RIU webinar on Bangladesh’s real estate market shines light on Dhaka
The panellists at an RIU webinar on the real estate market in Bangladesh held on November 10, 2021 Courtesy
Tribune Desk
Publish : 15 Nov 2021, 06:31 PMUpdate : 15 Nov 2021, 06:31 PM
Economic trends observed in recent times will spur the real estate market and ensure a positive growth trajectory for the next three to five years in Bangladesh, speakers said at a recent webinar hosted by the Research Intelligence Unit (RIU).
The panel of experts concluded that the residential market, including apartments and studio apartment projects, are in good stead and the conditions are set to remain favorable as developers scramble to meet rising domestic demand.
They added that the current time is opportune for investment. Low interest rates and home loans spurred the market in 2020/2021 to improve the absorption rates of the existing stock of apartments in Dhaka.
At the same time, the interest levels from the diaspora remains at an all-time high and the expectation is that with improving economic conditions, the inflow of buyers will be significant. In the context of improved ease of doing business index and digitization transformations, the market is more attractive than ever.
The Research Intelligence Unit (RIU)’s webinar on the Bangladesh Real Estate Market, titled “Trends and Opportunities,” was hosted in partnership with the International Chamber of Commerce (ICC), Dhaka Tribune and British Sri Lanka & Maldives Forum for Business & Trade (BSLMFBT). The event was held on November 10.
After an introduction and welcome address by William Rezel, associate director of RIU in London, the keynote address was given by Tareq Md Ariful Islam, Bangladesh high commissioner in Colombo.
Tareq Md Ariful Islam spoke of the economic progress in Bangladesh, which covered socio economic developments, macro-economic trends, and the opportunities in the real estate sector.
An opportune time to expand real estate market presence
After the keynote address, guest of honor Sir Peter Heap, president of the British Sri Lanka and Maldives Forum for Business and Trade, London was asked to address the session. Sir Peter Heap complemented Bangladesh’s economic progress and touched upon how globalization brought business communities together along with the Commonwealth linkage opportunities in a post Brexit world.
Onila Wickramasinghe, head of real estate research at RIU, presented insights taken from the RIU Bangladesh Real Estate Market Report 2020/2021. The presentation covered general economic conditions in the country, real estate market pricing fluctuations, investment potential in property development, absorption, and occupancy rates as well as many other areas of concern for the property market.
Luxury and semi-luxury residential apartment properties and grade A commercial properties were particularly focused on in the presentation, as well as the retail mall market and bare land market in Dhaka.
Roshan Madawela, founding director of RIU, moderated the discussion with the panelists. Reasons for the success of Dhaka were initially discussed with Tareq Md Ariful Islam and Rean Rahman, general manager of Bproperty, who provided thoughts on the resilience and innovation of people, political stability, large infrastructure projects, transportation, digitization adaptation rates and some insights on other steps that the government is actioning to revitalize the industry.
Sir Peter Heap, Rean Rahman and Minoli Wickramasinghe, managing director at Capital Trust Properties (Pvt) Ltd, then discussed the most important factors that foreign investors look for in new emerging markets.
Reliability of the local labour force, ease of doing business index, nature and the origin of the investment, transparency, stability in the banking sector, taxation and economic policies and repatriation of funds were among some of the key factors that were brought into the limelight during the discussion.
Onila Wickramasinghe spoke about how diaspora remittance growth positively affects the GDP growth and how it affects the demand for products and services along with a few key insights.
In 2020 and the beginning of 2021, Bangladesh received many inquiries from the Bangladeshi diaspora located in countries such as the UAE, Italy, the US, Canada, and the UK, mainly in search of land availability in the market. Strong remittance inflow from the Bangladeshi diaspora contributed significantly to the growth in 2021, he said.
However, land prices are always high in many areas and, in such cases, the diaspora tend to inquire about the availability of luxury apartments in Dhaka city, Wickramasinghe further said.
Bangladesh market practices were discussed by Rean Rahman, where rational insights were shared, and forecasts were made for the year ahead. Rental policies, agent regulations and the challenges faced by multinational corporations (MNCs) were broadly discussed.
Impact of mega projects
The panellists further shared their thoughts on the game-changing impact mega projects have on the demand for residential and commercial property. Megaprojects have often played an evidently crucial role in countries’ economic development throughout history, and the accelerating mass infrastructural developments as such can only further propel the economic growth of Bangladesh.
Improved mass transportation, access to better power and electricity sources also mean that the real estate sector of the metropolitan cities can be expected to flourish, especially with the middle and upper-income classes’ increasing demands to have access to better infrastructure that aligns with their daily lifestyles.
RIU CEO Roshan Madawela concluded that the current landscape offers both local and foreign investors opportunities to expand their presence in the market.
A growth trajectory that will see Bangladesh emerging as an upper middle-income country within the next decade, underpinned by a very young and vibrant private sector are just some of the factors that will ensure a positive incline in the long term.
He added that the RIU research team is already working on the ground in Dhaka and look forward to engaging further with local companies as well as foreign firms coming in.
RIU webinar on Bangladesh’s real estate market shines light on Dhaka
Economic trends observed in recent times will spur the real estate market and ensure a positive growth trajectory for the next three to five years in Bangladesh, speakers said at a recent webinar hosted by the Research Intelligence Unit (RIU).
The panel of experts concluded that the residential market, including apartments and studio apartment projects, are in good stead and the conditions are set to remain favorable as developers scramble to meet rising domestic demand.
They added that the current time is opportune for investment. Low interest rates and home loans spurred the market in 2020/2021 to improve the absorption rates of the existing stock of apartments in Dhaka.
At the same time, the interest levels from the diaspora remains at an all-time high and the expectation is that with improving economic conditions, the inflow of buyers will be significant. In the context of improved ease of doing business index and digitization transformations, the market is more attractive than ever.
The Research Intelligence Unit (RIU)’s webinar on the Bangladesh Real Estate Market, titled “Trends and Opportunities,” was hosted in partnership with the International Chamber of Commerce (ICC), Dhaka Tribune and British Sri Lanka & Maldives Forum for Business & Trade (BSLMFBT). The event was held on November 10.
After an introduction and welcome address by William Rezel, associate director of RIU in London, the keynote address was given by Tareq Md Ariful Islam, Bangladesh high commissioner in Colombo.
Tareq Md Ariful Islam spoke of the economic progress in Bangladesh, which covered socio economic developments, macro-economic trends, and the opportunities in the real estate sector.
An opportune time to expand real estate market presence
After the keynote address, guest of honor Sir Peter Heap, president of the British Sri Lanka and Maldives Forum for Business and Trade, London was asked to address the session. Sir Peter Heap complemented Bangladesh’s economic progress and touched upon how globalization brought business communities together along with the Commonwealth linkage opportunities in a post Brexit world.
Also Read- Bproperty to provide complete real estate solutions in Bashundhara R/A
Onila Wickramasinghe, head of real estate research at RIU, presented insights taken from the RIU Bangladesh Real Estate Market Report 2020/2021. The presentation covered general economic conditions in the country, real estate market pricing fluctuations, investment potential in property development, absorption, and occupancy rates as well as many other areas of concern for the property market.
Luxury and semi-luxury residential apartment properties and grade A commercial properties were particularly focused on in the presentation, as well as the retail mall market and bare land market in Dhaka.
Roshan Madawela, founding director of RIU, moderated the discussion with the panelists. Reasons for the success of Dhaka were initially discussed with Tareq Md Ariful Islam and Rean Rahman, general manager of Bproperty, who provided thoughts on the resilience and innovation of people, political stability, large infrastructure projects, transportation, digitization adaptation rates and some insights on other steps that the government is actioning to revitalize the industry.
Sir Peter Heap, Rean Rahman and Minoli Wickramasinghe, managing director at Capital Trust Properties (Pvt) Ltd, then discussed the most important factors that foreign investors look for in new emerging markets.
Reliability of the local labour force, ease of doing business index, nature and the origin of the investment, transparency, stability in the banking sector, taxation and economic policies and repatriation of funds were among some of the key factors that were brought into the limelight during the discussion.
Onila Wickramasinghe spoke about how diaspora remittance growth positively affects the GDP growth and how it affects the demand for products and services along with a few key insights.
In 2020 and the beginning of 2021, Bangladesh received many inquiries from the Bangladeshi diaspora located in countries such as the UAE, Italy, the US, Canada, and the UK, mainly in search of land availability in the market. Strong remittance inflow from the Bangladeshi diaspora contributed significantly to the growth in 2021, he said.
However, land prices are always high in many areas and, in such cases, the diaspora tend to inquire about the availability of luxury apartments in Dhaka city, Wickramasinghe further said.
Also Read- RIU to host webinar on Dhaka real estate market
Bangladesh market practices were discussed by Rean Rahman, where rational insights were shared, and forecasts were made for the year ahead. Rental policies, agent regulations and the challenges faced by multinational corporations (MNCs) were broadly discussed.
Impact of mega projects
The panellists further shared their thoughts on the game-changing impact mega projects have on the demand for residential and commercial property. Megaprojects have often played an evidently crucial role in countries’ economic development throughout history, and the accelerating mass infrastructural developments as such can only further propel the economic growth of Bangladesh.
Improved mass transportation, access to better power and electricity sources also mean that the real estate sector of the metropolitan cities can be expected to flourish, especially with the middle and upper-income classes’ increasing demands to have access to better infrastructure that aligns with their daily lifestyles.
RIU CEO Roshan Madawela concluded that the current landscape offers both local and foreign investors opportunities to expand their presence in the market.
A growth trajectory that will see Bangladesh emerging as an upper middle-income country within the next decade, underpinned by a very young and vibrant private sector are just some of the factors that will ensure a positive incline in the long term.
He added that the RIU research team is already working on the ground in Dhaka and look forward to engaging further with local companies as well as foreign firms coming in.