DHAKA: Country’s housing industry is regaining its stability slowly. The buyers have started showing interest again for buying flats and plots which came to a pause due to political instability and various decisions of the government.

The aspirant buyers have started booking for the plots and flats after so many steps taken by investors. That’s why the investors have begun to see a glimmer of hope.

Investors said they have been selling flats and plots with a minimum profit in a bid to overcome the recession in the sector.

The sector will gain strength if the government helps them directly, they express hope.

Demanding a quick approval of projects by Rajdhani Unnayan Kartripakkha (RAJUK) and a reduction of interest rate of bank loan, the businessmen also said that the contribution of the housing sector in GDP is important and it could be doubled.

They also added that political instability, lack of electricity and gas connections in flats, high interest rate in bank loans created a stagnant situation; around 60 percent selling decreased in the sector.

The situation was very vulnerable in the sector from September to December in 2013, they claimed.

New projects could not be started as the plots and ready flats were not sold and this had made the future of invested Tk 75,000 crore uncertain.

Besides, a possibility of loss was imminent to three crore people as some 12,000 industrial factories of 269 sub-sectors related to housing business became uncertain.

People concerned claimed that the housing sector started getting its rhythm after the general election on January 5, which made the country’s political situation stable.

Real Estate and Housing Association of Bangladesh (REHAB) sources said some 20,000-22,000 flats of 1,200 members of the organization remained unsold. As a result, they could not start new projects.

Sources also said many housing companies were established under private initiatives in the country in the early 1980’s. The private housing companies handed over 160,000 flats and plots to customers in past 34 years.

According to the finance ministry, the housing sector contributes Tk 24,000 crore in GDP, which is about 9 percent of GDP.

According to statistics, the country still needs about five million flats.

The crisis started during caretaker government tenure, in 2007 and 2008, when most of the people almost stopped buying flats and plots. Later, at one stage, the price of land and flats went beyond the purchasing capacity of general people.

Besides, giving gas connection to newly built houses stopped in 2010 and Bangladesh Bank stopped the refinancing fund of housing sector.

On the other hand, Bangladesh House Building Finance Corporation (BHBFC) could not provide adequate loans due to shortage of funds.

Theses problems should be solved, the businessmen expected.

BDST: 1538 HRS, OCT 28, 2014