Rupayan

 Supply of apartments also has shown rising trend and showing future growth. No. of supplier is also increasing rapidly.  Findings regarding the house financing system  There are insurance and flexible monthly payment opportunities for the apartment buyers and house builders offered by the private sector financiers.  After the withdrawal of credit restriction (specifying the proportion of deposit funds that could be lent for housing) in 1988, investments in housing sector soared.  The enactment of The Financial Institutions Act 1993 opened the door for private housing companies. The Act kept in focus the basic objective of providing housing to people at all strata of the society especially to the low and middle income people and those without home.  We find that the interest rates vary from around 14-16%. BHBFC can provide loans at a lower rate due easy access to funds and a low cost of capital. Among the other institutions, rate is competitive.  The most common tenure of loan or maximum time allowed for loan repayment is 15-20 years. There is a common practice among the institutions regarding the loan amount considering property values. It ranges from 70-80% of property values.  Though BHBFC does not have other charges but it charges inspection fees @ Tk.3 per thousand for the required amount. The other institutions charges 1.51.75% of the sanctioned amount as documentation fees, loan processing fees, application fees, inspection fees etc.

Findings regarding the apartment development business:  In Bangladesh apartment business is a recent phenomenon, although such activities were initiated sometime in 1964. Ispahani group was the pioneer in this sector. But in early 1980s with the inception of Eastern Housing Ltd., the business started flourishing. Now this is a booming sector of the economy.  The principal advantage that has accrued to the government due to the participation of private sector in urban housing is the apparent release of pressure, on its finance and administration.  Throughout the study, some crucial factors have been identified which affect the apartment development in Bangladesh. These have been classified into nine heads: Macro-economic factors, Legal frameworks, Competing housing institutions, Fiscal policies, Cost-benefit factors, Financing opportunities, Infrastructural facilities and Social facilities  The developers have expressed the pinion that the price of apartments will go up by 20-40% due to the fact that the building materials have now become dearer.

Tk.500 would be added to the present rate (per square foot) of the flats in up to six-storey buildings and over Tk.500 to the rate of the ones in the high-rise buildings.  The real estate sector is one of the most attractive sectors for the investor for its high profitability In REHAB Fair 2005 the member organizations state that they are now are earning on an average at 10-15% as the market has become highly competitive  Price of steel, rod, cement is in increasing condition though demand is increasing.

With the rapid urbanization and increase in real estate business, price and demand for rod, cement and steel – these basic of building construction materials are increasing.. The price of cement has increased by 32% this year from 2003 till