Prospects and challenges of Irving Properties Ltd in real estate business of Bangladesh

Abstract

Bangladesh is a densely populated area with acute shortage of housing especially in cities. The present population density is approximately 964 per sq. km. Total population is 158.57 million. The population growth rate is 1.566, meaning that every year more than 2 million peoples are added to the population. There is huge gap between house supply and demand in the urban area, particularly in Dhaka. The country’s urbanization rate is 3.1 indicating the mounting housing pressure on urban governments. Dhaka, for instance, has a population 0f 14.25 million and every more than 0.5 million is added to this mass. For this reason within a short history of real estate industry, at present there is more than 1500 developer companies in market and it is increasing day by day. Since a large number of companies in this industry therefore the level of competition is very high. On other hand external environmental factors such as Economic, Social, Technological and Political forces has huge impact in this industry. Political instability and economic crisis has become major issues for falling down the business at this sector. But it is for a short time. These days are not so far where this industry will get back its previous time. For having a huge demand of houses in the market unfortunately government has lower contribution in real estate sector in considering the demand. Private sector contributed significantly to the supply of urban housing, particularly in the capital.