What does the future real estate sector look like? Read the bti blog to find out.
The Rise of a New Era for Real Estate Buyers and Sellers
Source: The Daily Star
Date: 11 December 2018
The article features the changing scenario of real estate sector in Bangladesh where buyers seek customized apartments according to their taste, lifestyle, and personality. Homebuyers today not only look for aesthetics but also consider the functionality of spaces so that they can live comfortably. To cater to changing customer needs, real estate companies need to give priority to customer preferences and provide them with a home that reflects the customer’s taste. However, in reality, the sector still lacks customer-centric real estate companies except for a handful of organizations such as bproperty and others. It is essential that the real estate companies are empathetic and good listeners so that they can deliver a project suited to the customer’s demands. For example, if a customer wants an extended verandah with the living room, it is the job of the company to ensure that the customer’s demands are met. In addition, the process of buying and selling properties in Bangladesh can be very bureaucratic, so real estate companies need to ensure that the process is hassle-free for the customers while maintaining transparency in all the business dealings.
Real Estate Industry: Bureaucracy in the Real Estate Sector
Source: Bangla Tribune
Date: 25 December 2018
The article features one of the existing challenges in the real estate sector of Bangladesh, which is bureaucratic hassle faced by realtors when seeking approval for project construction. For approval of one building, realtors have to go to at least 11 different organizations. Apart from harassment, realtors have to face many corruptions. Realtors feel that this is a serious obstacle hindering the growth of real estate sector of Bangladesh as it not only delays project completion but also increases construction costs.
Realtors commented that housing is one of the basic needs of humans and private real estate companies have been working alongside the government to fulfill the housing demand of the population. Besides providing housing solution to the people, real estate companies also provide employment opportunities to a large segment of the population. However, those in the industry related to building construction have to go through a lot of difficulties to get a simple approval. This is a result of current existing laws due to which concerned people have to visit several offices to get the permission of multi-storied building construction. Apart from hopping from one office to another, they also have to partake in the malpractice of giving bribery to get the work done and the process can take up to 2 to 3 years. For design approval, permission has to be taken from the following offices – RAJUK, WASA, City Corporation, District Administration, Traffic Department, Fire Service and Civil Defense, Environment Department, Civil Aviation and Power Division. And for bigger projects, the process is even lengthier.
Realtors including REHAB President, Alamgir Shamsul Alamin as well as others have been demanding for quite some time a one-stop service center that would simplify the existing bureaucratic process. Mr. Alamin further added that the whole process might even help to reduce apartment price.
As per the article, government is currently working towards establishing a one-stop service center for the real estate sector as well as amending existing real estate development rules and regulations and Detailed Area Plan (DAP) implementation.
Registration Tax on Plots and Flats May Decrease
Date: 17 December 2018
The article highlights a discussion between members of National Board of Revenue – NBR and Real Estate and Housing Association of Bangladesh – REHAB held in the capital city, where participants commented on the possibility of registration tax on plots and flats to decrease in the upcoming year. NBR member (VAT Policy) Md. Rezaul Hasan presided over the meeting. REHAB President – Alamgir Shamsul Alamin, REHAB Vice President – Liakat Ali Bhuiyan, Joint Secretary of Housing and Public Works – Dr. Moniul Huda and others were present in the meeting.
Mr. Alamin commented that due to high registration cost, plot and apartment purchasers lose interest in registering their properties. As a result, the government gets deprived of its deserved revenue. He further added that levying tax on secondary apartment is illogical and if this tax is removed, then it will not only boost the real estate sector but also provide a source of revenue for the government. He suggested that only those flats that are resold within 5 years should have a registration tax of 3.5%. Currently, buyers have to pay 14%-16% tax for flat and plot registration, including 4% gain tax, 3% stamp fee, 2% registration fee, 2% local government tax and 3% VAT.
Six Ways Tech Could Change the Real Estate Process
Date: 5 December 2018
The article highlights 6 ways real estate process may change in the future as a result of technological development as envisioned by members of Forbes Real Estate Council.
1. Use of Artificial Intelligence – This would help real estate agents simplify the process of selling homes to buyers through better identifying and offering properties suited to customer needs.
2. Reduce number of intermediaries – In real estate transaction there are many intermediaries involved, especially in commercial real estate. With the advent of advanced technology, the number of intermediaries could be reduced as real estate transaction process would be simplified.
3. Digital lead generation –Traditionally, lead generation in a real estate company is initiated by a realtor but as information is now readily available to all via the internet, the introductory step is day by day getting replaced and the trend for digital lead generation is sure to continue.
4. Remote transactions – In the future it is likely that the whole real estate transaction process would take place remotely as people search for homes online, make the purchase and close the deal online.
5. Transformed trade – The entire trade of real estate would be transformed as a result of technological implications. Self-governing applications and interconnectivity across multiple platforms in real estate trade would make the process much more efficient.
6. Elimination of time and distance – As the process would take place virtually, the effect of time and distance would be removed, essentially speeding up the sales process. It would also make the transaction process more secure and convenient, thereby increasing number of potential investors.
bti Introduces Smart Home in Bangladesh Real Estate
Source: The Daily Star
Date: 11 December 2018
The article features the launching of The Platinum Collection by building technology & ideas ltd. (bti) which introduces smart home in Bangladesh real estate. It offers luxury apartments with contemporary lifestyle features such as incorporation of home automation. For example, smart features allow residents to customize living space with remote control access to lights, fans, TVs, curtains, etc. from any smartphone with wi-fi connection.
Apart from introducing smart home features, properties under this collection also integrate greenery throughout the building in the form of outdoor lawns, vertical greenery and so on. These homes come with enhanced security features such as video doorbell, fingerprint access door lock, automated entry bar, besides having modern fire protection system, including gas detectors connected to smartphones through use of wi-fi.
In addition, these luxury homes comprise several lifestyle amenities such as infinity lap pool, BBQ area, green terrace, gym space, yoga studio and so on so that residents can stay relaxed and entertained without leaving the building premises. The apartments offered under this collection are spacious having over 7000 sft, and rooms are well-connected and ventilated to ensure comfortable living of the residents. Incorporating technology and lifestyle amenities, these high-end projects offer residents a lifestyle suited to modern urban life.