The real estate industry in Bangladesh is a dynamic and growing sector that often faces its fair
share of myths and misconceptions. These misconceptions can lead to confusion, misinformation,
and potentially poor decisions. In this blog, we aim to debunk five common myths prevalent in the
real estate industry in Bangladesh. By dispelling these misconceptions, we hope to provide
readers with a clearer understanding of the market and enable them to make informed choices.
Real estate investment is only for the wealthy elite
The real estate industry in Bangladesh is a dynamic and growing sector that often faces its fair
share of myths and misconceptions. These misconceptions can lead to confusion, misinformation,
and potentially poor decisions. In this blog, we aim to debunk five common myths prevalent in the
real estate industry in Bangladesh. By dispelling these misconceptions, we hope to provide
readers with a clearer understanding of the market and enable them to make informed choices.
One common myth in Bangladesh is the belief that real estate investment is exclusively for the
wealthy elite. However, statistical data reveals a more diverse investment landscape. According
to a survey conducted by the Bangladesh Institute of Planners (BIP), nearly 70% of real estate
investors in Bangladesh fall within the middle-income bracket. This demonstrates that real estate
investment is accessible to a broader range of individuals, including the middle class and aspiring
investors.
Furthermore, the government of Bangladesh has introduced various initiatives to promote
affordable housing schemes and cooperative societies, making real estate investment more
affordable and inclusive. These initiatives aim to cater to the growing demand for affordable
housing in the country, providing investment opportunities for individuals with different income
levels.
Additionally, small-scale commercial properties, such as shops and offices in emerging business
districts, offer affordable entry points for investors looking to diversify their portfolios. These
properties can generate steady rental income and capital appreciation over time, making real
estate investment more accessible and lucrative for a wider segment of the population.
By dispelling the myth that real estate investment is only for the wealthy elite, it becomes evident
that there are diverse investment opportunities in Bangladesh that cater to different income levels
and investment goals. Whether it’s affordable housing schemes, cooperative societies, or small-
scale commercial properties, real estate investment can be a viable option for individuals from
various income brackets.
Location is the sole factor determining property value
Many people believe that property value in Bangladesh is solely determined by its location. While
location is undoubtedly a crucial factor, other aspects such as property condition, amenities,
infrastructure developments, and market demand also influence property value. The Real Estate
and Housing Association of Bangladesh (REHAB) reveals that location accounts for
approximately 30-40% of property value. Factors such as property size, condition, amenities,
infrastructure development, market demand, and economic conditions contribute to the remaining
60-70%. For example, property sales data in Dhaka shows that prime areas command higher
prices, but up-and-coming neighborhoods with infrastructure developments can also see
substantial value appreciation. Qualified appraisers consider various factors beyond location,
including construction quality, design, amenities, parking, and security arrangements. It’s
essential to consider the holistic picture when assessing property value and making investment
decisions in Bangladesh’s real estate market.
Real estate agents are unnecessary in property transactions
There is a common misconception that real estate agents are unnecessary in property
transactions, leading some individuals to attempt to navigate the process independently.
However, qualified real estate agents bring valuable expertise, market knowledge, negotiation
skills, and an extensive network that can streamline the buying or selling process. We discuss the
advantages of working with experienced agents in the Bangladeshi real estate market.
New projects always offer the best investment opportunities
Another prevailing myth is the notion that new real estate projects always present the best
investment opportunities. While new projects may offer advantages, such as modern amenities
and potential early-bird discounts, they also carry risks, including construction delays and
uncertainties. We explore the pros and cons of investing in new projects and highlight the
importance of thorough due diligence.
Real estate prices will never fall in Bangladesh
There is a common belief that real estate prices in Bangladesh will never decline, leading to the
misconception that investing in property always guarantees returns. However, like any market,
the real estate sector experiences fluctuations, influenced by factors such as economic
conditions, market trends, and policy changes. Bangladesh Bureau of Statistics (BBS) reveals
periods of price declines of up to 15% in certain regions between 2010 and 2015. Additionally,
during recent economic slowdowns, real estate prices in specific areas experienced temporary
declines of around 5-10%, as indicated by data from the Bangladesh Bank. These statistics
demonstrate that real estate prices in Bangladesh can indeed fluctuate based on market forces
and external factors. It is essential for investors to have a realistic understanding of the market
dynamics and potential risks associated with property price fluctuations.
The real estate industry in Bangladesh is not immune to myths and misconceptions. By debunking these prevalent misconceptions, including those surrounding real estate investment and property value, readers can gain a more accurate understanding of the market. It is essential to look beyond these common myths and explore the nuances of the real estate industry in Bangladesh to make informed decisions. Understanding the true dynamics of the market, with the help of reputable real estate companies like Epic Properties Ltd. in Chittagong, will enable individuals to navigate the real estate landscape more effectively and seize the opportunities it offers..
