Al Amin :
The entrepreneurs of the housing industry have demanded introduction of refinancing scheme and facility to invest undisclosed money to take the sector forward.
The sector plays an important role in attaining economic stability and it is a big driver of economic growth as it has enormous multiplier effects on economic activities and contributes to 15 per cent in GDP.
In addition, the sector also contributed to the national economy through linkage industries, such as MS bar, cement, brick, sand, ceramic tile, paint, and other fixtures and fittings.
It is one of the largest employment generating sectors after agriculture and readymade garments and also stimulates demand for ancillary industries, for example, steel, cement, tiles, sanitary ware, cable, electric ware, paint, glass, aluminum, brick, building materials, and consumer durables, etc.
But the sector is now facing trouble due to the cost of construction works has increased by around Tk 500 per square feet for price-hike of more than 10 to 11 raw materials in recent time, the entrepreneurs said.
Due to the price-hike of the construction, the people will have to count Tk 1000 per sq ft additionally for buying a flat and the dream of housing for many will remain elusive, they said.
Under the circumstance, it is necessary to introduce refinancing scheme by Bangladesh Bank immediately to take the housing industry forward so that the buyer is able to take long term loan at low interest for the
purchase of 1500 sq ft or smaller flats in or around Dhaka city, they said.
In this case, home loans can be disbursed on easy terms through financial institutions like House Building Finance Corporation, DBH, IDLC and others so that the people can pay installment easily, they said.
The government can also fix interest rates for long-term and short-term loans based on the size of the flats, they said.
By increasing this debt flow, it will be possible to create buyers at the individual level and bring back the momentum in the real estate industry, they said.
Alamgir Shamsul Alamin, President of the Real Estate & Housing Association of Bangladesh (REHAB), told The New Nation on Friday, “Bangladesh Bank should form a Tk 20,000 crore refinancing fund for the housing sector as a step towards meeting one of the basic needs of the people.”
“Under the new scheme, people belonging to the middle class and lower middle class will be able to purchase apartments or construct dwelling houses of maximum 1500 square feet each with loans from the financial institutions,” he said.
Besides, the government should reintroduce the opportunity to invest undisclosed money in form of guidelines announced in the national budget for the fiscal year 2020-2021, they said.
The facility will also help to reduce the money laundering trends, they said.
They also demanded for reducing land and flat registration costs and creating opportunities for secondary market and effective measures for reducing the prices of construction materials.
Tanvir Ahmed, Managing Director of Sheltech Group, said, “People are now spending 10 to 12.5 per cent for registration. We had proposed for reducing it to 7 per cent. But the authority has not considered it.”
“People will be encouraged to show the correct value of the land or flat if the registration cost is low,” he said.
