HDD-UBI Urban Report on Dhaka, Bangladesh

URBAN RESEARCH SERIES REPORT
CHAPTER OF REAL ESTATE
2017
BANGLADESH · DHAKA

CONTENT
FORWARD REGION SURVEY
06 Conversion Table and Editorial Committee
08 Research Institute
01
12 Macro Economy of Bangladesh
16 Development Plan of Bangladesh
18 Tourism of Bangladesh
20 City Development of Dhaka
CURRENT SITUATION OF
REAL ESTATE MARKET
CONSUMER
QUESTIONNAIRE
02
26 General Introduction of the Real Estate Market in Dhaka
28 The Real Estate Market in Dhaka: Land
34 The Real Estate Market in Dhaka: Product
36 The Real Estate Market in Dhaka: Exploitation
40 The Real Estate Market in Dhaka: Developer
42 TheRealEstateMarketinDhaka:RealEstateAssociation
44 The Real Estate Market in Dhaka : Finance
48 Getting to Know the Consumers
50 House Purchasing Pattern
52 Preferences and Demand
54 Household Income and Loan

05
UNIT CONVERSION TABLE
CURRENCY CONVERSION TABLE
100 BDT = 1.275 USD
1 BDT = 0.0865 CNY
1 USD= 6.7965 CNY
1 Lac= 100,000 USD
AREA CONVERSION TABLE
1 Katha = 66.89 m²
1 Acer = 4046.86 m²
06
ABOUT
THE REPORT
Purpose of the Report
The report mainly introduces the general condition of the People’s Republic
of Bangladesh, especially the real estate market in its capital Dhaka. The
report also covers general conditions of the different parts of the real estate
market in Dhaka and their development trends in recent years.
With nearly two governments of Bangladesh advocating the implementation
of the market economy, privatization policy, improving the investment
environment, vigorously attracting the foreign investment, actively creating
export manufacturing district, a good political environment has been
provided for foreign enterprise investing in Bangladesh market. UBI also
helps expand the oversea market for local enterprise in Bangladesh.
Therefore, the report is jointly complied by UBI-Urban Bangladesh
Institute and HDD. By comprehensive elaboration and analysis, the report
is to provide professional research support for enterprise and personal
investment on the city development of Bangladesh.

07
RESEARCH
INSTITUTE
UBI- Urban Bangladesh Institute
UBI is a think tank institute founed by governmental and non-
governmental organizations in Bangladesh. It is a non-profit
and cross-industries organization with services that covers the
entire nation. UBI aims to unite professionals and scholars
in architecture, real estate and urban studies, and apply their
expertise and knowledeg into pratice. By integrating academic
research and economic development, UBI serves as an
advisor and think tank that will facilitate urban and economic
development of Bangladesh, and boost its urbanization
progress.
08
Committee Member
[Director]
Gerhy Tsui
[Consulting Team]
Muhammad Hussain Bhuyan Hugo Day Sophia Yang
Wilda Xie
Qixiang Zhu Chen Chen Qingqing Sui
[Supporting Institutes]
Urban China Research Centre (UCRC)
Huadu Architecture and Planning Design Ltd. of Bangladesh

REGIONAL SURVEY:
MACRO-ECONOMY
General Information of the People's
Republic of Bangladesh
● Location: South Asia, the total land area of Bangladesh is
147.57 thousand square kilometers, the coastline is 550
kilometers;
● Population: By 2013, the total population was more than
0.15805 billion; the population density was more than 1100
people per square kilometers; Bangladesh's population
density is the highest among countries with its large
population (with a population over 50 million)
● Economic development level: according to the 2014
statistics of World Bank, the GDP of Bangladesh was 173.8
billion dollars; per capita GDP was 1096 USD; The GDP is
equivalent to that of China in 1986.
Growth Prediction
● Bangladesh grows at a rate of 5-6 in city development; so
far, there are 28% of population living in cities, and the
population will reach 34% in 2025;
● Preliminarily estimated, there are 5 million sets of housing
shortage in Bangladesh; in cities the housing sets increases
by 500 thousand per year, while in the rural areas the
housing sets increases by 3.5 million per year. (World Bank
Document, 2010);
● Therefore, in the next 20 years, Bangladesh needs
about 4 million sets of housing to fulfil the housing
demand every year.
As one of the most densified
countries,Bangladesh has a large
labor market.
11 12

REGIONAL SURVEY:
MACRO-ECONOMY
The Overall Economy of Bangladesh Demonstrates a Growing But Unstable Trend
● In the recent decade, the overall economic development of Bangladesh has seen relatively higher speed, but greater
volatility, due to the domestic turbulent situation.
● In the recent two years, the economy has stayed at a development level of more than 10%, which indicafes the potential for
future city development is growing.
● In the recent decade, per capita GDP of Bangladesh grows rapidly with a trend almost equivalent to its national economy. Its
overall economic level amounts to China’s in 1994-2004.
The whole economic level of
Bangladesh equals that of China
at the beginning of 21st century;
Bangladesh gets more stable and
rapid development in recent two years.
13 14
(Source: World Bank)
651 694 718
796
916
1025
1153
1286 1334
1500
1738
6.6%
3.4%
10.9%
15.1%
11.9% 12.5%
11.5%
3.7%
12.4%
15.9%
0.0%
10.0%
20.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
1000
2000 Figure 1 ：The national economic statistics of Bangladesh in the recent decade
GDP（Unit：100milliondollars） Growing Rate
461.0 485.2 495.8 543.6 619.3 685.5 762.8 841.5 862.0 957.8 1096.6
5.2%
2.2%
9.6%
13.9%
10.7% 11.3% 10.3%
2.4%
11.1%
14.5%
0.0%
10.0%
20.0%
0.0
1000.0
2000.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Figure 2 ：Per capita GDP of Bangladesh in the recent decade
Per capita GDP（Unit：dollar） Growing Rate
469 604 703 821 865 949 1042 1135 1274
1490
1732
0
1000
2000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Fugure 3：Per capita GDP of China in earlier decade
Per capita GDP（Unit: dollar）

DEVELOPMENT PLAN OF
BANGLADESH
Bangladesh Vision 2021
● Making Bangladesh a middle-income and a high HDI
country by 2021, the Golden Jubilee Year of national
independence
● Graduating Bangladesh to a resilient democratic nation
▷ Democratic culture
▷ Right to information and free media
▷ Independence of judiciary
▷ Gender balanced society
▷ Food and energy secured country
▷ Knowledge based society
▷ gender balanced society
● Strengthening ICT towards ‘digital Bangladesh’
● Protecting environment and meeting climate change
challenges
(Source: 《Perspective Plan of Bangladesh 2010-2021》》and《《Vision 2021》》)
Key Development Targets
● Increasing and sustaining annual GDP growth rate to 8%
by and 10% by 2017 and raising per capita income to US$
2000;
● Reducing the poverty headcount ratio to 15% by 2021;
● Achieve self-sufficiency in food by 212;
● Transforming the sectoral composition of GDP with the
share of agriculture, industry and services standing at 15%,
40% and 45% respectively by 2021;
● Reduction of unemployment rate 15%;
● Transforming the employment shares of agriculture,
industry, and services to 30%, 25% and 45% respectively
by 2021;
● Ensuring 100% net enrolment at primary school as soon as
possible after 2010;
● Providing free tuition up to degree level as soon as possible
after 2013;
● Attaining full literacy as soon as possible after 2014;
● Ensure living accommodation for the entire population as
soon as possible after 2015;
● Supply of pure drinking water for the entire population as
soon as possible after 2011;
● Bring each house under hygienic sanitation by 2013;
● Eliminate all contagious diseases;
● Increase life expectancy to 70 years by 2021;
● Reduce maternal mortality to 1.5%;
● Raise the use of birth control methods to80%;
● Reducing infant mortality to 15 per thousand live births by
2021;
● Generating 11,500 MW by 2015 and 20,000 MW by 2021
and ensuring per capita energy consumption up to 600
Kwh.
THE SEVENTH 5-YEAR
PLAN OF BANGLADESH
(Source: 《Perspective Plan of Bangladesh 2010-2021》》and《《Vision 2021》》)
Income and Poverty
● Attaining average real GDP growth rate of 7.4% per year
over the Plan period;
● Reduction in the head-count poverty ratio by 6.2
percentage points;
● Reduction in extreme poverty by about 4.0 percentage points;
● Creating good jobs for the large pool of under-employed
and new labour force entrants by increasing the share of
employment in the manufacturing sector from 15% to 20%;
Sector Development
● Significant growth in agriculture, industry and service
sectors;
● Increase the contribution of the manufacturing sector to
21% of GDP by FY20
● SubstantialimprovementofexportstoUS$54.1billionbyFY20;
● Achieving a Trade-GDP ratio of 50% by FY20.
Urban Development
● Infrastructural investment and civic facilities in peri-urban
growth centres especially around Special Economic Zones;
● Inclusive housing and other civic services for urban
inhabitants including for people living in informal
settlements and slums;
● Inclusive urban planning based on sustainable land use
planning and zoning;
● Increased productivity, access to finance, and policy
support for urban micro-small and medium enterprises;
Water and Hygiene
● Safe drinking water for all;
● Proportion of urban population with access to sanitary
latrines to be increased to 100 percent;
● Proportion of rural population with access to sanitary
latrines to be raised to 90 percent;
Energy and Infrastructures
● Install Generation Capacity of electricity to be increased to
2,300MW by 2020;
● Ensure energy mix for energy security
● Electricity coverage to be increased to 96 percent with
uninterrupted supply to industries;
● Reduce system loss from 13% to 9%, improve energy
efficiency conservation;
● Construction of 6.15 km. long Padma Multipurpose Bridge
at Mawa-Janjira;
● Construction of about 26 km. long Dhaka Elevated
Expressway;
● Construction of Dhaka-Chittagong expressway and
upgradation of Dhaka-Chittagong highway to 4-6 lane.
● Improve the multimodal transport network with a
significant increase in the share of rail and waterway traffic;
● Reduce urban traffic congestion with focus on Dhaka and
Chittagong cities;
● Reduce the incidence of road accidents
● Completion of the following highway Priority Mega
Projects: Padma Bridge, Deep Sea Port Project, MRT-
6 project; LNG terminal program, Payra Port Project;
Rooppur Nuclear Power Plant Project; Rampal Coal Power
Project, Matarbari Coal Power Project;
Environmental Sustainability
● Increase productive forest coverage to 20 percent;
● Improve air quality in Dhaka and other large cities through
enacting Clean Air Act;
● Promote Zero discharge of industrial effluents;
● Urban wetland are restored and protected in line with
Wetland Conservation Act;
● At least 15% of the wetland in peak dry season is protected
as aquatic sanctuary;
● 500 meters wide permanent green belt established and
protected along the coast;
● Land zoning for sustainable land/water use completed;
● Environmental, Climate Change and disaster, risk
reduction considerations are integrated into project design,
budgerary allocations and implementation process;
● Canals and natural water flows of Dhaka and other major
cities restored;
15 16

TOURISM
Tourism in Bangladesh is not developed yet. Only 100
thousand foreigners visit the country (over 3 million foreign
visitors entered Hangzhou, China in 2014).
According to WTTC’s statistics on 184 countries, total
contribution of travel and tourism in Bangladesh in 2014 is
$7.85billion, absolute size ranking 68th, relative size ranking
168th, contributing 4.1% to total GDP of the country.
WORLD RANKING (OUT OF 184 COUNTRIES)
Relative importance of Travel Tourism’s total contribution to GDP
FIGURE 4. TOTAL CONTRIBUTION OF
TRAVEL TOURISM TO GDP
FIGURE 5. BREAKDOWN OF TRAVEL
TOURISM’S TOTAL CONTRIBUTION TO
GDP AND EMPLOYMENT 2014
The government put emphasis on tourism development with
measures to push it.
In the next 10 years, tourism and investment will have higher
growth rate than the world average level. It is estimated that
tourism of Bangladesh will grow 6.5% per year, higher than
3.8%, the world average growth rate, ranking 12th.
68ABSOLUTE
Size in 2014
23GROWTH
2015 Forecast
12LONG-TERM GROWTH
2015-2025 Forecast
168RELATIVE SIZE
Contribution to GDP in 2014
Direct Indirect Induced
0
200
400
600
800
1000
1200
1400
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2025
2014 BDTbn GDP (2014 BDTbn)
Employment
= Total contribution of travelTourism
Direct
132
199
297
904
603
478
Indirect
Induced
Tourism in Bangladesh is not
developed yet, relying on nature
resources and traditional buildings,
with rare foreign visitors.
17 18

The environment in Dhaka city need
to be noticed when the city develop
rapidly.
DEVELOPMENT OF
DHAKA
Basic Information
● Dhaka is the capital and biggest city of the Bangladesh.
It is also the capital of Dhaka administrative area, the
political, economical, cultural center of the whole nation.
● Acreage: 360 square kilometers. From 1951 to 2009,
the city acreage of Dhaka increased by 17.88 times, the
population increased by 25.09 times;
● Population: over 15 million. The population density is 8111
people per square kilometers, which means 1% the land
acreage includes 8.3% the whole population nationwide.
● Also known as: city of Mosques, the capital of tricycle
Development Trend
● So far Dhaka is developing at an unprecedented speed,
accommodating more than 600000 every year, which
means it will provide housing for 120000 people (the
average number of households in Bangladesh is 4.8
person). But so far the city's housing supply is only 25000
sets per year.
● 60% of urban housing in Dhaka is provided by private
developers.
19 20

DEVELOPMENT OF
DHAKA
Price Characteristics in Different
Areas
● Motiiheel locates in the city CBD, including
Wards 31-36 and several other plates. The
land price is high because of its important
commercial value.
● Althou gh l a n d tr a ns a c tion volum e
in the old town is very low, and there
exists developmental problems such as
environmental quality, the price of the old
town is relatively high. In the old town, The
land value of Wards 62,63,64,66,68,69,70,
which are close to CBD and with strong
commercial characteristics itself, is high.
So far the main problem existing in the old
town is deficiency of effective planning,
municipal services and life supporting
facilities.
● The high land price areas mostly locate in
downtown area. Meanwhile, the existing
residential and commercial planned regions
are of high land price, such as Dhanmondi,
Gulshan Baridhara, Karwan Bazar(Ward
18,19,39) (many lands in the Bangladesh are
so short of plan that the land value cannot
be fulfilled).
● The southern part of the old town close to
the city fringe is of medium price.
● The fringe of the Dhaka city, especially the
west-north and east-south have lower price.
The land price are escalating to meet the
needs of city external expansion.
● Among the 4 selected fringe areas, the
highest price is only 0.006 Million Taka/Sq.
Meters ($76/m2), the lowest is below 0.015
million Tk./Sq. meters ($191/m2);
● Land price of fringe areas is less than ½ of
low-price urban areas.
Land Price ($/Sq.meters) Number of Wards Percentage(%)
High ($380/m2) 22 24
Medium ($190-380/m2) 33 37
Low ($190/m2) 35 39
Total 90 100
TABLE 1. LAND PRICE PERCENTAGE
(Source: Field Survey, 2004-2005)
Name of the Fringe Area Land Price (Million Taka/Sq. Meters)
Ashulia 0.006
Savar 0.0037-0.0045
Kamrangir Char 0.0045-0.0075
Keranignj 0.0022-0.0045
TABLE 2. LAND PRICE OF FRINGE AREA
(Source: Field Survey, 2004-2005)
21 22

CURRENT
SITUATION
OF REAL
ESTATE
MARKET
3Part

GENERAL INFORMATION
OF DHAKA REAL ESTATE
MARKET
Rapid urban population growth in Bangladesh, 3.7% per year in estimation, leads Dhaka real estate market well developing.
● Housing rent increasing rate is descending as in Bangladesh people intend to purchase house.
● Though housing rent increasing rate is descending, the total amount of housing rent is still growing.
TABLE 3. URBANIZATION RATE IN BANGLADESH
FIGURE 6. HOUSING RENT RATE CHANGING IN BANGLADESH
(Source: Rural and Urban Development Case Study-Bangladesh, Oxford Policy Management, Jun 2004)
(Source: Housing Real Estate Sector in Bangladesh Present Status and
Policies Implications)
(Source: CAB, 2005)
YEAR
RATE OF
INCREASE
1990
0%
5%
10%
15%
20%
25%
30%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
1970 1980 1990 2000 2010 2020
Urban Population (thousand) 5,059 12,713 21,750 34,354 52,223 74,432
Urbanization Rate (%) 7.6 14.9 19.8 25.0 31.1 37.7
Urban Population Distribution
(thousand)
Dhaka 1,474 3,257 6,621 12,519 19,393 N/A
Chittagong 693 1,332 2,265 3,651 5,389 N/A
Khulna 325 632 973 1,442 2,081 N/A
Rajshahi 108 238 517 1,035 1,676 N/A
Two primary property rights: private
permanent property rights and 99-
year of land use right.
The original owners of the land include: landowners, government or developers (landowners
deliver the land to the developers; after the construction of the buildings, the developers and
landowners will share the house).
By purchasing land from the landowners for commercial house-building development, the
developers get the right to use the land for 99 years. With the sale of the house, ownership
of the house and the right to use the land will be transferred to the new house buyer; after 99
years, the original landowner can retrieve the ownership of the land for free.
25 26

THE REAL ESTATE MARKET:
LAND PRICE
The Urban Land Price in Dhaka Dramatically
Increased From 1970s to 1980s, Resulting
in High Housing Price
● In the 1970s, Dhaka City experienced an unprecedented
increase in land price due to Bangladesh’s independence,
following rapid development of politics and economy.
From 1969 to 1979, the cost of living in Dhaka increased by
only 2.5 to 3.5 times, while the land price raised by 6 to 8
times. (Source: Seraj and Alam, 1989)
● Motijheel region (the city’s CBD) was the only sharply
growing area before the country’s independence,
indicating that CBD had been relatively prosperous before
the independence.
● The increasing land price is the most critical factor
resulting in the growth of urban housing price.
Azim
pur
PERCENTAGE (%)
Islam
pur
Purana
Paltan
Chaw
k
Bazar
Lalbagh
Sadarghat
Eskaton
M
otijheel
Segun
Bagicha
Bangabandhu
Avenue
Karw
an
Bazar
Ram
na
Dhanm
ondi
M
agh
Bazar
N
arinda
Candaria
N
aw
abpur
Sutrapur
%Increase (1947-1966) %Increase (1966-1983) %Increase (1983-2005)
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
11000
12000
13000
FIGURE 7. GROWTH RATE OF LAND PRICE IN DIFFERENT DISTRICTS OF DHAKA
FROM 1947 TO 1966, 1966 TO 1983 AND 1983 TO 2005
(Source: Land Price in Dhaka City: Distribution, Characteristics and Trend of Changes)
Critical Factors of Urban Land Price in Dhaka
● Type of the neighborhood (planned/unplanned)
● Width of the main toad (Wm)
● Width of the access road (Wa)
● Surface quality of the main road; Distance of the main road
from the area (Dm)
● Duration of water logging (Wd)
● Depth of water during flood (Dw)
● Distance of the nearest market place (Dmp)
● Distance of the nearest health facility (Dh)
● Distance of the nearest school (Ds)
● Distance to the CBD (dCBD)
TABLE 4. CORRELATION MATRIX OF INFLUENCING FACTORS
Land Price Wm Dh Wa Dmp Dm Ds dCBD Dw
Wm 0.736
Dh -0.379 -0.3597
Wa 0.679 0.6121 -0.29571
Dmp -0.439 -0.2682 0.266713 -0.22896
Dm -0.573 -0.3799 0.15229 -0.10272 0.4986
Ds -0.335 -0.0687 0.274791 -0.21552 0.4669 0.246
dCBD 0.04 0.3396 -0.0635 0.478922 -0.048 0.264 0.14
Dw -0.188 0.0478 0.175102 0.004555 0.5312 0.28 0.358 0.252
Wd -0.554 -0.3266 0.443437 -0.20965 0.554 0.49 0.356 0.197 0.728
Note: important factors figured out here with red rectangles of which
considered to be the most key factors on land price.
(Source: Field Survey,2004-2005)
TABLE 5. CHARACTERISTICS OF CRITICAL FACTORS AMONG THREE INTERVAL PRICE
Features Low Priced Land Medium Priced Land High Priced Land
Average land price (million Tk. / sq. meter) 0.009 0.02 0.04
Average width of the main road (meter) 16 23 31
Average width of the access road (meter) 2 3 5
Average distance to the community facilities (meter) 500 260 200
Average distance to the CBD (km) 2.5 2.6 2.6
Average distance to the main road from the locality (meter) 500 400 260
Average duration of water logging (hr) 17 6 3
(Source: Field Survey,2004-2005)
27 28

LAND PRICE
Land Transaction
● Land transaction in Bangladesh is accomplished by the
Sub Registry Office, and each Sub Registry office retains
the transaction records. But the price on these records has
lagged far behind the actual market price.
● Each land transaction should submit around 12% of the
land price as the government land transaction registration
tax.
● According to the following datasets of the actual land price,
the transaction tax should triple at least.
official land price (Million Taka/ Sq. Meter)
Actual land price (Million Taka/ Sq. Meter)
WARD NO
54 53 56 35 23 62 66 81 86 71 69 49 56 59
LAND PRICE
(MILLION TAKA/ SQ METER)
0
0.01
0.02
0.03
0.04
0.05
0.06
FIGURE 8. COMPARISON OF ACTUAL
LAND PRICE AND OFFICIAL LAND PRICE
TABLE 6. COMPARISON OF ACTUAL LAND
PRICE AND OFFICIAL LAND PRICEThe official land price in
Dhaka has far lagged behind
the actual land price, affecting
government revenue.
OFFICIAL LAND
PRICE (MILLION
TAKA/ SQ. METER)
ACTUAL LAND
PRICE (MILLION
TAKA/ SQ. METER)
RATIO OF ACTUAL
LAND PRICE TO
OFFICIAL LAND
PRICE
54 0.007 0.034 4.5
53 0.007 0.026 3.5
56 0.01 0.034 3.2
35 0.008 0.025 3
23 0.008 0.019 2
62 0.008 0.032 4
66 0.018 0.041 2
81 0.003 0.01 3.7
86 0.009 0.009 3
71 0.007 0.037 4
69 0.009 0.034 4.5
49 0.009 0.056 6.25
36 0.01 0.034 3
39 0.007 0.03 4
(Source: Official land price was collected from the office of the concerned Sub
Registrar and the actual price was collected from field survey. )
Land price pushed up the city’s
real estate price, but the Dhaka
government’s tax revenue did not
receive great benefits.
29 30

LAND PRICE
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
0.02
500
2500
2000
1500
1000
FIGURE 9. YEARLY GROWTH OF AVERAGE
APARTMENT PRICE IN DHAKA (USD PER
SQUARE METER)
FIGURE 10. GROWTH RATE OF AVERAGE
APARTMENT PRICE IN DHAKA
TABLE 7. AVERAGE PRICE OF
APARTMENTS IN DIFFERENT AREAS OF
DHAKA FROM 1990 TO 2010
(Source: Sheltech Survey) (Source: statistical yearbook, Bangladesh bureau of statistics)
YEAR
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
1990 1995 2000 20102005
PERCENTAGE CHANGE
Average Price of Apartment
Study on Apartment Price in Dhaka
● Two key factors influence the apartment price: land price
and construction cost.
● The average price of apartments increased sharply from
year 2000 to 2010 specifically in the areas of Baridhara,
Dhanmondi, Gulshan, Banani, and Shamoli.
● In 2005, the growth of price had a drastic growth.
Average Price of Apartments (Taka/
Sq. feet)
% Increase in price over
the past two decades
Area
Year Between
1990-2000
Between
2000-20101990 1995 2000 2005 2010
Dhanmondi 2150 2200 2400 3300 14000 12% 483%
Gulshan 2115 2080 2450 4500 14000 16% 471%
Banani 1750 1950 2200 3100 12500 26% 468%
Baridhara 1850 1950 2150 4000 20000 16% 830%
Lalmatia 1800 1950 2400 3400 8500 33% 254%
Mirpur 1250 1300 1500 2500 5500 20% 267%
Uttara 1650 1750 2000 2700 5300 21% 165%
Shantinagar 1850 1900 2200 2700 5000 19% 127%
Siddeswari 1450 1800 2250 2750 5500 55% 144%
Malibag 1600 1850 2250 2500 7000 41% 211%
Mohammadpur 1450 1600 1800 3500 4500 24% 150%
Shamoli 1350 1500 1600 2100 7000 19% 338%
Kolabagan 1800 2000 2250 2100 5500 25% 144%
Monipuripara 1850 2000 2250 3300 5500 22% 144%
Green Road 1600 1700 2000 2500 5500 25% 175%
Elephant Road 1600 1800 2200 2500 5500 38% 150%
Segun Bagicha 1450 1550 1900 2500 6000 31% 216%
TABLE 8. PRICE OF LAND (TAKA PER
KATHA) IN DIFFERENT AREAS OF DHAKA
FROM 1975 TO 2010
Key Factors Influence the Apartments Price
The key factors influencing the price of apartments: land price
and construction cost
● Land price
▷The land price had a drastic growth from 2000 to 2010;
compared to the year before 2000, the price has doubled,
or even increased by 3 to 10 times in some areas.
▷The lack of effective government control over land price
in Dhaka had led to skyrocketing price.
▷Consequently, 63.9% respondents considered the
high land price ultimately had a direct impact on the
affordability of apartments.
● Construction cost
▷Construction cost had also increased.
FIGURE 11. GROWTH RATE OF AVERAGE
LAND PRICE IN DHAKA, 1990-2010
FIGURE 12. GROWTH RATE OF
CONSTRUCTION MATERIALS COST IN
DHAKA, 1990-2010
(Source: statistical yearbook, Bangladesh bureau of statistics)
YEAR
0%
300%
200%
100%
400%
500%
600%
700%
1990
0.0%
219.8%
625.1%
2000 2010
PERCENTAGE CHANGE
Average Land Price
Brick Fine Sand Granular Sand Cement
Rod 60 Grade Flat per Sq Ft Land
YEAR
0%
800%
1000%
1200%
1400%
600%
200%
400%
1800%
1600%
2000%
90
0.00%
73.12%
199.72%
661.28%
1833.61%
95 00 05 10
GROWTH
8.15% 25.36%
74.88%
378.99%
Price of Land (Taka/ Katha)
% Increase in price
over the past two
decades
Area
Year Between
1990-
2000
Between
2000-
20101975 1990 2000 2010
Baridhara 25,000 600,000 5,000,000 40,000,000 733% 700%
Gulshan 25,000 600,000 2,200,000 25,000,000 267% 1036%
Banani 25,000 600,000 2,000,000 15,000,000 233% 650%
Mahakhali 25,000 600,000 1,800,000 12,000,000 200% 567%
Dhanmondi 25,000 600,000 2,200,000 20,000,000 267% 809%
Lalmatia 20,000 600,000 1,800,000 15,000,000 200% 733%
Azimpur 175,000 600,000 1,600,000 5,500,000 167% 244%
Mohammadpur 25,000 500,000 1,200,000 7,000,000 140% 483%
Shantinagar 20,000 500,000 1,500,000 10,000,000 200% 567%
Shamoli 17,500 300,000 1,000,000 4,500,000 233% 350%
Uttara 20,000 300,000 1,000,000 7,500,000 233% 650%
Cantonment 20,000 400,000 1,000,000 7,500,000 150% 650%
Komlapur 17,500 400,000 800,000 4,000,000 100% 400%
Gendaria 10,000 400,000 700,000 3,500,000 75% 400%
Basabo 2,000 300,000 800,000 3,500,000 167% 338%
Kollanpur 17,500 300,000 800,000 3,200,000 167% 300%
Mirpur 10,000 200,000 700,000 4,000,000 250% 471%
Badda 4,000 200,000 600,000 3,000,000 200% 400%
Goran 4,000 200,000 600,000 2,600,000 200% 333%
Demra 4,000 200,000 600,000 18,000,000 200% 2900%
Motijheel 50,000 1,200,000 3,500,000 20,000,000 192% 471%
Kawran Bazar 41,500 1,000,000 2,500,000 15,000,000 150% 500%
31 32

REAL ESTATE PRODUCT
Types of Real Estate Products
● Commercial Building: shopping mall, shopping street and
office tower
● Residential Building: flat and apartment
● Mixed-use Building: mainly for residential and commercial use
Trend of Product Types: Complex Town with
Multiple Uses and Functions
In recent years, real estate developers began to offer more
diverse products. The town model, a kind of Infrastructure
could complex satisfies all needs of people including office
buildings, shopping centers, housing, schools, swimming
pools, stadiums, banks and power plants. At the same time,
many of Bangladesh's real estate agencies intend to divide
one single building into multiple building as products.
Area 1970 1990 2010
Baridhara 25 600 8000
Gulshan 25 600 6000
Banani 25 600 5000
Mohakhali 25 600 5000
Dhanmondi 25 600 5500
Azimpur 17 600 3000
Mohammadpur 25 600 4000
Shantinagar 20 600 4000
DOHS 20 500 5500
Shyamoli 17.75 500 5500
Uttara 20 300 2500
Cantonment 20 300 2500
Kamalpur 17.75 400 4500
Sayedabad 17.75 400 3000
Gendaria 10 400 5000
Bahsabo 2 300 1500
Kalyanpur 17.5 300 1500
TABLE 9. THE PRICE OF FLAT IN DIFFERENT AREAS OF DHAKA, IN THE
YEAR 1970, 1990, 2010 (THOUSANDS BDT PER KATHA)
(Source: T. M „Housing problems and Apartment Development in Dhaka city)
33 34

REAL ESTATE PRODUCT
The Role of Construction and Real Estate
Industry
● The construction and real estate industry is the third pillar
of Bangladesh following agriculture and manufacturing,
accounting for more than 7% of GDP.
● The construction and real estate industry keeps growing;
however, comparing to growth rate of GDP, its growing rate
is relatively slow, resulting in the declining trend of real
estate transactions in the proportion of GDP.
● According to the Labor and Social Labor Survey, in 2002,
the construction and real estate industry recruited 4% of
the total labor force in the country, around 1.73 million. In
2005, the number reached to 1.76 million accounting for
3.7% of the total labor force.
● The developing construction industry accelerates the
relevant building materials industry and also the price of
brick, sand, cement and other related materials.
FIGURE 13. COMPARISON OF THE
GROWTH OF OVERALL GDP AND REAL
ESTATE TRANSACTION
TABLE 10. REAL ESTATE TRANSACTIONS
ACCOUNTED FOR THE PROPORTION OF
TOTAL GDP
Year
Real Estate, renting and business services
(% of GDP)
2001-02 8.63
2002-03 8.48
2003-04 8.30
2004-05 8.12
2005-06 7.87
2006-07 7.64
2007-08 7.49
2008-09 7.34
2009-10 7.20
The Development of Construction and Real
Estate Industry in Bangladesh
● Bangladesh real estate industry has been developing since
1970, with only five real estate developers in the beginning.
● From the 1980s, Dhaka's real estate industry stepped into
a period of rapid development; there were 42 real estate
developers till year 1988.
● Since 1990, the demands of industrial buildings, office
buildings, residential housing, roads and other facilities
FIGURE 14. CHANGES IN THE NUMBER OF
DEVELOPERS IN DIFFERENT TIME
FIGURE 15: CHANGES IN THE NUMBER OF
APARTMENT PRODUCTS IN DIFFERENT
TIME PERIODS
5 42
250
1500
0
200
400
600
800
1000
1200
1400
1600
1970 1980 2003 2015
increased, the construction industry in Bangladesh
boosted in 2003 with the number of 250 companies.
● Currently, Bangladesh has more than 1,500 real estate
companies, of which 1081 companies have registered in the
Bangladesh Real Estate Association (REHAB);
● Apartment is an important product of the real estate
industry in Bangladesh from the late 1970s. It reflects the
extent of real estate development in Bangladesh.
35 36

INVENTORY
Real Estate Product Sale
● The legally registered real estate companies get the permission
of relevant housing construction, then the products can be sold in
the market.
● During or after product construction, the product could be sold
with relatively small sales resistance and high price; Sales of
products in planning phase face large sales resistance with lower
price.
● House buyers should pay 20%-30% of the house price as deposit
before buying the commercial housing.
● Generally, sales events are organized by the marketing teams of
developers, as real estate intermediary agencies can only sell a
small amount of products.
The Inventory of Apartment Product
● The inventory of apartment product in Dhaka is relatively high.
● According to the data, real estate industry of Dhaka and other
cities is still at a low point.
● More than 8,000 apartments of developers in the association
are waiting to be sold. In addition, there are more than 1,000
developers who did not join the association are facing the same
problem.
● Bangladesh real estate industry stepped into the recession
period in 2010 that 3018 sets apartments were unsold, estimating
an investment of 16.24 billion Taka. In 2014, this number reached
to 12,185 , an investment of 88.11 billion Taka. At the same time,
the number of property transaction decreased from 2,492 sets in
2010 to 1,749 in 2014.
● The real estate downturn affected the upstream and downstream
industries. The annual growth rate of demand for cement
from the expected 15% decreased to 8%. Annual sales of steel
decreased from 700 million tons to 400 million tons, and the
increasingly serious unsafe working situation also make the
industry worse
While new types of residential
products continue to emerge, the
inventory of apartments has received
great attention.
37 38

DEVELOPER
Probashi Palli Group
● About the company: It primarily specializes in the real es
tate sector for the working class and provides residential
products. In addition, the company covers business in
Press, apartment management and electronic industries.
● Established in: 2007
● First project: Probashi Palli Abashon Prokalpo in 2008
● Project List:
▷Probashi Palli Abashon Prokalpo
▷Probashi Palli River View Prokalpo
▷Probashi Palli Satellite Town
▷Purbachal Probashi Palli Ltd.
▷Probashi Palli Abason
▷Shah Amanot City Ltd.
▷Probashi Palli Holdings Ltd.
▷Purbachal Shahparan City Ltd.
▷Next Builders Ltd.
▷Shahjalal City Gazipur Ltd.
▷Faiza Securities Ltd.
▷Purbachal Adnan City
▷Hotel Black Rose
▷Hotel Fahim International
▷Probashi Palli Agro based Industry
▷South Surma Developement Ltd.
▷Probashi Palli Education Developemt Ltd.
Case: Purbachal Probashi Palli
● Target customers: the middle class and elites, i.e., police,
lawyers, media, civic, public and private sector employees.
● Location:
▷Purbachal New Town is jointly developed by RAJUK
and Probashi Palli Group together. It is visualized to be
a wonderful new town and potentially the largest city in
South-east of Asia.
▷The Prime Minister's Secretariat, the Rajuk Office and
other important government agencies, as well as foreign
embassies, banks and international office buildings will
be transferred to the region.
▷Dhaka University and Oriental Oxford University will
move to this area.
● Project Benefit
▷The city's important roads, high-speed road entrance;
▷First-class hospital;
▷Banks, insurance companies, post offices, community
centers;
▷Advanced shopping centers;
▷Bus starting station;
▷close to the vegetables, fresh food production;
▷Playgrounds, parks, conference centers and leisure lakes.
House Payment
According to the price list of real estate companies, two kinds
of payment are offered: full payment and installment.
Influencing Factors on House Price
Direction to north or south, landscape, at the corner or not,
distance to the main roads and commercial centers are main
factors affecting the price.
Take the highest price (18.25Lac per Katha) as an example
18.25Lac=US$1,825,000, the price of house unit is
US$27,650/Sq metre
Take the lowest price (2.5 Lac per Katha) as an example
2.5Lac=US$250,000, the price of house unit is US$3,790/Sq
metre
The Price Offered by Probashi Palli Group is
Relatively Low Compared to Other Property
Developers
● Each real estate company has its own price system.
● It is correlated to the company’s target customer base,
project location and other factors.
Plot
Type
General North
Facing
General South
Facing
Garden/ Park
View
North Corner South Corner Avenue Side Avenue Corner Commercial
Block Installment At a time Installment At a time Installment At a time Installment At a time Installment At a time Installment At a time Installment At a time Installment At a time
A 16.25Lac 12.25Lac 16.75Lac 12.50Lac 17.00Lac 12.75Lac 17.25Lac 13.00Lac 17.45Lac 13.05Lac 17.75Lac 13.15Lac 18.25Lac 13.40Lac 20.25Lac 14.25Lac
B 14.25Lac 10.79Lac 14.75Lac 11.25Lac 15.00Lac 11.50Lac 15.25Lac 11.75Lac 15.45Lac 11.85Lac 15.75Lac 13.05Lac 16.25Lac 13.40Lac 18.25Lac 14.00Lac
C 14.25Lac 10.75Lac 14.75Lac 11.25Lac 15.00Lac 11.50Lac 15.25Lac 11.75Lac 15.45Lac 11.85Lac 15.75Lac 13.05Lac 16.25Lac 13.40Lac 18.25Lac 14.00Lac
D 12.25Lac 10.25Lac 12.75Lac 10.50Lac 13.00Lac 10.75Lac 13.25Lac 11.00Lac 13.45Lac 11.15Lac 13.75Lac 11.35Lac 14.25Lac 11.75Lac 16.25Lac 12.25Lac
E 12.25Lac 10.25Lac 12.75Lac 10.50Lac 13.00Lac 10.75Lac 13.25Lac 11.00Lac 13.45Lac 11.15Lac 13.75Lac 11.35Lac 14.25Lac 11.75Lac 16.25Lac 12.25Lac
F 7.25Lac 5.25Lac 7.75Lac 5.50Lac 8.00Lac 5.75Lac 8.25Lac 6.00Lac 8.45Lac 6.15Lac 8.75Lac 6.40Lac 9.25Lac 6.75Lac 11.25Lac 7.25Lac
G 7.25Lac 5.25Lac 7.75Lac 5.50Lac 8.00Lac 5.75Lac 8.25Lac 6.00Lac 8.45Lac 6.15Lac 8.75Lac 6.40Lac 9.25Lac 6.75Lac 11.25Lac 7.25Lac
H 5.75Lac 3.75Lac 6.25Lac 4.00Lac 6.75Lac 4.25Lac 7.25Lac 4.55Lac 7.50Lac 5.70Lac 7.85Lac 5.00Lac 8.25Lac 5.25Lac 9.25Lac 6.25Lac
I 4.25Lac 2.50Lac 4.75Lac 2.75Lac 5.25Lac 3.00Lac 5.75Lac 3.25Lac 6.25Lac 3.50Lac 6.75Lac 3.70Lac 7.25Lac 4.00Lac 7.55Lac 5.00Lac
TABLE 12. THE INFLUENCE OF DIFFERENT
FACTORS ON HOUSE PRICE
TABLE 11. THE INFLUENCE OF DIFFERENT
FACTORS ON INSTALLMENT AND FULL
PAYMENT
TABLE 13. PRODUCT PRICE OF DIFFERENT
REAL ESTATE DEVELOPERS
Plot Type Installment
Full Payment
6 Years 3 Years 1 Years
General North Facing 4.25Lac 2.50Lac 3.50Lac 4.50Lac
General South Facing 4.75Lac 2.75Lac 3.75Lac 4.75Lac
Garden/ Park View 5.25Lac 3.00Lac 4.00Lac 5.00Lac
North Corner 5.75Lac 3.25Lac 4.25Lac 5.25Lac
South Corner 6.25Lac 3.50Lac 4.50Lac 5.50Lac
Avenue Side 6.75Lac 3.70Lac 4.70Lac 5.70Lac
Avenue Corner 7.25Lac 4.00Lac 5.00Lac 6.00Lac
Commercial 7.55Lac 5.00Lac 6.00Lac 7.00Lac
Rate Per Katha
A Project of Purbachai Probashi Palli Ltd. Start From: 16.01.2016
Company Name Nature/Ft. 3Katha 5Katha 10Katha 20Katha
Probashi Palli Group South/North/Corner etc.
2-16
Lac Per Katha
2.5-16.5
Lac Per Katha
5-16.5
Lac Per Katha
5-20
Lac Per Katha
East West Property Development
Pvt Ltd
North. East. South. Lake View etc.
15-22
Lac Per Katha
18-25
Lac Per Katha
30-32
Lac Per Katha
35-37
Lac Per Katha
Prubachal Bestway city Based on 30-100 ft
17.84
Lac Per Katha
14-23
Lac Per Katha
17-28
Lac Per Katha
31-34
Lac Per Katha
US-Bangla Assets Ltd North. East. South. Lake View
11-18
Per Katha
11-18.30
Per Katha
11-17.35
Per Katha
10.10-17.20
Per Katha
Euro Bangla Abashon Ltd 30,40,50,60,120
1.8-2.65
Per Katha
2.35-3.7
Per Katha
2.8-4.35
Per Katha
5.45-7.15
Per Katha
39 40

REAL ESTATE
ASSOCIATION
RE H A B (Re a l E s t a t e a n d H o u s i n g
Association of Bangladesh)
● The only accredited non-governmental organization joint
by social-enterprise developers to standardize real estate
development and ensure developers' interests in real
estate industry.
● REHAB was established in 12th December 1991 with 11
members; at the end of 2002, the association has 89
members. In 2008, it covered 320 members; in the past
two years, the member of this association has reached
about 1130.
● Role of REHAB:
▷Organize REHAB Housing Fair annual meeting for
association members and institutions, especially for
important clients from abroad;
▷Establish reliability by offering Customer Service
Standing Committee for arbitration services;
▷Support the government, such as formulating real estate
industry policy, laws, rules and regulations;
▷Hold various seminars, conferences for organizations and
other professional groups;
▷Organize REHAB Week for young students for speech
and art competitions.
● Importance of REHAB:
▷The Bangladesh government has issued a notice that
if developers engage in residential, apartment and
commercial industry, association membership must be
required to ensure the quality of development;
▷The establishment of Executive Committee: setting out
regulations for clients, landowners, peers, the public
and the state’s business action, in case of violation of the
ordinance, it can be expelled from the association.
RAJUK (Rajdhani Unnayan Kartripakkha)
● An important government agency for urban planning
and development control of Dhaka city, integrating
with planning, regulatory and real estate development
company.
● Established in 1987.
● Take the Purbachal and Uttara (3rd phase) projects
developed by RAJUK as an example, according to the
floor design and quantity proportion of houses, there is no
priority to solve housing problems for the middle class and
the working class.
● Most of the house buyers are political and social elites
(such as businessmen, government officials and congress
members) and other groups who have high social
status (such as foreign immigrants, lawyers, writers and
journalists).
● In the Purbachal project, 24% work for the government, of
which the floor area of 733 sets is 5 Katha and that of 89
sets is 10 Katha. 15% work for low-income local residents
with floor area of 3 Katha.
Purbachal New Town Uttara Residential Area (3rd Phase)
SI. No. Category (and plot sizes)
Total nos. of allotment
(and as per plot size)
Category (and plot
sizes)
Total nos. of allotment
(and as per plot size)
1 Adibashi (3 Katha) 1034 -- --
2 Affected (unknown) 700 -- --
3
Armed Forces (3, 5, 7.5 and
10 Katha)
114 (44, 50, 14 and 6)
Armed Forces (3 and
5 Katha)
(8 and 4)
4
Artist2 (3, 5, 7.5 and 10
Katha)
151 (41, 80, 21 and 9)
Artist2 (3 and 5
Katha)
16 (11 and 5)
5
Autonomous (3, 5 and 7.5
Katha)
654 (261, 308 and 85)
Autonomous (3 and
5 Katha)
69 (47 and 22)
6
Businessman Industrialist
(3, 5 and 7.5 Katha)
472 (176, 213, 57 and 26)
Businessman
Industrialist (3 and 5
Katha)
45 (31 and 14)
7
Expatriate (3, 5, 7.5 and 10
Katha)
591 (220, 267, 72 and 32)
Expatriate (3 and 5
Katha)
57 (39 and 18)
8
Freedom Fighter (3, 5, 7.5
and 10 Katha)
296 (110, 134, 36 and 16)
Freedom Fighter (3
and 5 Katha)
28 (19 and 9)
9
Government (3, 5, 7.5 and 10
Katha)
1632 (610, 733, 200 and
89)
Government (3 and 5
Katha)
162 (111 and 51)
10
Journalist (3, 5, 7.5 and 10
Katha)
55 (20, 25, 7 and 3)
Journalist (3 and 5
Katha)
5 (3 and 2)
11 Justice (7.5 and 10 Katha) 14 (13 and 1) Justice (5 Katha) 10
12
Lawyer (3, 5, 7.5 and 10
Katha)
110 (40, 50, 14 and 6)
Lawyer (3 and 5
Katha)
10 (7 and 3)
13 MP4 (5, 7.5 and 10 Katha) 57 (1, 2 and 54) MP5 (5 Katha) 83
14
Others (3, 5, 7.5 and 10
Katha)
181 (92, 64, 17 and 8)
15
Private Service (3, 5, 7.5 and
10 Katha)
591 (220, 267, 72 and 32)
Private Service (3
and 5 Katha)
57 (39 and 18)
16
Remaining (3, 5, 7.5 and 10
Katha)
207 (85, 85, 25 and 12)
Remaining (3 and 5
Katha)
26 (17 and 9)
17
Retired (3, 5, 7.5 and 10
Katha)
57 (21, 26, 7 and 3)
Retired (3 and 5
Katha)
4 (3 and 1)
TABLE 14. DEVELOPMENT AND SALE OF
PURBACHAL AND UTTARA NEW TOWN
Note: Adibashi (original inhabitants), as the original local residents or who affected by land
expropriation, on behalf of vulnerable groups
(Source: Own accounting from Plot Allotment Results 2009 available at RAJUK website)
41 42

REAL ESTATE FINANCE
Financial Institutions in Real Estate Industry in Bangladesh
BHBFC(Bangladesh House Building Finance Corporation)
● A state-owned company that provids loans to Bangladesh housing and construction.
● In Bangladesh, loans are originated from: 1. BHBFC 2. commercial banks 3. employee loans 4.
social insurance.
● In general, priority is given to civil servants. Meanwhile, individuals, family and enterprise can
receive loans in purchasing or building houses.
● BHBFC offers 15–20 year mortgages at commercial interest rates.
● The loans are mainly concentrated in Dhaka and Chittagong Metropolitan areas.
DBH(Delta-BRAC Housing Finance Corporation Ltd. )
● A pioneer of private financial institutions, also the largest private housing financial institution
in Bangladesh.
● DBH has provided housing loan services for 7,500 families in Dhaka and other large cities in
Bangladesh.
● Mortgage duration: 15 years of mortgage at the most
● Loan interest rate: the current interest rate is 16.5%
NHFIL(National Housing Finance and Investment Ltd.)
● A private housing financial institution, offers financial loans for housing construction,
purchasing, repairing housing and purchasing house foundation.
1
2
3
Currently, Bangladesh has 23 private
financial enterprises to provide
housing loans.
43 44

CONSUMER
QUESTION-
NAIRE
4Part

GETTING TO KNOW THE
CONSUMERS
Information of the Respondents
● Most respondents are working-class in the service sectors,
business and banking sectors.
● More than 90% of the respondents are educated.
● 63% of the respondents are over the age of 40; 79% of
them are male.
● More than 50% of the respondents come from Zone-2
(Adabor, Dhanmondi, Mohammadpur, New Market) and
Zone-4 (Khilgaon, Motijheel, Paltan, Ramna, Shahbagh,
Tejgaon )
FIGURE 16. OCCUPATION VARIETY
FIGURE 17. EDUCATION LEVEL
FIGURE 19. GENDER OF THE
RESPONDENTS
FIGURE 20. AREA ORIGINATION
FIGURE 18. AGE DISTRIBUTION
Respondents Prefering Self-Building
● 286 of the respondents intend to build a home in
upcoming 10 years, accounting for 43%.
● Average monthly family income is BDT95,411.18.
● On average, respondents plan to build their houses on 4.6
Kathas of land.
Respondents Prefering Purchasing A Flat
● 385 of the respondents intend to purchase a flat in the
upcoming 10 years, accounting for about 57%.
● Average monthly family income: BDT97,300.
● On average, respondents intend to purchase a 1,786 square
feet flat.
FIGURE 21. EDUCATION LEVEL OF
RESPONDENTS PREFERING SELF-BUILDING
FIGURE 25. EDUCATION LEVEL OF RESPONDENTS
PREFERING PURCHASING A FLAT
FIGURE 26. OCCUPATION VARIETY OF
RESPONDENTS PREFERING PURCHASING A FLAT
FIGURE 22. OCCUPATION VARIETY OF
FIGURE 27. AREA ORIGINATION OF
RESPONDENTS PREFERING PURCHASING A FLAT
FIGURE 23. AREA ORIGINATION OF
FIGURE 28. AGE DISTRIBUTION OF RESPONDENTS
PREFERING PURCHASING A FLAT
FIGURE 24. AGE DISTRIBUTION OF
(Data source: A Comprehensive Study on the Real Estate Sector of Bangladesh, 2012)
47 48

HOUSE PURCHASING
PATTERN
Characteristics of Respondents Preferring
Self-Building
● Current residence: Zone-4 (Khilgaon, Motijheel, Paltan,
Ramna, Shahbagh, Tejgaon)
● Intend to build houses in the areas: Uttare, Mirpur,
Purbachal, Bashundhara, Mohammadpur, Dhanmondi,
and Gulshan.
● Major reasons for preferring a particular area
▷Close to office, school, college, etc.
▷Less expensive (eg. Mirpur)
▷Calm, quiet and good environment
▷Better planned area (Bashundhara area, Purbachal area,
Dhanmondi, Gulshan)
▷Residing at that area for a long time and have relatives in
that area.
● Characteristics of the respondents
▷Respondents from the middle income group, i.e. 30,000
to 45,000 and 45,000 to 60,000 are more interested to
build their own houses in the future.
▷About 84% from those two groups reside in rental
houses.
current residential area
construction area in the future
Legend
FIGURE 29. AREA PREFERENCE OF SELF-
BUILDING
Data resource: A Comprehensive Study on the Real Estate Sector of
Bangladesh, 2012
Characteristics of Respondents Preferring
Purchasing A Flat
● Respondents who are currently residing at Zone-2, Zone-3
and Zone-5 are more willing to purchase flats.
● For purchasing flats, respondents mostly prefer:
● Dhanmondi, Uttara, Mirpur, Mohammadpur, Gulshan-
Banani, Basundhara area, and Malibagh-Mogbazar area.
● Major reasons for preferring a particular area
Better planned area (Uttara, Bashundhara, Dhanmondi,
Gulshan)
▷Close to office, school, college etc
▷Residing at that area for a long time and have relatives in
that area
▷Less expensive (Mirpur, Mohammadpur, Uttara)
● Characteristics of the respondents
▷Part of the low-income or middle income class with
monthly income below BDT30,000 or between 30,000-
45,000, who plan to purchase in 10 years.
▷Part of the high-income class with monthly income of
BDT60,000-75,000 of above 75,000 plan to purchase in
three to five years, most are bank workers who can receive
lower bank lending rate.
FIGURE 30. AREA PREFERENCE OF
PURCHASING A FLAT
Data resource: A Comprehensive Study on the Real Estate Sector of
Bangladesh, 2012
49 50

PREFERENCES AND
DEMAND
Conflicts Between the Real Living Needs
and Market
● Large Units are more popular due to the household
structure.
▷Households including parents plus one or two children
prefer apartments with two or three bedrooms.
▷Now, more than half of the apartments in the market are
between 1000 and 1600 square feet (92 to 148.6 square
meters), and only 2% of the apartments are less than 700
square feet (65 square metres), which also shows the
negative market acceptance of such small apartments.
● The Bangladesh rental market is booming all-time-tigh.
▷Bangladesh has no active second-hand housing market
because of the high transaction tax and the continuous
rise in land prices;
▷According to the questionnaire survey, most people do
not have the ability to purchase a house in a short term.
▷The rents in Dhaka rose by 250% from1990 to 2007.
Potential Buyers Are Considered to be the
Middle-Income Class.
Data source: A Comprehensive Study on the Real Estate Sector of Bangladesh,
2012
Data source: A Comprehensive Study on the Real Estate Sector of Bangladesh, 2012
FIGURE 32. FORECAST OF DWELLING
NEEDS CHANGING IN LIFE-SPAN
Forecast of Dwelling Needs Changing in Life-Span
In short-term (i.e. 3-5 years), respondents prefer purchasing a flat but in long-term (i.e. 10 years), self-building is more
welcomed.
Note: according to the forecast requirement, monthly income of more than
30000 Taka as potential consumer.
Population of Dhaka
14,251,000 (CIA
World Fact Book)
10,298,888 (SBS, Dec
2011, BB)
11,875,000
(Census 2011)
Avg. no. of member in a household 4.5 4.5 4.5
Total household in Dhaka 3,166,889 2,288,642 2,638,889
Total household in Dhaka who have 30,000+
income
410,112 296,379 341,736
Total 30,000+ income group people in Dhaka 635,674 459,388 529,691
Demand for houses
Total demand to build a home in 3 years 40,429 29,217 33,688
Demand for flats
Total demand to purchase a flat in 3 years 105,331 76,121 87,770
TABLE 15. ESTIMATED DEMAND FOR FLATS AND HOUSES IN DHAKA
51 52
FIGURE 31. DEMOGRAPHICS OF
POTENTIAL HOUSING PURCHASERS
(Source: Housing Real Estate Sector in Bangladesh Present Status and
Policies Implications)
Area Distribution of High-Income Group
low-income high-incomemiddle-income
50% 45% 5%

HOUSEHOLD INCOME
AND LOAN
Family Income and House-Purchasing
Funding
● Among the respondents around 50% (330 out of 676) has
an average family saving of around BDT 20,000.
Real Estate Sector Loan Information
● It is obvious that the loan amount of enterprises is arising.
● Personal housing loan is on a downward trend, due to
TABLE 16. SAVINGS OF THE
RESPONDENTS BASED ON MONTHLY
FAMILY INCOME
TABLE 17. SAVINGS OF THE RESPONDENTS
BASED ON RESPONDENT’S PROFESSION
Monthly family income Monthly average savings
Below BDT 30,000 BDT 5,000
BDT 30,000 to 45,000 BDT 6,000
BDT 45,001 to 60,000 BDT 10,000
BDT 60,001 to 75,000 BDT 12,500
More than BDT 75,000 BDT 35,000
Profession of the respondents Monthly average savings
Doctor BDT 30,000
Engineer BDT 30,000
Banker BDT 20,000
Teacher BDT 8,500
Businessperson BDT 30,000
Lawyer BDT 40,000
Service holder BDT 10,000
Others BDT 15,000
Data source: A Comprehensive Study on the Real Estate Sector of Bangladesh,
2012
TABLE 18. LOAN AMOUNT ON REAL ESTATE SECTOR OF BANGLADESH,2006-2011
(TK. IN LAC)
Real Estate Sector June,2006 June,2007 June,2008 June,2009 June,2010 June,2011
Housing Society/ Company 136,034 157,973 172,262 242,461 369,470 623,134
Urban Housing 416,528 520,845 567,748 684,000 837,173 985,242
Rural Housing 12,600 18,997 43,192 29,091 46,596 71,735
Apartment/ Housing Renovation 20,582 37,529 46,465 100,829 113,033 172,660
Flat Purchase 37,796 111,629 160,883 145,995 213,009 310,878
Land Pruchase 16,016 13,537 19,561 34,243 45,898 42,186
Total 639,556 860,510 1,010,111 1,236,619 1,625,179 2,205,835
● More than 80% of the respondents declared bank loan as
a major source of funding.
● Most of the respondents affirmed that due to difficulties in
getting bank loan they were unable to fulfill their housing
needs in the future.
Source: Scheduled Banks Statistics, Bangladesh Bank
TABLE 22. NO. OF LOAN A/C (INDIVIDUAL / INSTITUTION) ON REAL ESTATE SECTOR,
2006-2011
Real Estate Sector June,2006 June,2007 June,2008 June,2009 June,2010 June,2011
Housing Society/ Company 922 2,166 1,669 1,088 1,747 2,385
Urban Housing 53,167 62,411 95,383 64,497 72,801 72,472
Rural Housing 25,651 29,448 36,499 27,011 27,415 31,113
Apartment/ Housing Renovation 2,877 `2,711 3,572 8,060 7,387 11,230
Flat Purchase 3,066 16,459 27,052 34,287 10,022 11,932
Land Pruchase 966 1,971 33,199 27,357 15,131 7,515
Total 86,649 115,166 197,374 162,300 134,503 136,647
difficulties in getting loans, such as Flat Purchasing.
● Because of the soaring land price, fewer people are able to
buy either flat or house. To the abled people, they have to
pay more to buy, thus the loan amount is still rising.
● During the period of 2007 and 2008, the Interim
Government period, the number of loan accounts had a
sharp positive growth, but the total loan amount for this
period had a negative growth. It means loan was disbursed
to a number of clients, but the loan amount was lower.
During the period 2008 and 2009, the situation turned over.
● After June 2009, during the tenure of present government,
total loan amount maintained almost a linear growth. At
the same time, the number of loan accounts raised from a
negative growth to its usual trend.
● During the period of 2007 and 2008, the number of loan
accounts and the total loan amount both had a drastic
negative growth.
● The number of loan amount had a constant negative
growth continued up to 2010, but the total loan amount
had a rather steady growth.
● In 2006, loan was disbursed to 3066 different apartment
buyers.
● In 2009, 34287 apartment buyers were provided with bank
loans.
● In 2006, loan was disbursed to 922 real estate developers.
In 2011, this number raised to 2385.
● During the period of 2007 and 2008, loan accounts had
a drastic negative growth. The total loan amount in this
period also had a slender negative growth.
● After June 2008, total loan amount had a continuous
positive growth. During 2009 to 2010, the number of loan
accounts had a sharp, almost exponential, positive growth.
FIGURE 33. OVERALL GROWTH OF LOAN
ACCOUNT AND AMOUNT TO THE REAL
ESTATE SECTOR, 2007-2011
FIGURE 35. GROWTH OF LOAN ACCOUNT
AND AMOUNT TO THE APARTMENT
BUYERS , 2007-2011
FIGURE 34. GROWTH OF LOAN ACCOUNT
AND AMOUNT TO THE REAL ESTATE
DEVELOPERS, 2007-2011
FIGURE 36. NUMBER OF APARTMENT
BUYERS WHO HAVE TAKEN BANK LOANS
TO PURCHASE FLATS, 2007-2011
Data source: A Comprehensive Study on the Real Estate Sector of Bangladesh, 2012
53 54

HDD-UBI Urban Report on Dhaka, Bangladesh

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