Financial evaluation of an apartment construction: a case study

Abstract

Like food and education shelter is one of the basic human rights, which is recognized by both UN declaration and the Constitution of Bangladesh. In a bid to ensure the right the role of real estate sector is vital. The urban population started to increase rapidly after the liberation of Bangladesh in 1971. As a result housing problem became more acute in the larger cities and towns especially for low and middle-income group of people. Housing is an important growth sector having backward and forward linkages. Because of its ever-increasing demand, the sector has tremendous potentials. The growth curve of economy is at an all time high and contributing to the upswing is the real estate sector in particular. Investments in real estate have been strongly laking up over other options for domestic as well as foreign invcstors. The boom in the sector has becn so appealing that real estate has turned out to be a convincing investment as compiled to other investment vehicles ~ueh as capital and debt markets and gold bars market. It is attracting investors by oITering a possibility of stable income yiclds, moderate capital appreciations, tax structuring benefits and higher security in comparison to other investment options. The potential ofreal estate market has a revolutionizing effcet on the overall economy of Bangladesh mobilizing investments segments ranging from commercial, residential, retail, industrial etc.