Professional Documents
Culture Documents
In the last five years, the members of the Real Estate and Housing
Association of Bangladesh (Rehab) constructed the following numbers
of apartment units in Dhaka:
As we can see, the rising trend of growth was suddenly jolted in 2007.
One quarter of the way into 2008, from the unofficial information
available, the situation has deteriorated further.
Furthermore, the housing industry has been responsible for the setting
up of the numerous factories -- cement, sanitary ware, ceramic tile,
UPVC pipe, brick, electric cable, and aluminium section -- and has
single-handedly revived the fortune of the doomed M.S. rod industry.
The simple answer to the above question is the total apathy of the
successive governments towards this sector. Instead of nurturing of
the housing industry with encouraging polices and incentives, it has
been repeatedly held back by regressive polices.
Until last year, the income tax on this sector under section 53 FF was a
flat rate of Tk.150/sqm. In the last budget, this was increased to
Tk.250/sqm. This amount is payable even if the company makes a loss.
• The housing sector uses many imported items, such wooden doors,
mortise locks, electric switches, waterproofing compounds etc.,
which are all basic raw materials for this industry and should,
therefore, be allowed to be imported at a low import duty rate.
• From 1999 up to the fiscal year July 2006 - June 2007, Section 19B
of the Finance Act allowed legitimizing undeclared wealth by
investing in the purchase of apartments. After 1/11, the present
government abolished this provision. This was a big blow to the
housing industry.
The finance advisor said that the provision of not to withdraw in the
Finance Act was morally unacceptable and went against the basic
philosophy of the present government. As responsible citizens we
could not argue with the honorable finance advisor on issues of
morality. However, I did wonder whether it would mean that the said
undeclared wealth would now go into the hands of a real estate
developer in Dubai or Malaysia.
• The Bangladesh Bank allocated Tk.100 crore, available for the fiscal
year 2007-2008, for housing loans for the middle and lower income
REPORT ON REAL ESTATE BUSINESS
The terms and conditions for this loan have been made so impractical
that virtually everybody is disqualified from availing it. The authorities
should rationalize the policy so that the middle-income buyer of flats
can easily avail this loan.
Housing is one of the basic rights of every citizen. "Housing for all"
should not merely be an empty political slogan. The government
should create an environment with encouraging policies so that the
housing industry can flourish, and this will also be a great boon for our
national economy.
For the last five years this sector grew impressively and showed a
smooth rising trend.
1995-1996 3.37
1996-1997 3.55
1997-1998 3.80
1998-1999 3.83
1999-2000 3.85
2000-2001 3.4
2001-2002 3.41
2002-2003 3.52
2003-2004 3.60
2004-2005 3.67
2005-2006 3.62
2006-2007 3.51
2007-2008 3.43
2008-2009 3.53
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3.9
3.8
3.7
3.6
3.5
3.4
3.3
0 2 4 6 8 10 12 14 16
The housing sector, which typically represents just small portion of the
total economy, accounted for a large part of the overall growth in the
Bangladesh. Economy in the first half of 2005, and notes that more
than half of the private payroll jobs created since the fall of 2001 were
in housing-related sectors.
Contribution to GDP
Years 94- 95- 96- 97- 98- 99- 00- 01- 02- 03- 04- 05- 06- 07- 08-
95 96 97 98 99 200 01 02 03 04 05 06 07 08 09
0
Contribut 16. 16. 16. 16. 16. 16. 16. 17. 17. 17. 17. 17. 17. 16. 16.
ion in (%) 20 30 40 60 70 72 79 22 12 17 24 30 28 90 98
But Malaysia, one of the most rapidly developing countries as the share at
15.09% while USA has about 16%. This picture of Malaysia and USA shows
that real estate sector can contribute more to countries GDP. Therefore the
real estate sector in
Higher rate of economic growth leads to increase income to people. With the
economic growth of the country, more people are likely to by economically
able to afford a house with necessary facilities.
REPORT ON REAL ESTATE BUSINESS
This sector has a strong contribution to the development of other forward and
back ward linkage sector like furniture, ceramics, consultancy, paints,
aluminum, and many others. This is opening opportunities of large
employment and enhancing revenue of the government.
The REHAB executive committee at its last meeting approved the idea
of launching a digital market, Probalsaid "Realbazar will be an all-time
REPORT ON REAL ESTATE BUSINESS
housing fair for Bangladeshi real estate products. Buyers both at home
and abroad will be able to buy plots and flats in a single platform. This
will push up our sales as well as our growth in 2010", he said.
1
REPORT ON REAL ESTATE BUSINESS
Rural 15,474,566
Urban 3,545,923
7 Urban 40%
8Dhaka 65%
The only detailed figures on the type of housing in urban areas are
available for Dhaka Although the data is old, the situation has not
changed much for the better and it is, therefore, still relevant to
provide a broad picture of the urban housing conditions.
Approximate
Sub-system
Upper Income 2 15
Group
28 65
Middle Income
Group
Recent Experience
Services
Uses
• Dhaka
REPORT ON REAL ESTATE BUSINESS
Dhaka is the capital city of Bangladesh; like any other capital city, it
bears the prestige and focus of the entire country. During 1947, Dhaka
city was only about 50 square miles. Today the picture is far different
by holding an area nearly 650 square miles.
Without any proper planning this area could extend towards south up
to Comilla and towards north up to Myemnsingh. But with the influence
of rapid urbanization and modern lifestyle, this vast area is just filled
up with too many people. The demographic analysis works out the
issues of migration every month from the rural areas tot eh urban
areas as having better opportunities and employment, improved
educational facilities, promising future and other related factors.
Open Spaces
i) Park 20%
Total Area
100%
So new and new apartments and land development projects are also
carrying on by the government and the private real estate housing
sector in Bangladesh in Chittagong and there is rapid improvement in
this also.
KDA is the only public sector organization in the city, which is still
continuing its housing scheme. It is estimated that KDA’s ongoing and
upcoming projects altogether will supply over 5474 plots within the
next 3 to 4 years. HSD has not undertaken any housing project after
1960s. However, Khulna division was supposed to get a share of
200,000 housing units under the program entitled “Two million housing
program in Bangladesh” (Hossain, 2000). Nevertheless, due to the idle
situation of the HSD this project’s implementation is under severe
threat now.
There are some private real estate developers in Khulna City who has
developed more than 30 individual housing projects outside the City
Corporation area. It has been found that maximum private housing
schemes do not provide any facilities other than road and mosque.
Housing delivery system of Khulna city is dominated by private
informal sector, like other cities of Bangladesh.
amongst the highest in the world. In the older parts of Dhaka there are
500 dwellings per ha and in urban slum areas there are more than
2000 persons per acre in single story housing.
industry condition and we cannot go deep into the true condition of the
company without basic knowledge about the industry.
• Switching cost: Switching cost of the buyers from one real estate
company to other is not significant. So they can switch easily and it
helps them to retain their bargaining power.
• Brand Loyal Customers: There is less scope for the real estate
companies to find loyal customers as very few of them buy houses for
more than one time. So the new entrants can take advantage of it by
grabbing the market share.
Threat of substitutes
Supply of housing
REPORT ON REAL ESTATE BUSINESS
Housing supply is produced using land, labor, and various inputs such
as electricity and building materials. The quantity of new supply is
determined by the cost of these inputs, the price of the existing stock
of houses, and the technology of production. For a typical single family
dwelling in suburban North America, approximate percentage costs
can be broken down as: acquisition costs 10%, site improvement costs
11%, labour costs 26%, materials costs 31%, finance costs 3%,
administrative costs 15%, and marketing costs 4%. Multi-unit
residential dwellings typically break down as:
acquisition costs 7%, site improvement costs 8%, labour costs 27%,
materials costs 33%, finance costs 4%, administrative costs 17%, and
marketing costs 5%. Public subdivision requirements can increase
development cost by up to 3% depending on the jurisdiction.
Differences in building codes account for about a 2% variation in
development costs. However these subdivision and building code costs
typically increase the market value of the buildings by at least the
amount of their cost outlays. A production function such as Q=f(L,N,M)
can be constructed in which Q is the quantity of houses produced, N is
the amount of labour employed, L is the amount of land used, and M is
the amount of other materials. This production function must, however,
be adjusted to account for the refurbishing and augmentation of
existing buildings. To do this a second production function is
constructed that includes the stock of existing housing, and their ages,
as determinants. The two functions are summed yielding the total
production function. Alternatively an hedonic pricing model can be
regressed.
The basic adjustment mechanism is a stock/flow model to reflect the fact that
about 98% the market is existing stock and about 2% is the flow of new
buildings.
added to the available stock of housing in the next period. In the next
period, supply curve SH will shift to the right by amount HSo.
will not positively affect their real estate market conditions to the same
extent as it effects other areas in the country.
What factors influence the price of a home? How is the real estate
market impacted by supply and demand principles? Is there a way to
anticipate price increases and decreases for different areas? Let's take
a look at some of these issues.
On any given day, people can easily find articles and news stories
describing an impending bust of the so-called real estate bubble.
Despite this gloomy prediction, many experts believe that the recent
slowdown in housing will be a gradual and modest readjustment rather
than sharp bust or decline. These experts believe that factors that lead
to a sharp decline in the real estate market are just not present in the
current economic outlook. In fact, a recent study by the Joint Center for
Housing Studies at Harvard University noted that “despite the current
cool-down, the long-term outlook for housing is bright.”
The rise and fall of the real estate market is subject to the forces of
supply and demand, and these factors point to stable and positive
growth in the real estate segment.
SUPPLY FACTORS
Limited supply of real estate makes it scarce and usually pushes home
prices up. In contrast, an oversupply of real estate tends to put
downward pressure on home prices. Despite the current slow down in
the real estate market, factors that impact limited supply favor
continued growth in the real estate market. Some of these factors
include:
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DEMAND FACTORS:
5. Forecasts that the outflows and inflows of the population in and out
different regions will not significantly impact the overall real estate
housing market.
Chart Title
140
120
100
80
60
40
20
0
2001
2005
2007
2009
2015
2023
2029
2035
2037
2043
2045
2003
2011
2013
2017
2019
2021
2025
2027
2031
2033
2039
2041
URBAN RURAL Linear (URBAN)
Huge lift up in urban density and rush of the people to Dhaka city has
created great demand of accommodation and housing services.
Moreover, the real estate developers have started targeting the middle
income groups in the last a few years to sell apartments. As the major
portion of the society is in this group, the demand has got to be high.
According to REHAB, there is a demand of about 60 thousand
residential units plus 2 lacs units of backlogs and replacements every
year.
Most new construction for the urban formal housing market is in the form of
apartment buildings. The predominant way of financing the construction of
this type of housing 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.
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. Some large
developers have access to short-term construction finance from affiliated
private commercial banks. It is, however, difficult to
obtain construction finance from the NCBs (see below). Developers do not
engage in long-
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 member
(Proshika). A total of Tk.580 million is available at an interest rate of 1
percent22 for 10 years. The project requires that the borrower on-lends
to lower-income households at a rate of 5 percent, which leaves a
spread of 4 percent for which the developer has to cover all costs,
including loan administration. Indeed the project expects the NGO or
public sector developers to put in their own funds for project
development and management. Therefore, only well funded NGOs can
consider participating in the project. Also, selected agencies have to
have the capacity to act both as developers and long-term mortgage
financiers for the projects.
REPORT ON REAL ESTATE BUSINESS
independence. While the majority of its clients are still civil servants,
its mandate has
BHBFC finances three types of housing categories each with their own
construction and financing terms:
The commercial banks, both public and private, and the specialized
banks are the
Delta Brac makes loans for the construction of houses, the acquisition
of flats and houses, the extension and improvement of existing
housing and the purchase of housing plots for middle and, in the
medium term, lower income households. It provides both construction
finance and long-term mortgage finance. In the first year 230
individual loans were sanctioned for a total of Tk.208 million, an
average loan size of Tk.900,000. The business plan projects a steady
increase in the number of loans and a simultaneous decrease in the
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concerning the allocation of state land and can access funds from the
co-operative
movement’s apex bank, which receives a large part of its funds from
government.
.4 million
p.a. compounded
12months grace
period
Commercial banks.
Insurance companies.
Companies are still relatively small and invest most of their funds in deposit
accounts in the commercial banks. However, the equity investment in DBH by
the most successful and innovative private sector life and general insurance
companies19, shows the potential of further linking the private housing
finance sector and insurance companies.
There is a State Provident Fund to which all permanent civil servants (those
who have completed two years of continuous service) contribute ten percent
of their basic salary. Contributors are allowed to borrow against their savings,
including for the purchase of a residential plot or house up to 80 percent of
the outstanding balance in the individual’s account or 36 times the monthly
salary of the person whichever is less.
Micro-finance institutions.
BRAC’s move to enter into a joint venture with Delta Insurance and HDFC
from India to set up Delta Brac Housing (DBH), the first private sector non-
banking housing finance institution in Bangladesh is an interesting and, for
many, unexpected initiative by a MFI.
BRAC sees this not only as a good investment opportunity, but its interest in
this venture was related to the need for housing finance by its staff members:
middle income households that have no access to mortgage loans and cannot
afford to purchase a house. While the major NGO financial institutions and
the Grameen Bank hold investments in office real estate, they have not
participated in the wholesale financing of housing through other financial
institutions.
International investors.
Until recently, housing has not been a priority sector for external and donor
funding. Also, the absence of a swap market in Bangladesh makes it difficult
REPORT ON REAL ESTATE BUSINESS
for foreign investors to come in because of the exchange rate risk. The recent
investment by HDFC and IFC in a private housing finance company may
prove a turning point. Other bilateral investment institutions, such as the
FMO of the Netherlands, may consider investments and loan guarantees for
new private housing finance companies. Such international funding is
important for reasons other than providing necessary capital. It can assist,
through its loan conditions and technical assistance, in the establishment of a
proper policy and regulatory environment for the sector.
Development
Mr. Patteick Geddess made a high profile plan for Dhaka city keeping
in mind its growing tendency in area and population in 1917. It had
never been practically worked out. The result is terrible traffic jam in
Old Dhaka City.
Any real estate company needs No Objection certificate (NOC) form all
these organization prior to their construction. They also need to
construct according to the set guidelines of Master plan approved by
the RAJUK and BNBC 1993 and by fulfilling the requirements.
Government has also taken initiatives to decentralize land areas
among the rich, middle class and poor families.
inhabitants. Uttara model town has also provisioned 40.51 ekor areas
for slam inhabitants out of the total 381.19 ekor areas. Since all
building is made upon land areas, government is also taking
awareness regarding its construction materials and quality of
infrastructure. Environment engineers have already forecasted the risk
of earthquake in Dhaka that may demolish nearly 80% of the buildings
at a quake of 6 Richter scale
Private Initiatives
houses annually to meet the future demand of the next twenty years.
Estimates for annual requirements for housing in urban areas vary
from 3 lakh to 5.5 lakh units.
Growth in the Real Estate and Housing and the Construction Sector The
growth trends in the construction and the real estate and housing
sector. While comparing the growth of the real estate and housing and
the construction sector with that of GDP it was found that trend growth
in the two sectors for the period FY 1992-2002 was 4.8 and 7.5 per
cent respectively, which is much higher than the trend growth in GDP
of 4.6 per cent for that period. The shares of the real estate and
housing sector and the construction sector in the GDP were quite high
in the year 2002 and accounted for 8.3 and 8.0 per cent respectively.
However, the incremental contributions of these two sectors in the
same year were also considerably high at 6.0 and 12.8 per cent
respectively.
47.3 per cent which far exceeded the target of 16.35 per cent for this
period. The proportion of investment in housing and construction in the
national GDP increased from 3.4 percent in FY 1997 to 4.1 per cent in
1999.
During the peak years of the early 1990s, over 3,000 apartment units
were built by developers every year. Today around 2000 units are
built, which indicates a 30 per cent drop in output. Beside the general
consequences this slump leads to delayed delivery of apartments by
an average of six months. As regards the characteristics of the housing
sector 19 per cent of the dwelling units are located in urban areas. Per
capita floor space in urban areas is only 62.3 sq ft. About 46.4 per cent
of urban dwellings are made of brick/cement.
Unlike the past fiscal budgets, the government through the FY 2002 -
2003 budget provided a number of incentives to boost the real estate
sector of the country. These measures include exemption of
registration fees on land development, land sale and apartment
transfer which is expected to bring down the overall tax in this sector
to the level of 13.5 per cent, waiving of registration fees in cases
where the apartment is resold within 5 years of buying and halving of
property transfer tax at source. Estimates show that these measures
have saved an average buyer about Tk 5 lakh on a Tk 45 lakh worth
apartment. if tax is paid at a flat rate per square feet of apartment,
unaccounted for funds can be mainstreamed. Reflecting on the
response of the sector to these new measures after a protracted slump
these measures have been able to infuse new hope. Reduced
registration cost and other related costs, which resulted in the recent
increase in the number of apartments which were registered.
Year of : 1991
Establishment
No. of Member in : 11
1991
Direct
Employment-
REHAB Profile
Preamble: Urbanization is an outcome of both population growth and
rural-urban migration. As urbanization increases, more and more
people are becoming city dwellers. Bangladesh is not any exception to
that picture. The ever-increasing urban population is catering an
increasing demand for shelter. The right of shelter is a fundamental
right, which is ensured by both UN declaration and the constitution of
Bangladesh. But it is very difficult on the part of the government of
Bangladesh alone to ensure housing for all. Here comes the need of
private sector real estate development.
REHAB organizes its most colorful annual event REHAB Housing Fair
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Members List:
Membership Name of the Company Logo
No.
427/2008 3-i Builders Ltd. REPORT ON REAL ESTATE BUSINESS
Land Shortage
Bangladesh is an over populated country & every city or urban area of this
country is very congested. Day by day it is becoming very tough to get a
place to live there .People who are living from their birth in one place or
got land by succession do not want to sell their land to others as a reason
of affection a large portion of land supposed to be occupied to small
portion of people & there are also other people who are not getting a
piece of land to live on. Land ownership in Bangladesh is extremely
asymmetrical and statistics indicate that 70% of urban residents do not
own land while the distribution among 30% is extremely unequal. From
these aspects concept of multi storied building developed. It is a new
experiment for many people to live in apartments and maintain their life
style, thus changing the urban and social fabric from the classic single
storied independent house, to sharing smaller units of space side by side
with numerous other families. Since the beginning of mid-90s, living in
apartment has been alive and well in Dhaka. Dhaka experienced a boom
in apartment development in all residential areas including Paribagh,
Maghbazar, Siddeshwari, Shantinagar, Dhanmondi, Mirpur, Banani, Old
DOHS, new DOHS, Gulshan and Baridhara, to name just a few. More
recently we have seen a resurgence of apartment building in Uttara,
Basundhara, Banashree and Gulshan DOHS and in other areas of the city.
This scenario is also seen in other parts of the country .So we can see that
day by day there is occurring shortage of land all around the country.
Because all these lands available are not really good enough for building
apartments. So Now days builders are in shortage of land & they are filling
canals to create land & building apartments there that has many negative
aspects.
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REAL ESTATE BUSINESS
The necessary material’s prices are increasing rapidly for the last 5 years.
Because of higher prices of construction materials companies are also
increasing their apartment’s price. According to REHAB the overall costs
of building materials increased by 18 % in the past one year, raising the
construction costs by Tk 110 to Tk 125 per square feet. They are also
monitoring the market price volatility to adjust the price. So, apartment’s
price is increasing & creating problems for the buyers & also for builders
as falling of sells. So high prices of materials for real estate construction is
a great problem for real estate development in Bangladesh.
Interest rate on home loan is very high in our country so though there is
high demand for the apartments people are unable to buy it because of
high interest rate. Failure in timely payment of installment by buyers.
Most of the buyers do not make the slot payment for the apartment. They
go for the installment payment, but most of them cannot maintain it
properly. They make their installment payment lately. For this, the
apartment builders have to face a great loss .The registration fee is also
very high. The registration fee is fixed at 21% of the total value of the land
and other miscellaneous charges are 2%.So, higher registration fee &
other related charges are most important problematic issue for both the
land developer and flat builder.
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Sometimes the negotiation between the landowners & builders may not
be fruitful because of their dual preference; lack of good managerial
skills .The landowner thinks that this offer is not so much beneficial to
them. So they wait for more attractive offers.
Government regulations
RAJUK need to play a vital role here to evaluate and monitor all
building constructions within its jurisdiction. The builders are
building apartments by filling the canals as a shortage of suitable
land for construction. They are building high rise building without
following the building code given by RAJUK to prevent earth quake.
Earth quake from he recent years cautious us that there is a great
possibility to occur a horrible earth quake in our country as Dhaka is
in the first zone to be affected as there are many high rise
REPORT ON
REAL ESTATE BUSINESS
building .The real estate company need to give concern this side
very much as buyers are now becoming concern very much to this
fact.
Company Background
Introduction
Rupayan Housing Estate Limited has come into being in 1999 with a
pledge to fulfill the housing need of this populous city of Dhaka. The first
Residential Project named “Rupayan Easel Dream” comprising 108
Apartments in four eight storied building was successfully completed and
handed over to the honourable clients with their entire satisfaction. Since
then, the company continued its advancement in development works and
expanded the projects in all prime locations like Uttara, Gulshan, Banani,
Niketon, Eskaton, Paltan, Shantinagar, Moghbazar, Dhanmondi,
Laxmibazar, Wari, Mohakhali etc. Both Residential and Commercial
Projects were undertaken and completed successfully and handed over
accordingly and the company is in force with numbers of ongoing projects.
Office
The company is operating its business in its own high rise Corporate Office
at Rupayan Centre, Mohakhali C/A, Dhaka. The prestigious commercial
building like Faruque Rupayan Tower at Banani, Rupayan Golden Age at
Gulshan avenue and well decorated and magnificent residential building
with panoramic views at Gulshan, Dhanmondi and other prime locations of
the Dhaka City earned name and fame for the company.
Concern
There is a plan that tentative clients will be illegible to avail the apartment
in this project after booking and availing Bank Loan facility and thereby
the scope of making repayment of bank loan with the amount of House
Rent is nearly possible. This opportunity will make the dream true of
becoming the apartment owner in case of those categories of clients.
Rupayan has got housing project in nearby Savar region (Ashulia and
Hemayetpur areas).
Apartments
Dhanmondi
Rupayan CHANDRALEKHA at
Bashundhara
Upcoming-Projects
Commercial Space
Rupayan SHELFORD at
Shemoli
Upcoming-
Projects:
Rupayan BHABAN at
Gulshan
SWOT Analysis
Strength
Weakness
Opportunities
The caretaker Govt. became threat for the real estate sector of
Bangladesh. But now the elected Govt. has stretched ample
opportunities for the development of this sector.
Now people will be eager to invest more and more in the flat and
apartment to make the black money white.
REHAB is also taking many steps to improve the condition of this
sector.
Rupayan is rectifying in building code.
Its customer service department is also improving day by day.
All the data is available in the internet. So customers can choose
their apartment sitting at home.
Threats
"Home! Sweet Home!" Not only a famous song, but it also describes the
hopes and dreams of many who aspire to own a home.
Such aspirations are more reflected in the hearts of people who reside in
rental homes, wishing to own a permanent address. But it is difficult for a
member of the middle of lower-middle income group to purchase an
abode, owing to high property prices and prolonged payback periods.
"During the fair we sold around half of our total flats and we expect to sell
another 100 units tomorrow (today)," he added. 1 [Daily Star news, June o7, 2009]
Realtors are also offering flats and plots outside Dhaka, including some
tourist attractions such as Cox's Bazar and Kuakata.
REPORT ON
REAL ESTATE BUSINESS
The Rupayan Town offers flats of four different sizes ranging from a
minimum of 660 square feet to a maximum of 1,120 square feet at Tk
2,990 per sft. The booking fee is Tk 4.14 lakh. The majority of flat buyers
are coming from Narayanganj, adjacent to the project area, which makes
the company officials optimistic amid the industry's slack sales as a
whole.
Financial Performance
GrossProfit Margin
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2003 2004 2005 2006 2007 2008
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REAL ESTATE BUSINESS
Gross profit margin is increasing per year up to 2006. But in 2007 and
2008 the margin was relatively low. As caretaker Govt. charged many
people for corruption, people feared and reduced investment in real
estate sector. This reduces the total sales revenue from apartment and
flat. So the rising trend of margin collapsed in those years.
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2003 2004 2005 2006 2007 2008
The operating profit margin is increasing every year except 2007 and
2008. As the gross profit margin was lower in those years and the
maintenance cost became higher for the excess unutilized capacity, the
operating profit margin falls too much.
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2003 2004 2005 2006 2007 2008
REPORT ON
REAL ESTATE BUSINESS
Overall profit margin is in a rising trend. But in 2007 and 2008 the rates
declined. In those years low sales revenue, high maintenance cost and
high financial charge reduced the profit margin.
2.50
2.00
1.50
1.00
0.50
0.00
2003 2004 2005 2006 2007 2008
Recommendation
From the above discussion we can recommend the following things
Conclusion
The government should create an environment with encouraging policies
so that the housing industry can flourish, and this will also be a great boon
for our national economy. This industry can more flourish with the help of
government .So government need to take proper steps & should make
proper policy to develop this industry sector. As our country is a populated
country proper housing planning is needed very much. A peaceful, secure
environment, a planned city is needed and deserved by every human
being & real estate sector can play major role to make this dream true.
Appendix
1. www.rupayangroup.com
2. Daily Star June 7, 2009.
3. Financial Express June 7, 2009
4. New Age Business
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REAL ESTATE BUSINESS
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REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS
REPORT ON
REAL ESTATE BUSINESS