The real estate sector is an arena for the brave and the bold. When you step into the property market, be assured it is a game designed to be tough but with rewarding benefits. In Bangladesh, the real estate sector happens to be one of the biggest players amongst the overall industries, and when you put your foot in through the door, you become a part of the game; which you can do so by ‘Investing’!
Investing in a property in Bangladesh may seem like a daunting idea, but it really isn’t! The real estate market contributes to a big portion of the economy. This article is designed to help you get an idea of making informed decisions when it comes to investing in the property market of Bangladesh.
Why Invest In the Real Estate Sector
Real estate gives you more control over your investment because properties are of tangible value, which you can leverage to monetize on multiple revenue streams. The property market of Bangladesh, most notably in Dhaka, is a growing market, with room for expansion in the nearby future.
A mega-city of robust growth, the rate of urbanization is quite high in Dhaka. As of present, the tendency of urban growth in the country is about 1.03% per annum. The need for accommodation of the urban population is increasing, and the real estate sector’s development is essential in providing apt housing in Bangladesh. Thus, this proves to be an opportunity, particularly for the housing segment of the sector, for anyone looking to invest; prospective returns with long term value.
What You Need To Know
- The real estate industry of Bangladesh is a vast sector. With many supporting subsectors falling under real estate, you might think that it could be a risky investment, but it really isn’t. Unlike the stock market, the value of your property depends on existing economic scenario. Apartment value only diminishes during a bad economy but when the market picks up again, so will its value. Meaning, the longer you hold onto your property, the more chance you have of big earnings.
- Most people generally understand real estate as apartments or buildings, but it is more than just that. What you must understand is that the real estate sector comprises of more than just developers creating buildings. Experts consider land to be the primary raw material of real estate. Without land, you can’t have a building, or an apartment; developers have no use for building materials like rod, cement, glass, bricks etc.
Making the Right Decisions
Before deciding on investing in the property market of Bangladesh, follow up on guides and whatever necessary information that will give you an idea about the property market and how it works, particularly in Bangladesh. Below are the three things you should know in general before investing in real estate.
· Choosing The Right Kind of Real Estate To Invest In:
Commercial projects bring in a lot of dough. In Bangladesh, the property market is mixed with residential and commercial properties, with the former supposedly on the rise in specific areas. If you were to use your savings and buy an office or a small building with individual offices, you could lease them out to small companies, from which you would earn revenue in the form of rent. Bangladesh is home to many rising startups that are looking to initially operate on minimal costs.
Similarly, by investing in residential real estate, which includes single unit apartments or duplexes, you will again be able to generate revenue from rent.
· Choosing the Right Time To Invest in Real Estate:
In Bangladesh, following news media, print or online, is very important. It is always a good idea to be updated about the real estate sector in Bangladesh. It is common knowledge in the country, and also in accordance with industry experts, that the real estate market fluctuates during political events such as elections, which are looming around the corner.
· Choosing the Right Location:
In Bangladesh, location matters when it comes to investing in property. Every city has its designated zones, segments of suburbs or commercial sides. Motijheel, Mohakhali, Kawran Bazar, Gulshan, and Banani are considered to be some of the most notable commercial areas in Dhaka city. If you are looking to invest in a commercial property, the aforementioned areas could serve as the ideal ground for fruitful long-term returns. Subsequently, if you are looking to invest in a property for rent, there are some designated areas which could serve the purpose of long-term returns, especially if your investment is small.