Real estate business

Real Estate business involved with sell, Buy and rent a properties. ... 1- Real estate is: the
property, land, buildings, and the natural resources surrounding it. 2- The term “real estate”
means real (or physical) property. 3- Now, Real Estate Business is: the producing, buying and
selling of real estate properties.

Real Estate Financing

Real estate financing is a term generally used to describe an investor's method of securing funds
for an impending deal. As its name suggests, this method will have investors secure capital from
an outside source in order to buy and renovate a property.

At present real estate sector (RES) is one of the booming sectors in Bangladesh. Day by day as
time passes on, this sector is becoming healthier since the substantial growth of population is
creating a tremendous housing problem and due to the increase in demand of commercial spaces
this sector has come into being. This sector provides an integrated and planned package to
resolve these problems.
Why Real Estate Sector?
In Bangladesh, the rate of urbanization is very high further aggravated by high population
growth rate and rapid rural-urban migration. The current trend of urban growth in this country is
about 5%-6% per annum. This will change and increase demand for habitat. At present 28% of
the population of Bangladesh live in urban areas, which will be 34% in 2025. The present
estimated population of Dhaka is 10 million and estimated growth rate is 4.7% per annum. All
these people need shelter. To satisfy the housing of this huge explosive population Dhaka has
attempted to expand vertically. Here comes the need of real estate sector. They have been
playing very important role in providing housing regardless of high, middle and low-income
people since the past two decades.

Real Estate in Sylhet

Real estate business is mounting up as one of the most profitable sector in Sylhet- a region of
high
Foreign remittance. Consequently, investors are paying their attention to invest in the sector for
earning profit. Further prospect of real estate business in Sylhet is something moralizing for the
investors. Only few apartment builder companies started their operations in the region. After
2000, private companies in this sector rapidly increased and the number of real estate and
housing companies in Sylhet stood at 122 at the end of 2016.
Among the companies 80 companies were found operation in full swing of which 50 companies
were involved in real estate business and the remaining 30 companies were involved in real
estate and housing business. The study has found shortage of debt financing as one of the major
problems of real estate business in the region. The study also recommends financial institutions
to reshuffle their policies for the smooth sanctioning of the loans to real estate companies and
also to the customers of plot or flat. The findings of the study might be helpful to the
authorities of the financial institutions, real estate and house building companies, policy makers
of the government, and also to the existing and potential investors and customers.
Real Estate In Sylhet Metropolitan City

In Sylhet, financing of house building was started with the establishment of a branch of House
Building Finance Corporation (HBFC) in 1962. The branch was upgraded into a zonal office in
1995 and since then the activities have been widening. However, HBFC alone is still not capable
of providing financial assistance to meet up the demand. To fill up the vacuum of government
support in housing and to meet up the escalating demand, a number of private companies came
into this sector. Moreover, expatriate people possesses sufficient fund and are interested to invest
at home if congenial environment prevails here in this sector. Expatriates have interest to live
with their family in Sylhet or they want to build their permanent residence at Sylhet after backing
from abroad. Gradually, the demand of real estate and housing facility has been increasing in the
city for the said reason. The private organizations in real estate and housing business at Sylhet
started their journey in mid 1980s through the establishment of Qurayeshi Trading. They
started Surma Abasik Prokalpo in 1998 and Diganta Abasik Prokalp in 1992. Man and Co.
and Eastern Housing started their projects in Sylhet during 1998. Private companies in this
sector has rapidly increased after 2000 and at present there are around 122 companies in Sylhet
and at least 80 companies at present are in operation and out of which 50 real estate and 30
housing and real estate business and out of this 80, two are from out of Sylhet and three are the
members of REHAB. For proper functioning of real estate business in Sylhet, a real estate
sub-committee of Sylhet Chamber of Commerce has been formed with 24 members.

Pricing Guidelines

 Bangladeshi real estate companies follow guidelines which are a blend of the above
approaches. The overall pricing guidelines of local real estate firms are stepwise as
follows:

 To select a property that is mostly identical in terms of attributes with the subject
property.
 To isolate the attributes of the subject property that are different from the comparable
property
 To determine the probable selling price of the subject property by considering the value
of the comparable property as a standard
  To forecast the potential cash flow stream from the subject property based on the
determined selling price
 According to the potential income stream local developers determine the budgeted cash
flow to complete a particular establishment.
 Developers target a particular segment of the market in which a particular establishment
belongs to. They select a particular income group as their potential clients for an
establishment in a particular area.
 To select appropriate structural design for the property to be developed and to estimate
the construction cost required to develop that property as per the designed structure. To
estimate the construction cost they use historical record of cost for the identical type of
construction and the current market price of the materials to be used to develop the
designed structure.
 With the above consideration developers determine the construction cost per square foot.
 They distribute the budgeted office overhead and promotion expenditure related to a
particular establishment among the per square foot sellable space. By adding this two
expenditures with the core construction cost and total cost per square foot is to be
determined.
 They add a certain percentage of profit mark up with the total cost per square foot and
selling price per square foot is determined.

Reasons for Development of the Industry:

The main reasons why real estate business developed in Dhaka City are as follows

a) Scarcity of open space in the important areas of the city

b) Hazards of purchasing land

c) Hazards of building construction

d) Rapid increase in population of Dhaka

e) Decrease in the bank interest rate

f) Increasing price of land and apartments

g) Increasing remittance of foreign currency

In Bangladesh including Sylhet generally most of the real estate businesses are categorized into
three major sectors. So, most of the real estate companies in Sylhet are formed based on these
categories. A categorized model of real estate businesses in Sylhet is given below

Types of Real estate business: Various types of real estate business are practiced in the Sylhet.

1. Land Development
2. Retail Shopping Centers developing and selling
3. Office Buildings selling and renting
4. Apartments/Multi-Family Housing
 5. Land/Apartments/Building renting

Sylhet Real Estate Companies in Sylhet

 Next Plan Development Limited (NPDL)
 Batayan Shahjalal Developers Ltd.
 Merline Builders (PVT.)Ltd.
 Royal Homes Limited

Next Plan Development Limited (NPDL)

It has launched its venture with the commitment of professionalism & reliability. Since then, we have
got the unique opportunity of planning, design & implementation of a huge number of residential as
well as commercial projects. Later we felt that there is a real scarcity in the field of real estate, and turned
up as a real estate company along with a consulting firm. Today, in the field of engineering, NPDL is a
recognized & trusted name, respected for its achievements, professional ethics and innovative
concepts.

Services

Structural Design:

Preparation of layout plan, details of column and footing schedule and their appropriate design
showing details dimensions and reinforcement placement. Design of grade beam, roof beam,
slab, stair case, water & septic tank, lift core, false slab, lintel, drop walls etc showing details
measurement and reinforcement placement. Structural design has been performed based on
Bangladesh National Building Code (BNBC) and in accordance with earthquake regulations.

Electrical Design:

Preparation of detail electrical drawing showing the location of the fans, light, and other
amenities such as TV, fridge, Air conditioner etc and their switch board, sockets, Main
distribution board etc. Detail circuit diagram alone with maintain the proper load calculation
their connectivity and thereafter the sub-station and its design.
 

Plumbing & Sanitary Design:

Preparation of detail plumbing layout showing all of the fittings & fixture of bathroom, wash
basin, kitchen etc. Plan of water distribution and sewage pipeline, their location & connectivity
including storm water pipeline. Position of duct line & layout of inspection pit and drain out line
which leads the waste water and sewage to their respective destination.

Graphic Design:

Preparation of multicolor leaflets, design of sign boards, bill boards & brochures design
including 3D presentation & showing details of floor plans with interior decoration of all of the
fittings & fixture and their respective placement for the purpose of marketing.

Real Estate Development:

Do you have a piece Land and want to buildup it? Do not have enough time and manpower to
engage on it or don’t want to invest yourself. You can undoubtedly rely on us. We are the right
organization who will give you hassle free service and will be developed your land in accordance
with your satisfaction. We will offer you very competitive and attractive percentage of apportion.

 Building Contact:

You have your land and have enough funds to invest but do not have enough time and manpower
or do not like any hassle then you can take our heartiest service. We will take the overall
responsibility from the beginning to the absolute dead end of your project. Please visit us and
consult with us, we are always ready to offer you very competitive and reasonable price.
Location: Head Office: First Floor, Kaniz Plazza, Zindabazar, Sylhet.
Contact: 0821-813933, 01819580456, 01715356380
Web Address: www.npdbd.com
Services: Architectural Design, Structural Design, Electrical Design, Plumbing & Sanitary
Design, Graphic Design, Real Estate Development, Building Contact, Supervision, Firefighting
system design, 3D modeling, Animation, Cost Estimation, Survey, Land Planning & plotting,
Soil Test, Renovation work. Projects: Architecture and Engineering Designed Projects: Some of
NPDL’s architectural and engineering designed projects are Apon Blue Tower, Bijou Palace,
Anower Vista, Sadiq Villa, Sufia Complex etc.
Real Estate Business Projects: NPD Rose, NPD Sunflower.

Batayan Shahajalal Developers Ltd.

Batayan Shahajalal Developers Ltd. is a newly established developer company in Sylhet. It has
started its work from 2011. It conducts business based on apartment developing and selling.
Type: Residential Apartment Developer and Seller.
Location: Sylhet Office: 27/2 payra Dorga Moholla Jornarpar, Sylhet.
Contact: 0821-722733, 01611 197010
Web Address: www.shahjalaltower.com
E-mail: info@shahjalaltower.com
Project: Shahajalal Tower. 27/2 payra Dorga Moholla Jornarpar, Sylhet.
Royal Homes Limited

Royal Homes Ltd. is a multi-purpose company with the primary focus on property development.
It is a joint venture company between local Bangladeshi & NRBs (Non Residence Bangladeshi).
But, it gives importance on land development. Royal Homes has launched its first project "Royal
City" which is ideally located on Shahporan Bi-pass road, a beautiful land script area called
Dakshin Surma. The project is a premium location and is situated in one of the most important
road network in Bangladesh.

Location: Head Office:Royal Homes Limited Shefa Bhaban, Mirboxtula, Sylhet 3100,
Bangladesh. Contact: +88-0821-726760, 2830281, +88-01713363666

Email: info@royalhomesltd.com

Wed Address: www.royalhomesltd.com

Project: ‘Royal City’ is a brand that has set a benchmark in the real estate industry through its
quality, professional management and commitment to the customer satisfaction. Royal Homes
Ltd. takes pride on its success and salutes the team works really hard.

Product: Land Development, Retail Shopping Centers developing and selling, Office Buildings
selling and renting, apartments/Multi-Family Housing
Rupayan Real Estate Ltd

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.

Project:land, apartment development.

Price offer by Rupayan Hosusing Estate in Bangladesh

Rupayan Housing Estate Ltd, one of the leading realtors in the country, has completed its
satellite town project in Dhaka’s suburb to offer 784 ready flats mainly targeting the
middleincome group. The Tk 200-crore mega project titled ‘Rupayan Town’ at Bhuigar off
DhakaNarayanganj link road is evidence of housing sector’s trend towards spreading to the
suburbs.
The company offers flats of four different sizes ranging from a minimum of 660 square feet to a
highest of 1,120 sft with a Tk 4, 14,000 booking fee, and fixes Tk 2,990 for each soft.

“Obviously it’s a risky venture — developing a housing project outside Dhaka. But we hope
people who are spending a huge amount on monthly house rents will be interested in our
project,” said Sadat Hossain Salim, managing director of Rupayan Housing Estate, yesterday at a
press meet in the capital. He said Rupayan will also arrange loan facilities for the customers
through some financial institutions. The company will organise a three-day fair today at
Sonargaon Hotel to promote sales of the flats. Southeast Bank, Shahjalal Bank, Prime Bank,
Jamuna Bank, Mercantile Bank and Phoenix Leasing were the top financiers of the project under
which Rupayan constructed 784 flats in 28 separate buildings in a 19-bigha land. “Given the
rising demand for housing, it’s not a big venture,” Salim said, adding that it may encourage
others to invest outside Dhaka. Rupayan has already built more than 1,000 flats in different parts
of Dhaka city and constructed some commercial buildings in the city.

Facilities providing to the Clients

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).
Latest project of Rupayan Housing Estate in Bangladesh

The project, ‘Rupayan Town’ at Bhuigar, off the Dhaka-Narayanganj link road, stretches over 19
bighas of land.Rupayan is now offering ready flats in different sizes ranging from a minimum of
660 square feet to a maximum of 1,120 square feet at Tk 2,990 a square feet. Customers can
avail the key to a flat with an initial down payment of just Tk 4.14 lakh. “We have designed the
project for the middle and lower-middle class people, who mostly live in rented flats. They spend
a substantial amount on monthly rent,” Salim says.”Following the down payment, buyers can
pay the rest of the money through instalments. They can make the payments with the amount
they previously spent on rent,” he says.”Besides, we have arrangements with some financiers
that will provide loan to our customers,” he says. Delta Brac Housing, IDLC Finance, National
Housing, Phoenix Finance, Bay Leasing, Southeast Bank and Pubali Bank are proving housing
loans to prospective customers.

Sylhet Customers’ Perception to the Developer Companies

Today customers have a good faith to the developer companies. They fill that the developer
companies realy help them. Developer companies are now make a great opportunity for people
to have an appartment easily. To know about customers perception, the survey is very important.
By conducting our survey we know the customers parception about their developer companies.
Most of the consumers are satisfied with their developer companies. For example, the customers
of NPDL belive that their company applied a good architect design and engineering methods and
they get the services with afortable rate.Tother developer companies like as Merlid Builders
(Pvt.) Ltd. use good row meterials which are perfect for the building size and also apply modern
architect and engeneering design. Companies are follow earthquake protection building code to
build apartments and use fire alarm system in apartments . The cost of the apartments are in the
customers’ purchasing capacity. Some of the customers thing that who have no land in his or her
faourate city he or she can buy an apartment from developer company if he or she has enough
ability. Customers think that it is better to hire a developer company to build an apartment on self
owned land than build by one-self. But, some of the customers hae negative perception about the
developer companies because of their sufferings. They sey that all developer companies are not
do the business honestly. They do not provive services properly. Some real estate companies not
follow the building code of city corporation, not provide fire alarm system. Customers also
complain that the developer companies may not use proper row meterials and used meterials are
low quality. Sometime their lift is too small. These dissatisfactions of the customers are the
threat for real estate companies. Dishonesty of one real estate developer company may break
down the whole real estate industry. So, real estate developer companies should be more
conscious about their activities and reputation.

Attributes that Create Impression about Developer Company

attribute means - (i) to regard as resulting from a specified cause; consider as caused by
something indicated; (ii) to consider as a quality or characteristic of the person, thing, group, etc.
Consumers may use the same attributes to evaluate apartment choices, but have different beliefs
about the apartment and their ability to satisfy their need. Although both consumers may want a
microwave, one may believe that a built-in model is too small and will be difficult to replace
while another believes that built-in models can be just as large as a countertop model and will be
relatively easy to replace. Customers’ attributes are depending on some expectation which can
create imprecation about Real Estate Developer Companies. Some of the expectations are –

Budget

A budgeted amount is the expected amount a customer keeps aside. In this section, we are interested to
know the budgeted amount kept by the customers for the purpose of buying an apartment constructed by a
typical real estate developer company. In the survey it was found that maximum number of consumers’
(53%) budget for an apartment is 40 – 50 lacks taka. Also, a substantial number of consumers (26%) have
a budget of more than 50 lacks, whereas 21% of consumers’ budget is around 30 – 40 lack for purchase
an apartment. If any real estate company’s apartment’s price has gone beyond the buying capacity of a
group of people they will reject the company to buy apartments.

Types of apartment

Types of apartment are also an important factor in consumers’ preference in terms of an apartment.
Because there are several types of apartments and consumers can purchase any type of apartment based
on their need, income and budget. So it is important to find out that which type of apartment is more
popular among the consumers. In the survey it was found that about 57% consumers prefer economy
apartment, 25% customer prefer Semi Luxuries apartment. On the other hand duplex apartment (10%)
and luxury apartment (9%) are more preferable to wealthy customers.

Preferable Facilities in an Apartment

Facilities of apartment are also an important factor of consumers’ preference in terms of an

apartment. Facilities are actually design and development related features which makes one
apartment project different from others and one company from other. That’s why it is important
to know that which types of facilities are most preferable to the apartment purchaser.

Augmented Expectation

Customers expect a playground, a gymnasium, proper parking area, place for gardening etc. In
Sylhet developer companies never fulfill those augmented demand, they only fulfill the need for
parking but it may not appropriate with the number of cars at all.

Water and Gas Supply

Most of the customers want regular water and gas supply. Many companies cannot satisfy their
customers in this case because of shortage of these elements.

How customers Want about quality

Most of the consumers’ are more concerned about quality rather than price. Now it is important
to know how consumers determine or decide on quality or for what factors consumers think
some apartment is of better quality than others.

Preference between apartment and land Many customers have a dilemma between purchase
of an apartment or a land. Some think that purchase of an apartment from a developer company
is advantageous. Some consumers think that purchase of a land and then construct own building
is better. But it came out so that majority of the customers, around seventy percent prefer
purchase of an apartment to a land. The reasons mentioned were: purchasing apartment has no
construction hassle and also saves one’s time needed to oversee a construction oneself;
Increasing, skyrocketing land price makes it difficult to purchase a land; increased and volatile
price of construction related raw materials is also one reason, that is, once started with a
predetermined budget it is difficult to manage with own investment. On the contrary 37%
consumers prefer purchase a land and construct own building. The reasons stated were: Control
over asset; proud owner of a land and building; it is a source of income etc. Above are some of
the attributes that greatly influence to create imprecations about developer companies.

Location

In location selection both customers and real estate companies follow an important strategy.
Companies and customers prefer any important point, a busy city, market area, and side of
highway or junction of important roads, popular residential area etc. to build or buy apartments.

Conclusion

Our discussion on ‘Real Estate Products in Sylhet’ provides knowledge about real estate
companies and businesses in Sylhet, and their customers. A significant portion of the study deals
with consumers’ buying behavior pattern, perception and attributes. The comparative status
analysis the similarities and difference among the real estate companies basis on their types,
design and business strategy. The consumers’ behavior pattern analysis the factors that drive a
customer to purchase real estate assets. Customer perception talks about the customers’ beliefs to
the real estate companies. Post purchase behavior has discussed the customers’ satisfaction and
dissatisfaction with their apartments. Attributes estimate the customers’ expectation from real
estate companies and their real achievements from the company. It also estimated consumers
purchasing capacity and percentage of various segments. A customer must be aware about the
real estate companies while he or she buying an apartment to protect himself from loss.

References: https://www.slideshare.net/moezansary/real-estate-business-in-sylhet-final

http://www.royalhomesltd.com/b_policy.html

https://www.rupayangroup.com/rupayan-land-development/

http://www.iosrjournals.org/iosr-jef/papers/Vol8-Issue3/Version-3/A0803030109.pdf