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Lokman Hossain – a salaryman from Chattogram with a private sector career spanning nearly two decades – saved up Tk 50 lakh, and visited the REHAB Fair 2021 on Saturday hoping to buy a home he can call his own.
He spent the day roaming at the fair from one stall to another, but could not find an apartment that fits his budget and location criteria. Beginning in the port city’s Radisson Blu Hotel on November 18, the fair is set to conclude on Sunday.
Sharing his disappointment, Lokman said, “Everything I saw here is targeted towards the rich, and the fair has nothing for the people who are not wealthy enough. My budget is Tk 50 lakh, but prices for apartments that match my criteria start at Tk 65 lakh – Tk 70 lakh.”
Lokman is not alone in his predicament, as a number of visitors claimed that the fair does not have any projects suitable for lower-middle and middle income segments of the people, or for people living in towns. Most of these visitors are returning empty handed.
Organised by the Real Estate and Housing Association of Bangladesh (REHAB) – an association of real estate developers in the country, the event has 71 stalls, and of those, 50 are for developers and builders.
‘Building flats for middle class difficult’
Regional Chief of REHAB Committee and Chairman of REHAB Chattogram Fair 2021, Abdul Kauiam Chowdhury said, “In the current contest, it is very difficult to build flats that can be affordable to consumers from the lower-middle, or even the middle income segment.
“Land value is now so high that only the upper class can afford an apartment in a big city such as Dhaka or Chattogram. The price of everything, including building materials, has gone up too since the Covid-19 crisis, making it even more difficult to build apartments for the middle class.”
Organisers expect at least Tk 250 crore in sales of flats, plots and shops at this year’s REHAB fair, insiders told The Business Post.
Chowdhury, also the chairman of Air Bell – a reputed builder of apartments in the port city, said, “At least 800 ready apartments and about 5,000 under-construction ones are being showcased at the fair for prospective buyers.”
On the spot visit, The Business Post found that most of the houses in residential areas being offered for sale at the fair have been designed and built to be spacious and expensive, and targeted towards the wealthy segment of the visitors.
Officials from several organisations participating in the event said flats in Khulshi, Nasirabad and Suganda areas of port city fetch the highest prices. Meanwhile, flats in city’s Agrabad and Halishahar are relatively cheaper due to waterlogging and tidal flooding issues.
The organisers have been holding REHAB housing fairs every year in Dhaka and Chattogram separately for the last two decades. But the event was suspended in 2020 due to the onslaught of the Covid-19 pandemic.
After the Covid restrictions were eased, REHAB held their first housing fair in Chattogram. The event will provide an idea on the impacts this pandemic has made on the housing sector, insiders said.
REHAB sources added the number of companies participating in this ongoing event is lower compared to its previous iteration, and this is why the sales target has been kept low. However, all the major mainstream developers in Chittagong are participating in this fair.
CPDL, a reputed company in Chattogram participating in the fair, is showcasing 26 new projects with around 150 apartments.
The company is asking Tk 12,000 for per square foot in apartments situated in Khulshi and GEC areas. At the lower end, CPDL is asking TK 7,000 for per square foot in apartments situated in Firingi Bazar area on the banks of the river Karnaphuli.
Providing more details, Chief Business Officer at CPDL Ziaul Hoque Khan said, “Apartments with a value of less than TK 1 crore are considered for the middle class, and those with a value above TK 1 crore are considered for the upper class.
“It is impossible to sell apartments at a lower price as the price of each building material has increased.”
According to different surveys, by 2030, Bangladesh will be the 28th largest economy. It is estimated that at least $700 billion will be invested just in housing alone in the next 50 years.
A significant number of these investments will be in the country’s main port city Chattogram where the number of households in different categories is at least 2 million.
Abdul Kauiam Chowdhury, head of the REHAB Regional Committee, said the government will have to provide land with lower costs to ensure housing for the lower and middle income classes.
“Because, due to the current price of land and construction materials, developers have no choice but to sell apartments at a higher price,” He added.
