REHAB Winter Fair 2019

Apartment prices beyond the reach of middle class

The REHAB Winter Fair 2019, organised by the Real Estate and Housing Association of Bangladesh (REHAB), is going on in full swing. It is an endeavour to bring clients, developers, building materials companies and financial institutions under a single umbrella. Though the presence of middle-income people at the fair is noticeable, the price of apartments is quite out of their reach.

Babar Ali, an employee of a private company, had come from Shyamoli to the fair with the intention to book a flat in his residential area so as to rid himself of the hassles of rented accommodation. But Ali’s dreams have been smashed by the high prices of the apartments. “The price of every apartment is way too high. There is no flat less than Tk. 7,500 per sq. ft, which is quite out of the reach of middle-income people like me. I’d have to shell out Tk. 90 lakh to buy a 1,200-sq. ft flat. That is quite beyond my capacity,” said Ali.

“When we go to a finance company in the hope of getting a home loan, we are overawed by the high interest rates,” he added. “If I were to borrow Tk. 50 lakh from a bank or financial institution, I’d have to pay more than Tk. 50,000 per month for 20 years as monthly instalments. The instalments would take away nearly 70 per cent of my monthly salary,” he rued.

At the five-day long fair, the price of the most common form of apartment, a three-bedroom flat, is in the range of Tk. 90 lakh to Tk. 1.7 crore, which varies in accordance with location and company. Taniya Islam, a job-holder, lives in a rented house at Mirpur-10 area. She had come to the fair in the hope of buying a flat. She told The Independent that the high prices of apartments, hassles in getting bank loans and the high interest rates meant the flats were quite out of the reach of the middle-income sections of society.

Shanta Properties, the ‘Gold’ sponsor of the fair, currently has 32 ongoing projects in various locations of the capital. It has no flat less than Tk. 1.4 crore. Shihab Ahmed, general manager (sales and customer services) of Shanta Properties, said, “The minimum cost of our flat is Tk. 1.4 crore while the maximum cost depends on customization.” He explained that the use of standard materials, maintenance of quality and the premium nature of the experience are the main causes for the high prices of the apartments. Moreover, the rising prices of building materials, scarcity of land and shortage of skilled labour are also responsible

for the high prices of the

apartments.

Eastern Housing Limited, a prominent developer of the country, currently has 12 ongoing projects in various locations of the capital. Their projects cost Tk. 7,000 to

Tk. 40,000 per sq. ft, and the smallest flat would cost more than Tk. 1.1 crore, excluding the registration fees. At the fair, many visitors and buyers enquired about apartments. Some buyers asked for apartments in the range of Tk. 4,000 to 5,000 per sq. ft.

 Most of the 14 banks and non-bank financial institutions that are taking part at the REHAB Winter Fair 2019 are offering home loans with an interest rate varying from 10 to 13 per cent. IFIC Bank is offering its home loans with an interest rate ranging from 10 to 13 per cent. Customers can borrow up to Tk. 2 crore, with the processing being easy and quick. Similarly, Dutch-Bangla Bank limited (DBBL) is also offering home loans at interest rates of 9.5 to 13.5 per cent. Lanka Bangla Finance has set a range of 11.5 per cent for home loans.

Delta Brac, National Housing and other banks and non-bank financial institutions have set their interest rates in the range of 9.5 to 13.5 per cent for home loans. As of yesterday, the fair saw 13,000 visitors in the three days it has been open, according to REHAB. In this year’s fair, 230 real estate and housing stalls, 30 building material-producing companies and 14 financial institutions are participating.

 

REHAB Winter Fair 2019

Apartment prices beyond the reach of middle class

The REHAB Winter Fair 2019, organised by the Real Estate and Housing Association of Bangladesh (REHAB), is going on in full swing. It is an endeavour to bring clients, developers, building materials companies and financial institutions under a single umbrella. Though the presence of middle-income people at the fair is noticeable, the price of apartments is quite out of their reach. Babar Ali, an employee of a private company, had come from Shyamoli to the fair with the intention to book a flat in his residential area so as to rid himself of the hassles of rented accommodation. But Alis dreams have been smashed by the high prices of the apartments. The price of every apartment is way too high. There is no flat less than Tk. 7,500 per sq. ft, which is quite out of the reach of middle-income people like me. Id have to shell out Tk. 90 lakh to buy a 1,200-sq. ft flat. That is quite beyond my capacity, said Ali. When we go to a finance company in the hope of getting a home loan, we are overawed by the high interest rates, he added. If I were to borrow Tk. 50 lakh from a bank or financial institution, Id have to pay more than Tk. 50,000 per month for 20 years as monthly instalments. The instalments would take away nearly 70 per cent of my monthly salary, he rued. At the five-day long fair, the price of the most common form of apartment, a three-bedroom flat, is in the range of Tk. 90 lakh to Tk. 1.7 crore, which varies in accordance with location and company. Taniya Islam, a job-holder, lives in a rented house at Mirpur-10 area. She had come to the fair in the hope of buying a flat. She told The Independent that the high prices of apartments, hassles in getting bank loans and the high interest rates meant the flats were quite out of the reach of the middle-income sections of society. Shanta Properties, the Gold sponsor of the fair, currently has 32 ongoing projects in various locations of the capital. It has no flat less than Tk. 1.4 crore. Shihab Ahmed, general manager (sales and customer services) of Shanta Properties, said, The minimum cost of our flat is Tk. 1.4 crore while the maximum cost depends on customization. He explained that the use of standard materials, maintenance of quality and the premium nature of the experience are the main causes for the high prices of the apartments. Moreover, the rising prices of building materials, scarcity of land and shortage of skilled labour are also responsible for the high prices of the apartments. Eastern Housing Limited, a prominent developer of the country, currently has 12 ongoing projects in various locations of the capital. Their projects cost Tk. 7,000 to Tk. 40,000 per sq. ft, and the smallest flat would cost more than Tk. 1.1 crore, excluding the registration fees. At the fair, many visitors and buyers enquired about apartments. Some buyers asked for apartments in the range of Tk. 4,000 to 5,000 per sq. ft. Most of the 14 banks and non-bank financial institutions that are taking part at the REHAB Winter Fair 2019 are offering home loans with an interest rate varying from 10 to 13 per cent. IFIC Bank is offering its home loans with an interest rate ranging from 10 to 13 per cent. Customers can borrow up to Tk. 2 crore, with the processing being easy and quick. Similarly, Dutch-Bangla Bank limited (DBBL) is also offering home loans at interest rates of 9.5 to 13.5 per cent. Lanka Bangla Finance has set a range of 11.5 per cent for home loans. Delta Brac, National Housing and other banks and non-bank financial institutions have set their interest rates in the range of 9.5 to 13.5 per cent for home loans. As of yesterday, the fair saw 13,000 visitors in the three days it has been open, according to REHAB. In this years fair, 230 real estate and housing stalls, 30 building material-producing companies and 14 financial institutions are participating.