Nazmul Hasan is a banker by profession. His wife is a housewife. He lives in a rented house in Khilgaon,Taltala. They have a family of four with husband and wife, one son, one daughter. Nazmul Hasan's long time dream to own a flat in Dhaka. But with the price of the flat and his income, it is not possible to buy a flat.
Owning a flat is like a dream for not only Nazmul Hasan, but for many middle class people like him. Dream has but ability out of control.
Even if one wishes to own a flat, that dream is fading day by day due to high prices.
According to the latest report of Bangladesh Bureau of Statistics, due to unequal distribution of wealth in the country, the rich are getting richer and the poor are getting poorer. The income of the middle class has not increased as compared to the increase in the price of daily necessities and other expenses. Because of which there is no savings. Flats across the capital have crossed the middle-class affordability threshold. The situation is the same outside Dhaka. Due to rising prices, not getting flats as per demand, not getting preferred locations, they are not lucky enough to get flats in the end. In such a reality, the question is, will the dream of owning a middle-class flat remain so elusive?
Housing owners say that flat prices are increasing mainly due to two reasons. First, the fire price of the land. Secondly, the abnormal increase in the price of construction materials including rod-cement. They said flat registration costs can be further reduced and if land is readily available, flats can be built within the affordability of the middle class at affordable prices.
Flats are so expensive that even a middle-class person's lifetime savings cannot afford them. And the lower class cannot even imagine. To them owning a flat is like getting a golden deer.
The cost of construction materials including rod-cement has increased by 40 percent in the last one year. Getting a piece of land in Dhaka is like getting the treasure . Finding a land is a matter of luck. Businessmen involved in the housing industry said that this promising sector currently facing various challenges. Costs in this industry have increased drastically due to the massive increase in the cost of construction materials including rods, cement, bricks. Due to which flat sales have decreased. Apart from this, due to the revision of Detailed Area Plan or DAP, a new crisis has arisen.
Housing businessman Sultan Mahmood, chairman of Star Business Group, said there is a way to build affordable flats for the middle class. That is, if the government gives government land to housing owners' organization Real Estate and Housing Association of Bangladesh (REHAB). Then the price of flats will come down by at least 30 to 40 percent. He said, "We don't want free land. Land can be provided to rehab members with a few money." In response to the question at what price the government can provide land, he said, "If the price of the land is Tk100 , then we are willing to pay Tk30 ." If the land is provided at a lower price, it is affordable. He said that it is possible to build flats at affordable prices.
According to the survey, the sale of flats has reduced by half. There is no money in people's hands. Sultan Mahmud said that a year ago in Dhaka city where 100 flats were sold per month, now it has reduced to half. Rezaul Karim Moni worked in a private company for more than 20 years. He lives with his wife and two children in a three-room house in the capital for a monthly rent of Tk17,000. At the beginning of this year, the rent has been increased by Tk1000 . The landlord has already informed that the house rent will be increased again in coming January.
Rezaul Karim Moni said, Tk17 thousand of the Tk50 thousand salary goes to house rent. The rent is increasing every year. I wanted to buy a flat. I got a small amount of land in the village through my parents, I sold it. I sold my wife's jewelry. Savings schemes was bought, it was broken. Now i have only Tk17 lakh. I couldn't find a flat at this price even after a lot of searching in the capital. Kamal Mahmud, the first vice-president of REHAB, said, "The prices of flats and plots are increasing. Prices are higher in the capital and Chiattogram. Due to the global recession, the price of construction materials has increased several times in the last two years. Again the price of land has also increased several times. The registration cost is also higher than the neighboring countries. How will private sector housing traders reduce prices in such a situation? We cannot sell the flat at a loss.
Flat registration cost is much higher in Bangladesh than neighboring countries. It is now around 14 to 15 percent. But the registration fee in neighboring countries is half of Bangladesh. In addition to registration, debt is a major problem. Interest rates on housing loans now exceed 12 percent. But in many countries the interest rate in this sector is less than 5 percent. Irrespective of the interest rate, housing loans are not readily available.
When asked about this, the former president of REHAB, managing director of private company Building for Future Limited, Engineer Tanvirul Haque Prabal said, "The land registration fee in many countries, including neighboring India, is 5 to 7 percent. We have double that here. REHAB has demanded that the registration fee be fixed at 7 percent. But the government did not accept it. If the registration fee is reduced, the price of the flat will come down to some extent.
He said that the existing policy support for the housing sector cannot be said to be too bad. But the Detailed Area Plan (DAP) policy proposed by Rajdhani Unnayan Kartripakkha (RAJUK), if implemented, will have an adverse effect on the housing business. In response to a question, he said, "As far as I know, no one has built flats for middle-class or low-income people." He opined that it is not possible if the government does not cooperate. Dhanmondi, Uttara, Segunbagicha, Banani, Iskaton, which are known as the elite areas of the capital, are being sold for an average of Tk20 to 25 thousand per square foot flat. Tk30 thousand in Gulshan. Apart from this, Tk8 to Tk10 thousand in Mirpur, Agargaon, Shantinagar and other areas. Tk6 to Tk8 thousand in old Dhaka including Jatrabari.
Consumers Association of Bangladesh (CAB) President Ghulam Rahman said that the housing sector of this country has gone under private control. They are selling flats and plots at higher prices on various pretexts. The government is unable to control the housing business. In this, housing traders are selling flats and plots by increasing the prices on various pretexts. The government should fix the price.
Flat prices are higher in Chattogram after Dhaka among other divisional cities. Price per square foot flat in Khulshi and Nizam Uddin Road of Chattogram is Tk10 to Tk15 thousand . Tk6 to Tk 8 thousand in Panchlaish. Apart from this, in Mehdi Bagh, Jamal Khan, Agrabad, Halishahar areas, an average of Tk5 thousand.
ARS
