Call to initiate housing bond | 2018-01-01 |

Boosting Real Estate Sector

Call to initiate housing bond

Staff Correspondent     1 January, 2018 12:00 AM printer

Call to initiate housing bond

Speakers at a programme called upon the government to introduce housing bond or municipal bond to promote housing and real state sector.

Long-term financing by bond would help rejuvenate the housing sector, they said.

They came up with the proposal at Press Launch of State of Cities 2017: Housing in Dhaka at the BRAC Centre in the city on Sunday. Senior Research Associate of Institute of Governance and Development of BRAC University Syeda Selina Aziz presented the research report at the event.

Executive Director of BRAC Institute of Governance and Development Dr Sultan Hafeez Rahman and Senior Research Associate of the Institute Mohammed Sirajul Islam also spoke on the occasion.

As 57 percent urban people have no savings, they don’t think of buying a flat or a piece of land in the city, according to the research report. “Nearly 82 percent Dhaka city tenants have to spend 30 percent of their monthly income on rents and utilities. Around 44 percent people have to spend 45 percent of income on rents, utilities and transport,” said Syeda Selina Aziz.

The research was conducted on 400 households in four areas -- old Dhaka, Mirpur, Rampura and Badda – of two city corporations during July- August in 2017.

Presenting the report, Selina said housing is one of the key challenges that the Dhaka city faces, as 44 percent of the country’s total urban population live in the capital city.

“Dhaka has more than 4000 slums. Each year approximately 25,000 housing units are built when 1.2 million new ones are needed,” she added.

She said about 56 percent city dwellers have no land ownership in Dhaka. The figure will rise to 70 percent if slum and squat population are included.

She said the supply of housing meets less than 5 percent of demand which indicates a massive shortage of housing in Dhaka.