Tuesday, November 5, 2024

Bleak weather for realtors

Looking Back
Bleak weather for realtors
Muzzamel Haque booked an apartment two and a half years ago, with hopes of taking delivery in May 2012. It would end his stay for two decades in a rented home with his family.
His aspirations now hang in the balance.
The stockmarket debacle that began in January this year has wiped out his investments and ability to regularly pay the instalments on a 1,705 square feet apartment in Dhanmondi.
Haque, a banker, is one of the many stock investors who are facing difficulties in paying the instalments on booked apartments at a time when the housing market passes a sluggish period.
Sales of newly built apartments, one of the main drivers of the housing market, slowed down in 2011 compared to the previous year amid uncertainties over fresh electricity and gas connections.
Realtors said the stalemate in utility connections along with a mandatory rule of installing solar panels in the new buildings is taking a toll on the sector, delaying the process of handing over thousands of apartments to buyers.
Around 16,000 ready flats are yet to be handed over to buyers due to the lack of electricity and gas connections, said Murad Iqbal Chowdhury, general secretary of Real Estate and Housing Association of Bangladesh (REHAB), at the inauguration of an annual housing expo — REHAB Fair — on December 15.
In addition, increases to the tax at source for developers, a liquidity shortage in banks and the ongoing stockmarket crisis also affected demand for new homes this year, said realtors.
“It was a very bad year for the overall real estate sector,” said Dr Toufiq M Seraj, managing director of Sheltech (Pvt) Ltd, which is yet to hand over 200 flats due to pending utility connections.
The sector handed over around 8,000 apartments a year to buyers since 2006, said Seraj.
But this year, the delivery of flats fell by 30 percent in terms of volume, he said.
The REHAB general secretary told The Daily Star last month that his firm — Mega Builders — sold 10-12 flats a month until the month of Ramadan.
“But I sold only two flats after Ramadan,” Chowdhury added.
“We have a lot of apartments to sell. But in reality those may remain unsold,” he said, blaming the government’s condition that mandates installing solar panels, restrictions on using air conditioners and lethargy in providing fresh electricity and gas connections.
To withstand the lull in business, many developers and builders have started offering price cuts to lure buyers and taking a go slow approach in their hunt for new lands.
But the prospect of a rebound in the housing market next year looks bleak in the face of a gloomy economic outlook, pressures from a volatile stockmarket, along with high inflation, and a slowdown in growth of exports and remittance earnings.
“The situation in the real estate sector will worsen in 2012. A deterioration of the political environment will also hurt the sector,” said Seraj, also a former REHAB president.
To withstand fallouts, Sheltech is avoiding projects on small sized lands, building 1,000-1,200 square feet flats to achieve economies of scale, finishing ongoing projects without delay, and importing elevators and generators directly to save costs.
“We want to keep our sales moving. So we are bracing ourselves for that,” he said.
The housing sector, which provides jobs to more than 20 lakh people, feels the pinch of a slowdown in businesses. Many new builders and developers have entered the scene in the past three to four years, encouraged by the rise in sales of new homes.
A rise in remittance and export earning and a growing stockmarket in the years until 2010 spurred demand for new homes, resulting in property and flat price hikes in the capital.
Realtors said the fall in sales in the outgoing year may put brakes on the skyrocketing prices of property and flats.
“For a majority of people, the price of property is too high to afford,” said Mohammad Farhaduzzaman, manager of Eastern Housing Ltd, one of the oldest realtors, citing a huge turnout of visitors at the REHAB show that ends on December 19.
Buyers lost hope when they came to know the prices of flats, he said. The price of a flat is no less than Tk 6,000 a square feet in major residential areas in Dhaka such as Dhanmondi.
The high price of property has also affected the sale of flats, said Farhaduzzaman.
Seraj of Sheltech said the hike in property prices does not match the growth of the economy, supply and demand for new homes.
“It can’t be said that property prices will go down. But it is quite certain that prices will not go up quickly,” he said.
“From a long term perspective, it will bring good results, as what was happening in the property market was not a financially viable proposition.”

-With The Daily Star input

Related News

Remittance rises in Oct, SOBs log larger share

Business Desk : dhakamirror.com Remittance inflow to Bangladesh increased by more than 21 per cent in October compared with that in the same month in the past year, as expatriates favoured official channels, mainly state-owned banks, following a significant political shift in the country on August 5. Bangladesh Bank data showed that remittance inflows reached ... Read more

Oppo celebrates tenth anniversary in Bangladesh with O Fans festival

Business Desk : dhakamirror.com Emphasising celebration and appreciation, OPPO, a leading global technology brand, is excited to announce its SUPER OFFER as part of the ‘O Fans Festival’ to celebrate its 10th anniversary in Bangladesh. The festival theme, “SUPER OFFER,” highlights unforgettable experiences for its dedicated fans through exclusive prizes and substantial super discounts on ... Read more

Bangladesh Travel and Tourism Council launched

Business Desk : dhakamirror.com A new think tank, Bangladesh Travel and Tourism Council (BTTC), has started its journey in a bid to create a network of professionals and businesses to foster collaboration and knowledge exchange in the local travel, tourism and hospitality sector. The council held its first meeting at a hotel in the capital ... Read more

Ethiopian airlines set to touch Dhaka’s runway

Business Desk : dhakamirror.com Ethiopian Airlines, the largest airline in Africa and part of the Star Alliance, will begin operations in Bangladesh next Sunday with its first flight on the new Addis Ababa-Dhaka route. The airline will provide five direct flights each week, giving Bangladeshi travelers access to over 155 global destinations, including major cities ... Read more

Unilever’s 15th edition of BizMaestros launches Nov 3

Business Desk : dhakamirror.com The 15th edition of BizMaestros-UFLP, the flagship business competition of Unilever Bangladesh, embodying the “Thrill of Real Business”, is all set to begin on November 3. As a leading player in the FMCG sector, Unilever Bangladesh has been at the forefront of skill development initiatives for over six decades, establishing BizMaestros ... Read more

Banglalink introduces affordable 4G Phone in partnership with Symphony

Business Desk : dhakamirror.com Banglalink and Symphony have joined forces to launch the “My First 4G Phone” campaign to make 4G technology more accessible and affordable. Through this campaign, they seek to bridge the digital divide by offering high-quality 4G phones at an unbeatable price, empowering more people to benefit from fast, reliable internet connectivity.The ... Read more

Bashundhara Toiletries introduces “Alora 2in1” Hair & Body Wash: first ever in Bangladesh

Business Desk : dhakamirror.com Bashundhara Toiletries announced the launch of “Alora 2-in-1” Hair and Body Wash, an innovative product designed to simplify your daily care routine. As Bangladesh’s first 2-in-1 solution for both hair and skin, Alora offers a unique blend of premium ingredients that cleanse, nourish, and revitalize. “Alora 2-in-1” is formulated with two ... Read more

350cc Royal Enfield set for Bangladesh launch on October 21

Business Desk : dhakamirror.com Ifad Motors, the manufacturer and sole distributor of Royal Enfield motorcycles in Bangladesh, is gearing up to launch the iconic motorcycle brand in the country on Monday (21 October). Four models will be introduced: Bullet, Meteor, Hunter, and Classic and the bikers will have 12 different colour options at competitive prices ... Read more

Luxury car sales slow to a near-stop

Market players blame economic and political uncertainty Jagaran Chakma Sales of luxury sedans and sport utility vehicles (SUVs) have been almost nil since July this year as customers have reined in spending amid the ongoing economic downturn and sudden political changeover in Bangladesh. According to various market insiders, sales have fallen by about 95 percent ... Read more

realme 12: The Speed Dominator launched

Business Desk : dhakamirror.com realme has unveiled its latest handset, the realme 12, in Bangladesh featuring SUPERVOOC charging, fluid performance and photographic prowess. This new device sets unprecedented standards with the ‘Born for Speed’ philosophy in the mid-range segment, reads a press release. At the core of the realme 12 is the Qualcomm Snapdragon chipset, ... Read more

TECNO mobile Bangladesh wins best retailer award 2024

Business Desk : dhakamirror.com TECNO Mobile Bangladesh has been awarded the title of the best retailer of mobile handsets at the prestigious Bangladesh retail congress . This honour is a testament to our unwavering focus on enhancing consumer satisfaction and convenience. We believe that our consumers are at the heart of our success and are ... Read more

Mastercard hold technology conference 2024

Business Desk : dhakamirror.com Mastercard recently organised the “Mastercard Tech Conference Q4, 2024” at a city hotel in Dhaka, Bangladesh, with participants from various banks and financial institutions. Zakia Sultana and Sohail Alim, Directors at Mastercard, Bangladesh, inaugurated the session. Munish Jairath, Director of Technology Account Management, Vageesh Raghavendra, Manager of Technology Account Management, and ... Read more

Stellar performers in Bangladesh travel, tourism and hospitality are honoured

Business Desk : dhakamirror.com The recognition programme, first of its kind in the country, was organised by the travel and tourism publication the Bangladesh Monitor. The programme is supported by Prime Bank PLC, a private-sector financial institution whose commitment to the industry’s growth is unwavering. Online travel agency BuyTickets, travel technology provider Sabre, and tea ... Read more

Businesses urge steps on law and order

Business Desk : dhakamirror.com Business leaders on Saturday sought better business climate in the country and said that issues like law and order situation, rising interest rates and other macroeconomic challenges must be addressed as these factors have impacted the economy negatively. Speaking at a seminar titled ‘Current state of the economy and outlook of ... Read more

Walton launches solar hybrid IPS

Business Desk : dhakamirror.com Walton Digi-Tech Industries Limited, a sister concern of Walton Group, recently launched solar hybrid Instant Power Supply (IPS) units, which are environment friendly, renewable and affordable as well. The price caps of these IPS units start from a minimum of Tk 79,500 and maximum Tk 465,000, depending on the inverter and ... Read more

Walton to attend in Canton Fair for the fourth time

Business Desk : dhakamirror.com Global electronics brand Walton is set to attend the ‘China Import and Export Fair’, widely known as the Canton Fair, for the fourth time. This prestigious event, recognized as one of the largest trade shows in the world, will see Walton showcase its latest AI-powered electronics and electrical products. The 136th ... Read more

First drone manufacturing factory to be set up in country

Business Desk : dhakamirror.com Bangladeshi company Sky Bees Limited is set to invest US$ 45.95 million to establish an Unmanned Aerial Vehicle (UAV, commonly known as drone) manufacturing industry in the BEPZA Economic Zone (BEPZA EZ). This will be the first factory to manufacture drones in the zones under BEPZA, creating employment opportunities for 55 ... Read more

OPPO A3 now available in Bangladesh

Business Desk : dhakamirror.com In a world where smartphones face constant challenges, OPPO is setting a new benchmark for durability with the launch of the OPPO A3 Series in Bangladesh. Designed as the ultimate durability champion, the OPPO A3 showcases OPPO’s commitment to enduring the rigours of daily life. Built with a robust structure to ... Read more

NBR scraps black money whitening scheme

Business Desk : dhakamirror.com The National Board of Revenue has cancelled the provision to whiten black money without scrutiny by paying a 15 percent tax. The tax administration issued a notification in this regard today. The development comes a few days after the interim government said it had decided to scrap the provision. The exemption ... Read more

BRAC Bank introduces VISA Platinum Flexi Card

Business Desk : dhakamirror.com BRAC Bank has introduced a new ‘VISA Platinum Flexi Credit Card’, exclusively designed for the youth and young professionals aspiring to elevate their lifestyle. The new credit card comes with a wide range of lifestyle, travel, hotel stay, and dine-in benefits for cardholders at a competitive annual fee, according to a ... Read more