Real Estate Finance
Submitted To Farzana Lalarukh Associate Professor
Department of Finance
University of Dhaka
No Name Roll
1. Masud Ahmed 16-014
2. Khaleda Aziz 16-024
3. Akhter-E-Tamanna 16-102
4. Sameya Azad 16-152
5. Mohammad Mominuzzaman Bhuiyan 16-174
Date of Submission: 17-2-14
Department of finance
University of Dhaka
Subject: Submission report on “ Long Run Perspectives of Developer in Bangladesh”
We are pleased to submit the report you have assigned to us. The report paper was to prepare the term paper on the course named “Real Estate Finance” course code: F-409, as a part of our…show more content… Real estate deals not only with the architectural design and infrastructure of a building but also with its finance and potentiality. It is an area that is highly influenced by the population density, income generation and tastes of the people and economic growth of a country under different period of time.
Real Estate Finance System in Bangladesh:
The housing finance sector in Bangladesh is both underdeveloped and highly segregated.
Private construction finance:
The predominant way of financing is through landowner and developer self-finance, e.g., by selling part of the land parcel or other land and subscribing the housing development fully before construction starts. Buyers of individual units in multifamily apartments have to put down a 25 or more percent advance and the unit has to be paid for in a few large installments before the house is completed. This type of financing arrangement is difficult for all but the highest income groups in the absence of mortgage financing.
Public construction finance:
After the failed attempt to stimulate BHBFC to lend for lower cost housing developments the Prime Minister‟s Office recently established a Housing Fund called the Grihayan Project, which provides low cost funds to NGOs and public sector developers for the construction of low- to moderate-income housing schemes. The Housing Fund is administered by an inter-ministerial committee of 17 members and includes one NGO