In spite of scarce land, the real estate industry has been booming since the liberation of 1971, at the rate of 3.25% per year. It has an extensive potential to attract investment to its different segments. Progress is only possible with industry-government teamwork. The government must provide financial incentives to developers to build low-cost and affordable housing for all, and guidance through policies and ‘affordable houses’ must be ensured as a minimum standard for all.
In a recent seminar, there has been an announcement about Islami Development Bank (IDB) planning to give Bangladesh House Building Finance Corporation (BHBFC) BDT 800 Crore in a loan on soft conditions to extend its housing loan program. This initiative is directed towards rural areas across the country. According to BHBFC, it disbursed BDT 118.06 Crore in housing loans in the first six months of the fiscal year 2016-17 (FY17). Field-level officers-employees are trained to increase the loan services standard.
The Islamic Development Bank (IDB) has approved $95.24 million for the Rural and Peri-Urban Housing Finance Project in Bangladesh, according to a release the IDB received.
The approval was given at the 320th meeting of the Board of Executive Directors of the Jeddah-based development bank held on Sunday. The meeting also approved a total of $1096.4 million to support a large number of development projects in its 57 member states, including Bangladesh.
The real estate sector is progressing in spite of the global recession. Provisional GDP estimate of Bangladesh Bureau of Statistics (BBS) for the outgoing 2015-16 fiscal years suggests that the construction sector’s growth surged to 8.87% from last year’s 8.60%, and the previous fiscal year’s 8.08%. Renting and business activities grew at a faster rate of 4.51% this year, up from last fiscal’s 4.40% and the previous fiscal’s 4.25%. The construction sector’s share of GDP has been estimated at 7.28% for the current fiscal year, which is an increase from the 7.16% last year and the 7.03% in the previous year.