Differenciation of real estate business in Bangladesh
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As globalization increases, the process of urbanization increases. The ever increasing urban population is creating an increasing demand for shelter. As public sector failed to ensure their right, people have taken their own initiative to ensure their fundamental need for shelter. The current trend of urban growth in Bangladesh is about 5-6% per annum. At present 28% of Bangladesh’s population live in urban areas, which will be 34% by the year 2025 (REHAB, 2003). The Real estate developers are playing the vital role regardless of high, middle, and low-income people since the past two decades in providing the housing provision. During 1970s there were fewer than 5 companies in Bangladesh engaged in this business. In 1998 there were 42 such developers working in Dhaka which increases to 250 during 2003 REHAB (Real estate and Housing Association of Bangladesh) is a private organization formed by the private real estate companies in Bangladesh in 1991 with a view to solve the problems in housing sectors, to protect the interest of real estate in Bangladesh. It has nearly 89 members at the end of 2002. To ensure quality and accountability of developers, the government has recently issued a circular to make it mandatory to become a REHAB member for doing business as a developer and also an apartment or commercial complex builder. In Bangladesh the Land owners, Land developers and the Apartment Builders are now facing different problems. Inappropriate rules for housing development, Harassment of environmental directorate for environmental clearance, Lack of coordination between utility agencies, Scarcity of open space in the city, High cost of registration and transfer, Lengthy procedures of to get approval for plans, and lengthy loan procedures of financial institutions are there major problems.