Residential Real Estate - Bangladesh

Bangladesh

The Residential Real Estate market market in Bangladesh is expected to reach a value of US$2.04tn by 2024.
This projection indicates a significant growth potential within the country's real estate sector.
Moreover, it is anticipated that the market will experience a steady annual growth rate (CAGR 2024-2029) of 1.61%, resulting in a substantial market volume of US$2.21tn by 2029.
When compared to other countries, it is noteworthy that China will generate the highest value in the Real Estate sector, amounting to US$112.9tn in 2024.
This highlights the dominance of China in the global Real Estate market.
The demand for affordable housing in Bangladesh has been steadily increasing due to rapid urbanization and population growth.

Key regions: Europe, Brazil, France, Asia, United States

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Analyst Opinion

The Residential Real Estate market in Bangladesh is experiencing significant growth and development.

Customer preferences: Customers in Bangladesh have shown a strong preference for residential properties that offer modern amenities and facilities. There is a growing demand for apartments and gated communities that provide security, convenience, and a high standard of living. Additionally, customers are increasingly looking for properties that are located in prime areas with easy access to schools, hospitals, and shopping centers.

Trends in the market: One of the key trends in the residential real estate market in Bangladesh is the increasing popularity of high-rise apartment buildings. With limited land availability and a growing population, developers are focusing on vertical development to meet the housing demand. These apartment buildings not only provide more housing units in a limited space but also offer a range of amenities such as swimming pools, gyms, and community spaces. Another trend in the market is the rise of affordable housing projects. The government of Bangladesh has implemented various initiatives to promote affordable housing, including providing subsidies and incentives to developers. This has led to the construction of more affordable housing projects, catering to the needs of the middle-income segment of the population.

Local special circumstances: Bangladesh is a densely populated country with limited land availability, especially in urban areas. This has led to a high demand for residential properties and has contributed to the development of vertical housing solutions. The government has also implemented policies to encourage vertical development and ease the pressure on land resources.

Underlying macroeconomic factors: The residential real estate market in Bangladesh is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth, which has resulted in an increase in disposable income and purchasing power of the population. This has led to a higher demand for residential properties. Additionally, the government has implemented various reforms to attract foreign investment in the real estate sector. These reforms include streamlining the process of obtaining construction permits and reducing bureaucratic hurdles. The influx of foreign investment has further fueled the growth of the residential real estate market in Bangladesh. In conclusion, the residential real estate market in Bangladesh is witnessing significant growth and development. Customer preferences for modern amenities and convenient locations are driving the demand for high-rise apartments and gated communities. The government's focus on affordable housing and reforms to attract foreign investment are also contributing to the market's growth. With limited land availability and a growing population, vertical development has become a key trend in the market. Overall, the residential real estate market in Bangladesh is poised for continued growth in the coming years.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.