Real Estate phenomena in Bangladesh

Dhaka City, born during the Moghul Empire and grown with the British rule, is expanding rapidly. From the beginning of the 20th Century its growth and latter development is marked with sheer lack of proper and far-reaching planning. The impact is now being felt at the end of the century. Dhaka City is undergoing terrific growth phase throughout the last two decades. While there are so many real estate developers in the market, there are also very few of them who have maintained the quality, safety and customer preference. It is customary in the country that the first day quality and impression is lost after a while when people start getting a bit of familiarity. This happens due mainly to lack of professionalism. Sometimes the consumers here are in a fix to choose a particular brand out of many.A good number of real estate companies are working under one umbrella association named 'Real Estate and Housing Association of Bangladesh' (REHAB). Almost 83 Companies are at present affiliated with this association, while more than 200 companies are working independently. BTI took a leading role in the formation of the industry association and is one of the founder members of the REHAB.

Objectives:
a) To offer finest apartments in excellent locations to the clients;
b) To provide sound construction with aesthetic design to the clients;
c) To install best possible fittings and fixtures;
d) To satisfy clients by expert-oriented service;
e) To help solving the residential problem of Dhaka city;
f) To perform social responsibility for a happy future.

Market Size:

Real estate business especially apartment projects has started in late 1970s in Dhaka City. But from early '80s the business started to grow and flourish. At present, more than 250 companies are active in business but 95% business is still dominated by of top 10 Companies. Present market is growing at the rate 15%.Reasons for development of the industry.
The main reasons why real estate business developed in Dhaka city are as follows:
a) Scarcity of open space in the important areas of the city
b) Hazards of purchasing land
c) Hazards of construction of building
d) Rapid increase in population of Dhaka
e) Decrease in the rate of bank interest
f) Price of land and apartments is increasing day by day
g) Rent of the apartments is comparatively higher than the rent of privately constructed flats
h) Open Market Economy. Remittance of foreign currency is very easy
i) Security
j) Service facilities such as garbage disposal, central satellite TV connection, apartments services saves time, roof top facilities, lift and so on.

Market segmentation:
The market of real estate business sector is highly segmented. This segmentation is mainly based on the location, price of the land, and size of the apartments. The segmented areas are:
a) Segmentation - I :Baridhara, Gulshan, Banani, DOHS, Uttara
b) Segmentation - II :Dhanmondi
c) Segmentation - III :Segunbagicha, Shantinagar, Kakrail, Malibagh, Kalabagan
d) Segmentation - IV :Mirpur
e) Segmentation - V :Old Town of Dhaka City
f) Segmentation - VI :(For office building) Motijheel, Dilkusha, Fakirapool DIT Extension Road, RK Mission Road, Shahidbagh, Kawran Bazar, Pantha Path etc.Places in Dhaka city where residential and commercial projects has been congregated: Dhanmondi; Gulshan; Banani; Eskaton; Siddeshawari; Panthapath; Baridhara; Elephant Road; Mirpur Housing Estate, Mirpur; Dilkusha C/A; Kakrail Rd.; Malibagh; Lalmatia; Indira Road; Pallabi, Mirpur; Old Airport Road; Farmgate; Inner Circular Road; Mohakhali; Ashulia, Savar; Kalikair, Gazipur.The development projects for apartments and residential purposes range from Duplex Home, Triplex Home, Penthouse, Luxury Home, Furnished Apartment, Unfurnished Apartment, to Condominium and Vacation-Resort Property. Commercial projects includes Industrial Shed, Agro Farm House, Warehouse / Godown, Commercial Space, Industrial space, Office Building, Office Suite, Furnished Office, Commercial Showroom, Exquisite Office, Industrial Park, Factory, Lofts, Shopping Center, etc.

General terms and conditions of allotment:
1. Application for allotment of apartments should be made on the prescribed application form duly signed by the applicant along with the earnest money. The company has the right to accept or reject any application without assigning any reason thereto.
2. On acceptance of an application, the company will issue allotment letter to the applicant on which the applicant/allottee shall start making payment as per the schedule of the project. Allotment of apartments is made on first come first serve basis.
3. Payments of earnest money, installments, car park costs, additional works and other charges shall be made by bank draft or pay order directly in the name of the respective company against which the receipts will be issued. Bangladeshis residing abroad may remit payments in foreign exchange by TT or DD in the name of the company.
4. Payments of installments and all other charges are to be made on due dates according to the schedule. The company may issue reminders to the allottee, but notwithstanding the issue of reminders, the allottee must adhere to the schedule to ensure timely completion of construction.
5. The company may arrange HBFC/Bank loan (if available) for allottees according to the existing rules and regulations of the authority concerned.

6. Delay in payments beyond the schedule date will make the allottee liable to pay delay charge (amount varies from company to company) for every 30 days on the amount of the payment delayed. If the payment is delayed beyond 60 days the company shall have the right to cancel the allotment. In such an event, the amount paid by the allottee will be refunded after deducting the earnest money and after allotment of the canceled apartment.

7. Connection fees/charges, security deposits and other incidental expenses relating to gas, water, sewerage and electric connections are included in the price of apartments. The company will make those payments directly to the authorities concerned on the allottee's account.

8. Limited changes in the specifications, design and/or layout of the apartments and other facilities may be made by the company in larger overall interest or due to unavoidable reasons.

9. The company may cancel an allotment for non-payment of installments in disregard of reminders and after final intimation to the allottee by registered post at the address given in the application form.

10. The allottee shall be required to execute an agreement with the respective company for safeguarding the interests.

11. The possession of the apartment shall be duly handed over to the allottee on completion and full payment of installments and other charges and dues. Till then the possession will rest with the company. If the project is completed before the stipulated time, the allottee shall have to make full payment before taking possession.
12. The allottees will become equally divisible undivided and undemarketed shareholders of total acres of the scheduled land of the project in respective apartment. After all the dues and installments are paid by the purchaser according to the requirements and schedule for payment and after the completion of the construction, the vendors shall execute a registered sale deed in favor of the purchaser transferring share of land of the project in the demised apartment.

13. After taking over of apartment of the project, the allottee (s) must consult the company prior to undertaking any structural or layout changes within the apartment complex. Failure to do so will be at the sole risk of the allottee.

14. Company shall not be liable if the completion period of the construction of the projects is affected by unavoidable circumstances beyond the control of the company, like natural calamities, political disturbances, strikes and changes in the fiscal policy of the state etc.

15. For the purpose of effective management and maintenance of the building the purchaser of the apartment shall form and constitute a mutual benefit cooperative society under the Co-operative Society's Act 1940. The society shall be entrusted with the management and maintenance of the building. The rules, regulations and by laws of the co-operative society relating to management and maintenance of the building shall be binding upon all the purchasers/owners of the apartments.

• Tweet
• Share
• Share
• Share
• Share