REHAB fair sees weak turnout ahead of polls

Attendance at this year's REHAB fair fell short of expectations, as the country's premier property exhibition ended yesterday amid a cautious mood among investors.

Developers and financiers reported fewer serious inquiries and spot loan approvals, attributing the slowdown to the political climate ahead of the national election.

However, visitor numbers rose slightly on the final day of the four-day fair, organised by the Real Estate and Housing Association of Bangladesh at the China-Bangladesh Friendship Conference Centre in Agargaon, offering hope for post-fair engagement.

"We primarily focus on luxury projects in prime locations, which is why we don't have a very high number of projects," said Ahsan Habib, assistant general manager and cluster head (sales) at Rangs Properties Ltd. "This year, we've showcased around 25 projects, both residential and commercial, mostly in Dhanmondi, Gulshan, Banani, Mohakhali, DOHS, Uttara, Bashundhara, and an ongoing project in Mirpur."

Footfall has been "significantly lower" than last year, he added. "People are being more cautious due to the upcoming elections and overall political uncertainty. Recent events have also made city movement more difficult."

Mid-income buyers were the most active segment, Habib said, targeting units priced between Tk 1.5 crore and Tk 2 crore, ranging from 1,300 to 2,000 square feet. Rangs' projects range from over Tk 1 crore to Tk 25-Tk 26 crore.

Mohammad Rakib Hossain, general manager (sales) at Tropical Homes Ltd, expressed similar concerns. "Compared to six or seven months ago, the real estate sector hasn't seen much improvement. Still, we believe the market will rebound," he said.

Tropical Homes showcased 25 projects for low- to upper-middle-income buyers, including the country's tallest commercial high-rise. Prices range from Tk 30 lakh for a Tongi commercial unit to Tk 12 crore for premium projects. Residential units are priced at Tk 7,000-Tk 23,000 per square foot, with sizes up to 4,000 square feet.

Credence Housing Ltd presented 54 projects in prime Dhaka neighbourhoods such as Dhanmondi, Lalmatia, Kalabagan, Elephant Road, Siddheswari, Gulshan, Banani, and Uttara.

"Our core focus is delivering on time and earning customer trust," said Abdur Rahman Khan, team leader of Credence's planning and investment department. "We cater to mid- to high-income buyers who prioritise location and lifestyle facilities."

Most buyers rely on financing, with banks covering 70-80 percent of the property value, he added.

Banks and non-bank financiers also saw low demand. Md Zaman Ullah, relationship officer at Prime Bank, said they offered home loans up to Tk 2 crore at 11.5 percent interest, including a new Islamic home loan product.

"We waived processing fees and allow up to six partial settlements per year. But overall, footfall is much lower than last year," he said.

An official from City Bank said the heated-up political climate has dampened demand. "Spot loan approvals are almost nonexistent this year," the official added.

Md Asif Sikder, branch manager at IDLC Finance PLC (Mirpur), said, "Even though we offer loans covering up to 70 percent of property value with only 1 percent processing fee, queries remain very few."

Despite challenges, developers and financiers remain cautiously hopeful that buyer activity may pick up after the fair.