Real estate, housing sectors seek allocations from stimulus plan

The Real Estate and Housing Association of Bangladesh (REHAB) has demanded an allocation from the economic stimulus plan announced on Sunday. 

The housing association says the ongoing coronavirus crisis has jeopardised the lives of nearly 35 lakh people who are directly or indirectly involved in the real estate business.  

"We are the most affected due to the crisis as many backlink industries are dependent on the housing sector," claimed REHAB President Alamgir Shamsul Alamin Kajal.

He said if the housing sector is severely hurt, other backlink industries will be affected too — bringing long-term adverse effects to the economy.        

In the wake of the coronavirus spread, realtors had been claiming their customers cancelled their bookings for apartments. Housing businessmen said they have not received any new bookings as individuals, afraid of the virus, have not shown up to purchase property.  

They said the government shutdown later dragged down the sales of houses, plots and apartments to zero.   

REHAB President Kajal welcomed the prime minister-announced Tk727.5 billion stimulus package to cushion the impact of the virus outbreak.

Kajal proposed the PM prioritise the housing sector in the special financial package considering its losses due to the virus' fallout.

Apart from the allocation, realtors demanded a moratorium on interest for bank loans until December 2020 – rescheduling loans with flexible terms and introducing re-financing schemes similar to the 2007-08 period – to counteract a long-term crisis.            

The housing association said the real-estate sector will bounce back, and boost backlink industries too if their demands are met.