Homes and Loans: Decoding Bangladesh's Housing Finance Sector

Abstract

Housing accommodation is a fundamental demand of the people. With the increasing population, urbanization and supply of land being scarce in urban areas, there has been a declining trend of independent housing accommodation in urban areas. This has given impetus to the growth and development of apartment-based housing accommodation. Also, in view of the rising prices of apartment accommodation, and no corresponding rise in the income of potential buyers of housing apartments, the need for a housing loan increased manifold. To meet the needs of housing loans, financial institutions play a vital role providing loans for the construction and purchase of houses at different rates and varying conditions. This study intends to find out the performances of housing finance sector of Bangladesh and address some constraints to the functioning of housing finance markets and possible measure to overcome those obstacles.

Keywords: Housing Accommodation, Housing Finance, Operational and Financial performance, Constraints, Real estate financial market.

DOI: 10.7176/RJFA/14-20-03

Publication date: December 31^st 2023