High demand for flat drives booming housing sector in Brahmanbaria

Highlights

• 300 flats worth around Tk150cr are sold in Brahmanbaria annually
• Demand cannot be met due to space crisis in the district town
• Flat prices have increased by 30% recently due to high raw material prices
• Flat sale will double if the authorities relax rules, said housing dealers

The housing business in Brahmanbaria is booming with a surging demand for flats among customers. Around 300 flats worth around Tk150 crore are now being sold annually in the district town.

Sector insiders said housing companies in the town are currently facing a challenge as they struggle to supply enough ready-made flats to satisfy rising demand.

High land prices, a surge in construction materials prices, limited space within urban areas, and a complicated bureaucratic process for obtaining building permits are all hindering housing companies from taking advantage of the thriving sector, they said.

According to them, the prices of flats in the town have increased by 30% due to the recent hike in prices of construction materials.

Traders have also demanded relaxing construction rules by the authorities, including the obligations of having at least a 14-feet road beside the construction site and of keeping the heights of buildings within six floors.

According to stakeholders, demand for flats in Brahmanbaria city has surged as people are seeking an alternative to the arduous process of constructing houses.

This involves the hassle of buying land, locating a suitable site to store building materials, and obtaining approval from the appropriate authorities – a process that many find to be complicated and time-consuming, they said.

Housing dealers said although the housing business in Brahmanbaria has been flourishing for the last decade, the sector has reached another level with the skyrocketing demands from customers in the last five years.

The recent hike in land and construction material prices triggered the demand furthermore.

The demand for flats is the highest in Paikpara, Kazipara, Haldarpara and Munsefpara in the district towns. Currently, the price per square foot of a flat is Tk4,000 to Tk5,500 depending on the area, which was earlier from Tk3,000 to Tk4,000 per square foot.

Md Al Amin, a resident of Paikpara in Brahmanbaria city, has bought a 1,000 square feet flat for Tk32 lakh.

He said, "The price of land in the city is now sky-high. Besides, one has to face many complications, including obtaining various approvals for building a house. Buying a flat is easier. I moved to my flat a day after getting the final papers."

Mohammad Alam, another flat owner from Kazipara area of the city, said, "It has been very hard for middle-class people to build houses due to high land as well as construction material prices. As a result, people are leaning towards flats."

Currently, 15-20 companies are associated with the housing business in Brahmanbaria city. They make contracts with land owners for housing projects, where they get 50%-60% of the flats. The housing companies bear the entire cost of construction.

Traders said that approval from the municipality is mandatory for the construction of buildings. The construction of a six-storied building is allowed only if there is a 14 to 16 feet road next to the site where the building is to be constructed.

However, they claim that most areas of Brahmanbaria municipality do not have roads of this size. They demand a relaxation of the existing rules related to the construction of buildings.

Rafiqul Islam, owner of Rafiq Constructions, a housing company, said, "People are leaning towards flats to avoid the hassle of building houses. Besides, the middle class can also buy flats through instalments from us."

Another housing trader in the town, Quader Uzzaman said, "Construction cost is now high due to the increase in the price of raw materials. The construction cost per square foot is now more than Tk2,000.  Moreover, the municipality does not allow buildings with a height of more than six floors. Due to these reasons, the price of the flat is a bit higher."

Kamrul Islam, owner of M K Builders, said, "Around 250-300 flats are being sold annually in Brahmanbaria. The demand is constantly increasing."

"If the existing rules for the construction of buildings are relaxed, the sale of flats will double from the current level. In addition, buyers can buy flats at relatively low prices," he added.

Nayer Kabir, mayor of Brahmanbaria municipality, told The Business Standard, "We have no authority to relax the rules concerning building construction as they have been set by the government. These provisions have been made so that people can walk and vehicles can move normally."