Banks and financial institutions in Bangladesh are offering long-term housing loans to customers, creating opportunities to become owners of property. Some institutions are even approving loans within 48 hours of receiving the customer's application. However, most banks and financial institutions thoroughly verify the identity of the customer and the quality of his or her employer before granting loans. As a result, the amount of default loans in this sector is less than in other sectors. The overall size of the total housing loans portfolio of all banks was Tk85,663 crore at the end of June 2022, up from Tk77,698 crore in June 2021, an increase of Tk7964 crore or 10.25 percent in one year. Also read: Best Home Loans in Bangladesh to Build Your Dream Nest Five banks have disbursed most of the loans in the housing sector in a year. Out of this, IFIC Bank disbursed Tk 1,812 crore, Agrani Bank Tk 1,102 crore, Islami Bank Tk1,190 crore, Sonali Bank Tk 463 crore and Janata Bank Tk 139 crore. President of Real Estate & Housing Association of Bangladesh (REHAB) Alamgir Shamsul Alamin told UNB that the housing sector has created opportunity to become flat owner for service holders. Lower-middle income groups of people can dream to become a flat or plot owner jointly or individually in the housing sector, which is secured and a potential safeguard of hard earned money, he said. He is also managing director of Shamsul Alamin Real Estate Limited. “There is no accurate count of how many people have acquired flats with loan facilities,” he said. Read More: BBS thanks Walton for providing Tab in population & housing census Around 54,000 people have bought flats with loans from the financial institution Delta Brac Housing or DBH Finance. And the number of customers who bought flats or built houses with loans from IFIC Bank is 18,500. IFIC Bank Managing Director, Shah Alam Sarwar said, “We have achieved unprecedented success in housing loans. This financing is being done through our 1,200 branches and sub-branches.” There is no hassle to get a loan, no extra charges. As a result, eligible customers who come to take loans take it easy, he said. Banks are approving a maximum loan of Tk2.0 crore at the individual level to buy a flat. In this case, the ratio of bank loan and own money is 70:30. That is, to buy a flat of Tk1.0 crore, a client has to provide Tk30 lakh, and the bank finances Tk70 lakh. Read More: Delta Brac Housing Finance Corp. Ltd renamed as DBH Finance PLC On the other hand, there is no ratio in the case of loans to non-banking financial institutions. These institutions fix this ratio themselves. The maximum interest rate for housing loans from banks is 8 percent and interest from financial institutions is 12 percent. IFIC Bank, the first private sector bank started offering these loans at reduced interest rates. Even in early 2015, the bank was charging 11.95 percent interest against home loans, which was reduced to 9.99 percent in December 2015. At that time the interest rate in the banking sector was more than 15 percent. The IFIC Bank has a separate housing loan facility called 'Amar Bari'. The bank provides loans up to Tk2.0 crores for house construction and Tk35 lakhs for the construction of semi-finished buildings. Demand has been created among the people for housing loans. As a result, more than 1000 real estate companies have been established in the country. Bangladesh House Building Finance Corporation (BHBFC) has also been established as a government initiative. Read More: IFC, BRAC Bank to launch Bangladesh’s first ever housing bond Apart from this, specialized financial institutions have been launched to provide loan facilities for the housing sector. As a result, people are able to own a flat with a loan along with their savings. Loans are also available for house construction. Institutions in the housing sector have now reached the capital and divisional cities as well as the district level. As a result, now, housing loans in Bangladesh have reached the district level as well. END/UNB/AI/ssk

Most of the city dwellers have a dream to buy their own apartments some day. To make these dreams come true, many housing companies are selling apartments. However, many of us make some mistakes and end up buying an apartment that is not suitable. By being aware of these mistakes, you can save yourself time, money, and potential heartache down the road. So without further ado, let's take a look at some of the most common mistakes people make when buying apartments. 10 Big Mistakes to Avoid while Purchasing Apartments Neglecting Necessity Sometimes buyers are confused about their needs or preferences. The stays in dilemma between Normal flat, duplex or condominium apartment? Which area of the city to buy? Small or big flat? 2 bedroom or 3 bedrooms? Many such questions can confuse you. So before buying an apartment, make sure that it is compatible with your needs and lifestyle. Read Best Home Loans in Bangladesh to Build Your Dream Nest Managing Budget Your budget is the most important factor in buying anything. The budget should be compatible with your needs and capabilities. It would be wise to keep the budget a bit higher rather than over-specifying it. You can avail some discount by making one time payment if you want. You can also take advantage of instalments by paying some amount.  Besides these, you can consider a bank loan if you want. In the case of a bank loan, you need to know about the down payment and interest rate. Also, it is necessary to know about the terms and conditions of banks for getting bank loans. Overall, you should set a budget first. Don’t Research the Surrounding Market The apartment’s price is not the same in all areas, it varies depending on location and facilities. Research and consider the market in that area before buying a particular apartment. There are many reasons behind this.  Read Making Investment Decisions: Factors to consider when investing money First of all, you will get a good idea about the apartment prices in your preferred area. Secondly, you will also understand the reason why the price of the flat of your choice is low or high. Also, you will get an idea of the seller or the selling company. Don’t Consider Flat Size and Number of Bedrooms Buying a flat is a permanent investment. So it is very important to decide on the size of the flat and the number of bedrooms before investing. Otherwise, you can’t reverse your hard-earned money. Deciding on the number of bedrooms is the most important starting point. Before buying a flat, make sure that the number of bedrooms and size of the flat can meet your needs. Buying without Verification You should verify all the information provided about the house. It is necessary to know about the ownership of the land and the occupier of the land. That is, it is better to check the land documents of the place where your flat will be. Check out whether the flat is mortgaged to any bank for a loan. Also whether the flat has been sold to someone else before. Read Metaverse Real Estate Investment: Buying Land, Apartment, Property in Virtual World Find out whether the proposed flat falls under government land or not. The certificate regarding the approval of the Rajuk for the construction of the flat should be checked. You need to know whether the company you are buying a flat from has government approval, whether it has a plan approved by RAJUK, and whether the company is a member of REHAB or not. Another point to be noted is that many times we see that Rajuk has approved 4-5 stories, but the building is 8 stories. Verify this issue before buying the apartment. If there is such a problem it is better not to book a flat. Electrical, Water, and Gas Connections Check whether there is an electricity and water connection and if so, whether the electricity bill is commercial or residential. It is better to verify as much as possible the accuracy of the electricity and water connections of the building of the flat.  Read Plot vs Apartment: Which is the Better Investment Option? However, the household gas connections are not being provided in the new flats in Dhaka city for several years. If you don’t want to use cylinder gas, look for a flat that already has an authorised gas connection.  Ignoring Safety Issues Security is one of the most important deciding factors while buying an apartment in Bangladesh and any other countries. So, check out the provision of 24 hours CCTV monitoring and check if the apartment has a professional security force for security. Also, check how strong the doors and window grills are.  Many apartments in Dhaka city employ security guards to assure the security of the residents of the building. The guard man keeps a record of the people who enter or leave the building. This arrangement also cuts down the risk of crime. Check out whether your apartment has such a facility.  Read Home Shifting Checklist: Important things to do while moving to new house Signing Contract with Proper Legal Procedure Contract legal assistance as a buyer. How are you buying the flat, the conditions should be clearly mentioned. The materials to be used in the construction of the building should be mentioned in the contract. The housing builder will also be obliged to show and provide the approved design of the flat to the buyer. Properly mention in the contract which flat you are buying. Again, the flat cannot be changed without your permission, keep it in the contract. Also mention in the contract that the buyer is not obliged to pay any extra money beyond the terms. If the addition of any improved quality equipment is required, it should be done by mutual consent of both parties, it should be mentioned in the terms of the contract. Buying without Knowing About Actual Land Owner Check carefully the developer's application form and the contract executed with the land owner. In many cases, agreements between land owners and developers are not registered. That's why you have to bear the burden if there is any problem with the agreement between the land owner and the developer. Read Investment: What Factors to Consider before Investing Money? Many companies leave the work incomplete in the middle. Sometimes, the owner of the land might be forced to stop the work as the developer failed to complete the work on time. Again, the developer cannot do anything beyond the powers mentioned in the contract. Overlooking Design and Construction The apartments may face untimely cracks due to poor construction methods, faulty design, bad construction materials, etc. Some owners tend to design flats hiring cheap unprofessional persons without consulting the skilled planners, engineers and architects. In the short run, such practices may cut down cost but in the long run the residents of the apartments will suffer. Besides these, during earthquakes many structures get damaged due to faulty construction. To prevent this danger, the buildings are being constructed following earthquake-resilient building design or 'low damage design' or 'damage avoidance design.' Therefore, before buying an apartment, don’t forget to check its seismic risk. Read Is Gold a Good Investment in 2022? To secure your investment in real estate don’t forget to check out the design, architecture and construction before buying an apartment. Final Words Nowadays it has become very difficult to buy land and build a house. That is why many people want to buy a flat or apartment according to their choice. To fulfil this demand lots of  housing companies develop and sell flats or apartments..  A flat that you have in mind, that you want, may not always be the same. The place and surroundings will change with time. But the most effective advice when buying an apartment is to be patient. The more apartments you look at, the better decision you can make. Read Share Market Investment Guide: How to Invest in Stocks in Bangladesh So far, we have highlighted the biggest mistakes to avoid while buying a flat or aprtment. Upon checking these factors you can make your decision. 

Starting from March 2020, a series of lockdowns announced by the government to prevent the spread of coronavirus in Bangladesh has caused a collapse in the country's economy. It affected all kinds of large and small businesses. And real estate business is not a different case. The housing industry or construction sector plays a big role in keeping the wheel of the country's economy moving. There are about 458 sectors closely involved in this industry. The current Covid-19 disaster has brought the housing industry to a halt like other sectors. In the first and second quarters of 2020, the entire housing sector has come to a halt due to the lockdown for more than a month. Read:F-commerce in Bangladesh: Problems and Prospects However, the demand for apartments has increased due to lower interest rates on bank deposits and home loans. Many are now interested to buy apartments than renting them. Situation of the Real Estate Business in Bangladesh before Pandemic To understand the actual situation, we will have to go back to 2012. The recession in the housing sector started in 2012. In the next year, the housing business took a terrible shape because of the political unrest. During that time, many real estate companies were unable to find a client even after reducing the apartment prices. Furthermore, many buyers also canceled their bookings due to non-payment of installments. After that turbulent time, the real estate business situation was a bit better in 2016, but the crisis was yet to see an end. Read:ToguMogu: One Stop Solution for Bangladeshi Parents However, in the middle of 2018, it was announced to give home loans to government employees at 5 percent interest. The process of reducing the registration cost also started in 2019. As a result, the housing business was in a positive trend until Covid-19. Present Situation of Real Estate Market in Bangladesh Market observers say money is scarce for the common man. Medium businessmen and traders have also been affected by the corona. Even then, the demand in the housing sector is increasing. In this upward trend of demand, mainly government employees are in the driver's seat. They are buying flats and land using government loans and other facilities. Market observers say money is scarce for the general people. Read Best Home Loans in Bangladesh to Build Your Dream Nest Why does the Real Estate Industry See a Rise in Bangladesh? Government employees have been given housing loan facilities up to Tk 70-75 lakh. This facility has played a big role in the expansion of land and flat business, as claimed by the companies in the real estate sector. In addition, the approval of non-tax income investment announced last year has also played an important role in this regard. After the announcement of this opportunity, more than Tk 3,200 crore tax-free investments have come in the housing sector. In addition, measures such as 9% interest on home loans, reduction of land transfer tax rate from 2% to 1%, and reduction of stamp duty from 3% to 1.5% have also worked as a catalyst for the expansion of the sector. Read Angel Investment 101: Is It the Right Track for Your Startup?

The Lisbon Urban Rehabilitation Area (ARU) recorded real estate investment of 2.52 billion euros (2.79 billion U.S. dollars) during the first half of this year, a decrease of 16 percent year-on-year, a market analysis company revealed on Wednesday.