Independent University, Bangladesh (IUB)

Semester: Autumn 2020

Report on:
Real Estate Companies in
Bangladesh

Prepared for :
Md. Ziaul Karim
Adjunct Faculty
Department of English
Independent University, Bangladesh
Prepared By:

Names IDs

Abdur Rahman Ayon 2020076

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 Table of Contents

Serial no. Contents Page no.

1. Introduction 3

2. Historical Background 3

3. Different Types of Real 4

4. Brands and Mottos 4

5. Methodology 5

6. Contributions 6

7. Problems 6

8. Recommendations 7

9. Conclusion 7

10. References 7

Introduction:

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Real estate development is a business activity concerned with land and construction that provides
value-adding services by developing residential, commercial, institutional, industrial and
integrated projects and related infrastructure. Being one of the most densely populated countries
of the world with a huge population, Bangladesh has already surrendered nearly 25% of its land
to human settlements and related uses. However, the concept of real estate in Bangladesh
emerged after liberation. Real estate companies in Bangladesh are producing products which are
real time demand fulfillment towards the socio-economic development of Bangladesh. The
companies are directly contributing to the Gross Domestic Product (GDP) through creating
shelter, developing unused land, helping other attracting local and foreign investment and
generating employment. High population density coupled with land scarcity and lack of social
security enhanced the development of the real estate companies as well as the whole real estate
sector over the time.
Historical Background:
In 1970 the real estate business in Bangladesh was quite dull and hardly five business enterprises
dealt with it. The inception of REHAB (Real Estate and Housing Association of Bangladesh) in
1991 immensely boosted the real estate business and by 2004 the number of real estate
developers reached up to 250. Today, the number of real estate enterprises is rapidly increasing.
By April 2009, the sector has 524 REHAB affiliated member companies. Over time, real estate
has become a subject of keen interest for the general public, businessmen and other stakeholders.
Building Technology & Ideas Ltd (BTI) which is a Dhaka-based real estate development
company is the first and founding member of Real Estate and Housing Association of
Bangladesh which is also known as REHAB. The company has been working in the real estate
industry of Bangladesh since 1984. Another company known as Bashundhara Real Estate Ltd
which due to the bright prospects of real estate business in Bangladesh, it quickly earned the trust
of the people and now it stands as one of the top ten real estate companies in the county. Though,
the company started its venture in the real estate in 1987, it leaped faster and higher, and today it
has its settled business in real estate in Bangladesh. ABC Real Estates Limited is a company
which was established in 1988 but now it is a part of Associated Builders Corporation Limited
which is in business since 1972. Till today, ABC Real Estates Limited has developed several
multistoried buildings, fertilizer factories, industrial structures, power stations and bridges etc.
Bashati Consortium Limited is a company which was first initiated in the year 1987 with the
name of Alpana Plaza Limited and Home Builders Company Limited, and in 1991 it was
renamed as Bashati Consortium Limited. Designing, planning and constructing a number of
projects in and around the city of Dhaka has been its main contribution to the city and the society
as a whole. Concord Real Estate Company, which is one of the largest real estate companies in
Bangladesh is also one of the oldest real estate companies in the country. This company has been
working in this industry for the last four decades and have completed a huge number of projects
with success.

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 Different types of Real Estate Companies:
The real estate market is quite concentrated, and about 10-15 companies hold around
approximately 95% of the total market shares.
 Different companies emerged such as Bashundhara Real Estate Ltd, Navana Real
Estate Ltd, Concord Real Estate Ltd, Anwar Landmark, Assurance Developments
Ltd, Rangs Properties Ltd, Shanta Holdings Ltd and Building Technology and
Ideas Ltd etc.
 Concord Real Estate is mostly renowned for building the largest amusement parks
in the country such as the Fantasy Kingdom and Foy’s Lake.
 Anwar Landmark is enlisted by RAJUK and they are also a member of REHAB.
They have completed many projects successfully till now and they are also
working on many other projects such as Rooppur Nuclear Power Plant Project,
Janata Tower and Hi-Tech Park Office.
Brands and mottos:
Brands Taglines

‘Creating addresses’

Anwar Landmark

‘For the people, for the country’

Bashundhara Group

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 ‘The relentless pursuit of quality’

Concord Real Estate Ltd

‘In pursuit of excellence’

Building Technology and Ideas Ltd

‘Committed to build the best since 1993’

Amin Mohammad Foundation Ltd

Methodology:
Data has been collected through sources such as the internet, books, Bangladesh Bureau of
Statistics, real estate publications and various research reports on the real estate industry in
Bangladesh.

Contributions:
 In Bangladesh, real estate companies have emerged as a crucial part of the country’s
economy. They have a huge multiplier effect on economic activities and therefore, are a
big driver of the economic growth.

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  The real estate sector is one of the largest employment-generating sectors after
agriculture and garments. Not only does it generate direct and indirect employment
opportunities, but it also stimulates demand for ancillary industries such as steel, cement,
tiles, cable, paint, glass, aluminium, brick, building materials, and consumer durables etc.
 The real estate sector is the growth centre for the development of any economy. As one
of the most densely populated countries in the world, Bangladesh has been experiencing
severe housing shortages. With the majority of the population in the middle and low-
income groups, ensuring housing for all is difficult here. However, private companies
such as Bashundhara Real Estate Ltd, Navana Real Estate Ltd, Anwar Landmark and
Concord Real Estate Ltd have met a large proportion of the national housing demand in
the last 40 years.
 Private companies in the real estate sector played a major role in the national economy,
contributing up to 7.08% of the national GDP (Gross Domestic Product) in 2013.
 In addition, private companies in the sector have also contributed to the national economy
through various linkage industries throughout the country.
 Real Estate and Housing Association of Bangladesh (REHAB) declared that the sector
along with its linkage industries contributed about 12% to the national GDP in 2014.

Problems:
 Lack of Proper Site Selection and high-rise buildings on narrow roads. Site selection and
construction of high-rise buildings is not guided by zonal planning. In an attempt to allot
more space to people, buildings are constructed with little space between them, blocking
natural light and air, and making living conditions difficult.
 Lack of Supervision and Accountability. The construction of multi-storied buildings is
done without proper technical planning or supervision. The lack of accountability further
makes it easy, to construct inappropriately and with low grade construction materials.
 Unplanned Development. The unplanned development of high-rise buildings has turned
Dhaka into a city where houses have appeared everywhere. Almost no one follows the
construction regulations set by the urban development authorities in Bangladesh. In
Chittagong, multi-storied buildings are constructed by cutting down hills and mass
deforestation which leaves the residents in unforeseen risks.
 Shortage of Natural Resources. High-rise buildings are built without any evaluation of
whether the area has adequate provisions to meet population demand. Unfortunately,
Dhaka city is not designed to accommodate the needs of the city. Due to lack of planning,
the residents face water supply shortage, gas supply shortage, and load shedding.

Recommendations:
In the absence of regulation and significant government intervention real estate companies
operate in an indiscipline manner not only in Dhaka but also in other areas of the country. They
do what agrees most with their interest and this makes the whole sector quite chaotic. Cities like
Dhaka suffers from the unplanned urbanization and gradually becomes unsustainable as well as
uncontrollable. In order to save other areas of the country along with the protection for the
Dhaka city before the situation gets out of control, some recommendations are as follows:

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  Government should ensure the proper policy design and most importantly proper
implementation of those policies in case of urbanization, in case of real estate firms’
operations, and in case of government involvement in the business of the sector.
 Corruptions and bureaucracies from the administration should be removed. Government
should ensure that large companies don’t get any unfair advantages.
 Trade license procedure for the developers should be stricter and strict conditions
should be put on the unplanned development activities.
 Government should take initiatives to help the mass of people in case of real estate
financing. Low-income people should get priority in this case as they suffer most.
 Government should come up with different projects too in addition to encouraging
the private investment in the country.
 The sector requires regulation and government should bring that in order to save people
from fraud and cities from unplanned urbanizations.
 Government should make environmental impact assessment report mandatory for the
developers before approving any project because of the sustainability issue.

Conclusion:
We all know that after food and clothing, housing is one of the basic rights of every citizen. To
meet this fundamental need, the private real estate companies and housing developers initiated a
real estate development venture a couple of decades back, especially to address the growing
urban housing problem. Private sector initiative sparked a remarkable boom in investment and
development activities. The real estate companies have extensive potential, but significant
progress is possible only with the joint efforts of both the real estate industry and the
government. The government must provide fiscal incentives to companies to build low-cost and
affordable housing for the masses. Realistic and long-term policy guidance for the real estate
companies must be taken by the government in order to encourage the real estate companies for
investment and further development in Bangladesh's real estate.

References:
BBS (2001), Bangladesh Bureau of Statistics, Population Census.
BBS (2006), Bangladesh Bureau of Statistics, Statistical yearbook of Bangladesh 2006.
Hossain, M. M. (2000), A study on Private Real Estate Developers of Khulna city, Urban
and Rural Planning Discipline, Khulna University.
REHAB (2003), Real Estate and Housing Association of Bangladesh, REHAB Housing Fair
2003, p-10.
Siddiquee, M.M. and Rehan, S.F. (2008), Financing real estate in Bangladesh: Prospects,
problems, and programs, AIUB Journal of Business and Economics, Dhaka.

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