CHITTAGONG, June 16: Real estate developers today demanded Tk 50.00 billion in refinancing scheme for the sector at a single-digit interest rate to help them tide over the ongoing business stagnation.
They said that the government introduced a Tk 7.50 billion worth refinancing scheme in 2007 for housing developers at 9.0 per cent interest rate, which has been discontinued now.
The proposed budget has increased the registration fee instead, which is the highest among the SAARC nations.
"The proposed hike in registration fee is discouraging for the real estate developers and this may lead to draining out of a huge amount of money from the country every year if not invested in the country," the developers said in written statement.
General Secretary of the REHAB (Real Estate and Housing Association of Bangladesh) Md Wahiduzzaman read out the statement at a press conference on the eve of the four-day fair at Chittagong beginning on wednesday.
"The present democratic government has undertaken development schemes under the PPP (public-private partnership). We're committed to extending its cooperation in different construction activities including supply of the houses for the people, which is one of the basic demands.
REHAB Chittagong Zonal Standing Committee chairman Engineer SM Abu Sufian, convenor of REHAB Chittagong Fair 2014 Engineer Iftekhar Hosen and joint-convenor Md Abdul Quader Zilany also spoke on the occasion.
Md Wahiduzzaman also urged the government to patronize the sector by withdrawing proposed enhanced VAT (value added tax) in the upcoming fiscal budget, keeping way from imposing new taxes on the sector, reducing land registration cost, keeping provisions for investment of the undeclared money, which will help meet the growing demand for abodes.
He also criticised the government agencies concerned for lingering process in awarding approval of designs and said it retards the whole construction process and timely delivery of flats to their owners.
"There is no doubt that the country will rapidly progress if the real estate sector's growth is accelerated because right to abode is one of the primary and fundamental demands of the people," he said.
REHAB has been organizing fairs every year in Dhaka since 2001 aiming at expanding the real estate business and it is being organized in Chittagong for the eight years. The REHAB has also arranged housing fairs abroad since 2004.
Nearly a dozen REHAB fairs have so far been organised in the USA, one each in the UK, Dubai of UAE, Rome of Italy, Toronto of Canada and Sydney of Australia since 2004.
A total of 47 real estate companies, 16 building material companies and four financial institutions will participate in this year's Chittagong REHAB fair.
State Minister for Land Saifuzzaman Chowdhury Zaved will inaugurate the fair as chief guest on June 18 at Chittagong Club auditorium. CDA chairman Abdus Salam and Commissioner of Chittagong Metropolitan Police Shafiqul Islam will attend it as special guests.
