Trend in Home Mortgage: Dhaka middle class now dreaming for a flat!

Real estate market is expanding rapidly in Dhaka amid growing demand of apartments and land. Dhaka middle class inhabitants are now dreaming for a flat. Commercial banks and house finance companies are cashing from this dream of middle class by providing Home Mortgage loan.

Rich inhabitants of Dhaka are not usually taking loan from banks for apartments or land. Upper Middle class and middle class are the major borrowers of mortgage loans. Home mortgage business is one of the most lucrative businesses in Dhaka now.

Although the whole world is now experiencing severe economic recession, Bangladesh overall economy is not affacted that much yet. The mortgage industry in America is now in deep crisis. Mortgage industries of other developed countries are not in good shape either. But Dhaka home mortgage sector is growing in rapid pace.

According to 'Real Estate and Housing Association of Bangladesh' (REHAB), there are about 283 companies working in real estate sector in Bangladesh. But only 83 companies are officially affiliated with the REHAB. These companies offer various type and size of flats and apartments to different income category people.

The major real estate companies are East West Property Development (Bashundhara Group), Sheltech, BTI, Asset Development, Amin Mohammad Foundation, Eastern Housing, Rupayan Housing, Concord etc. Bashundhara housing project is the biggest private sector real estate project in Dhaka.

All most all the commercial banks in Bangladesh now provide home mortgage loan at various interest rates ranging from 10 to 18 percent per annum. The middle class employees of different sectors and middle income businessmen are the major customers of housing loan.

There are two ways: direct and indirect, of getting home loans in Bangladesh. Mortgage loan borrowers can directly approach the bank for loan or they can go through the real estate companies from which they want to purchase apartments or house.

Some real estate companies arrange bank loans for their clients and sell apartments on credit. Some housing finance companies also arrange home loans for the apartment buyers and the real estate companies.

Leasing companies in Dhaka are not sitting idle. They also provide home loans. They are also eyeing on the retail consumers rather only on big corporate clients. Lease financing is also growing now.

Many old and small buildings and residential house are being demolished to build new high rise apartment buildings in Dhaka now. This trend is seen in almost every area of Dhaka from old to new Dhaka. If this trend continues, after 20 years there will hardly be any old and small building and house in Dhaka baring some old famous heritage buildings and structures.

Dhaka is now rising high. Land is the most valuable asset in Dhaka now. There is hardly any vacant space left in the key posh and commercial areas of Dhaka. So there is no way but to rise high.