In the last two years, the Covid-19 pandemic caused a global financial crisis, especially in developing countries like Bangladesh. While the RMG sector and several other industries kept the country’s economy running, there was one industry that surprisingly kept up the pace - the real estate sector.
Although the industry came to a standstill when the pandemic arrived, it boomed by the end of 2020, with more and more people rushing to buy land and apartments. The increasing demand has caused real estate companies to think of new and better ways to attract potential homeowners.
So how did the housing industry come back stronger? Experts say that one of the main reasons for someone to buy an apartment instead of renting is the decrease in home loan interests. The government recently reduced home loan interests to 5.0 per cent for the government employees. It is thought that they are spearheading the rising demand for apartments. In addition, reduction of the registration fees, land transfer tax, stamp duty and mutation costs, digitisation of land-related paperwork, and the opportunity to whiten black money by investing in real estate are other major reasons for the quick rebound of the housing sector.
That is not all. The pattern of customer demand has also changed significantly. Due to the scarcity of land within Dhaka, more people are interested in buying apartments on the city outskirts, namely Diabari, Purbachal, Uttarkhan etc. Flat sales in Aftabnagar and the outer Bashundhara Residential Area have also increased. These locations have many urban amenities and open spaces.
Pandemic made people understand the importance of fitness, greenery and open space. Recognising these demands, building technology & ideas ltd. - bti became the first real estate company to establish Wellness Communities in Bangladesh. These are homes that offer plenty of open spaces and many fitness facilities, such as gymnasium, swimming pool, sauna, play area for children yoga studio etc. They are appropriately located on the outskirts of Dhaka to give residents a healthier lifestyle. With the Metro Rail launching next year, connectivity in these areas with the rest of Dhaka will become much easier.
bti Brokerage has been working as a one-stop property-related solution since 2014. During the pandemic, its user-friendly website helped many tenants find their desired homes. Those who wanted to sell old apartments or buy new ones also used its services to find genuine buyers and sellers. bti Brokerage offers free home inspection and also screens both parties before negotiation. They also assist in documentation and legal vetting services, allowing people hassle-free solutions to buy, sell and rent properties.
As mentioned before, documentation and legal costs of apartments and land have decreased. This encouraged several landowners to develop their land, especially those who have plots of land smaller than five-katha. A landowner might have a design in mind but needs proper consultation for construction. Or maybe he has had his construction work done but needs interior designing. To meet these requirements, Square Feet Story was launched in the pandemic, a brand new venture where one can opt for expert construction services, architectural and interior design, landscaping and other services.
bti Building Products also managed to fare well during the pandemic despite construction material prices soaring high. Its eco-friendly building products greatly reduced construction time and costs. Last year, bti delivered a total of 23 projects on time.
Homeowners think about how to manage their properties. Reliable staff such as gardeners, cleaners, security guards and caretakers are required. bti Property Management does offer well-trained staff. It also provides electromechanical and plumbing services, renovation, swimming pool and even water maintenance services.
Bangladesh is set to become a country with a booming economy, with the real estate industry playing a major role in the change. Now that the bureaucratic procedures detangled, the rush in buying apartments and developing land have proven to be good news for the real estate companies. Infrastructure development is no longer a distant dream.
