The increased investments also had a positive impact on the trading of business, giving the much-needed respite for the industry insiders.
The Real Estate and Housing Association of Bangladesh, or REHAB, the apex body of housing companies, kept data of transaction of 209 companies until 2014.
But Sheltech, a leading real estate company, has the latest data of the industry’s performance as far as its yearly apartment delivery is concerned.
According to the data, a total of 17,300 apartment units were delivered in 2011. After that, the sector witnessed reverse fortune, with sales dropping to 16,200, 13,770, 12,215 and 10,000 in 2012, 2013, 2014 and 2015 respectively.
But the industry has started turning around since 2016. The volume of sales jumped to 11,050, 13,600 and 19,800 in 2016, 2017 and 2018 respectively.
“Yes, the market has started reviving after the sluggishness,” managing director of Sheltech Tanvir Ahmed told the FE.
Talking about the company’s recent business, he said the sales of medium-scale apartments worth between Tk 8.0 million and Tk 10.15 million in central Dhaka has started picking up in recent times.
“We’re now recovering the deficit caused by poor sales until 2015. I think the momentum has returned,” he said.
Mr Ahmed said the market players have started taking up more projects under such a favourable business atmosphere.
“We’ve already signed three projects since January 2020. It’s a right time to invest,” said the boss of Sheltech that has already delivered some 3,500 units.
He was optimistic about further growth of the business in the coming days building on the declining trend in interest rates on formal finance.
General manager of Shanta Holdings Limited Shihab Ahmed said there are many factors that have been contributing to the upward trend in business.
He said people having liquid assets normally invest in savings instruments, banks and the capital market.
But the share market is going through rough ride while the interest rates on savings certificates and bank deposits have started declining significantly, he added.
“There could be some factors behind the momentum of the sector,” he said.
“Yes, the market is reviving but we want to grow steadily not aggressively,” he added.
Seeking anonymity, an official of another real estate company said the market collapsed after 2011 because of the aggressive business policy adopted by many companies due to the boom in the capital market.
“I hope the realtors will not do the same mistake this time,” he added.
Source: Read More – Real estate sector starts rebounding by thefinancialexpress.com.bd
