No major headway yet in meeting realtors\\\' pleas

Rezaul Karim | Published: February 19, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

There is no major headway in meeting the realtors' recommendations made to the government to help them out after the political turmoil late last year.
The Real Estate & Housing Association of Bangladesh (REHAB) earlier recommended creation of a long-term fund worth Tk 30 billion urgently to boost the sector that passing a dull time because of the political turmoil.
"The real estate sector is now at stake due to the political unrest that broke out last year. We want to resume the long-term housing loan plan for lower and middle class people, which was halted in 2009," said REHAB Vice President Liakot Ali Bhuiyan while talking to the FE Tuesday.
The ministry of finance (MoF) was working on it, sources said. Lending to the lower and middle-income groups from the fund at a single-digit interest rate might never be possible, because the rates offered by others were far higher.
Moreover, presently there was no setback in the sector. So, there was no need to create such a fund, the sources further said.
However, rescheduling the existing loans of the realtors as sought by them might be possible, but it would take time to take a decision on it, they further said.
The REHAB in a letter to the MoF, signed by its former president Nasrul Hamid, said their sales of ready flats and plots dropped by at least 60 per cent because of the political turmoil late last year.
They also said there was a 75 per cent drop in undertaking fresh construction projects by the realtors as a result of the sagging demand.
The developers sought rescheduling of their existing bank loans having a one-year grace period without any down payment.
The REHAB also urged the finance minister to direct the banks and financial institutions to provide its members with loans, the letter said.
The banks and other financial institutions were reluctant to offer financing to the about 1,200 developers countrywide over the last one and a half years. The low and middle-income buyers were not interested to buy flats due to the high cost of financing, sources concerned said.
The number of unsold flats is currently about 22,572 worth approximately Tk 215 billion. The number of flats to be handed over is 7,014 worth Tk 7.73 billion, according to the REHAB.