Private apartment housing for middle income people: a study of affordability

Abstract

Housing problem in the urban areas of Bangladesh is a common problem like most of developing countries of the world. Dhaka has more population than it can accommodate the housing situation. Rapid urbanization and poor economy followed by inequitable distribution resources have created serious housing problems. Dhaka is experiencing rapid population growth. The availability of facilities compared to other urban centers made Dhaka very attractive to all people. Investments made in housing are also highly profitable in Dhaka compared 10 any other cities and toWllSof Bangladesh. But it does not cope with rapidly increasing population and resources to provide (he required essential services amI facilities. As a result serious problem have emerged over the years regarding housing provision and other related services for the city dwellers particularly fur middle-income people. Due to the enormous population growth in Dhaka in the past decades, it is almost 'impossiblc on the part of the government to ensure honsing fur all. As public sector failed to ensure their right, people themselves have taken initiative to ensure their fundamental need of shelter. The Formal Private Sector Housing that constitutes Real Estate developers has evolved to quench the ever-increlll'ing thirst of people fur shelter. In order to meet the ever-increasing demand for residential accommodation in the limited land of Dhaka the construction of apartment buildings was a natural and viable solution with natural consequences. In our country, real estate business started in Dhaka in late seventies. In 2006 there are about 250 companies engaged in this business in Dhaka and Chittagong also. From the early 1980s the business has started to flourish and in 1990s it reached its highest point. Towards the end of year 2000 there was slight downfall in real estate sectot. Now in 2005 this sector is again showing growth. At the beginning most of the developers aimed to cater the upper income group oflbe socicty. But recently the private bousing eompanies also started to construct apartment fur the middle-income people who are the largest segment of population (about 50 percent) of Dhaka city. The major focuses of this research arc: (i) to investigate the issues related with housing standard expected by the middle-income group. (ii) to study the affordability ofthc middle-income group to meet the bousing cost. About ISO-questionnairesurvey have been conducted in four different middle-income arellSof Dhaka to collect socioeconomic and demographic data. The developers were also inlerviewed to understand their perspective on middle-income group and their housing demand. Present cost of per sq. feet space, amount of booking and down payment money is not affordable by the middle class people of Dhaka city. The loan scheme and installment procedure also do not appropriate for the targe! group. The study also shown some measures by which cxisting housing market can fulfill the expectation of the middle class people.