Demand for small flats increases in city
Sunday, 16 March 2008
Mahmuda Shaolin
The demand for small apartments has increased in the city due to hike in house rent and influx of people from outside.
According to developers, construction of small apartments measuring below 1000 square feet (sft) has increased over the past few years.
"The demand for the flats measuring between 800 sft and 1000 sft went up recently. The buyers mostly belong to the medium and low income groups," Tanveer Haque Probal, secretary general of Real Estate Housing Association of Bangladesh (REHAB), told the FE.
The developers are gradually focusing on small to medium size apartments in line with its rising demand, he said adding that it also helped the developers reduce the investment cost.
"Due to unrestrained price hike of construction materials, the value of apartments increased by about 75 per cent this year over that of the previous year," he further said.
In keeping with the demands for small apartments, the developers have started developing apartments, measuring between 800 sft and 1500 sft.
He also said that the middle income people, both government and private sector employees, who earlier preferred to buy big apartments, are now looking for smaller ones.
The fear of further price hike of construction materials has also generated demand for apartments, he said adding the construction cost increased by about 50 per cent over that of the previous year.
"The cost may further rise also because of depreciation of local currency against the US dollar," he said.
The small apartments are mainly being constructed at Rampura, Mirpur, Mohammadpur, Malibagh, Moghbazar and old city areas.
Apartment sales hit rock bottom last year after a nationwide crackdown on corruption, which saw only about 3000 flats sold, compared to around 6000 in 2006.
The prices of apartments in posh areas range between Tk 7000 and Tk 9000 for each square feet while it is sold between Tk 3000 to Tk 4000 per sft in the suburbs and crowded areas.
Mahmudul Haque Faysal, Deputy Manager (Marketing) of Rupayan Housing Estate Limited (RHEL), said his firm has sold small apartments at Shegun Bagicha, Moghbazar, Paltan, Rampura, Shantinagar and Mirpur.
"Small flats of 1145 sft to 1200 sft are being sold at about Tk 3.8 to Tk 4.2 million each," said Faysal adding the demand for flats having floor space of around 1200 sft is high. Its price is around Tk 4.5 million.
"Customers prefer small and medium apartments due to hike in house rent in the city", said S M D Jashimuddin, assistant manager (Marketing) of Amin Mohammad Foundation Limited (AMFL), one of the leading developers in the country.
"The demand for small apartments has increased nearly 30 per cent this year. The attitude of the general people has changed; they are becoming interested in small apartments instead of big ones", he added.
"AMFL apartments of 980 sft to 1200 sft, are sold at Tk 2600 to Tk 2800 sft each at Mirpur and Badda in the city," Jashim said.
Marketing Executive of Advanced Development Technologies Ltd (ADTL) Golam Sarwer Shamim said noticing a growing demand for small apartments the ADTL has started constructing small and medium apartments to meet the huge demand. He, however, said the ADTL earlier used to build only big size apartments.
"Demand for 1000 sft to 1500 sft apartments worth Tk 3.0 to Tk 4.0 million is high from the buyers," he further said.
It is noticed that small apartments are not usually built in posh areas like Gulshan, Banani, Baridhara, Dhanmondi in the city, where the demand for big size apartments is high.
The increasing urban population is creating higher demand for shelter. But it is very difficult on the part of the government alone to ensure housing for all.
In Bangladesh, real estate business started first in Dhaka in the late 1970s. In 1970s, there were fewer than five companies engaged in this business. In 1988, there were 42 such developers working in Dhaka and now there are about 361companies.
The demand for small apartments has increased in the city due to hike in house rent and influx of people from outside.
According to developers, construction of small apartments measuring below 1000 square feet (sft) has increased over the past few years.
"The demand for the flats measuring between 800 sft and 1000 sft went up recently. The buyers mostly belong to the medium and low income groups," Tanveer Haque Probal, secretary general of Real Estate Housing Association of Bangladesh (REHAB), told the FE.
The developers are gradually focusing on small to medium size apartments in line with its rising demand, he said adding that it also helped the developers reduce the investment cost.
"Due to unrestrained price hike of construction materials, the value of apartments increased by about 75 per cent this year over that of the previous year," he further said.
In keeping with the demands for small apartments, the developers have started developing apartments, measuring between 800 sft and 1500 sft.
He also said that the middle income people, both government and private sector employees, who earlier preferred to buy big apartments, are now looking for smaller ones.
The fear of further price hike of construction materials has also generated demand for apartments, he said adding the construction cost increased by about 50 per cent over that of the previous year.
"The cost may further rise also because of depreciation of local currency against the US dollar," he said.
The small apartments are mainly being constructed at Rampura, Mirpur, Mohammadpur, Malibagh, Moghbazar and old city areas.
Apartment sales hit rock bottom last year after a nationwide crackdown on corruption, which saw only about 3000 flats sold, compared to around 6000 in 2006.
The prices of apartments in posh areas range between Tk 7000 and Tk 9000 for each square feet while it is sold between Tk 3000 to Tk 4000 per sft in the suburbs and crowded areas.
Mahmudul Haque Faysal, Deputy Manager (Marketing) of Rupayan Housing Estate Limited (RHEL), said his firm has sold small apartments at Shegun Bagicha, Moghbazar, Paltan, Rampura, Shantinagar and Mirpur.
"Small flats of 1145 sft to 1200 sft are being sold at about Tk 3.8 to Tk 4.2 million each," said Faysal adding the demand for flats having floor space of around 1200 sft is high. Its price is around Tk 4.5 million.
"Customers prefer small and medium apartments due to hike in house rent in the city", said S M D Jashimuddin, assistant manager (Marketing) of Amin Mohammad Foundation Limited (AMFL), one of the leading developers in the country.
"The demand for small apartments has increased nearly 30 per cent this year. The attitude of the general people has changed; they are becoming interested in small apartments instead of big ones", he added.
"AMFL apartments of 980 sft to 1200 sft, are sold at Tk 2600 to Tk 2800 sft each at Mirpur and Badda in the city," Jashim said.
Marketing Executive of Advanced Development Technologies Ltd (ADTL) Golam Sarwer Shamim said noticing a growing demand for small apartments the ADTL has started constructing small and medium apartments to meet the huge demand. He, however, said the ADTL earlier used to build only big size apartments.
"Demand for 1000 sft to 1500 sft apartments worth Tk 3.0 to Tk 4.0 million is high from the buyers," he further said.
It is noticed that small apartments are not usually built in posh areas like Gulshan, Banani, Baridhara, Dhanmondi in the city, where the demand for big size apartments is high.
The increasing urban population is creating higher demand for shelter. But it is very difficult on the part of the government alone to ensure housing for all.
In Bangladesh, real estate business started first in Dhaka in the late 1970s. In 1970s, there were fewer than five companies engaged in this business. In 1988, there were 42 such developers working in Dhaka and now there are about 361companies.