While an average Sri Lankan lives 3.6 years longer than a Bangladeshi and is 8.2% less likely to be unemployed, comparing Bangladesh and Sri Lanka, it is quite impossible to not notice that both these countries are composed of similar traditional, religious and cultural values. On top of that, both countries have great geographical advantages and have been elevating towards success dramatically within recent years.
Going back in time, the Sri Lankan and Bangladeshi relationship started even before they were subjected to their many foreign invasions. Historical records indicate that King Vijaya, the first king in Sri Lanka, had ancestors in the Vanga Kingdom currently located in modern Bangladesh. Bangladesh has also been an integral part in introducing Buddhism to Sri Lanka.
Thereafter, this bond was strengthened by many agreements signed between both countries. Bangladesh and Sri Lanka established diplomatic relationships in the year of 1972 after Bangladesh gained independence in 1971 after a 9-month war.
|Population||163.187 million||22.235 million|
|Size of the country||147,610 km²||65,610 km²|
|Capital city||Dhaka||Sri Jayawardanapura Kotte|
|GDP per capita||4,207 USD||11,417 USD|
Real estate in Bangladesh began after liberation in 1971, and is one of the main segments that generate revenue in the country. While providing a huge number of employment opportunities, the country’s real estate industry also stimulates demand for many other industries like steel, tiles, construction material and tech. Even though the real estate industry observed a major downfall in the year of 2012 and 2014, the industry has started to pick up again. Interest rates have fallen from 17% to 9% consequently boosting consumer confidence. The GDP contribution from the construction industry indicated an all-time high of BDT 6,172.90 Million in 2016 from BDT 5,669.80 Million in 2015.
In Sri Lanka, the real estate segment has shown a steady growth ever since the country ended its 30 year long civil conflict. GDP rates have escalated by 7% annually with the market currently observing great demands for the luxury properties within Colombo. Colombo, the commercial capital of the country, shows the highest demand for property search for residential and commercial purposes and this has increased by 20% over the years of 2014 and 2015.
Growth in Economy
In comparison to Sri Lanka, the Bangladesh economy seems to be at a much better position. The economy in the country has shown tremendous growth within the recent years, recording a 7.11% GDP growth in 2015-2016 from a growth of 6.6% in 2015 (GDP per capita indicated a total of $686.598 billion in 2016). The economy grew by 6% per year since 1996 despite political unrest and other conflicts. Based on statistics generated by IMF, the country became the second fastest growing economy in 2016. The same year Sri Lanka indicated a GDP of $81.322 Billion From a GDP rate of $80.612 in the year of 2015. The country showed a growth rate of 4.5%.
In terms of foreign investments, Bangladesh FDI stands at an all-time high at US$2003.53 Million in 2016 representing a 9.25% increase compared to the year of 2014-2015. Over the same course of time, Sri Lankan FDI dropped to 45.6%, reaching slightly over US$300 million in 2016 from $658 million in 2015.
Investing in Real Estate
Bangladesh is currently emerging as a lucrative investment destination thanks to its booming economy, stabilized government policies and the increasing population. Housing properties within the country comes in different sizes and shapes and it is worth the money you invest. If you look closely, you will also notice that construction is affordable too. Moreover, the interest rates for home loans have gone down, significantly giving rise to consumer confidence. However, the lack of demand for housing properties within the country could be due to the high registration fee for home loans that takes up 14% of the property’s value.
The Sri Lankan real estate market, ranging from residential to commercial properties, has seen substantial growth over the past seven years. Both, local and international investors have publicized high interest towards the Colombo region and its suburbs which has become a highly attractive investment zone in the Asian hemisphere. With the area on demand, the price of properties has grown significantly over the past 12 months. Although demand along with prices has gone up, the lack of mid-range apartments created an untapped market of buyers who are looking for a prime location within the city. Due to the increase in demand towards commercial space, several developers have begun to implement a mixed development in the Colombo region to efficiently utilize growing demand. The market is currently indicating high demand towards mid-range residencies, luxury condos as well as commercial spaces within the city of Colombo.
Most popular areas for properties
It is evident that most property seekers are driven towards hunting for properties in the capital of Bangladesh, Dhaka, while Sri Lankan property seekers prefer investing in properties within the commercial capital, Colombo. Unlike the past, most family structures in both Sri Lanka as well as Bangladesh have shifted from extended families to nuclear families with limited members. Due to increasing urbanization, people tend to move towards highly urbanized cities. Among the property types that gain the highest demand are apartments, both in Sri Lanka, as well as in Bangladesh.