds up, eventually impacting prices."