Housing sector works for more employment and economic growth

Golam Mostafa Jibon: The contribution of housing industry in the country’s economy is undeniable as it is helping to boost employment and economic growth largely. This industry is keeping contribution in building the basic right of the people by ensuring shelter or houses, similarly it is creating employment facilities for millions of unemployed people.
After all, this housing industry is contributing significantly to the country’s GDP.Not only that hundreds of allied industries have been established around this industry.
Thousands of unemployed people have also got jobs through these industries. All in all, the housing industry is playing a pioneering role in the country’s economic growth and employment. The contribution of housing sector to GDP is 15 percent. The government gets a lot of revenue from this sector through taxes, VAT, registration fees.
“If we want to speed up the economy, we must speed up the housing sector. About 50 lakh workers-officers-employees are engaged in the entire construction sector. Depending on them, the food and clothing needs of about 2.5 million citizens are met” experts said.
Huge activities revolve around this sector. Thus, the housing sector in Bangladesh has been playing an important role in the national economy for the past 40 years. Infrastructure development is considered as a key indicator of economic development. However, the extent of this infrastructure development is huge.
Roads, bridge culverts and problems of the transport sector all fall under this category. Real estate or housing industry is also one of these infrastructure industries. The sector has grown through many ups and downs over the years and is moving forward. Although, this growth is expected from all industries, many industries do not get the expected results. In short, the economy of Bangladesh is enriched by the housing sector. The driving force of this industry is governed by several characteristics. Notable among these are property prices, interest rates, property demand and urbanization. Again this industry is also involved in the development of cement, steel, tiles, sanitary, glass and other building materials industries.
When the housing industry develops, the demand for these products automatically increases. Hence, the development of the real estate sector also acts as an indirect influence on the development of others. The real estate sector has played an important role in shaping the economy of Bangladesh over the last 40 years. During this time, there was rapid urbanization and abnormal population growth.
As a result, the demand for the housing sector has also increased very rapidly. According to Rehab’s calculations, this sector contributed 12 percent to the GDP in 2014, which was 7.04 percent in the previous year as well. Now the contribution to GDP has increased to 15 percent.
According to a survey conducted by the United Nations, 40 percent of the country’s area is coming under urbanization. And more urbanization means increased demand for housing. So the demand for real estate will continue to increase gradually. Apart from this, the country is going through a different period socially.Large joint families are breaking up and the number of small single families is increasing. So, the demand for flats and apartments is also increasing by leaps and bounds.
Apart from this, the number of middle-class people and their purchasing power is increasing in the country. Such people are constantly looking for a place to hang out. Considering all aspects, it can be said that, the future of the real estate sector in this country is very promising. Bangladesh, a country of 16.5 million people, has achieved enviable economic success in recent times. Urbanization increased in tandem with industrial trade.
According to United Nations Population Fund (UNFPA) estimates, in 1974, only 9 percent of Bangladesh’s population was urban.
As per the report of ‘World Urbanization Prospectus: The Revision’ prepared by the United Nations, Dhaka will be the sixth most populous city in the world by 2030.The population will be 2.70 crore. Growing economic development and employment have changed the type, structure and extent of cities against the massive influx of people due to increased urbanization.
Not only the capital Dhaka, but also the extent of other divisional cities and district cities have increased in terms of infrastructure and scope due to the same reason. The housing industry has come forward to solve the growing housing problem of the growing population. To cope with the constant pressure of urbanization, the country’s housing sector has been moving at an equal pace with ensuring citizens’ quality of life, planned urban management and housing planning.
Experts said that, the changes in the housing sector over the decades with ease of access to the country’s civic facilities, proper investment of capital and ensuring its security, improved housing management are worth seeing in one word.
Analysts said that, Bangladesh, the world’s 41st largest economy according to the 2020 index, is on its way to becoming the world’s 25th largest economy by 2035. The housing for all policy will greatly contribute to the expansion of the housing sector. Many people expressed hope that the government’s housing sector will reach the remotest stages of the country with the support policy support, planning and necessary incentives.
Statistics show that, the average GDP growth in Bangladesh in the last 13 years was 6.6 percent which was above 7 percent in 2016-2017, 2017-2018 and 2018-2019 fiscal years and crossed 8 percent in 2018-2019 fiscal year.
GDP growth was an enviable 6.94 percent in FY 2020-2021 even during Covid-19 surge. In the fiscal year 2021-22, GDP growth was 7.25 percent and in the current fiscal year 2022-23, the growth rate is 2.50 percent.
One of the most promising housing sectors of the country is playing an important role in this growth of GDP every year.
Statistics show that, about 7 percent of the total country’s GDP comes directly from the real estate sector. Apart from this, the total contribution to GDP with the backup linkage industry connected with this sector is more than 15 percent. There are 211 to 260 connected sectors involved in this potential sector.
At present, the housing sector is considered as one of the main regulators in the overall industrial development of the country. And so, the state has helped sometimes joint ventures, sometimes individual ventures to accelerate this continuous progress.
Starting from policy support, multifaceted steps are being taken to keep this sector’s continuous growth intact.
In the early 1990s, the influx of people towards the cities, liberalization of trade and industry and booming economic trends started the construction of apartments, sale of ready plots, large-scale housing schemes.
Many of the upper middle class to upper class and well-to-do middle class were interested in joining the modern housing system at that time. Increasingly, the expansion of corporate business, progress in the garments sector and investment-friendly environment have led to increased investment in the city’s housing sector.
The number of buyers and direct beneficiaries from this sector increases. Many people are interested in building apartments with modern facilities instead of their old buildings. The mid-nineties saw a boom in the housing industry, particularly in the construction of high-rise apartments.
Due to rapid urbanization, the pressure on land is increasing day by day. An inevitable result of this is the housing sector. The age of housing business in Bangladesh has now crossed 40 years. The private housing sector in the country caters to half of the total urban housing. From 1996-97, the housing business started in a big way. Real Estate and Housing Association of Bangladesh (REHAB) was established in 1991.At that time, the membership of the organization was only 11.According to information provided on REHAB’s website, it has now stood at 911. So, it is easily noticed that the sector is blooming fast.