A Brief Review on Real Estate Sector in Bangladesh
The concept of Real Estate is developed to resolve the residential facility which is a big problem in a densely populated country like ours. Especially the cities where unavailability of land tends to rise the tendency of high rise apartments rather than private dwellings. At present 28% of the population of Bangladesh live in urban areas, which will be 34% in 2025.
In our country real estate business started in Dhaka in late seventies. The Eastern Housing of Islam Group is the pioneer in this business. During 1970s there were fewer than 5 companies in Bangladesh engaged in this business. In 1988 there were42 such developers working in Dhaka and now in 2005 there are about 250 companies engaged in this business. From the early 1980s the business has started to flourish and in 1990s it has reached its peak. Towards the end of year 2000 there was slight downfall in real estate sector. With the number of companies increasing gradually and various problems concerning the housing sector having cropped up requiring early solution, necessity was strongly felt for the formation of a trade association of the Real Estate business. Real Estate and Housing Association of Bangladesh or briefly REHAB was established in December 12, 1991 has solved the problem.
The role of REHAB in Bangladesh:
To obtain recognition for the Housing Sector as an industry, efforts of REHAB have met with partial success but there is hesitation in its implementation for lack of necessary regulating orders. Vat was to be recovered at the rate of 15% of the cost of an apartment. But REHAB took up the case with NBR and succeeded in convincing the NBR with all facts and figures to affect actual deduction of 1.98% of the price of an apartment. VAT has been enhanced since July, 1999 to 3%. REHAB succeeded in this respect in a limited way in that it could convince the House Building Finance Corporation (HBFC) about a close cooperation between the developers and the HBFC. Representatives of REHAB were invited to participate in the formulation of National Housing Policy during 1993. It can be said with satisfaction that the recommendations of REHAB were quite constructive and were given due considerations in the policy. The REHAB members have met Ministers & Officials of the Ministry of Public Works and RAJUK many a times to put forward its views on policy guidelines on housing, expansion of housing sector targeting the low and low-middle income group through distribution of developed land by Government, compulsory membership of all developers of REHAB and uniform transfer modalities of land and apartment by Ministry of Public Works and RAJUK. General terms and conditions of RES allotment:
Application for allotment of apartments should be made on the prescribed application form duly signed by the applicant along with the earnest money. The company has the right to accept or reject any application without assigning any reason. On acceptance of an application, the company will issue allotment letter to the applicant and both parties will sign an agreement which includes all terms and references of ownership including the
payment schedule and based on which the applicant shall start making payment as per the schedule of the project.
Payments of earnest money, installments, car parking cost, additional works and other charges should be made by bank-draft or pay-order directly in the name of the respective company against which the receipts will be issued Payments of installments and all other charges are to be made on due dates according to the schedule. The company may arrange HBFC/Bank loan (if available) for allotted ones according to the existing rules and regulations of the authority concerned. Delay in payments will make the allotted liable to pay delay charge (amount varies from company to company) for every 30 days on the amount delayed payment. If the payment is delayed beyond 60 days the...
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