Real estate companies cut apartment prices by 11 percent on average in order to boost the depressed property market. A study shows that at present, the price of each square foot on average is Tk 9,091.
According to the managing Director of Sheltech , the apartment prices is 25 percent cheaper now as this sector has gone through a price correction process in the last three years. In Dhaka, each square foot of flat would sell at Tk 12,273 in 2012 and this price came down to Tk. 11,136 in 2013 and Tk. 10,182 in 2014 The study also shows that about 20,000 units of flats still remain unsold throughout the Dhaka city in which the flats in Uttara and Mirpur remain as most unsold. Banani experienced the highest price fall from previous year marking at 15.58 percent, Uttara and Shantinagar at 14.28 percent, and both Mohammadpur and Kalabagan at 12.5 percent. The flat at Mirpur and Shyamoli are being sold at Tk5500 per sft while Baridhara’s flats sell at the highest price at Tk18000 per sft. According to Real Estate and Housing Association of Bangladesh, the sector sales fell 60 percent in 2013.
The land price in Dhaka city also fell on average 14.12 percent as each katha is being sold at Tk.1.94 crore on average down from Tk.2.26 crore in 2014. The price of each katha in Baridhara is 4.5 crore while Badda and Basabo’s price is the lowest at Tk.35 lakh only. Now realtors incline to take big project instead of small projects because small projects increase their cost but in big project, developers can manage material at bulk rate and utilize the resources more efficiently which reduce the cost. With the increasing of people in the city, about 120000 household units need to accommodate them. The supply of housing in the city is only about 2500 of which 15000 are built by the real estate companies and top 20 companies have 80 percent share.
About 36 lakh people are related directly and indirectly to this sector which contribute about 7 percent to GDP of the country.
“That’s how we get 50%” - explained Lakshmi Venkatachalam, the Vice-President of Asian Development Bank, while sharing the insights of the Strategy 2020. Dawning as a savior in these days of economic predicament, Asian Development Bank has decided to increase its private sector exposure in Bangladesh. Accordingly they have adopted ‘Strategy 2020’ which supposedly will elevate ADB’s private sector coverage up to 50%.
2020 in a nutshell:
Considering the private sector to be ‘the driver of change’, ADB adopted highlighted the espousal of a certain strategy namely “Strategy 2020”. As described recently, ‘Strategy 2020 covers two aspects. First one is direct operations occupying 25 % of the allocation and the other one is the activities in the public sector targeting the progress of the private wings. According to the amazing Vice- President of Asian Development Bank, out of approximately $10bn worth of capital resources that the bank supplied, around $1.8bn went to the maneuver regarding this private sector.
Comments of the respected Vice- president, Lakshmi Venkatachalam
“Our [private sector] operation in Bangladesh is fairly modest but we want to grow it,” stated Lakshmi Venkatachalam, ADB Vice-President. She further shared that, Asian Development Bank aspires to be engaged with the Agro – Business, financial sector, potential undersized enterprises which assists financial intermediaries, skill development, variety of trainings and other related ventures. Explaining the significance of ADB’s decision, she said, “The support is very important as Bangladesh is an export-oriented economy.”
Being in charge of the private sector and co-financing operations at the bank, Ms. Lakshmi claimed that ADB has directly invested about $300 million in Bangladesh’s private sector so far. Along with that, they backed up $1.7 billion trade financing transaction in partnership with 13 banks in only last year.
The associated opportunities and threats
Foreseeing in the potential and scope in the Private sector of Bangladesh, Asian Development Bank predicts great underlying opportunities in this course of action.
Pleasantly, ADB has an agreement of co-financing with European Investment Bank, Islamic Development Bank, German development bank and other development partners as well. In case of this resolution regarding Bangladeshi Private Sector .ADB representative claims to have no intention of displaying market forces rather, the Bank operates to suffice more than what the market forces can offer.
Covering the opportunities, it is time to move on to the challenges or potential threats. Considering various factors, ADB Vice president Senses that bank are being ‘on time ‘with the sustainable support for the project is going to be the veracious challenge of the venture.
Reminding that it is a non-sovereign operation, Ms. Lakshmi said, “The project is a combination of many things - good sponsors, strong development impact while the risk level must be acceptable and bankable”.
Moreover, funding appears to be another big challenge. Regarding this, the senior official of the Asian lender admitted that,” The bank has limitation to fund 25% of the project costs and that’s why it collaborates with other development partners when it directly invests in the private sector”.
At last, it all comes down to the outcome. “This is recognized that Asia needs infrastructures while we do need to augment the resources,” Lakhsmi Venkatachalam commented and added that ADB needs more co-financing for sustainable infrastructure development in the region.
Bangladesh emerged as a democratic country on the world map in 1971 after it won the nine months long liberation war against Pakistan. At present, about 160 million people live here in the total area of about 1,47,570 km.
Here is a list of five good thinks that you should know about Bangladesh:
1. Bangladesh is truly a riverine country, surrounded by an assortment of rivers including the Padma, the Meghna, the Jamuna, the Buriganga. Moreover it owns -Cox’s Bazar-, the longest sea beach in the world. This is the best thing that one could possibly ask for in terms of relaxation and tourism. The beach is always crowded with tourists. Another magnificent thing in terms of nature is the Sundarbans. This largest mangrove forest of the south west at the moment is the residence of above 400 Royal Bengal tigers.
2. Bangladesh has an extraordinary variation when it comes to seasons. This land in fact is a playground of a range of seasons. All of its six seasons embellish surroundings in a whole new manner which is a complete souvenir. Each of the seasons comes with abundant fruits, vegetables and breathtaking stunning weather.
3. Bangladesh is a land full of vivid celebrations. Is has rich historical and cultural presence. Bangladeshi people celebrate cultural and traditional festivals throughout the year. Bangladeshis are very apprehensive about preserving their customs. The Bengali New Year, known as Pahela Boishakh that comes on 14th April, is one of the most colorful and widely celebrated events of the year. Besides, there are other events such as Pahela Falgun (beginning of spring),Pithapuli Uthshob ,Nabanna uthshob (celebration in favor of the new crops) etc. The Biggest religious events are Ramadan, Eid-ul-Fitr”,”Eid-ul-Azha,Durga puja and Christmas. Although majority of the people are Muslims, there is a number of Hindu, Christian and Buddhist people living in Bangladesh. All of the religious events are more or less given equal priority and are celebrated by all that makes the occasions even more delightful.
4. Bangladeshi people are very much friendly and helpful. Foreigners who come to visit Bangladesh often admire hospitality and share the story of how much hardworking & caring they are. This is one of the reasons why tourists love to visit this land over and over again. A significant thing is – Bangladeshis live in joint families. It is in their culture not to live separately, they like it to be together. It is very rare & unusual for someone to live alone or separate from one’s family. This binding leads them to respect the elders and to be friendly with others.
5. The country is rich in agriculture. It is the rivers that fertile the soil and makes it eligible to grow various crops easily. Thus it has made a good industry on rice, tea jute etc. Garments and leather products are the major export earning sectors. Its garment products fulfill the necessity of many of the European countries including USA. Once Muslin and Jamdani clothes were used as luxurious garments in Europe & other countries which were weaved by Bengali weavers. Since then this industry has been expanding and supplying quality clothes worldwide.
The goodness of Bangladesh does not end here. For the visitors, plentiful of sites are there that should not be missed. Such as Nilgiri, Rangamati, Srimongol(tea garden), Bandarban and many more. Rickshaw, which is a tri-cycle, is another popular yet enjoyable ride readily available in all cities.