REHAB WINTER FAIR

Search for affordable apartment

Robel Islam Rezo from the capital’s Malibagh area is looking for an apartment.

 “I have come to the fair to get a general idea about the price of an apartment in my area. It's not possible to roam all around the capital in a day to get the information. The fair makes things easier,” Rezo said while visiting the Real Estate & Housing Association of Bangladesh (REHAB) Winter Fair 2019 yesterday.

The fair was held from December 24–28, 2019, at the Bangabandhu International Conference Centre (BICC) in the capital.

“As I am planning to buy an apartment soon, I’m trying to find the best offer at an affordable price,” he said.

Rezo collected a few brochures and was calculating the potential for savings. Finally, his attention was drawn to an under-construction apartment project. He ended up making a spot booking for a 1,485-sq.-ft flat in Malibagh.

Many visitors came with their families to inspect the best offers from real estate developers. Most were looking for payment information related to the terms and conditions of down payments and instalments.

Mahfuzur Rahman, a businessman, visited the fair with his daughter. He was hoping to find a flat for his daughter between 1,200 and 1,500 sq. ft in size and within the price range of Tk. 50–60 lakh. “But now it seems quite impossible to find such a flat within this budget. The high apartment prices have forced me to shelve the plan,” he said.

Nevertheless, many participants at the fair said the overall sales of apartments have increased in the last few years as the country’s economic growth has boosted the confidence of buyers.

In addition, enhanced home loans provided to public servants have increased their ability to buy flats, they added.

Current housing market

REHAB president Alamgir Shamsul Alamin said the housing business in the country started flourishing after the 1990s. The sector saw huge investments before 2010, and the market size crossed the Tk. 50,000-crore mark at the time.

He explained that businesses had faced some stagnancy until 2018 for different reasons, including gloom in the share market. During that period, the number of the members of the housing association dropped to below 1,000, down from the earlier count of 1,400. “Last year, however, more than 100 organisations have become REHAB members. Investment in the sector has soared. It has reached Tk. 60,000 crore at present,” Alamin said.

He pointed out: “The current demand for flats across the country is about two million. This cannot be filled by our members.”

“There is a yearly demand for more than one lakh apartments in Dhaka, but REHAB members can provide only about 25,000 flats,” he said.

According to Alamin, REHAB had long been demanding the possibility to invest undisclosed amounts in order to overcome long-standing sluggishness and losses incurred by businesses in the sector. “The government recognised the issue in the latest budget. As a result, we have been witnessing a positive change,” he said.

Focus on middle-income

segment

The REHAB members are focused on building small two-room flats for middle-income families in the towns.

REHAB president Alamin said that a number of companies had taken the initiative to sell flats at lower prices. “We are thinking of developing flats for service holders, targeting single families. REHAB is paying attention to the building of small two-room flats,” he revealed.

Kartik Chandra Saha, deputy manager (marketing and sales) of Assure Group, told The Independent: “Keeping in mind the middle-income group, we are offering flats of between 1,000 and 1,500 sq. ft. Besides these, we also have some flats for big families that are about 4,889 sq. ft in size.”

Md Jahiruzzaman, senior general manager at Basundhara Housing Group, said: “We have several projects ranging from 1,000 to 1,500 sq. ft. Each project offers modern facilities such as parking, lifts, CCTV, mini hospital, and gymnasium.”

They are planned for the middle-income groups, he added.

Prices beyond reach of middle class

The organiser of the real estate and housing fair went all out to woo buyers, bringing developers, construction and building material companies, and loan providers under one roof.

Though the presence of middle-income people at the fair was noticeable, the prices of apartments remained 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 eliminate the hassles of rented accommodation.

But Ali’s plans were smashed by the high apartment prices. “The price of every apartment was way too high. There was no flat available for less than Tk. 7,500 per sq. ft, which is 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 beyond my capacity,” he said.

“When we go to a finance company to get a home loan, the high interest rates become overwhelming,” 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—was in the range of Tk. 90 lakh to Tk. 1.7 crore depending on the location and the real estate company.

Taniya Islam, a job-holder, lives in a rented house at Mirpur-10 area. She had come to the fair hoping to buy a flat. She told The Independent that the high prices of apartments, hassles of getting bank loans, and high interest rates meant the flats were beyond the reach of the middle class.

REHAB president Alamgir Shamsul Alamin said the prices of apartments could not be reduced as the prices of land and building materials were high. He revealed that the prices of flats had not increased by more than 5 to 6 per cent in the last five years, whereas the price of land had increased severalfold.

He said that the price of anything depends on the quality and production cost. In case of housing, the location is a big factor, and flats built by individuals do not ensure quality.

In this connection, Alamin said that the REHAB members follow a number of criteria, including inclusion of parking and open space. They are cautious about using the right materials and choosing good locations, which pushes up the cost. As a result, they  are unable to sell a flat at prices as low as those built at the individual level, he explained.

"Nevertheless, the members have been trying to lower their prices," he added.

Lenders woo borrowers

More than a dozen lenders competed to lure prospective home loan borrowers at the housing fair.

Most of the 14 banks and non-banking financial institutions at REHAB Winter Fair 2019 offered home loans with an interest rate of 10 per cent, while others offered loans at 11–13 per cent.

For buyers from the middle and lower-middle classes, the presence of lenders at the fair is convenient.

However, visitors at the fair demanded a reduction in loan interest rates as well as on the down payments.

Speaking with The Independent, Md Ashrafuzzaman, associate manager of Mortgage Retail and SME Islamic Banking Division of City Bank, said they were offering “a special rate” on home loans.

“We are offering a 9.9 per cent interest rate on home loans and a loan processing fee of 0.50 per cent to be paid alongside. We provide home loans through a wide range of customised products which can fulfil customers’ dreams and meet their requirements,” he said.

IPDC Finance Limited was offering loans amounting to 90 per cent of the property value and registration fee combined. Their loan processing fee stood at 0.50 per cent.

Md Sohag Miah, associate sales manager of Retail Business of the IPDC, said: “We are offering loans of up to 90 per cent of the property or apartment value. Normally, we offer 75 to 85 per cent.”

He said service holders, professionals, businesspeople, house owners, and expatriates are eligible for their home loans, which are available at a 'competitive' interest rate.

IFIC Bank was offering home loans with an interest rate of 10 per cent. Customers could borrow up to Tk. 2 crore through easy and quick processing. Md Imran Hossain, retail business associate, told The Independent that the interest rate varied from 10 to 13 per cent, depending on the customer, while the loan processing fee was one per cent.

“We are completing the loan approval process within 48 hours for customers,” he said.

Spot orders of

Tk. 2,000 crore

Realtors have received spot orders for flats, plots, and commercial space of Tk. 2,000 crore at REHAB Winter Fair 2019.

Different banks and financial institutions which participated in the event made commitments to provide loans of Tk. 1,700 crore for the purchase of flats and plots.

REHAB president Alamin said that this year the spot orders for flats and plots stood at approximately Tk. 2,000 crore.

According to a REHAB press release, 29,103 people visited the expo, and the fair generated spot sales worth Tk. 456 crore for flats, plots, and commercial space.

“At this year’s fair, visitors were more active and focused on buying flats and placing orders,” said Alamin.

He added that the buyers’ confidence had been boosted by the economic growth of the country.

To attract customers, 230 stalls were set up by 160 real estate developers. Thirty building materials companies and 14 money-lending organisations also participated in the event.

 

REHAB WINTER FAIR

Search for affordable apartment

Robel Islam Rezo from the capitals Malibagh area is looking for an apartment. I have come to the fair to get a general idea about the price of an apartment in my area. Its not possible to roam all around the capital in a day to get the information. The fair makes things easier, Rezo said while visiting the Real Estate Housing Association of Bangladesh (REHAB) Winter Fair 2019 yesterday. The fair was held from December 2428, 2019, at the Bangabandhu International Conference Centre (BICC) in the capital. As I am planning to buy an apartment soon, Im trying to find the best offer at an affordable price, he said. Rezo collected a few brochures and was calculating the potential for savings. Finally, his attention was drawn to an under-construction apartment project. He ended up making a spot booking for a 1,485-sq.-ft flat in Malibagh. Many visitors came with their families to inspect the best offers from real estate developers. Most were looking for payment information related to the terms and conditions of down payments and instalments. Mahfuzur Rahman, a businessman, visited the fair with his daughter. He was hoping to find a flat for his daughter between 1,200 and 1,500 sq. ft in size and within the price range of Tk. 5060 lakh. But now it seems quite impossible to find such a flat within this budget. The high apartment prices have forced me to shelve the plan, he said. Nevertheless, many participants at the fair said the overall sales of apartments have increased in the last few years as the countrys economic growth has boosted the confidence of buyers. In addition, enhanced home loans provided to public servants have increased their ability to buy flats, they added. Current housing market REHAB president Alamgir Shamsul Alamin said the housing business in the country started flourishing after the 1990s. The sector saw huge investments before 2010, and the market size crossed the Tk. 50,000-crore mark at the time. He explained that businesses had faced some stagnancy until 2018 for different reasons, including gloom in the share market. During that period, the number of the members of the housing association dropped to below 1,000, down from the earlier count of 1,400. Last year, however, more than 100 organisations have become REHAB members. Investment in the sector has soared. It has reached Tk. 60,000 crore at present, Alamin said. He pointed out: The current demand for flats across the country is about two million. This cannot be filled by our members. There is a yearly demand for more than one lakh apartments in Dhaka, but REHAB members can provide only about 25,000 flats, he said. According to Alamin, REHAB had long been demanding the possibility to invest undisclosed amounts in order to overcome long-standing sluggishness and losses incurred by businesses in the sector. The government recognised the issue in the latest budget. As a result, we have been witnessing a positive change, he said. Focus on middle-income segment The REHAB members are focused on building small two-room flats for middle-income families in the towns. REHAB president Alamin said that a number of companies had taken the initiative to sell flats at lower prices. We are thinking of developing flats for service holders, targeting single families. REHAB is paying attention to the building of small two-room flats, he revealed. Kartik Chandra Saha, deputy manager (marketing and sales) of Assure Group, told The Independent: Keeping in mind the middle-income group, we are offering flats of between 1,000 and 1,500 sq. ft. Besides these, we also have some flats for big families that are about 4,889 sq. ft in size. Md Jahiruzzaman, senior general manager at Basundhara Housing Group, said: We have several projects ranging from 1,000 to 1,500 sq. ft. Each project offers modern facilities such as parking, lifts, CCTV, mini hospital, and gymnasium. They are planned for the middle-income groups, he added. Prices beyond reach of middle class The organiser of the real estate and housing fair went all out to woo buyers, bringing developers, construction and building material companies, and loan providers under one roof. Though the presence of middle-income people at the fair was noticeable, the prices of apartments remained 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 eliminate the hassles of rented accommodation. But Alis plans were smashed by the high apartment prices. The price of every apartment was way too high. There was no flat available for less than Tk. 7,500 per sq. ft, which is 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 beyond my capacity, he said. When we go to a finance company to get a home loan, the high interest rates become overwhelming, 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 apartmenta three-bedroom flatwas in the range of Tk. 90 lakh to Tk. 1.7 crore depending on the location and the real estate company. Taniya Islam, a job-holder, lives in a rented house at Mirpur-10 area. She had come to the fair hoping to buy a flat. She told The Independent that the high prices of apartments, hassles of getting bank loans, and high interest rates meant the flats were beyond the reach of the middle class. REHAB president Alamgir Shamsul Alamin said the prices of apartments could not be reduced as the prices of land and building materials were high. He revealed that the prices of flats had not increased by more than 5 to 6 per cent in the last five years, whereas the price of land had increased severalfold. He said that the price of anything depends on the quality and production cost. In case of housing, the location is a big factor, and flats built by individuals do not ensure quality. In this connection, Alamin said that the REHAB members follow a number of criteria, including inclusion of parking and open space. They are cautious about using the right materials and choosing good locations, which pushes up the cost. As a result, they are unable to sell a flat at prices as low as those built at the individual level, he explained. Nevertheless, the members have been trying to lower their prices, he added. Lenders woo borrowers More than a dozen lenders competed to lure prospective home loan borrowers at the housing fair. Most of the 14 banks and non-banking financial institutions at REHAB Winter Fair 2019 offered home loans with an interest rate of 10 per cent, while others offered loans at 1113 per cent. For buyers from the middle and lower-middle classes, the presence of lenders at the fair is convenient. However, visitors at the fair demanded a reduction in loan interest rates as well as on the down payments. Speaking with The Independent, Md Ashrafuzzaman, associate manager of Mortgage Retail and SME Islamic Banking Division of City Bank, said they were offering a special rate on home loans. We are offering a 9.9 per cent interest rate on home loans and a loan processing fee of 0.50 per cent to be paid alongside. We provide home loans through a wide range of customised products which can fulfil customers dreams and meet their requirements, he said. IPDC Finance Limited was offering loans amounting to 90 per cent of the property value and registration fee combined. Their loan processing fee stood at 0.50 per cent. Md Sohag Miah, associate sales manager of Retail Business of the IPDC, said: We are offering loans of up to 90 per cent of the property or apartment value. Normally, we offer 75 to 85 per cent. He said service holders, professionals, businesspeople, house owners, and expatriates are eligible for their home loans, which are available at a competitive interest rate. IFIC Bank was offering home loans with an interest rate of 10 per cent. Customers could borrow up to Tk. 2 crore through easy and quick processing. Md Imran Hossain, retail business associate, told The Independent that the interest rate varied from 10 to 13 per cent, depending on the customer, while the loan processing fee was one per cent. We are completing the loan approval process within 48 hours for customers, he said. Spot orders of Tk. 2,000 crore Realtors have received spot orders for flats, plots, and commercial space of Tk. 2,000 crore at REHAB Winter Fair 2019. Different banks and financial institutions which participated in the event made commitments to provide loans of Tk. 1,700 crore for the purchase of flats and plots. REHAB president Alamin said that this year the spot orders for flats and plots stood at approximately Tk. 2,000 crore. According to a REHAB press release, 29,103 people visited the expo, and the fair generated spot sales worth Tk. 456 crore for flats, plots, and commercial space. At this years fair, visitors were more active and focused on buying flats and placing orders, said Alamin. He added that the buyers confidence had been boosted by the economic growth of the country. To attract customers, 230 stalls were set up by 160 real estate developers. Thirty building materials companies and 14 money-lending organisations also participated in the event.