Economic Report On Navana Real Estate Ltd 3u4l2y

A STUDY ON NAVANA REAL ESTATE LTD USING THE APPLICATION OF ECONOMIC CONCEPTS, TOOLS AND TECHNIQUES

A STUDY ON NAVANA REAL ESTATE LTD. USING THE APPLICATION OF ECONOMIC CONCEPTS, TOOLS AND TECHNIQUES

Prepared for Course: X Course Instructor: X X Institute of Business istration University of Dhaka

Submitted by X X

Institute of Business istration University of Dhaka May 6, 2017

A STUDY ON NAVANA REAL ESTATE LIMITED

Contents List of Figures ............................................................................................................................................... iii List of Tables ................................................................................................................................................ iii Executive Summary...................................................................................................................................... iv 1.

2

3

Introduction .......................................................................................................................................... 1 1.1

Literature Review .......................................................................................................................... 2

1.2

Origin of the Report ...................................................................................................................... 2

1.3

Objectives...................................................................................................................................... 2

1.3.1

Broad Objectives: .................................................................................................................. 3

1.3.2

Specific Objective: ................................................................................................................. 3

1.4

Scope of the Study ........................................................................................................................ 3

1.5

Methodology................................................................................................................................. 3

1.5.1

Sources of Data ..................................................................................................................... 3

1.5.2

Research Design .................................................................................................................... 4

1.5.3

Sample Design ....................................................................................................................... 4

1.5.4

Sample Frame ....................................................................................................................... 4

1.5.5

Sample Size ........................................................................................................................... 4

1.5.6

Limitations of the Study ........................................................................................................ 5

Background Study ................................................................................................................................. 5 2.1

Evolution of the Real Estate .......................................................................................................... 5

2.2

Real Estate: Riding wave ............................................................................................................... 5

2.3

Market Structure and Growth ...................................................................................................... 6

2.4

Real Estate Sector at a Glance ...................................................................................................... 7

2.5

Urbanization.................................................................................................................................. 7

2.6

Impacts of Private Real Estate on Patterns of Urbanization ......................................................... 8

2.7

Market Insight ............................................................................................................................... 9

2.8

Land Price Trends ........................................................................................................................ 10

About Navana Real Estate Ltd............................................................................................................. 11 3.1

Nature of Business ...................................................................................................................... 11

3.2

Principle Products and Services .................................................................................................. 11

i


3.3

3.3.1

Handed Over Projects ......................................................................................................... 12

3.3.2

Ongoing Projects ................................................................................................................. 12

3.3.3

Projects .............................................................................................................. 12

3.4 4

5

Name of Product/Services .......................................................................................................... 11

Competitive Condition ................................................................................................................ 12

Buyer Behavior .................................................................................................................................... 14 4.1

Key Issues with ing data ................................................................................................. 14

4.2

Present Market Demand ............................................................................................................. 16

4.3

Land Price Hike Trend ................................................................................................................. 17

Analysis and Applications of Economic Principles and Theories ........................................................ 19 5.1

Principles of Economics .............................................................................................................. 19

5.1.1

How People Make Decisions: .............................................................................................. 19

5.1.2

How People Interact ........................................................................................................... 19

5.2

Application of Invisible Hand ...................................................................................................... 20

5.3

Analysis of Demand..................................................................................................................... 21

5.4

Analysis of Supply ....................................................................................................................... 21

5.4 Circular Flow Diagram of Real Estate Industry.................................................................................. 21 5.5

Government Policy...................................................................................................................... 23

5.5.1

Possible effects of Rent Control .......................................................................................... 23

5.5.2

Impact of Rent Control on Dhaka City: ............................................................................... 24

6

Recommendation................................................................................................................................ 26

7.

Conclusion ........................................................................................................................................... 27

8

Bibliography ........................................................................................................................................ 28

9

Appendix ............................................................................................................................................. 29 9.1

SWOT Analysis of Navana Real Estate Limited ........................................................................... 29

9.2

Name & Description of the Handed Over Project....................................................................... 29

9.3

Name & Description of the ongoing Project ............................................................................... 31

ii


List of Figures Figure 1: Research Design ............................................................................................................................. 4 Figure 2: Booming Real Estate in Bangladesh ............................................................................................... 6 Figure 3: Real estate growth ....................................................................................................................... 10 Figure 4: Average land price ....................................................................................................................... 10 Figure 5: Interested in buying land properties (Age) .................................................................................. 14 Figure 6: Interested in buying land (Income group) ................................................................................... 14 Figure 7: Preferred Land Destination .......................................................................................................... 15 Figure 8: Occupation of Interested Buyers ................................................................................................. 15 Figure 9: Most popular areas to buy ........................................................................................................... 16 Figure 10: Growth areas in Dhaka property ............................................................................................... 16 Figure 11: Trend of land price hike ............................................................................................................. 18 Figure 12: Circular Flow Diagram of Real Estate Industry........................................................................... 22 Figure 13: Effect of Rent Control in the short run ...................................................................................... 23 Figure 14: Effect of Rent Control in the long run ........................................................................................ 24 Figure 15: SWOT Analysis............................................................................................................................ 29

List of Tables Table 1: Urban Growth rate .......................................................................................................................... 8 Table 2: Urbanization Data ........................................................................................................................... 8 Table 3: Land use parameter ....................................................................................................................... 9 Table 4: NREL’s Apartment Portfolio status................................................................................................ 11 Table 5: Price of Land .................................................................................................................................. 17 Table 6: Supply of Land ............................................................................................................................... 21 Table 7: Name & Description of the Handed Over Project ......................................................................... 29 Table 8: Name & Description of the ongoing Project ................................................................................. 31

iii


Executive Summary Industrialization, population growth, urbanization combined contributes to the gradual increase Bangladesh faces in number of people living in urban areas. Dhaka city accommodates 5 lakh new arrivals every year. Government as well as the private sector are working together to provide shelter for this increasing population. Investment in this sector is increasing over time and competition is becoming higher as increasing number of firms continue to compete to pursue self-interest. In this report at first, a brief overview of the industry is given. Real Estate business took off in Bangladesh in 1970 with only five ed firms. At present, more than 1500 companies are active in the real estate sector with 1081 of them ed with REHAB (Real Estate and Housing Association of Bangladesh), the sole organization of the real estate agents, developers and builders. The report then identifies some major reasons for the development of real estate business in Dhaka city. The report then explores the magnitude of urbanization through shedding light on urban growth rate and urbanization data, impact of private real estate on urbanization, market insight on the real estate industry, land price trends. Then the report focuses on Navana Real Estate Ltd., starting with its background information, nature of business, products and services, portfolio, handed over projects, ongoing projects, projects and name of other major firms that the company competes with. Then the key characteristics of the buyer behavior are outlined, which is gained through primary and secondary data. It is found that consumers aged between 40-50 years, with income above 75000 taka per month are the most interested in purchasing land or apartments. The most preferred destination is Uttara, and the most preferred cities to buy land in are Dhaka and Chittagong. The report then emphasizes on the application of the ten economic principles on the real estate industry. Principles regarding how people make decisions, how people interact are applied and explored. This is followed by analysis of demand and supply of the real estate industry. The market for product and market for factor of production are discussed and demonstrated through a circular flow diagram. The report ends with some recommendations for the real estate industry and concluding remarks.

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1. Introduction The economy of Bangladesh has very recently shifted from an agro-based economy to a servicebased economy; indicated by 56% of the GDP being generated from the service sector. Industrialization has led to a gradual increase in the proportion of people living in urban areasurbanization in other words. This is an outcome of both population growth and rural to urban migration. With the increase in urbanization a greater number of people are becoming city dwellers. According to a report on The Daily Star, Dhaka accommodates 5 lakh new arrivals every year. The rising urban population is followed by an increasing demand for accommodation. The right of accommodation is a fundamental right, ensured by both UN declaration and the constitution of Bangladesh. But the government of Bangladesh faces acute difficulties to ensure housing for all. Thus comes the need of private sector and development of real estates. The population density of Bangladesh is one of the highest in the world with 1237 people per square kilometer in the country and an astonishing 28410 people living per square kilometer only in Dhaka (World Bank). The situation is further aggravated every year through an irreversible reduction of per capita share of land for housing, as a result of continuing population growth. Providing shelter to all the people is one of the fundamental responsibilities of state by constitution. But being the government of a poor developing country, it is almost impossible for the government alone to ensure housing for all. As the public sector struggles to provide this, private sectors have taken initiatives to ensure people’s fundamental need for shelter. Government now shares with Real Estate Developers the task of providing safe decent places to live to the general public. But to serve a massive population of more than 160 million with only 1, 47,570 Square Kilometer is no easy job. Hence, the shortage of land is not only a social and national issue, but also a major economic issue. Government is trying to build a proper framework for the real estate sector. People in the high income brackets are the main customers of these real estate products. But day by day involvement of the middle class in the society is increasing. Government is trying to involve low income people too by suggesting the real estate companies to plan housing for them. Bangladesh has very recently turned into a middle income country with a per capita income of 1465 USD (Bangladesh Bureau of Statistics – 2016). With the continuous struggle to fulfill the other basic needs, real estate products that is assumed to be very expensive, is kind of luxury to the majority of the population. Nevertheless, real estate sector is developing and growing in a good pace along with a greater contribution to GDP. Investment in this sector is increasing over time and competition is becoming higher as increasing number of firms continue to compete.

1


1.1 Literature Review The term “Real Estate” comes from the term “Realty” which has for centuries, meant land and all things permanently attached (Fisher, 2000). In a country real estate business can achieve remarkable as the land and housing demand of people living in the city are increasing day by day (Michael, 1999). Housing is not only provides physical shelter but also have significant impact on the lives of the dwellers in the term of skills enhance, meant, income generation, increased security, health, self-confidence & human dignity. Since 1985 this sector has created homes for over 20,000 families in the Dhaka Mega City (Seraj, 2003). The lack of available and accessible house has been identified by the government of Bangladesh as one of the most important hurdles in improving the housing conditions for middle and lower income household (Hock-Smith, 1998). Nordberg (2000) has clearly demonstrated that in most regions, housing has the potential of becoming an engine of economic growth because of its high returns on investment, a high multiplier effect, and a host of beneficial forward and backward linkages to the economy. The National Housing Policy (NHP, 1993) commits the government to take initiatives in housing as a provider, for weaker section of the people and as a facilitator in overall housing initiatives in Bangladesh. A Real Estate bubble is the manifestation of an economic bubble occurring in the Real Estate market where the value of properties such as housing is characterized by drastic increases in its value which reach an unsustainable level and then suddenly implodes. More specifically, a bubble is defined simply as any substantial upward price movement over an extended range that suddenly implodes. It is a process of continual price rising detached from real value and the excess of sales over moderate price dictated by the market (Ning and Hoon, 2012). If the bubble inflates at a very rapid rate and turns into a bubble of a very high magnitude, it calls for special attention for the policymakers and the government alike as the prices of housing is at a high deviation from its intrinsic values and calls for price correction through market mechanism and other forms of regulatory measures, both fiscal and monetary.

1.2 Origin of the Report The report entitled “A STUDY ON NAVANA REAL ESTATE LTD: USING THE APPLICATION OF ECONOMIC CONCEPTS, TOOLS AND TECHNIQUES” is prepared for Professor Dr. A. K. M. Saiful Majid, a Senior Fulbright Scholar and Director of the Institute of Business istration, University of Dhaka, as a partial requirement for completion of the course Managerial Economics (E501) in the MBA Program at the Institute of Business istration.

1.3 Objectives The objectives of this study have been divided into two categories – Broad objectives and Specific objectives. The broad objectives give an overview of what this paper aims to accomplish, and the specific objectives go into detail regarding how that aim will be accomplished.

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1.3.1 Broad Objectives: The broad objective of this paper is to carry out an intensive study, using the concepts and theories of managerial economics in retrospective of the Navana Real Estate Ltd., i.e. to gather and compile all possible relevant data and to provide an accurate depiction of the recent development in this area relating the concepts of Economics learned in classroom sessions till date. 1.3.2 Specific Objective: In order to complete the broad objective of this paper, this report will attempt to pursue the following specific objectives: a. Study the market structure for the land aspect of the Real estate business of Navana; b. Understand the principles of economics and their application in the real estate sector in relation to the land, within Dhaka city; c. Look into the contribution of Navana Real Estate Ltd. to the overall economy of Bangladesh, focusing on GDP contribution and export contribution; d. Understand the consequences of government regulations and taxation on the developers and buyers in relation to this company; e. Use the findings to understand the effects of the factors of supply and demand of Navana Real Estate Ltd.; f. Study the market structure for Navana Real Estate Ltd.

1.4 Scope of the Study The scope of this paper includes an analysis of Navana Real Estate (Land) Ltd. studying the business and market demand of the company in that particular sector.

1.5 Methodology To fulfill the objectives mentioned before and in order to establish a credible report, the procedure that will be followed for this paper is given below: – 1.5.1 Sources of Data 1.5.1.1 Primary Data: For the purpose of the research project at hand, the participants of this report will collect primary data through the following medium:  

Personal interview Questionnaire

Most of the data will be collected through personal interviews of the related organizations. Indepth interviews will be conducted with the employees and executives of the selected organizations. The questionnaire will be used to gather more routine information that does not require interviews.

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1.5.1.2 Secondary data: 1.5.1.2.1 Internal sources:  Company website  Company profile  Company publications and annual reports 1.5.1.2.2 External sources:  Navana Real Estate Limited Website  Government and Outside reports 1.5.2 Research Design A combination of both exploratory and descriptive research methods have been used in this report. The primary data collected went into the descriptive research segment while the exploratory research used the secondary data collected from various organizations through interviews.

Data Collection

Analysis of Data

Recommendation & Conclusion

Figure 1: Research Design 1.5.3 Sample Design In this report, the research data has been collected from two sets of samples, one from the supplier’s side and the other from the consumer’s side. Together, they would provide a solid insight into the sector’s demand and supply scenario. 1.5.4 Sample Frame The required sample frame i.e. the detailed list of consumers is not accessible for us and as such, no sample frame can be mentioned. However, considering the vast population base of the country, it can be considered as infinite. 1.5.5 Sample Size Since the sample frame is not determined, sample size for the questionnaire has been fixed at 50.

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1.5.6 Limitations of the Study The major limitation that is likely to be faced while preparing this report is the lack of updated data, due to unavailability of access to said data, or simply because the data has not been collected by the respective organizations. The smaller organizations often do not record their data on a regular basis, causing the information available to be lagging behind by 1 or 2 fiscal years.

2

Background Study

2.1 Evolution of the Real Estate Real Estate business took off in Bangladesh in 1970 with only five ed firms. From the early 1980s the business started to flourish and showed robust growth. By 1988, there were 42 developers in business. At present, more than 1500 companies are active in the real estate sector with 1081 of them ed with REHAB. In the last four decades private developers have supplied more than 100000 units of apartments to the nation and will be supplying 25000 more units in the next three years (Sheltech, 2011). The main reasons for the development of real estate business in Dhaka city are: i) ii) iii) iv) v) vi) vii) viii)

Prompt increase in the population of the city; Scarcity of unoccupied lands; Extremely high prices of land; Risks involving purchase of lands; Land owners’ motif to profit; Increase of remittance inflows which finance many purchases; Re- shaping of households to single family units; Standardized security and other services in apartments.

2.2 Real Estate: Riding wave The economic performance of Bangladesh has provided strong impetus to the real estate sector, which has been witnessing heightened activity in the recent years. Substantial end- and investor interest, large scale investment in infrastructure and rapid urbanization have contributed to the growth trajectory of real estate In Bangladesh. The real estate growth story is clearly visible in urban areas. High growth in services as well as manufacturing sector has resulted in high demand for commercial and industrial real estate. The following table shows the important factors which are forcing the real estate sector in Bangladesh. Demand Pull Factors •Robust and sustained macro-economic growth; •Upsurge in Industrial & business activities, new economic sectors; •Favorable demographic parameters; •Significant rise in consumerism; •Rapid urbanization; 5

Resultant Impact •Increasing occupier base; •Significant rise in demand for office/industrial space; •Demand for newer avenues for entertainment, leisure & Shopping; •Creation of demand for new housing;


• Array of financing options at affordable rates; •Scarcity of space in the important areas of the city; • Risks of purchasing land; •Hazards of construction of building; •Price of land and apartment increasing; •Rent of the apartments is comparatively higher than rent of the privately constructed apartments; • Open market economy and remittance of foreign currency is easy.

•Growth in services such as IT, tourism, hospitality etc.; •Service facilities such as garbage disposal, central satellite TV connection, apartment’s services serves time, roof top facilities, and so on.

Supply Push Factors •Policy & Regulations are going to be reformed such as flexibility of foreign direct investment; • Positive outlook of global investors; • Fiscal incentives to developers; • Simplification of urban development guidelines; •Infrastructure & development by government.

Resultant Impact • Entry of domestic & foreign players increasing competition & consumer affordability; • Easy access to mean of project financing; •Increase in developers risk appetite & allows large scale development; • Improved quality of real estate assets; • Development of new urban areas & effective utilizations of prime land parcels in large cities. Figure 2: Booming Real Estate in Bangladesh

The recent times have also witnessed an evolution of the sector - towards greater institutionalization. With the entry of global players, inflow of foreign capital, evolution of capital markets, geographical diversification and introduction of reforms, the sector has undergone some significant structural changes. Even critical concern areas like transparency in the sector are also improving significantly. The trend is expected to continue in the coming years.

2.3 Market Structure and Growth The market concentration in the real estate sector, especially apartment projects, took off in the Dhaka City in the late 1970s. From the early 1980s the business started to flourish and showed robust growth. At present, more than 400 companies are active in the real estate business in the country. About 95 per cent of this business is still dominated by the top 10 companies. The type of the market is imperfect competition, Monopolistic Competition to be specific. The reasons behind real estate sector to be monopolistic are:  Very large number of differentiated buyers and sellers;  The number of buyers and sellers is so high that no individual entity has the power to have an impact on the pricing;  All the buyers and sellers are price makers as they have a degree of control over price;  The products, apartments in this case, are not identical or homogenous and thus not perfect substitutes; 6


 Imperfect dissemination of market knowledge. The market is highly segmented, primarily based on location, price of the land and size of the apartments. The main reasons for the development of real estate business in Dhaka city are:     

Scarcity of open spaces in important parts of the city; Hazards of purchasing land; Rapid increase in the population of Dhaka; Fiscal-Financial incentives such as the decrease in the rate of bank interest; Restriction of remittance flows which financed the sector.

2.4 Real Estate Sector at a Glance The rate of urbanization is estimated to be 5-6% annually for Bangladesh (REHAB, 2004). About 25% of the people of Bangladesh is now living in urban areas and 34% will be living by 2015 (REHAB, 2004) and 50% by 2025 (Singha D., 2001). There is shortage of housing supply in all urban areas and it is increasing with current demand of 600,000 to 800,000 units all over the country. Particularly in Dhaka this demand is estimated to be 60,000 units (REHAB, 2004). Dhaka is currently growing very fast compared to other cities in Bangladesh as there exists a high demand of plot and flat units. This huge and unfulfilled demand is highly attractive for the investors. The Real Estate and Housing Association of Bangladesh (REHAB) is the sole organization of the real estate agents, developers and builders. It has more than 450 ed in 2009. Moreover, around 350 non-ed real estate developers are doing business in this sector. According to REHAB they are currently supplying only around 8,000 to 10,000 units of housing apartments against the above mentioned huge demand. The approximate turnover in the real estate sector has been Tk. 20 billion, which contributes revenue of around Tk. 2 billion a year to the government. The sector now employs about 2 million people, which consists of architects, engineers, management officials, direct and indirect labors. The average contribution to GDP of this sector in the last five years was 12-14%. In 2007-2008, the growth rate of this sector fell to 5.93% from 7.01% of 2006-07 (Amin S., 2008). From 1994-95, over 10 years, Bangladesh real estate sector grew at an average of 3.64% reaching the peak at 3.83% in 1999-00. Though it had a fall in 2000-01, there was recovery in 2001-02. For the last 5 years this sector grew impressively and showed a smooth rising trend. The comparative scenario of GDP shows a steady 6% growth for Bangladesh.

2.5 Urbanization Statistics & studies show that in 2000-2015, urban growth rate is expected to be at an average of 3.7% for Bangladesh. India, one of the most attractive markets of global real estate, is expecting 4.9% growth of urbanization. The scenario is further evident by the per square kilometer population density growth. Thus in South Asia, Bangladesh holds the second position in of urbanization rate and proportion of urban population. This scenario tells that, as India is a rapidly growing real estate market in the world, Bangladesh also may attract more real estate than before.

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Table 1: Urban Growth rate Country

Population growth (million) 1975

2000

Bangladesh 9 25 India 21 28 Nepal 5 12 Sri Lanka 22 24 Source: Making Cities Work, Urban Fact Sheet, USAID

2015

2000-2015

34 36 18 32

3.7 2.7 4.9 3.1

Table 2: Urbanization Data Urbanization Data of Bangladesh (In thousands) Year 1970 1980 1990 2000 2010 Urban Population 5,059 12,713 21,750 34,354 52,223 % Urban 7.6 14.9 19.8 25.0 31.1 Urban Annual Growth 7.8 5.8 4.7 4.3 3.7 Rate Area Dhaka 1,474 3,257 6,621 12,519 19,393 Based Chittagong 693 1,332 22,65 3,651 5,389 Khulna 325 632 973 1,442 2,081 Rajshahi 108 238 517 1,035 1,676 Source: Rural and Urban Development Case Study – Bangladesh, Oxford Policy Management

2020 74,432 37.7 3.0 N/A N/A N/A N/A

High population growth and rural-urban migration intensify the problems of urbanization in Bangladesh. The problem is further aggravated by limited land supply in urban areas, lower land utilization and lack of proper policy and planning of land-use. This rapid influx of population to the capital city results in sky rocketing land prices and provides the stimulus for construction of tall buildings. During the period from 1981 to 2000, the greater Dhaka population grew at an average rate of 5.5% from about 3.44 million to 10.0 million. During the same period the built up area increased from 104 sq. km (39% of the city area) to 150 sq. km. (55%). By the year 2015 the expected population of the city is forecasted to be as high as 15.7 million. It is expected that Dhaka will become one of the ten largest cities of the world by the year 2020 with a population as high as 20 million.

2.6 Impacts of Private Real Estate on Patterns of Urbanization The private real estate entrepreneurs are providing residential facilities for the higher income group. Profit maximization is their only motto. Hence, lack of services and facilities are observed in the recent real estate schemes. In observed land use composition with regard to the standard are stated in the table.

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Table 3: Land use parameter Land Use parameter Residential Community Facilities Road & Streets Open Space Shopping

% of planned total land area 40-65 5-10 20-30 5-10 5-10

% of actual land use area 80-85 2.5-3.5 10-12 0 0

Here it is seen that for maximizing the profit the private developers are selling more than 80% of the total project area. In Bangladesh the housing problem is most acutely faced by the lower income people. Due to poor load bearing capacity of soil, high-rise buildings are very difficult to build in places being developed by real estate companies at present. Hence, low density of residential area is resulting in the form of inefficient utilization of the land resources. The unexpected and unplanned growth of residential areas is creating extra problems for the city managers. There is no link between the existing structure plan and the real estate developments. Consequently these projects are creating sheer stress on the planned development of the city. This is also creating polarization in the demand of services facilities.

2.7 Market Insight Bangladesh’s economy has grown by at least 6% every year since 1996 despite political instability, poor infrastructure, corruption, insufficient power supplies, slow implementation of economic reforms, and the 2008-09 global financial crisis and recession. The building construction industry is considered as one of the fastest growing and largest sectors in Bangladesh. In 2008-2009, the construction sector employed 2.024 million people which is expected to rise to 2.88 million by this year (2014) and 3.32 million by 2020 (Report by WCC). After 1990, a construction boom started in the country owing to the necessity for industrial buildings, corporate offices, housing units, roads and other types of infrastructure. Bangladesh has made major progress in recent years, with sustained macro-economic stability. Construction sector is poised to emerge as a new growth engine in Bangladesh, which now thrives on the USD 20bn RMG sector and USD 14bn annual inflow of remittances from expatriate workers. According to Bangladesh Bureau of Statistics, the construction sector ed for a record 9.1% of GDP in fiscal year 2012-13. The following table shows the comparison between overall GDP growth and growth of Real estate, renting and business services:

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Figure 3: Real estate growth The growth rate of Real Estate, Renting and Business service sector has increased over the 20022010 period. However, compared to overall GDP growth, this sector expanded at a slower rate, which explains the downward trend in real estate as a percentage of overall GDP.

2.8 Land Price Trends

Figure 4: Average land price Trends in recent housing prices can be observed in urban markets (mainly Dhaka) where market data is more accessible and pricing trends here are normally advance indicators of pricing trends throughout the housing industry of Bangladesh. Land prices in Dhaka have been increasing since 1975 and currently the price is USD 3566.14 per square meter on average. Price hike of land and construction materials have added to the overall price hike. There is no control of the government over the price increase of land within Dhaka city. Increased land price has a direct impact on apartment price. Also, after 2005, price of bricks, granular sand, cement, rod etc. had a rapid, almost exponential, increase. Both these factors have raised the apartment prices.

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3

About Navana Real Estate Ltd.

Navana Real Estate Ltd (NREL), a part of Navana Group, started its operation in 1996 as a private limited company & converted as a Public Limited on 8th September, 2010. Since its inception, NREL has completed and handed over a great number of projects in diversified areas in Dhaka where it is capturing the market for high and middle-income people. Of late, NREL has also started its operation in different areas of Chittagong. Considering the future expansion of Dhaka City and related demand hike for housing, NREL has extended its area of operation into land development projects, handing over one land project in Kallyanpur and two projects at Ashulia. Ongoing land projects include two projects at Narayangonj and Ashulia. NREL within a short span of time turned out to be one of the most trusted companies in Real Estate sector and has been working on a number of apartments, commercial and land projects. The motto of NREL is not only to deliver apartment or land ahead of schedule but also to maintain the highest-grade construction quality that has gained trust and respect in customers. Furthermore, NREL is pursuing the motto of becoming “different, dependable and definitive”.

3.1 Nature of Business The Company is engaged in purchasing land & developing urban housing and selling to the people of different income groups. The company also purchases high land for construction of multistoried Apartment building, Shopping and Office spaces.

3.2 Principle Products and Services Principle products are Apartment and Commercial spaces which cover approximately more than 90% of total revenue. They also have Housing project which will flourish significantly in near future.

3.3 Name of Product/Services The company produces different type of Apartment and commercial spaces in different location of Dhaka and Chittagong city categorized as Diamond, Gold, Silver and Pearl. Table 4: NREL’s Apartment Portfolio status Project Status Handed Over Ongoing

Number of Projects in 2009-10 17 -

Total No. of Projects 59 67

Square feet of built-up area 21,12,791 31,43,020

Square feet of saleable area 14,10,704 20,37,902

-

75

8256383

51,54,524

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3.3.1 Handed Over Projects During the ing year 2009-10, NREL handed over 17 projects to their clients located at areas like Gulshan, Banani, Dhanmondi, New DOHS, Niketan, and Uttara. As a result, from incorporation, total handed over projects of the Company reached 59. Average time needed to complete and hand over a project since inception is 2 to 3 years. NREL had no significant delay in projects handover to customers except some isolated events. The name and description of handed over projects are added in Table 5 in the appendix. 3.3.2 Ongoing Projects These projects are geographically concentrated in the northern part of Dhaka such as Uttara, Bashundhara, Baridhara, Gulshan, Banani, DOHS etc. Besides that, areas like Segunbagicha, Hatkhola, Kamalapur, Kalabagan, Wari, Purana Poltan, Mohammadpur, Lalmatia, Kakrail, Eskaton, Bashabo etc. a r e also included. As per the acquisition agreements, NREL will have to hand over 33% to 60% of total built area to the landowner and will retain residual to NREL for sales. The name and description of the ongoing projects are added in Table 6 in the appendix. 3.3.3 Projects To start the projects as per pre-scheduled manner, NREL management has already acquired land in different areas. For 84 residential and commercial projects, the Company already paid Tk. 179.93 crore as development cost and upfront cash commitment. Future areas include Mirpur, Mohammadpur, Uttara, Banani, Gulshan, Baridhara, Kamalapur, Tejgaon etc. where it is capturing the market for upper and upper middle-income class people.

3.4 Competitive Condition There are more than 1500 Companies in Real Estate sector in Bangladesh. Among them 898 are the of REHAB. The sector contributed 14% to GDP on the fiscal year 2009-10, & within a span of three decades, the turnover from this industry has reached to more than 28000m BDT. The Govt. revenue stands on average 2000m BDT per year from this sector. The market share of NREL is approximately 10%. The following are the major real estate companies in Bangladesh.

Building Technology & Ideas Ltd.

Concord Real Estate & Development Ltd. 12

Asset Developments & Holdings Ltd.


Rangs Properties Ltd. Bay Developments Ltd.

South Breeze Housing Ltd.

Shanta Properties Ltd.

Assurance Developments Ltd.

Sheltech

Dom-Inno Builders Ltd. Eastern Housing Ltd.

13

Advanced Development Technologies Ltd


4

Buyer Behavior

4.1 Key Issues with ing data  Buyers from the 40-50 years age group are more willing to build their own houses in 3 or 5 or 10 years. Furthermore, it has been identified that, 70% individuals aged 30 or less were interested in buying land properties. When it comes to this factor, people from age group above 50 showed second highest rate of interest with an 80% rate – of the 5 person surveyed, 4 person showed their interest. However, dealers and agents of land based property should be careful regarding the age group of 30-40, as it has been found from this survey, that, only 60% of the respondents showed interest in buying land based properties.

Interested in buying land properties (Age) 25 20 15 10 5 0

30 or less

30-40

40-50

Above 50

No of people

10

15

20

5

People said yes

7

9

19

4

Figure 5: Interested in buying land properties (Age)

 Respondents from the middle income group, i.e. 30,000 to 45,000 and 45,000 to 60,000 are more interested to build their own Interested in buying land (Income group) houses in future.

When it comes to the income group, the people with 75,000 or above surprisingly showed moderate interest, as only 50% of the surveyed individuals expressed desire to buy land properties. But, potential sellers of land and property dealers should be more careful about the demand condition of income group of 30, 000 or below as only 30% of this group showed interest in buying land property.

20 15 10 5 0 30,000 75,000 30,000- 45,000- 60,000or or 45,000 60,000 75,000 below above Number

10

16

17

5

2

Intersted

3

16

16

3

1

Figure 6: Interested in buying land (Income group)

14


 For building houses, respondents mostly prefer Uttara, Gulshan and Dhanmondi, followed by Mirpur, Purbachal, Bashundhara and others.

Preferred land destination

18 16 14 12 10 8 6 4 2 0

NREL should keep in mind of the Uttara, Gulshan and Dhanmondi. Of the 39 respondents, who showed interest in buying land Moha property, 16, 11 and 8 Gulsha Dhanm Purbac Bashun Uttara Mirpur mmadp Others n ondi hal dhara respondents expressed their ur desire in the aforementioned No. 11 16 3 8 3 0 4 5 areas respectively. However, considering the scarcity of land in Figure 7: Preferred Land Destination Bangladesh and especially in Dhaka, the capital city, NREL should also seriously consider the lands of Mirpur, Purbachal and Bashundhara.

Interested Buyers of Land (occupations ) 16 14 12 10 8 6 4 2 0

Servi Busi Doct Engi Bank Teac Lawy ce Othe ness or neer er her er hold r man er

No. of Individuals 14

5

10

1

9

2

7

2

Interested

4

10

0

7

1

4

1

12

Figure 8: Occupation of Interested Buyers

teachers are significantly less then.

15

 Among different occupational groups, Businessmen, Private Bankers, Engineers and Doctors (both Govt. service holders and private practitioners) are more willing. Among the potential buyer of lands, Bankers are willing to buy lands because Bankers can get housing loan at lower interest rate than others. Of Professions with high income, Bankers showed a massive interest, as 100% of the individuals showed their desire for buying land based properties. But, demand of low income professionals like:


4.2 Present Market Demand

Figure 9: Most popular areas to buy

Dhaka and Chittagong are the most popular destination for property/ land buyers, while Sylhet, Khulna & Rajhshahi are 3rd, 4th and 5th popular destination. It can be noticed even further, that, areas in the eastern side of Bangladesh (Sylhet, Dhaka and Chittagong) has a growing demand for land as the opportunities are growing significantly higher within these regions.

Currently, Uttara is the most sought destination for property/land buyers of Dhaka city Gulshan and Baridhara follows as 2nd and 3rd in of preference. The market findings in this case, justify the survey findings of the respondents’ preference of land areas in Bangladesh. However, unlike what it has been seen in this survey, residential areas, like: Bashundhara and Baridhara is getting a comparatively higher demand due to a comparatively lower price in a posh area.

Figure 10: Growth areas in Dhaka property

The third market demand factor is the average land price in various divisions of Bangladesh. 16


Scarce supply of land is complemented with the increased demand for accommodation in Dhaka city resulted in the extreme level of price increase in lands of Dhaka city with an astronomical average figure of 14, 760,000 BDT. Chittagong follows next with an amount of 96, 67, 800 BDT average price. Due to lack of activities, the land price is significantly less in outskirt areas like: Rupganj, where average land price has been recorded lowest BDT 9, 52,512.

4.3 Land Price Hike Trend In the first decade of 21st century, the price of per katha land increased unbelievably almost all over the Dhaka city. Compared to the price increase of the earlier decade, the percentage increase in price almost doubled, and in some areas it is three times to ten times the earlier price. The following table shows the price of per katha land in the major areas of Dhaka city from 1990 to 2010. Table 5: Price of Land

Price of Land/Katha % Increase in price over the past two decades

Year Area Baridhara Gulshan Banani Mahakhali Dhanmondi Lalmatia Azimpur Mohammadpur Shantinagar Shamoli Uttara Cantonment Komlapur Gendaria Basabo Kollanpur Mirpur Badda Demra Motijheel Kawran Bazar

1975

1990

2000

2010

25,000 25,000 25,000 25,000 25,000 20,000 175,000 25,000 20,000 17,500 20,000 20,000 17,500 10,000 2,000 17,500 10,000 4,000 4,000 50,000 41,500

600,000 600,000 600,000 600,000 600,000 600,000 600,000 500,000 500,000 300,000 300,000 400,000 400,000 400,000 300,000 300,000 200,000 200,000 200,000 1,200,000 1,000,000

5,000,000 2,200,000 2,000,000 1,800,000 2,200,000 1,800,000 1,600,000 1,200,000 1,500,000 1,000,000 1,000,000 1,000,000 800,000 700,000 800,000 800,000 700,000 600,000 600,000 3,500,000 2,500,000

40,000,000 25,000,000 15,000,000 12,000,000 20,000,000 15,000,000 5,500,000 7,000,000 10,000,000 4,500,000 7,500,000 7,500,000 4,000,000 3,500,000 3,500,000 3,200,000 4,000,000 3,000,000 18,000,000 20,000,000 15,000,000

17

Between 19902000 733% 267% 233% 200% 267% 200% 167% 140% 200% 233% 233% 150% 100% 75% 167% 167% 250% 200% 200% 192% 150%

Between 2000-2010 700% 1036% 650% 567% 809% 733% 244% 483% 567% 350% 650% 650% 400% 400% 338% 300% 471% 400% 2900% 471% 500%


The following diagram shows the trend of land price hike:

Figure 11: Trend of land price hike The price of land is increasing at a very high rate after 1990. After 2000, the rise in land price became steeper. This price rise is unbelievable and unexplainable. There is no control of the government over the price increase of land within Dhaka city. Increased land price have a direct impact on apartment price.

18


5

Analysis and Applications of Economic Principles and Theories

5.1 Principles of Economics 5.1.1 How People Make Decisions: 5.1.1.1 People Face Tradeoffs: While investing in real estate people face tradeoffs between the risks of investing the money to earn interest and the delight of owning a land which might or might not appreciate in value. 5.1.1.2 The Cost of Something is what You Give up to Get It: Suppose a banker is trying to make a decision whether to buy land or not. When he thinks about the total costs and benefits from the possession of a piece of land, he might consider the fact that the land will give him a sense of future security and pride throughout his life, but it might cost a few million taka. One thing he may not even take into is the time it takes to complete the payment, and the interest he could collect if he instead chose to invest the same amount of money in some securities or to save in a bank . All the things he gives up in order to buy a piece of land, are called the opportunity cost of possessing a piece of land. 5.1.1.3 Rational People Always Think at Margin: In the case of buying a piece of land, it is not an option of buying a piece of land or to invest behind, let us say stocks. For instance, when one is deciding whether to purchase a piece of land, the person must compare the marginal cost of this purchase in of different locations and marginal benefits (tax shield, joy and security of returns) associated with buying securities. By doing this, one can evaluate whether the purchase is worth the attendant costs. 5.1.1.4 People Respond to Incentives: Public policymakers should never forget about incentives, for many policies change the costs or benefits that people face and, therefore, alter behavior. A lower tax on real estate, for instance, encourages people to invest in the sector. On the contrary, if govt. hikes the tax rate on real estate, people will no longer be interested to invest heavily in the sector. Therefore, infrastructural development will be hindered. 5.1.2 How People Interact 5.1.2.1 Trade Can Make Everyone Better-off: Trade allows people to focus on serving a specialized purpose in the economy, such as food production, textile production, real estate development, computer engineering, etc. By trading with other people, we get access to a much wider variety of goods than you would be able to produce ourselves, and at a better opportunity cost (price). The reason why someone would prefer buying a piece of land is simply that the person is making a future investment. He will gain value through the appreciation of price. In future, he can a developer to build a house for his family. The trade between a developer and a buyer thus benefits both. The developer receives a reasonable profit for managing the entire activity of construction of the building, and the buyer gets a safe house to live in with family. 19


5.1.2.2 Free Markets Are A Good Way to Organize Economic Activity, As Long As Some Rules Are Applied: Bangladesh works as a free market economy giving immense opportunity for the real estate companies to grow.

5.2 Application of Invisible Hand Adam Smith used the metaphor of the invisible hand to refer to the guidance and benefit society receives when individuals act in their own self-interest when trying to make money. According to Smith, when consumers are left to freely choose what they want to buy, and businesses are left to freely decide what they want to sell, the self-interest of both will lead to decisions that result in good prices and the right products in the economy and marketplace. As a result, Smith argued that no government intervention is needed. We simply have the invisible hand of economic selfinterest to guide us. Let's explore the theory more to help it all make sense.

As demand for housing and land continues unabated, Navana Real Estate Ltd. continues its business as a leading developer of the industry in Bangladesh. Most of the properties are in Dhaka and most of the buyers are the people with monthly income over 75000 taka. The real estate industry is the mainstay of the country's economy, which contributed 14% to GDP on the fiscal year 2009-10, & within a span of three decades, the turnover from this industry has reached to more than 28000m BDT. The sector The Govt. revenue stands on average 2000m BDT per year from this sector. The market share of NREL is approximately 10%. There are more than 400 Companies in Real Estate sector in Bangladesh who compete with each other, buyers and sellers come together in a market and prices are determined automatically as if an invisible hand were guiding the market. 20


5.3 Analysis of Demand Today, in the real estate industry in Dhaka, both price and demand for land have gone up exponentially. In today’s complex economic scenario, it is not possible to assume that except the price and quantity demanded other things will remain unchanged in the long run. Though the price of land in different locations of the city has increased on an average by 278.64% over a decade (2000-2010), the demand for land will keep soaring. This is primarily due to the income and inflationary effects which we cannot assume to be constant in the long run. Hence, a representation of the demand analysis for real estate industry in the city is not possible.

5.4 Analysis of Supply Below is the amount of land provided by Navana Real Estate Ltd.: Table 6: Supply of Land Land Project Kallayanpur Land Project Green Homes Land Project Village Land Project Valley Land Project Bhuiyan City Land Project Kaligonj Land Bhatara Land Barua Land

Location Kallayanpur, Dhaka Ashulia, Savar, Dhaka Ashulia, Savar, Dhaka Konabari, Gazipur Siddirgonj, Narayangonj Kaligonj, Gazipur Badda, Dhaka Khilkhet, Dhaka

Area in Katha 753.00 201.43 339.00 53.00 74.39 876.00 45.00 49.09

Dhogari Land

Rajendrapur, Gazipur

171.51

5.4 Circular Flow Diagram of Real Estate Industry The circular flow of income is a neoclassical economic model depicting how money flows through the economy. In the simplest version, the economy is modeled as consisting only of households and firms. Money flows to workers in the form of wages, and money flows back to firms in exchange for products. Like every other economic entity Real Estate companies also go through circular flow diagram. It has two markets.

21


Figure 12: Circular Flow Diagram of Real Estate Industry

Factor Market: For Real Estate sector factors market is the market where factories spend on rents and buys buildings and other equipment. For buying these commodities factories pay wage and salary to workers, rent and price for buildings and other equipment and interest for the deposits collected. The factor market, sometimes called the resource market, represents the purchase of resources in an economy. In the factor market, households are the sellers of resources, and factories are the buyers of resources. Product Market: The product market represents the purchases of finished goods and services in an economy. In our case the product market consists of lands and apartments. Households are the main buyers of goods and services in the product market, and businesses are the sellers of goods and services, as shown in the top half of the figure. From the circular flow model, it appears that the product market is a single physical location where products are bought and sold. But this is clearly not the case. Instead, the product market represents the millions of buy-sell transactions that are made 22


every day in supermarkets, gas stations, convenience stores, department stores, bakeries, laundries, dentist and doctor offices, delis, and coffee shops. Also, in addition to households, other businesses purchase land and apartments too for commercial use.

5.5 Government Policy Government role in of letting conducive policy environment for flourishing the industry in less developed country has very little success story. In this prospect Bangladesh government policy setting has been point on especially in case of real estate sector. Most extraordinarily Bangladesh government formulate policy in such way it let more or less the sector alone, not regulating it while almost everything else is heavily regulated. If the government of Bangladesh imposed policies like rent control, it could turn to be disastrous for the sector. 5.5.1

Possible effects of Rent Control

Rent control is a special form of price control where the government places a ceiling on the rents that the landlords can charge for houses and apartments. Rent control can either be in the form of setting the maximum amount of rent a landlord can charge, or imposing a limit on the rate of increase of rent every year. The set ceiling of the price is lower than that at market equilibrium. There are several ways in which rent control affects housing in Dhaka city – 5.5.1.1

Creating a apartments

shortage

of

houses

and

The effect of rent control is not highly visible in the short run. In the short run, the supply for apartments for rent can be considered to be completely inelastic. This is due to the fact that housing developments tend to be long term projects, and changes in price and rent for apartments cannot be reacted to quickly by the developers. On the demand side, people tend to have a reluctance in changing their housing arrangements at short notice. These supply and demand forces interact to result in a small shortage in the housing market in the short run as a result of rent control.

23

Figure 13: Effect of Rent Control in the short run


However the effects become much more pronounced the longer rent control stays in place. As the ceiling imposed by rent control curtails the profit house owners and developers can generate, their incentive to build apartments and rent them out decreases. This causes a decline in supply. On the other hand, reduced rent due to rent control encourages more and more people to seek apartments for rent. This increase in demand, coupled with the reduction of supply, results in a large shortage in the housing market. The changes in supply and demand are both more elastic when Figure 14: Effect of Rent Control in the long run a long term scenario is considered. 5.5.1.2 Flow of capital away from the housing sector

Due to the reduction in potential profit for developers due to the existence of rent control, capital that would otherwise be invested in the housing sector is diverted away to other sectors. The result is a deterioration of the state of the housing sector, and the growth of the city would suffer accordingly. 5.5.1.3 Less maintenance of houses and apartments

As the demand for housing far exceeds supply of apartments available for rent, there is often a long list of people waiting for an apartment. Landlords often impose restrictions when renting apartments, such as – renting only to tenants without children. Due to the excess of demand, landlords often lose their incentive to maintain the quality of the apartments and do not trouble to remodel apartments or make other improvements in them. 5.5.1.4 Large discrepancies in rent between new and old apartments

The effects of rent control become worse the longer the rent control continues. New housing is not built because there is no incentive to build it. With the increase in building costs, the old level of rents will not yield a profit. If, as often happens, the government finally recognizes this and exempts new housing from rent control, there is still not an incentive to as much new building as if older buildings were also free of rent control. Depending on the extent of money depreciation since old rents were legally frozen, rents for new housing might be ten or twenty times as high as rent in equivalent space in the old. 5.5.2

Impact of Rent Control on Dhaka City:

Currently there is no rent control in Dhaka City. However, recently the High Court has directed the government to form a high-power commission tasked with recommending maximum and 24


minimum standard house rents for different areas in the capital city. This proposed rent control could have dire consequences for the city. 5.5.2.1 Shortage of basic commodities

Being the capital city, there are already multitudes of people flocking to the city every year. With rent control, this number will become overwhelming for the city to handle. There is already a shortage of water, electricity and gas in the city, with these commodities being rationed during different parts of the year in different parts of the city, and with more people, it will only get worse. 5.5.2.2 The impact on the real estate sector

A city must grow in order to survive. The growth of real estate in Dhaka city has been rapid in the past, but imposing rent control would severely hurt this sector. Investors would move their capital away from the real estate sector to more profitable ventures. Without a thriving real estate sector, the growth of the city will stagnate, and inevitable problems will arise as more and more people come to the city. 5.5.2.3 Discrimination against prospective tenants

There is already a trend in Dhaka city of landlords declining to rent apartments to bachelors. With rent control imposed and the subsequent shortage of apartments for rent, this form of discrimination will increase. As a result, a large number of people, including those who come to Dhaka seeking jobs, will have a much tougher time living in the city than they do now. 5.5.2.4 Deterioration of overall living standards

 The shortage of housing would likely increase the number of slums in the city. The number of people living in poverty would increase.  The traffic situation in Dhaka is already horrendous. With more people coming into the city as a result of rent control, this would only get worse.  With the increase in the population, the water logging and drainage system of Dhaka city would deteriorate. With these potential problems facing Dhaka city due to Rent Control, it can be considered as a severe detrimental factor towards the growth and sustainability of Dhaka City.

25


6

Recommendation

The objective of this research was to gather a comprehensive idea about land aspect of one of the Real Estate Companies, Navana Real Estate Limited. Based on the observations of the participants, data acquired from the major secondary sources, utilizing the theoretical knowledge acquired from this course, the following recommendations can be made:  It can be predicted that, within the next 10 years, demand for land will be significantly high due to the population boom and increase in people’s income. To tackle this future astronomical needs, government must devise a plan to increase opportunities and facilities in the northern region of the country, as it has been seen, the demand for land is gradually increasing on that part of the region.

 Dhaka remains dominant in almost every aspect of land market that has been assessed in this report. Hence, the government and other major authorities of Bangladesh, such as Rajuk, must seriously consider a major expansion plan of Dhaka to cope up with the astronomical accommodation and land needs in Dhaka. This is a feasible solution, as it can be seen that outskirt regions like Rupganj is offering land at BDT 9,52,512 per katha on average.

 The principal demand of people is to access land around areas, where privileges like hospital, school, and colleges are accessible. Considering this factor, the proper authorities should focus on increasing privileges in regions outside major cities to places like: Rajshahi, Khulna, etc. Should the privileges reach the standard of living that exists within the major cities; people will begin pursuing untapped lands.

26


7. Conclusion The standard of living in Bangladesh is gradually increasing day by day. As the income and the demand for better and more sustainable resources increase, Bangladesh faces acute scarcity natural resources to fulfill the need of each and every person. The acute scarcity of land is no exception to this problem. In order to meet the demand of the population in the most effective manner, the growth of population needs to be controlled. However it is not a solution the istration should look for, should they want an effective resolution to solve the pressing need for land. Through the analysis of this research, one can simply find that crisis of land gets even intensified, when it comes to the major cities, where the major establishments resides in. Unfortunately, the number of these kind of cities are significantly low within this country. Should the government undertake the initiative of intense planning to restructure regions in the outskirts of the capital city, should the government take initiatives, to deliver major benefits in the other regions, the land section of real estate industry of Bangladesh can fulfill the need of demand and supply of land in a better fashion than at the present context, as people will find more substitutes of lands. People will understandably pursue these options since the demand is discernibly prevalent in this country.

27


8

Bibliography  Company Profile, Navana Real Estate. Retrieved from http://navana-realestate.com  Macroeconomics 2: Ten Principles of Economics. (2013, May 1). Retrieved from Forex Trading Zone: http://www.forextradingzone.org/articles-Ten_Principles_of_Economics  Mankiw, N. G. (2012). Principles of Economics. Delhi, India: Cengage Learning India Private Limited.  Mankiw, N. G. (2012). Principles of Economics. Delhi: Cengage Learning India Pvt. Limited.  REHAB. (2011). Dhaka: REHAB.  Samuelson, P. A., & Nordhaus, W. D. (2012). Economics. New York: McGraw-Hill.  Statistics, B. B. (2010). Statistical Yearbook of Bangladesh. Dhaka: Bangladesh Bureau of Statistics.  Statistics, B. B. (2010). Statistical Yearbook of Bangladesh. Dhaka: Bangladesh Bureau of Statistics.  MD. Asadullah Khan, “Migration to Dhaka”, The Daily Star, http://www.thedailystar.net/news-detail-106930

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9 Appendix 9.1 SWOT Analysis of Navana Real Estate Limited

STRENGTH

WEAKNESS

Customer loyalty

Staff Turnover

Technology

Customer Service

Unique Ideas

Bad acquisition

Brand name

New ideas

Asset leverage

SWOT

OPPORTUNITY

THREAT

New technology

Political risk

Innovation

Government reglation

Emerging market

Bad economy

International exposure

Mature market

Figure 15: SWOT Analysis

9.2 Name & Description of the Handed Over Project Table 7: Name & Description of the Handover Project Name of Apartment

Location

Handover

Name of Apartment

Location

Handover

Bailey Star

Baily Road

July-2009

Dianthus

Uttara

March-2009

Chateau De Husains

Gulshan

March-2010

Gloria

Niketon

Nov-2007

Southern Wood

Dhanmondi

Jan-2010

Paradise

Uttara

March-2006

Lake Shiri Garden

Uttara

August-2009

Raza Niloy

Mirpur

June-2007

Villa

Gulshan

July-2001

Sea Jewel (Sagor)

Uttara

July-2010

Suriya Imdad Garden

Central Road

July-2009

Carmem Skylana

Uttara

March-2009

Tower

Gulshan

April-2004

Pride

Uttara

July-2004

Kabir Garden

Dhanmondi

Jan-2006

Lake View

Niketon

April-2005

29


Verdancy

Eskaton

Aug-2007

Cottage

Banani

July-2004

Veneziane

Dhanmondi

Jan-2008

Sapphire Monami

Banani

Aug-2008

Garden

Kallyanpur

April-2009

Condominium

Segun Bagicha

June-2006

Sardinia

Banani

May-2010

Myriad

Niketon

April-2010

Homes

Banani

Feb-2001

Ville Akbar

Mohakhali

April-2010

La Fontana

Niketon

Nov-2008

Shefali

Gulshan

July-2006

Grosvenor Residence

Gulshan

March-2010

Banu Garden

Mogbazar

August-2006

Wood Sorrel

Baridhara

March-2010

Ecstasy

Dhanmondi

Nov-2005

Rangalia

Banani

Feb-2010

Timit

Bashundhara

August-2009

Motin Verbena

Green Road

Mar-2008

Vartex

Wari

Oct-2008

Laurestine

Baridhara

Sep-2009

Park

Uttara

Jan-2007

Cordelia

Banani

Jan-2010

Glory

Mohammadpur

July-2006

Karar's Islet

New DOHS

June-2010

Bliss

Elephant Rd

May-2005

Cosmos

Hatkhola

Feb-2007

Saffron

DOHS Baridhara

June-2010

Kinevart

Bashundhara

June-2010

Oleander

Uttara

July-2008

Sandriana

Niketon

March-2009

Rafia Diapensia

Segun Bagicha

July-2010

Bilkis Laurent

Gulshan

Nov-2009

Summer Hill

Uttara

Feb-2009

Pearl

Uttara

Sep-2006

Delphinium

Nov-2008

Orchid

Gulshan

Sep-2005

Villa Marvella

Mohammadpu r New DOHS

Le Caprice

Banani

Jan-2010

Shamim Beaumont

Banani

June-2010

Venus

Sukrabad

June-2006

Sky View

Niketon

Sep-2005

Mirabad Navana

Mirabad

Aug-2008

30

July-2010


9.3 Name & Description of the ongoing Project Table 8: Name & Description of the ongoing Project Name of Projects

Location

Present status: % of completion as per audited s

Possible year of handover

Alpenrose

Segunbagicha

Ashir Animone

Hatkhola

90 % 24

20 11 20

Aspodal Ayesha Angelique

Kamlapur Uttara

% 65 % 27

12 20 11 20

Aziza Serenity

Banani

Beaufort

Baridhara

% 33 % 24

13 20 12 20

Blue Cascade Carnival

Bashundhara Kalabagan

% 21 % 10

13 20 12 20

Casa Grande

Gulshan

Celestial

Wari

% 46 % 48

12 20 12 20

Circular Height Darus Salam

Razarbagh Uttara

% 23 % 27

13 20 13 20

DH Tower

Panthapath

Diamonte

Dhanmondi

% 16 % 52

12 20 13 20

Ellsworth

Banani

Ferdous Fairfield

Bashundhara

% 35 % 41

11 20 12 20

Feroza Wilhelm

Gulshan

Fima Paradiso

Bakshibazar

% 57 % 78

12 20 11 20

Hermitage Kanak's Redulent

Hatkhola Uttara

% 51 % 27

11 20 11 20

Karotowa

Baridhara

Kazi Richmond

Bara Moghbazar

% 22 % 61

12 20 13 20

Khalil Gravillea

Bashundhara Banani

% 36 % 34

11 20 11 20

Baridhara

% 14 % 28

12 20 13 20

% 24 % 38

12 20 12 20

% 29 % 39

12 20 13 20

% 41 % 27

11 20 11 20

% 21 % 66

12 20 13 20

% 42 %

11 20 12

Li Sianthus Lilium Memories Mandale

Niketon

Manor Park

Uttara

Mid Summer Dream

Gulshan

Miru Arimidale

Gulshan

Mojibunnessa De Lake

Banani

Mukhles Monarch

Purana Paltan

Neer

Uttara

New Buri Place

Subhanbagh

Platinum Residence

Gulshan

Rabeya Easdale

Mohammadpur

31


Rahim Ardent

Kakrail

Rainbow Terrace

Uttara

Rebecca Teodora

Uttara

Roosevelt

DOHS Baridhara

Saptabarna

Lalmatia

Sattar Garden

Eskaton

Shahria Rowshan

Lalmatia

Shams Anjum

Bijoy Nagar

Shaz Sylvan

Baridhara

Siddique Sorrento

West Dhanmondi

Sikder Wind Flower

Bashundhara

Silver Dale

Bashaboo

Siraj Lake Aster

Dhanmondi

Somerset

Shantinagar

South Wind

Banani

Splendour

Banani

Summer Wind

Baridhara

Sylvania

Nodda

Usha Sylvestris

Gulshan

Water Edge

Dhanmondi

Zohra Square

Banlamotor

Ahmad Carnation

Dorgahat, Ctg

Centifolio

CDA R/A, Ctg

Devine

Halishohor, Ctg

Faizan Height

Mehedibag, Ctg

Florenza

Abedin Colony, Ctg.

Jalal Palace

Mehedibag, Ctg

Madani Tower

Mehedibag, Ctg

Meherun Villa

Nizam Rd, Ctg

Motaleb Grandure

Nizam Rd, Ctg

Reza Ornilla

Khulsi, Ctg

Weakinings

Mehedibag, Ctg Land projects: Kallayanpur, Dhaka

55 % 42

20 11 20

% 62 % 91

13 20 11 20

% 72 % 4

11 20 11 20

% 22 % 23

13 20 12 20

% 27 % 63

12 20 13 20

% 30 % 44

11 20 12 20

% 72 % 39

12 20 11 20

% 39 % 28

11 20 11 20

% 52 % 5

12 20 11 20

% 58 % 63

13 20 11 20

% 13 % 22

11 20 13 20

% 36 % 33

13 20 11 20

% 14 % 17

11 20 12 20

% 7 % 4

12 20 13 20

% 10 % 31

13 20 12 20

% 98 % 12

12 20 11 20

%

12

100 % 100

201 1 201 1 201 1 201 1 201 2

Kallayanpur Land Green Project Homes Land

Ashulia, Savar, Dhaka

VillageProject Land Project

Ashulia, Savar, Dhaka

Valley Land Project

Konabari, Gazipur

% 100 % 100

Bhuiyan City Land Project

Siddirgonj, Narayangonj

% 100 %

32

Economic Report On Navana Real Estate Ltd 3u4l2y

Overview 26281t

More details 6y5l6z

Related Documents 3h463d

Economic Report On Navana Real Estate Ltd 3u4l2y

Project Report On Real Estate 61i3n

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