Sales of land-plots hit decade-low

Badrul Ahsan | Published: January 06, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

The sales of land-plots across the country dropped to the lowest level in a decade in the just-concluded calendar year (CF) due mainly to the lack of buyers' trust in sellers and the ongoing confrontational politics, industry insiders said.
The sales went down drastically by more than 80 per cent during the period, they also said.
According to them, their sales had been going down for the last couple of years, though companies were offering lucrative packages and gifts including discounts apart from colourful advertisements placed in newspapers to attract buyers.
High-ups at different companies said many prospective buyers adopted a wait and see policy in making fresh investments due to the country's present political uncertainty driving down the volume of sales.
"In my thirteen years of service, I have never seen such a drastic fall in sales like that in last year," a senior official of the East West Property Development (Pvt.) Ltd, a flagship company of Bashundhara Group, told the FE preferring anonymity.
"Whatever sales we recorded last year were only due to our reputation. But there are hundreds of companies that do not have that much market reputation. They are the worst victims of the situation," he added.
"The last share market scam and the prevailing political uncertainty have guided the people not to make any fresh investments," he further said.
However, both buyers and sellers blamed each other for the former's trust in the latter that led to the radical drop in plot sales.
Industry insiders said that the customers did not want to understand many logical reasons like the government's policy that posed a barrier to handover of plots on time.
On the other hand, customers claimed that the companies were ready to consider anything before selling their plots, but after signing of the sale deeds they always tried to play tricks with the customers. That discouraged other people to invest their money in land development companies.
"I bought a three-katha plot from the Sonargaon Resort City five years back at Tk 0.35 million per katha and completed all payments on time. Now the price is Tk 1.2 million per katha and the company, instead of handing over my plot, is demanding more money citing the reason that they made extra expenditure. This is completely illegal," one Mahamuda Khanam Kabita, a customer, told the FE.
"They're pressurising me to withdraw all the money I paid as I did not meet their demand for extra payments. It obviously discouraged the people around me to buy plots," she added.
One Ahmed Iqbal, who bought a plot from a reputed company in Purbachal area, said all his installments had been paid but the company now was demanding an unjustified amount of money in the form of utility connection charges after extension of the handover time on several occasions.
"No customer alone can fight with the company for establishing his right. Sellers capitalise on helplessness of their customers," he added.
Managing Director of Purbachal Park Town, Md Shohel Rana, said customers did not want to go through the agreement before signing it. But when the companies demanded utility connection charges, they grew angry and brought the allegations of cheating.
He also said the government's policy also left the companies helpless in handover of plots on time.
"If the government stops providing utility connections, then what can the companies do other than extending time for handover? Customers even do not want to consider such logical reasons," he added.
However, admitting that a gap of trust existed between buyers and sellers, Secretary General of Bangladesh Land Developers Association (BLDA), Mostafa Kamal Mohiuddin said that unethical activities of some unscrupulous businessmen destroyed reputation of the industry.
"We are very much strict about any kind of unethical practices of our member companies. If any customer is found cheated, we'll take the maximum punitive measure against that company," he added. Â
Mr Mohiuddin, however, urged all the land-development companies to continue their business by adhering to their commitment in the greater interest of the industry.
Real Estate and Housing Association of Bangladesh (REHAB) President Nasrul Hamid Bipu also admitted that a drastic fall in land plot sales happened. He urged all concerned to adhere to ethical practices in their business.