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Bangladeshi.com's Real Estate News Details
 
Apartment prices to go up 20-40pc in Dhaka  
Posted: June 05, 2007  
 Detail News
Source: the Daily Star Business Report
June 04, 2007


Prices of apartments in Dhaka will go up by 20 to 40 percent, as building materials have now become dearer, developers said yesterday.
They said Tk 500 would be added to the present rate (per-square-foot) of the flats in up to six-storey buildings and over Tk 500 to the rate of the ones in the high-rise buildings.

The developers however admitted to a drop in sales of apartments in a span of 5 months this year by 65 to 75 percent over the corresponding period last year due mainly to surge in apartment prices.

"Flat prices will go up by 40 percent in posh areas such as Dhanmondi, Gulshan and Banani. Apartment prices in other areas will soar by 20 percent," said Tanveerul Haque Probal, general secretary of the Real Estate and Housing Association of Bangladesh , at a press conference in Dhaka yesterday.

Significant price hike in construction materials will force them to up Tk 250 per Sft, Probal explained, adding that the rest of the hike in flat value will be made due to enhanced cost of construction of flats for the owners of lands given to any developer under a deal on certain terms and conditions.

The present market prices of MS rod have marked a rise by 19percent, cement 32percent, bricks 62percent and sand 72percent compared to the prices in 2005.


Per thousand bricks were sold at Tk3100 in 2005, the market price of which now increased to Tk5000. Sand price increased to Tk12 from Tk7.5 per square foot and cement price increased to Tk350 per bag from Tk265 per bag in 2005, according to the leaders.

They said prices of rod (60 grade) increased significantly in the last three years by Tk7500 per tonne. Presently, rod is priced at Tk47,500 a tonne, which was Tk40,000 in 2005.

The REHAB leaders attributed the high prices of construction materials to electricity and gas crisis and increased transportation costs.

When asked who will bear the increased flat prices, Probal said, "Of course the buyers should bear the costs. But it will be decided through consensus between buyers and sellers."



He said, "Our clients both home and abroad are showing hesitation to transact huge amount of money at a time."

Syed Sirajul Haque, treasurer, M G R Nasir, joint-treasurer of REHAB and Enamul Haque, chairman of the Building Materials Price Review Committee of REHAB were present at the press conference.


Source, The Daily Star, June 04, 2007

Rangs Group refutes some news reports

Company denies several published reports by media

The Daily Star
Saturday, August 4, 2007

Rangs Group in a written statement sent to the media yesterday contested several news items published and telecast by a section of the media, saying that the reports were untrue, unfounded and baseless.

In the statement the company said the news reports' claims that Rangs Bhaban had been constructed unlawfully occupying government and waqf lands and that the plan of the building had not been approved by Rajuk, are baseless and untrue.

It said the property of Rangs Bhaban was originally jointly owned by Dears International Ltd and Yunus Khan Mojlis Waqf Estate, the current owners of which also include Bank Asia Ltd, Kollol Group, SQ Group, Appollo Group, Shanin Group and Maritime Entrepreneurs Pte Ltd.

Dears International Ltd purchased 15.73 kathas of land from five private owners -- Mohammad Oli Mia, Mofizul Islam, Hosne Ara Begum, and Syed Ahmed Khan within the period between 1987 and 1993.

The statement also said Dears International Ltd purchased 6 kathas of land from Yunus Khan Mojlis Waqf Estate, the mutwali of which came into an agreement with Dears International to develop the land jointly, and the mutwali also obtained necessary permissions from the Waqf Commissioner's Office regarding the matter.

Approval of plan

According to the Rangs Group statement, Dears International first submitted a plan to Rajuk for a 10-storey Rangs Bhaban which would house a shopping and office complex. After examining all documents, Rajuk approved the plan on July 6, 1989, which was revised with Rajuk's approval on May 15, 1990 allowing construction of a 22-storey shopping and office complex instead. Rajuk also changed the status of the plot from a residential one to a commercial one, which was also later revised again with Rajuk's approval incorporating certain changes in the commercial status of the land.

Rajuk order

The Rangs Group statement said despite all the approvals, Rajuk issued a letter on June 24, 1999 stating that it had cancelled its earlier approval for the plan for 22-storey Rangs Bhaban. In the letter Rajuk also said for safety and security of the aircraft flying in and out of the old airport, the cancellation of the approval had become necessary.

Dears International and the mutwali of the waqf estate jointly made several appeals to Rajuk to reconsider its decision, but the requests were turned down prompting them to file a writ petition with the High Court.

Old airport and CAA

The statement went on to say after Zia International Airport had started its operations in early 1980, the old airport at Tejgaon was abandoned and used as a parade ground, and the old airport building was handed over to the Public Service Commission. When Rajuk approved the plan for Rangs Bhaban, there was no height restriction from the Civil Aviation Authority for buildings in the area as the old airport was abandoned.

Link road issue

The statement also said in the master plan for Dhaka City, there was no plan for an east-west road around the area of Rangs Bhaban. The plan for the road connecting Bijoy Sarani and Tongi Diversion Road at Tejgaon Industrial Area, to reduce pressure on the VIP Road, developed much later. Besides, Rangs Bhaban is not the only building standing there, about a hundred multi-storeyed buildings stand between Bijoy Sarani crossing and Tongi Diversion Road, all of which were also constructed with Rajuk's approval.

 




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