Differenciation of Real Estate Business In Bangladesh
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 lowincome 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.
Some recommendations can be offered in this respect Bangladesh Bank must be able to stop the banks and financial institutions from acting as monopoly, home loan lenders must be able to recover their claim on a mortgage property in case of default with quick and minimum legal actions, mandatory title certification and insurance for easy and reliable transfer of property rights, Bangladesh Bank must set up guidelines and policies for home loans and if they already exist, they need to be easily available to general people to understand.
Applicable interest rate on a home loan must reflect borrower creditworthiness and collateral value, an apex body should be formulated with adequate number of qualified professionals to control and oversee all types of housing development, to overcome the problems during design approval RAJUK should provide one window service. It is like that the representatives of all the departments of government present in a meeting and discuss pro and corns of a project can be the solutions to the problems.
Probashi Palli Group is an exclusive residential zone for the wage earners. Since, the government has not yet taken up any planned housing project exclusively for the wage earners; Inspired Development Group has come forward to address the issue by creating a well-planned housing area in Dhaka city. The project titled as “Probashi Palli Group ” will be a secured modern residential zone with a touch of nature having rivers and greeneries all round. Besides Nonresident Bangladeshis (NRBs), local Bangladeshis will also have opportunity to have their homes in our project. As there is no earmarked project for NRBs in Dhaka, they would like to keep maximum 60% of the land for them (NRBs) separately on one side of the project area while rest 40% will be allotted to Bangladeshis residing In Bangladesh on the other side.
This is not only a truly peaceful living complex, but has also brought tremendous opportunities for investment by our respected Nonresident Bangladeshis (NRB). The project is located next to RAJUK’s Purbachal Housing Project and only a 15-18 minutes drive from ZIA International Airport through a number of roads originating from Airport road and Tungi. The project area covers more than 2800 Bighas of land surrounded by natural rivers on its three sides and the newly constructed Dhaka-Sylhet bypass from another side.
Probashi Palli Group. has visualized a wonderful concept of a land project that will turn into a mile stone in real eastet sector of Bangladesh and in the process help build the country‟s economy and will contribute a lot by creating thousands of job opportunities. Besides, it will be a source of earning foreign currency through proper channel. This project is designed to offer investment opportunity to the resident Bangladeshis as well as non-residence Bangladeshi, especially for the low income group, middle class and elite group of people in Bangladesh.
Probashi Palli Group. Designed to offer the investment opportunity to the potential service persons of armed force, police force, lawyers, media people, civil society and above all govt. and privet sector employees. RAJUK initiative of developing the largest of its land development site is adjacent and almost next to our project.
Between these short periods of time their achievements are a lot. They have started with one project called “Probashi Palli Abashon Prokalpo” which one is almost ready to provide to the client. Plot allotment paper already been distributed to the client in two separate functions one in Dhaka and another in London last year by the presents of many Honorable people. Beside these, they have taken another project such as:
- Probashi Palli River View Prokalpo
- Probashi Palli Satellite Town
- Purbachal Probashi Palli Ltd.
- Probashi Palli Abason
5.Shah Amanot City Ltd.
- Probashi Palli Holdings Ltd.
- Purbachal Shahparan City Ltd.
- Next Builders Ltd.
9.Shahjalal City Gazipur Ltd.
10.Faiza Securities Ltd.
11.Purbachal Adnan City
12.Hotel Black Rose
13.Hotel Fahim International
14.Probashi Palli Agro based Industry
15.South Surma Developement Ltd.
16.Probashi Palli Education & Developemt Ltd.
Investment in Probashi Palli is a great opportunity for all the NRBs and local people of Bangladesh. This will provide them full security of their investment and thereby they will become a prestigious owner of a plot at Probashi Palli.
Project Developement Reveiew
In 20 June, 2007 a seminar on this project was held in Dhaka at Pan pacific Sonargaon hotel. The seminar was attended by Italian Ambassador, businessmen from home and abroad and other distinguished guests. On 27th July, 2007 Italian Ambassador was visited “PROBASHI PALLI” project in presents of Managing Director Mr. Mohidur Rahman.In the Signing ceremony on Expression of Interest to invest in housing project for NRBs “Probashi Palli” was arranged on 29st January 2007 in Dhaka Hotel Sheraton Ball Room.On 28th April, 2007 “PROBASHI PALLI” London Office Inaugurating By Dr. Mahfuzur Rahman, Chairman ATN Bangla. On 12th August, 2007 Mr. Mohidur Rahman Managing Director “PROBASHI PALLI” visited the project with BBCC representative team. On 13th November 2007, “PROBASHI PALLI” Dhaka Office Inaugurating Robert Evans, Chairman of South Asia (M.E.P). In 7th January 2008, at Dhaka in a luxurious hotel “PROBASHI PALLI” arranged a seminar about NRBs investment in Bangladesh. “NAGRECHA BROTHERS” (BRITISH INDIAN BUSINESS COMPANY)‟s representative team was present. On 29th April 2008, “Impression Event Venue”- Plot allotment letter distribution ceremony was held at London. In 11th September, 2008 Managing Director “PROBASHI PALLI” met with Honorable Minister for foreign affairs and Expatriate‟s welfare Dr. DIPU MONI and informed her about the project.On 9th November, 2008 Managing Director “PROBASHI PALLI” invited to British High commission for attending a meeting with British High Commissioner Stephen Evens about the NRBs investment in Bangladesh. Probashi Palli Group plays a vital role in socio-economic development of Bangladesh. There are some crucial roles denotes in below:
- Encourage NRB for invest in Bangladesh.
- Housing sector development.
- Housing facilities for Non-Resident of Bangladesh (NRB)
- Infrastructural development in Bangladesh.
- Solve unemployment problem.
- Motivate local people for investment and solve their housing problem.
In month of October 21st, 22nd & 23rd, 2008 they have been participated in a housing fair at Bangabandhu Convention Centre for the first time. The name of the fair was “International Buildtek & Housing Expo, 2008”. On that fair they have received „Best Seller Award‟. Beside this, they arranged their own venue which was their single fair. It was held on 6th & 7th of November, 2008 at „Hotel Black Rose International‟. The name of that fair was “Probashi Palli Housing Fair, 2008”. They also had good responses from that fair.
In this project they offering their client “At a time payment offer for a plot” and also “installment payment offer over 9 years for a plot”. Moreover- there are various discount they offering in case of more than one plot purchase, discount for the corporate purchase and many more. This is the first time in Bangladesh- they offering separate block for Doctors, Engineers, Layers, Justices, Medias and Polices. Moreover, they have offering them multi opportunities for buy a plot.
Description /Nature of the jobs
In July 2010 i joined in Probashi palli Group as a Corporate Trainee HR (Part-time).There my first work is to provide a network with employees and deals with them as a intermediare with company and employee.On that time my work is to maintain a proper good relation and build up a corporate relation to the employee.
In 2011 I promoted as a Junior Executive HR and my duty was extended .On that time i had to maintain all the documents of the employee and also handled all the lower level employee like site supervisor, office staff etc.On that time I had handled more than hundred supervisors for maintaining their compensation, Bonuses, their attandance and also make a leaseo with them.
After 2011 I was promoted as a Executive HR and my duties are also extended. Now I handled overall HR in this organization and i am providing every facilities to the employees.There i directly work with managing director and get direction for some different issues.I also advised by my Manager HR for some activities.My Other responsibilities are:
*Compensation & Benefit
Real Estate and Construction Industry play an important role for sustainable development of a country. The construction industry is an important sector for physical expansion and economic development of the country. This sector is well linked with human settlements, employment and environment it is recognized that the health of the Real Estate Development sector is the barometer of the national economy
Now-a- days the population of Dhaka city has been increased at high rates, but the area has been increased at low rates. There is no magical solution to the present or future housing problem of the city. Government has made lands available for modern housing by earth filling low-laying areas of Dhanmodi, Mohammadpur, Mokhali, Cantonment, Gulshan, Banani, Baridhara, Uttara, Mirpur, etc by its own initiative.
In this project i would like to focus on the actual scenario of Bangladesh Real estate businee and will to differentiate the business by analyzing different companies.
Description of the Project
Objective of the Project
The study has been carried out with the following objectives:
To make a competitive analysis of Probashi Palli Group and leading real estate companies in Bangladesh. The comparative factors are:
(i) To find out the real estate companies selling price variety in Purbachal
(ii) To identify the companies offerring reasonable price or not
(iii) To ensure superior Product Quality
(iv) To measure the real estate companies consumer satisfaction
(v) To identify publicity/advertising policy of companies are apporiarte or not
(vi) To measurement of overall company performance between those companies
(vii) To identify location of project and consumer buying ability
Methodology of the study:
This is an expletory type of research. Information collected to furnish this report is both from primary and secondary source. The overall process of methodology has given below:
Primary sources of data:
- Executives 2.Customers
Secondary sources of data:
- Brochure real estate companies
- Journals and previous research papers
- Annual report of real estate companies
Method of the data collection:
- Direct Observation
- Personal Interviews
- Marketing Eexecutives.
- Engineers & Ssupervisors.
- Real estate companies‟ Employee
- Customers Sample size: 100 people
Analysis of Companies:
Analysis is the most crucial part of the report. Here I describe my report objectives. In this report project I considered Probashi palli Group and other 4 leading real estate companies in Bangladesh based on their last 5 years financial performance and strong brand image. The selected leading real estate companies are:
- East west Property Developement Pvt Ltd.
- Purbachal Bestway city
- US-Bangla Assets Ltd.
- Euro-Bangla Abashon Ltd.
Selling Price Variety in Dhaka city
Summary of Data Analysis & Findings
According to figure no 11, five realestate companies have some differences in their price where we find out that East west Property Developement pvt Ltd charging high amount money others company and another way some companies like Probashi Palli group & Euro Bangla Abashon charging less money then East west Property Developement pvt Ltd.
From the figure of 13, we try to analyze that the price of those land is reasonable to consumer or not.In this analysis we find out that the mean is satisfactory but in the case of organization its not well enough.Almost twenty five people supported that Probashi palli Group is selling their product in reasonable price where thirty five people tell that East west Property Development Pvt ltd is not offering reasonable price
According to figure 14 the research is going on superior product quality between those companies where the analysis shows that twelve people only strongly support Probashi palli group for giving quality product and 35 people strongly disagree with this topic. By Analyzing of figure 17, real estate companies consumers satisfaction is not satisfactory where 30 people are neutral in this survey .Mostly 25 people agree with consumer service & satisfaction of Probashi palli Group where 22 people are disagree with East west Property Developement pvt Ltd According to figure 19, the reasearch is based on publicity/advertising policy of companies are appropriate or not where thirty consumers are strongly disagree with East west Property Developement pvt Ltd and twenty two people agree with Probashi palli Group.As we know East west Property Developement pvt Ltd is a market leader, we feel that they dont need more advertisement like others small companies.
By analyzing figure 21, Real estate overall performance between those five companies are not satisfactory where this result is not affect on these companies .Beacuse these five companies are not following their performance in a same level and thirty five people are strongly agree with East west Property Developement pvt Ltd for their overall performance and strongly disagree with Euro Bangla Abashon Ltd.
According to figure 23 ,Real estate consumers buying ability is researched where thirty one people are strongly with East west Property Developement pvt Ltd and twelve people are strongly disagree with Euro Bangla Abashon Ltd.
From the above analyses, it is evident that Real Estate Company has many positive and negative features and the customers are mostly satisfies with the services offered. They also provide better services to their customer and improving their business year to year. But the management of those Real Estate Company should consider the findings and take all necessary steps for further research and if they think that the customers of this real estate are homogeneous in their choice and preferences.So they may consider the following recommendations to gain more customers there are:
The Management of these five Real Estate Company should conduct more product & services awareness campaign. They should increase the level of providing personal attention to individual customers.
Residence is one of the basic needs of human beings. The right to live in one‟s own is a fundamental right of people and it is internationally recognized. The demand of housing in urban areas in developing countries like Bangladesh is dramatically increasing due to natural increase and its fast growth rate. Rural people are migrating not only to find jobs but many wealthy people are moving to urban areas like Dhaka city for the fulfillment of their expectations of better of their future generation, and for enjoying the modern facilities of the city life. This has resulted into a serious crisis all over the country especially in the major cities of Bangladesh. In recent time, the private real estate firms have taken initiatives by ensuring maximum uses of land in a planned way. In this system it is possible to accommodate more people in a comparatively small place.