The private housing sector in Bangladesh started its journey in the 1970s. Over the last two decades, the real estate industry in Bangladesh has grown and demand has increased due to a high urbanization rate. Especially after 1990, an industrial boom sprang in the country. It initiated the need for industrial buildings, corporate offices, housing units, roads and other types of infrastructure. To supply the market’s needs and grab the business opportunity, several real estate development companies entered the industry. Delivering quality and gradually gaining trust, a handful of developers are now dominating the real estate sector across multiple segments. Let’s go through these segments of real estate developments in Bangladesh.
Conventional Residential Apartments
Studies indicate that Dhaka has an increasing urbanization rate of 3.25% per annum. Due to rapid rural to urban migration and high population growth, more people choose Dhaka as their destination for better opportunities. Since the influx is growing, the demand for accomodation is also increasing with the trend. A large portion of this accomodation demand is for residential apartments in Dhaka.
Secondly, Bangladesh, especially Dhaka, has a growing middle-class population with limited income. Coping up with the cost of living in Dhaka city, most of them look for rental flats. Therefore, the property market has a continuous need for homes, and hence, developments in the residential segment is the highest.
While the middle-class population is growing with the economy, a similar trend is also reflected in the upper middle class and upper-class people. Among them, the new generation of apartment buyers look for properties that come with multiple amenities. Condominium apartments, in particular, come with various benefits such as a swimming pool, underground parking, playground, rooftop garden, and so on. That’s why many prominent developers are now entering the new era of modern living solutions by introducing condominium apartments such as the Rightway Airport Plaza.
The evolving economy also needs suitable commercial spaces. Looking at the historical expansion of Dhaka city, commercial hubs have been shifting gradually. Hence, there is also a growing market for commercial properties in Dhaka as well. Realizing market need, large and prominent developers took the lead of constructing modern commercial spaces mainly in the capital. As businesses shift, they also create demand for residential accommodation in adjacent areas. That is why many developers are entering in the commercial segment to broaden their scope of development opportunities.
While most real estate projects are concentrated in residential and commercial buildings, land is also one of the major real estate developments in Bangladesh. Urban areas are gradually expanding to sustain the need for future accommodation. There is also a growing trend for industrial buildings outside the city area which requires massive land development as well. Plus, some people find land is a better investment alternative because of the constant appreciation of price over time. Hence, unutilized areas, ponds and low-lying grounds are being filled up and prepared for future construction projects by land developer companies in particular.
Over the last few years, around 3.1 million people flew into the country for various purposes, and the number has been growing ever since. The growth of tourism impacts real estate in multiple sectors and one of them is the hotel industry. In the upcoming years, Dhaka is to see six new hotels worth USD 6.5 billion. Several large corporations and real estate companies are partnering up with famous hotel chains for these development projects. In Bangladesh’s real estate, this segment is relatively new but has high growth potential with the improving economic development of the country.
Recreational Property Developments
Lastly, another major type of real estate developments in Bangladesh is that of recreational properties such as theme parks and resorts. For city dwellers, the scope of recreation is limited and they look for an escape from the capital for a day or two. Assessing these needs, developer companies took the initiative of constructing renowned theme parks in Bangladesh. Gradually it spread out all over the country, especially in tourist spots like Chattogram and Sylhet. Similarly, the outskirts of Dhaka – places such as Gazipur – have become popular destinations for one-day trips due to these newly constructed resorts.
Real estate in Bangladesh is evolving. With the infrastructural developments in Dhaka city, soon the city landscape will change and so will the properties. What are your thoughts on real estate developments in Bangladesh? Share with us in the comments section below!