Real Estate Business in Sylhet
eal estate is “Property consisting of land and the buildings on it, along with
its natural resources such as crops, minerals, or water, immovable property
of this nature, also an interest vested in this, more generally an item of real
property; buildings or housing in general. The business of real estate is the
profession of buying, selling, or renting land, buildings or housing.” The
organizations which are involved in buying, selling or renting land, building or
housing are the real estate developer company.
Background of the Study:
Bangladesh is an over populated country and day by day population is increasing
rapidly which created the housing problem. Land prices skyrocketed. Due to high
price, insufficiency of land, high cost of land registration, and high price of
building materials, people are now not interested to buy a land for building their
own house. That’s why they turn to real estate companies who are providing
flats or apartments. In response, real estate business has enjoyed a boom over
the years. In all over the Bangladesh, there are now companies growing up like
mushrooms. Most of the companies are situated in Dhaka, Chittagong and Sylhet
but also spreading throughout other divisional and district towns like Comilla,
Cox’s Bazar, Bogra, Rajshahi, Khulna, Mymensingh, Gazipur etc.
Most of the real estate businesses are conducted by private sectors. In Sylhet real
estate business expand vastly in twenty-first century. In this century a large
number of real estate companies formed in Sylhet. Some of these companies are
Next Plan Development Limited (NPDL), Batayan Shahjalal Developers Ltd.,
Merline Builders (PVT.)Ltd., Royal Homes Limited, North Surma Syndicate (Pvt.)
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Objectives of the study:
The broad objective of this study is to develop an understanding of the overall
picture of apartment/flat market of Sylhet City with particular emphasis to
customer’s behavior, preference and expectation side. The specific objective is to
know customers’ behavior pattern and to identify and gain insights about the
preference of the apartment buyers or customers while choosing and buying the
apartments or the real estate companies.
Types of Real estate business:
Various types of real estate business are practiced in the world.
1. Land Development
2. Retail Shopping Centers developing and selling
3. Office Buildings selling and renting
4. Apartments/Multi-Family Housing
5. Land/Apartments/Building renting
6. Multi-dimensional real estate business
In Bangladesh including Sylhet generally most of the real estate businesses are
categorized into three major sectors. So, most of the real estate companies in
Sylhet are formed based on these categories. A categorized model of real estate
businesses in Sylhet is given in next page.
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Shop & Storage
Both apartment &
Office building &
Land and Properties
renting and all types
of real estate
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Real Estate Companies in Sylhet
Some of the well known real estate companies in Sylhet are ….
Next Plan Development Limited (NPDL)
Batayan Shahjalal Developers Ltd.
Merline Builders (PVT.)Ltd.
Royal Homes Limited
North Surma Syndicate (Pvt.) Ltd.
Now we are shortly describing the profile of these companies.
Next Plan Development Limited (NPDL)
NPDL is the renowned architectural and engineering design studio in Sylhet. It
starts its work with architecture and engineering design in 2005. Now it also
works as Real Estate Developer Company.
Type: Architecture and Engineering designer.
Head Office: First Floor, Kaniz Plazza, Zindabazar, Sylhet.
Contact: 0821-813933, 01819580456, 01715356380
Web Address: www.npdbd.com
Services: Architectural Design, Structural Design, Electrical Design, Plumbing
& Sanitary Design, Graphic Design, Real Estate Development, Building Contact,
Supervision, Fire fighting system design, 3D modeling, Animation, Cost
Estimation, Survey, Land Planning & plotting, Soil Test, Renovation work.
Architecture and Engineering Designed Projects: Some of NPDL’s
architectural and engineering designed projects are Apon Blue Tower, Bijou
Palace, Anower Vista, Sadiq Villa, Sufia Complex etc.
Real Estate Business Projects: NPD Rose, NPD Sunflower.
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Batayan Shahajalal Developers Ltd.
Batayan Shahajalal Developers Ltd. is a newly established developer company in
Sylhet. It has started its work from 2011. It conducts business based on
apartment developing and selling.
Type: Residential Apartment Developer and Seller.
Sylhet Office: 27/2 payra Dorga Moholla Jornarpar, Sylhet.
Contact: 0821-722733, 01611 197010
Dhaka Office: House 69/2 (4th floor), Road # 7/A, Dhanmondi R/A, Dhaka.
Contact: 02-9124673, 01715842758
London Office: Relax property service, 7 Westport Street, London E1 ORA
Contact: 0207 7909493
Web Address: www.shahjalaltower.com
Project: Shahajalal Tower.
27/2 payra Dorga Moholla Jornarpar, Sylhet.
Merline Builders (Pvt.) Ltd.
Merline Builders (Pvt.) Ltd. is one of the renowned developer companies in
Bangladesh. It conducts its business in Sylhet sincerely. It started its work with
more than 1100 projects. More than 100 projects are completed and 200 are
under construction of them.
Type: Business and Residential Apartment Developer.
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Head Office: Merlin Tower (11th floor),
Subidbazar, Sylhet, Bangladesh.
Contact: 0821-712260, 01977660001~10
Wed Address: www.merlinbuildersbd.com
Projects: Merlin Tower, Tasmia Tower, Sharmin Jumana Tower, Mayesha
Tower, Naza Tower, Tahsin Tower, Ayesha Tower are the most top project of the
Royal Homes Limited
Royal Homes Ltd. is a multi-purpose company with the primary focus on
property development. It is a joint venture company between local Bangladeshi
& NRBs (Non Residence Bangladeshi). But, it gives importance on land
development. Royal Homes has launched its first project "Royal City" which is
ideally located on Shahporan Bi-pass road, a beautiful land script area called
Dakshin Surma. The project is a premium location and is situated in one of the
most important road network in Bangladesh.
Head Office:Royal Homes Limited
Shefa Bhaban, Mirboxtula, Sylhet 3100, Bangladesh.
Contact: +88-0821-726760, 2830281, +88-01713363666
Wed Address: www.royalhomesltd.com
Project: ‘Royal City’ is a brand that has set a benchmark in the real estate
industry through its quality, professional management and commitment to the
customer satisfaction. Royal Homes Ltd. takes pride on its success and salutes
the team works really hard.
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It possesses a position of excellent transport links. It just minutes from heart of
Sylhet city. The rail station is also minutes away. The project is comprised of
more than 3000 plots with all the residential facilities to be provided by the
Royal Homes Limited. These include: school, hospital, children's park, mosque,
community center, shopping mall, Lake Etc. It is the biggest (in terms of
authorized capital) & well planned (in terms of design) land project in Sylhet -
the Eastern Capital of Bangladesh.
North Surma Syndicate (Pvt.) Ltd.
North Surma Syndicate (Pvt.) Ltd. was established in 2005. It is doing its
activities trustfully. It focuses on location and modern architect design to build
apartment. NSSL makes both business and residential apartments.
Type: Business and Residential Apartment Developer.
Head Office: Surma Tower (6th floor)
Surma Point, V.I.P. Road, Sylhet.
Contact: 0821-723373, 01715 598732
Project: Surma Tower.
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Analysis of Comparative Status
Our listed five real estate companies are better than any other companies in
Sylhet. But, each of them has some difference from other. Most of them are
difference in their focus, business type, policies and constructional design. Like
as NPDL and Batayan Shahajalal Developers Ltd. basically focus on architect
and engineering design; Merline Builders (Pvt.) Ltd. and North Surma
Syndicate (Pvt.) Ltd. mainly focus on location but, they don’t ignore the
architect design, they also follow the modern architect design. Since Royal
Homes Limited focuses on land development, they always locate large area of
land in a good location.
In the business types – NPDL is a service based developer company. It provides
services in real estate development work. Batayan Shahajalal Developers Ltd.
and Merline Builders (Pvt.) Ltd. basically create and sell residential
apartments. On the other hand North Surma Syndicate (Pvt.) Ltd. develops
both business and residential apartments. It sells and rent showroom, office and
flats. Royal Homes Limited works for multi-purpose real property
development. But, it mainly develops land and sells plots.
People have a good faith on these real estate companies. Merline Builders
(Pvt.) Ltd. and Royal Homes Limited have the best status and reputation in
Sylhet as real estate developer. And NPDL is most top architect and engineering
Customers’ Behavior Pattern
Most real estate study is based on neoclasssical economic theory that assumes
that people make rational decisions about renting and buying real estate as part
of their attempt to maximize utility. While recognizing that real estate markets
are imperfect, most real estate researchers do not examine the influence that the
diversity of real estate consumers has on the demand for real estate. Consumers
are complex human beings driven by internal and external forces, some of which
are beyond their control and many of which they are relatively unaware.
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Internal forces are Consumer Choice, economic condition, motiation,
knowledge and learning, Attitudes, self-concept, personality and lifestyle.
The external forces are reference groups, culture, social class and family.
Some of these forces are briefly described below with the consideration of
realestate buyer in Sylhet.
Much of the study of consumer behavior focuses on consumer choice. Consumer
choice depends on utility theory in economics and attitude theory in social
psychology of consumers. Choice to buy real estate is directed buy the
customer’s economic stranght and utility processes of wealth, and their
Consumer behaviour is mostly varing on the economic condition of the
consumers. A person who has a sustainable and well economic condition, he
usually like to buy luxurious apartment. Economic condition is the most
important and strong force to drive customer to buy real estate property.
The forces that derive a person to buy a good or service is called motiation.
Needs, economic conition, scarcity or availablity of natural resources, attraction
for something etc. are good motivators. Most of the people have an attraction to
have real property. Economic condition of people in Sylhet is well because of
forign currency. That factors forces the customers to buy apartment and land.
Knowledge and learning
In the present age internet makes easyer to know about anything. Most of the
real estate developer companies have web page to provide information about
their projects. So that customers can easily learn about the real estate
companies and their projects, even customers can see their apartments’ design,
picture and feature. That helps them to buy the apartment.
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Self-concept is an organized set of perception of the self, comprised of such
elements as the perceptions of one’s characteristics and abilities; the perception
of oneself in relation to others; and objectives, goals and ideals which are
perceived as either positive or negative. Self-concept is now generally viewed in
several dimensions: ideal self, real self, self in context and extended self
(possessions and artifacts help define who one is).
Real estate can be a viewed as part of the extended self, an object that helps to
form identity. By their very nature, single family homes almost always perform
many highly emotional, individualized, personal roles in the lives of their
occupants. Consumers will choose to purchase real estate that either fits with
their current self-image or is associated with the ideal image they want to
achieve. This may be reflected in both choice of housing style and neighborhood.
Personality accounts for consistent patterns of behavior based on enduring
psychological characteristics. It is the pattern of traits and behaviors that makes
one individual unique and different from all others. Personality may be described
using the psychoanalytic, socio-psychological, or trait-factor theories.
Thus, a consumer’s personality may affect his real estate investment choices. A
risk taker is more likely to consider purchasing a run-down property in a
marginal neighborhood, planning to improve the property and take advantage of
neighborhood improvements. A risk taker would also be more likely to choose an
adjustable rate mortgage than a risk avoider, no matter what the financial
Lifestyle refers to the distinctive ways in which consumers live, how they spend
their time and money, and what they consider important as activities, interests
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and opinions. Lifestyles evolve over time, so consumption patterns are changing
Most of the high and middle class people in Sylhet now prefer modern
architectural designed apartments. Sometime they reject their old model house
to achieve new model apartments. The real estate companies make the work
Reference groups are individuals or collections of people whom the individual
uses as a source or point of comparison for attitudes, beliefs, value or behavior.
Each real estate consumer is influenced by his or her unique set of reference
groups. A buyer of an apartment influences other to buy an apartment.
Culture consists of society’s beliefs, values, ethics, customs, shared meanings,
rules, rituals, norms, and traditions. Culture provides people with a sense of
identity and an understanding of acceptable behavior.
Cultural norms that affect real estate demand include beliefs about whether each
child should have a private bedroom, but a shared bath. Most of the people in our
society prefer apartments with lift service, moderated design and facilities and in
a good location. The value placed on individualism is reflected in the demand for
customized homes. Builders would be wise to watch changing cultural values,
producing properties that are more environmentally friendly and housing
layouts that are more suitable for family activities and interaction.
Social stratification represents the hierarchical division of members of a society
into relative levels of prestige, status and power. Social class refers to divisions
based on economic and demographic characteristics. Those in same stratum
have roughly similar consumption, lifestyle, and income, and socialize with each
other. Nine variables have emerged from the research as most important in
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determining socialclass: the economic variables of occupation, income and
wealth; the interaction variables ofpersonal prestige, association and
socialization; and the political variables of power, class consciousness and
mobility. Most people feel comfortable when they are with people of similar
values and behavior and limit their social interactions to their immediate social
Possessions are symbols of class membership, with wealth reflected in the items
purchased. The most important possession decision reflecting a family’s social
class is the choice of where to live, both the type of home and the neighborhood.
Thus, social class will affect what neighborhoods and architectural design
consumers will consider for housing. In addition, housing layouts must
accommodate the furniture and living style of members of each social class.
People trying to move up through the social class structure might choose a house
and neighborhood that they think members of the higher class would choose.
In our society we see rural people rarely buy apartment in town they prefer to
buy land in villege. A high class person want to buy an expensive apartment in
top residential area. But, comparatively low class people try to buy apartment
with comparatively low price in general residential area.
The most influential reference group is the consumer’s family. The family teaches
the consumer cultural values that have a substantial impact upon shopping
behavior. It continues to be a point of reference even when the consumer has
formed his own household.
Family members may be involved in real estate decision making. One member
may influences other members of a fimily to buy or not to buy an apartment or
plot. So, family members are the good motivator of a buyer.
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Customers’ Perception to the Developer
Today customers have a good faith to the developer companies. They fill that the
developer companies realy help them. Developer companies are now make a
great opportunity for people to have an appartment easily. To know about
customers perception, the survey is very important. By conducting our survey
we know the customers parception about their developer companies. Most of the
consumers are satisfied with their developer companies. For example, the
customers of NPDL belive that their company applied a good architect design
and engineering methods and they get the services with afortable rate.Tother
developer companies like as Merlid Builders (Pvt.) Ltd. use good row meterials
which are perfect for the building size and also apply modern architect and
engeneering design. Companies are follow earthquake protection building code
to build apartments and use fire alarm system in apartments . The cost of the
apartments are in the customers’ purchasing capacity. Some of the customers
thing that who have no land in his or her faourate city he or she can buy an
apartment from developer company if he or she has enough ability. Customers
think that it is better to hire a developer company to build an apartment on self
owned land than build by one-self.
But, some of the customers hae negative perception about the developer
companies because of their sufferings. They sey that all developer companies are
not do the business honestly. They do not provive services properly. Some real
estate companies not follow the building code of city corporation, not provide
fire alarm system. Customers also complain that the developer companies may
not use proper row meterials and used meterials are low quality. Sometime their
lift is too small. These dissatisfactions of the customers are the threat for real
Dishonesty of one real estate developer company may break down the whole
real estate industry. So, real estate developer companies should be more
conscious about their activities and reputation.
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Post Purchase Behavior of Customers
The behavior after purchase something is called post purchase behavior.
Consumers post purchase behavior could be divided into three parts:
1. Post purchase Satisfaction
2. Post purchase Actions
3. Post purchase use.
Post purchase Satisfaction
Satisfaction is the function of closeness between expectation and products
perceived performance. In this case if the apartment failed to satisfy the
consumer then the consumer will be dissatisfied. If the apartments exceed the
consumers’ expectation then the consumer is delighted. Most of the customers
on whom we conduct our research are satisfied with their apartment. In Sylhet
different consumers choose different real estate companies, so in this case post
purchase satisfaction varies from customers to customers on the basis of their
psychology, expectations, and experiences.
Post purchase Actions
If the consumer is satisfied he will talk about his apartment to others and thus
other people will be inspired to buy this company’s apartments. Our sample unit
is not different from them. If they are satisfied, they influence to buy apartment.
This Post purchase Actions are also depends on customer’s psychology,
expectations and experiences.
Post purchase use
The marketer should monitor that how their product is used. For example, does
the consumer buy the apartment to live in it or to sell it? It varies from person to
person, some people buy apartments to live in, some to rent it and others to sell
it when it becomes more valuable.
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Attributes that Create Impression about
Attribute means - (i) to regard as resulting from a specified cause; consider as
caused by something indicated; (ii) to consider as a quality or characteristic of
the person, thing, group, etc.
Consumers may use the same attributes to evaluate apartment choices, but have
different beliefs about the apartment and their ability to satisfy their need.
Although both consumers may want a microwave, one may believe that a built-in
model is too small and will be difficult to replace while another believes that
built-in models can be just as large as a countertop model and will be relatively
easy to replace.
Customers’ attributes are depending on some expectation which can create
imprecation about Real Estate Developer Companies. Some of the expectations
A budgeted amount is the expected amount a customer keeps aside. In this
section, we are interested to know the budgeted amount kept by the customers
for the purpose of buying an apartment constructed by a typical real estate
developer company. In the survey it was found that maximum number of
consumers’ (53%) budget for an apartment is 40 – 50 lacks taka. Also, a
substantial number of consumers (26%) have a budget of more than 50 lacks,
whereas 21% of consumers’ budget is around 30 – 40 lack for purchase an
apartment. If any real estate company’s apartment’s price has gone beyond the
buying capacity of a group of people they will reject the company to buy
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Types of apartment
Types of apartment are also an important factor in consumers’ preference in
terms of an apartment. Because there are several types of apartments and
consumers can purchase any type of apartment based on their need, income and
budget. So it is important to find out that which type of apartment is more
popular among the consumers. In the survey it was found that about 57%
consumers prefer economy apartment, 25% customer prefer Semi Luxuries
apartment. On the other hand duplex apartment (10%) and luxury apartment
(9%) are more preferable to wealthy customers.
Preferable Facilities in an Apartment
Facilities of apartment are also an important factor of consumers’ preference in
terms of an apartment. Facilities are actually design and development related
features which makes one apartment project different from others and one
company from other. That’s why it is important to know that which types of
facilities are most preferable to the apartment purchaser.
Customers expect a playground, a gymnasium, proper parking area, place for
gardening etc. In Sylhet developer companies never fulfill those augmented
demand, they only fulfill the need for parking but it may not appropriate with the
number of cars at all.
Water and Gas Supply
Most of the customers want regular water and gas supply. Many companies
cannot satisfy their customers in this case because of shortage of these elements.
How customers determine about quality
Most of the consumers’ are more concerned about quality rather than price. Now
it is important to know how consumers determine or decide on quality or for
what factors consumers think some apartment is of better quality than others.
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Preference between apartment and land
Many customers have a dilemma between purchase of an apartment or a land.
Some think that purchase of an apartment from a developer company is
advantageous. Some consumers think that purchase of a land and then construct
own building is better. But it came out so that majority of the customers, around
seventy percent prefer purchase of an apartment to a land. The reasons
mentioned were: purchasing apartment has no construction hassle and also
saves one’s time needed to oversee a construction oneself; Increasing,
skyrocketing land price makes it difficult to purchase a land; increased and
volatile price of construction related raw materials is also one reason, that is,
once started with a predetermined budget it is difficult to manage with own
investment. On the contrary 37% consumers prefer purchase a land and
construct own building. The reasons stated were: Control over asset; proud
owner of a land and building; it is a source of income etc.
Above are some of the attributes that greatly influence to create imprecations
about developer companies.
In location selection both customers and real estate companies follow an
important strategy. Companies and customers prefer any important point, a busy
city, market area, and side of highway or junction of important roads, popular
residential area etc. to build or buy apartments.
Awareness of Customers
Customers should aware about the developer companies in buying apartment. A
customer should evaluate the following factors to buy an apartment -
Is the company approved by the government?
Old or new established company.
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See the company’s previous activities or project.
Evaluating their previous projects.
Communicate with the companies previous consumers.
Observing row materials.
Knowing the time length to be completed the apartment, if it was
Is the company conducting its business honestly?
Knowing the lifetime of building.
Is the building designed by an expert engineer?
A customer must buy apartment from a reputed company. Buyer should read the
deed and all document of the deal properly and should be clear about his
ownership and rights.
Our discussion on ‘Real Estate Business in Sylhet’ provides knowledge about real
estate companies and businesses in Sylhet, and their customers. A significant
portion of the study deals with consumers’ buying behavior pattern, perception
The comparative status analysis the similarities and difference among the real
estate companies basis on their types, design and business strategy. The
consumers’ behavior pattern analysis the factors that drive a customer to
purchase real estate assets. Customer perception talks about the customers’
beliefs to the real estate companies. Post purchase behavior has discussed the
customers’ satisfaction and dissatisfaction with their apartments. Attributes
estimate the customers’ expectation from real estate companies and their real
achievements from the company. It also estimated consumers purchasing
capacity and percentage of various segments. A customer must be aware about
the real estate companies while he or she buying an apartment to protect himself
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Developing Country Studies ISSN 2224-607X (Paper) ISSN 2225-0565 (Online),
Vol.2, No.2, 2012
Karen M. Gibler
Stetson School of Business and Economics
Susan L. Nelson
Department of Marketing
University of North Dakota