The housing sector has been experiencing a whopping growth during the last few years.
The volume of housing loans disbursed by banks and other financing institutions marked an 11 per cent rise, reaching at Tk82.3b during the FY2003-04 over that of the preceding year, giving a big boost to the growth of the real estate sector.
The housing finance market is concentrated mostly in Dhaka sharing 80-90 per cent of the total loans. Despite having a huge demand, a large segment of the population is still unable to afford due to high rate of interest ranging between 14 to 20 per cent.
A weak legal/regulatory framework, inadequate long-term funding mechanism, mismatch in tenure of fund and lending, the high real estate prices and unsettling rental sector create further impediments for the advancement of the housing finance sector. The issues however, are yet to be addressed properly, though there is increased propensity of lowering interest rates for the sector.
The newly constructed high-rise buildings in the Dhaka city are ASA Bhaban at Shamoli, Nazarvalley at Badda near Gulshan, Hotel Westin at Gulshan, Apollo Hospitals at Bashundhara, Eunoos Centre at Dilkusha and Peoples Insurance Building at Motijheel.
Of them, Eunoos Centre has been officially inaugurated with opening of a branch of Southeast Bank Ltd on July 30.The imposing Eunoos Centre has enhanced the beauty of Dilkusha and its surrounding skylines.
Besides, construction of high-rise buildings like City Centre at Motijheel, BGIC Tower at Segunbagicha, Twin Tower in Kawranbazar, BGMEA Bhaban at Kawranbazar, Jamuna Shopping Mall at Bashundhara, National Sports Council Tower at Motijheel, Fortune Shopping-cum Apartment at Mouchak , Red Crescent Medical College at Ramna, Hotel Intercontinental and Holiday Inn near ZIA Airport, Sheltech Square Hospital at Panthapath, Sadharan Bima Car Parking Complex and City Bank Tower at Dilkusha, Shezad Plaza, Land View, Taher Tower, PBL Tower and Silver Tower at Gulshan are going on.
Of them City Centre, a joint venture project of Dhaka City Corporation (DCC) and UAE-based Belhasa-Accom JV Ltd will be the tallest building in Bangladesh. Financed by Social Investment Bank Ltd, the 37-storied building with nine floors for car parking will be completed by next two years.
Jamuna Shopping Mall owned by Jamuna Builders Ltd has a total floor area of about 4.2 million square feet and has three levels of basement car parks, which will provide 2,800 parking bays.
At present Dhaka has around 570 ten-storied and higher buildings, which will cross 1000-mark within a few years if the present 'construction frenzy' goes unabated.
The Real Estate and Housing Association of Bangladesh (REHAB) said that they are paying more than Tk 7.0 billion as revenue to the public exchequer. REHAB began its activities in 1991 with only 11 members. Now the organisation has 162 members.
The annual turnover of the country's real estate sector, according to REHAB, is more than Tk 75.0 billion and it contributes about 10 per cent to the gross domestic product (GDP) of the country. More than 80,000 apartments were sold during the last 20 years, including 7000 apartments handed over to buyers last year. Developers also develop 4000 to 6000 plots each year.
Country's real estate sector now provides direct employment to more than 1.50 million people.
Meanwhile, DCC is planning to construct a number of multi-storied buildings in Shankhari Bazar in the old part of the city, demolishing the existing age-old buildings which are at high risk to collapse.
Some 91 buildings on the Shankhari Bazar Road will have to be demolished as the area has become unsafe for living due to the old buildings and unplanned construction of new ones, a survey of the Urban Planning Department of DCC said.
Sources said the DCC has planned to construct several 12 to 15-storied residential cum commercial buildings. The apartments will be distributed among the owners of the buildings, which will be demolished.
Markets will be constructed on the ground floors of these buildings to offer the residents livelihood as most of the residents in Shankhari Bazar are traders.
