REHAB seeks Tk3,000cr from BB to support housing sector
Business Desk :
The Real Estate and Housing Association of Bangladesh (REHAB) has urged Bangladesh Bank to create a Tk3,000 crore special fund to support the country’s housing sector, warning that the ongoing crisis in the Middle East could significantly disrupt construction activities and investment in real estate.
REHAB leaders said the housing sector is heavily dependent on remittances from Bangladeshi expatriates, many of whom work in Middle Eastern countries. Any disruption in remittance inflows due to the regional crisis could slow property purchases and reduce investment in new housing projects.
According to the association, the real estate sector contributes significantly to Bangladesh’s economy and is linked with more than 250 backward and forward linkage industries, including cement, steel, bricks, ceramics, glass, electrical products and furniture.
Industry leaders noted that many developers are already facing financial pressure due to rising construction costs, high bank interest rates and declining purchasing capacity among middle-income buyers.
They said the proposed special fund from Bangladesh Bank would allow banks to provide low-interest loans to developers and homebuyers, helping sustain construction activities and prevent further slowdown in the housing sector. REHAB also warned that without timely policy support, delays in ongoing projects and reduced new investments could affect employment in the sector, which supports thousands of workers directly and indirectly.
REHAB President Wahiduzzaman shared the information with journalists after a meeting with Bangladesh Bank Governor Mostaqur Rahman on Tuesday.
He said the ongoing conflict between Iran and Israel has created global economic uncertainty, which is also affecting the housing sector in Bangladesh.
“To keep the sector operational amid this situation, a special fund is necessary. We have therefore requested Bangladesh Bank to provide a Tk3,000 crore support fund. The governor listened attentively to the proposal and gave a positive assurance,” he said.
The REHAB president also urged the central bank to bring down home loan interest rates to a single digit, saying affordable housing finance is essential to meet people’s basic needs.
“Food, clothing and shelter are basic human necessities. Low-interest housing loans are crucial for people to meet their housing needs. However, due to the high interest rates on home loans, many people now find it difficult to buy homes,” he added.
The association also placed several additional proposals during the meeting. These include providing special financing facilities for green buildings, solar power and environment-friendly construction, ensuring financing for housing projects in district and upazila towns and offering low-interest housing loans in those areas to reduce pressure on Dhaka.
According to REHAB, the housing and construction sector has been listed as an unproductive sector in a list provided by the Bangladesh Bank.
