The New Nation - Internet Edition

THE Real Estate and Housing Association of Bangladesh (REHAB) is now holding its exhibition at the Bangladesh China Friendship Conference Centre. Over the years, this fair turned into an annual event to showcase the products of real estate developers to their potential clients under one roof. Nearly 191 real estate developers and four financial institutions with deep involvement in real estate business, are participating in it. Like in other years, the fair will be providing comprehensive services to those who look forward to owning homes.

Every year, the fair leads to a big one-time sale of flats and plots of land. The financial institutions also gain from financing these activities. Business has not been booming over the last two years in Bangladesh. Therefore, there may be relative slackening of interest this year in home buying. Nonetheless, there is merit in holding the fair in spite of the temporary troubles facing this sector.

Last year, the sale of flats dropped alarmingly from a fear that buyers become targets of income tax people and security agencies. REHAB leaders say the reason behind this was a newly introduced income tax rule that buyers of real estate from now on must disclose where from they get their resources to make such purchases. The construction sector along with its nearly 200 linkage items like rod, cement and sanitary wares have been contributing some 25 per cent to the GDP in recent times. Nearly 30 lakh people and their dependents rely on the real estate sector.

Considering these factors, the government may facilitate the sector through reduction of registration fees, withdrawing restriction on import of basic building materials. The government may also help create a large housing fund from which home buyers can take out loans with notably lower interests and other soft terms.