Tumult costs realtors Tk 16b

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FE Report | Published: February 20, 2015 00:00:00 | Updated: November 30, 2026 06:01:00

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Realtors Thursday called for resolving the political stalemate through dialogue for the greater interest of the housing and its backward linkage sector   
The current political impasse has posed a threat to some Tk 250 billion investments made in the real estate and its allied sector.
The call came at a press conference on the violent political situation and its impact on the real estate sector and its backward linkage industry organised by REHAB in the city.   
Realtors demanded reschedule of loans for two years including waiver of their bank.
They also urged the central bank to reintroduce refinancing at a single digit interest rate for low and middle income people.
Real Estate and Housing Association of Bangladesh President Alamgir Shamsul Alamin said: "Only REHAB's 1,200 members have incurred around Tk 16.56 billion in the last 45 days of non-stop political turmoil. We have taken out loan worth Tk 24.00 billion for this sector. "
He feared that some of the realtors will be loan defaulters as political unrest weakens their ability to repay bank loans and its real picture will come out at the quarterly report of banks in the country.
Representative of backward linkage industries leader like-cement, concrete, stone, paints, ceramics, iron, land developers and electronics are dependent on real estate sector-were present at the programme.
Bangladesh Re-Rolling Mills Association General Secretary Abu Bakar Saddique said they have 400 mills and among this 200 is not in operation.
"Rest of the mills are in production for 8 to 12 hours only whereas generally they work for around 18 hours a day due to lack of raw material following continuous blockade," he said.
Bangladesh Land Developers Association Secretary General Mustafa Kamal Mohiuddin said: "We have 250 members. Around Tk 50 billion investment of land developers and entrepreneurs are stuck up due to political turmoil and in this situation people are not interest to invest in housing."
"Already 45 days have been passed and to recover the incurred loss, it will require another two years to recover the loss," he said.
Bangladesh Paints Manufacturers Association Vice President Abdur Rahman said the investment of the sector is around Tk 20.00 billion. In last one and a half month, manufacturers have incurred loss above Tk 3.25 billion as well as paint manufacturers are not able to provide revenue for the same period.
Bangladesh Pathar Badosayee Samity first Vice President Al-Haz Abdul Motin Khan: "Stone businessmen have 462 mills in the country. Around 500,000 to 700,000 workers are involved in the sector."
"Generally 2,000 ships come from Bholaganj to Dhaka but now the number is 20 to 22 ships due to political turmoil," he said.
He said if the ongoing situation continues, the businessmen will commit suicide and urged the political parties to keep them alive.
Bangladesh Electrical Contractors Association President A K M Shamsuddin said the work of the sector severely disrupted in the political unrest. The workers who get Tk 100-Tk 300 per day are now jobless. They are passing a tough time.
REHAB President said they cannot carry raw materials to the construction sites due to transportation problem.
He said this is creating problem to meet the deadline of hand over flats to the clients which also creating legal problems between the land owners and developers.
He said flat sale, price collection and financial transaction are at the lowest level at present due to strike and blockade
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