Dhaka Real Estate Market

[shab32]

The real estate market in Dhaka skyrocketed within the last year but based on my recent visit it seemed like things have slowed down a bit. I have since heard that the real estate market is going to crash as the prices have gone up way higher than what people can afford. I am not really sure if it will crash due to the huge demand and limited supply but it did seem that the prices were cooling down a bit.

Do any of you know the reason for the slow down? How long do you all think the slow down will last till? Any of you believe that the real estate market in Dhaka might crash?

[m.ahmed]

Originally Posted by shab32

The real estate market in Dhaka skyrocketed within the last year but based on my recent visit it seemed like things have slowed down a bit. I have since heard that the real estate market is going to crash as the prices have gone up way higher than what people can afford. I am not really sure if it will crash due to the huge demand and limited supply but it did seem that the prices were cooling down a bit.

Do any of you know the reason for the slow down? How long do you all think the slow down will last till? Any of you believe that the real estate market in Dhaka might crash?

Heres some news regarding the real estate scenario in Bangladesh -

http://www.thefinancialexpress-bd.co...news_id=158234

http://www.thefinancialexpress-bd.co...ate=2010-01-05

http://www.thefinancialexpress-bd.co...news_id=157845

The stock market crisis too has contributed by large in the fall of plot / apartment purchase thus lowering the demand for newly constructed apartments. Adding to that, the governments decision to not provide any gas connections to newly constructed building in Dhaka influenced the devaluation of property price.

[TIslam]

Originally Posted by m.ahmed

..........

The stock market crisis too has contributed by large in the fall of plot / apartment purchase thus lowering the demand for newly constructed apartments. .....

I find that reasoning to be rather unsound. The financial market, i.e. the stock market is neither mature nor well diversified that is comparable to a mature and modern banking and finance industry where the stock market is the overall indicator/predictor of financial health of a given economy. Nor is the Bangladesh real estate industry directly tied to the stock market as the (real estate) mortgage industry is practically non existent.

If people in Bangladesh have been playing their stock market like playing the lottery or casino gambling, hoping to make a quick buck that would be substantial enough to afford a decent flat, then it is nobody's fault than their own stupidity. Just because a handful of people were perhaps successful with this kind of gambling, it does not lend itself to the mechanics of real estate and financial markets.

[samaruf]

I don't think the stock market played a significant role in some of the devaluation of real estate. There's an oversupply at the moment as well as the unavailability of power and water connections being the major factors. Add to that the fact that remittance money is not flowing in at the same rate as before. I was surprised to hear from my brother who is in Bangladesh currently that a US dollar is going for 82-83 taka in the kerb market.

[mirzazeehan]

Originally Posted by samaruf

I don't think the stock market played a significant role in some of the devaluation of real estate. There's an oversupply at the moment as well as the unavailability of power and water connections being the major factors. Add to that the fact that remittance money is not flowing in at the same rate as before. I was surprised to hear from my brother who is in Bangladesh currently that a US dollar is going for 82-83 taka in the kerb market.

Devaluation of the taka has been mainly due to the sharp rise in fuel imports required for generating power through the rental power plants.

[TIslam]

Originally Posted by mirzazeehan

Devaluation of the taka has been mainly due to the sharp rise in fuel imports required for generating power through the rental power plants.

Whatever the reason, it is now a fact that people have to contend with, like it or not.

[elisonduncan]

In Dhaka are developing area so there are real estate market at very increasing rant. There are most of industrial are so they residential housing rate as increase and place value also increase.

[letrung]

no picture