Real Estate Financing in Bangladesh: A Study on Sylhet Metropolitan City

Real estate business is mounting up as one of the most profitable sector in Sylhet- a region of high foreign remittance. Consequently, investors are paying their attention to invest in the sector for earning profit. Further prospect of real estate business in Sylhet is something moralizing for the investors. Only few apartment builder companies started their operations in the region. After 2000, private companies in this sector rapidly increased and the number of real estate and housing companies in Sylhet stood at 122 at the end of 2016. Among the companies 80 companies were found operation in full swing of which 50 companies were involved in real estate business and the remaining 30 companies were involved in real estate and housing business. The study has found shortage of debt financing as one of the major problems of real estate business in the region. The study also recommends financial institutions to reshuffle their policies for the smooth sanctioning of the loans to real estate companies and also to the customers of plot or flat. The findings of the study might be helpful to the authorities of the financial institutions, real estate and house building companies, policy makers of the government, and also to the existing and potential investors and customers.