Financing Real Estate Development In Bangladesh: A Study Of The Housing Schemes Of Some Selected HBFIS | Mohammed Saleh Jahur, Roushan Ara Sultana & Mohammad Shahidullah

Real Estate Development has got a momentum in the recent years in Bangladesh. During the Eighties, HBFC (House Building Finance Corporation) was the only HBFI (House Building Financing Institution) that financed the real estate development in Bangladesh. To meet the growing demand for financing real estate development, a good number of HBFIs emerged in the area of financial services. They have come out with different financing schemes for financing real estate development in Bangladesh. It is also observed that real estate developing institutions are also facing a severe financial crisis. The present study has found that housing sectors are facing different financing problems such as, lack of adequate funds at reasonable interest rate, non-existence of level-playing field, inefficient debt market, higher default risk, huge amount of classified housing loan, legal flaws, access to housing credit, hesitance of HFIs (Housing Financial Institutions) to provide long-term loan etc. To eliminate these problems of housing sector, the study has suggested some policy measures such as expansion of financial resources to the private HFIs, broaden the scope of housing finance etc.