GROWTH IN DHAKA, THE CAPITAL OF BANGLADESH, FAR OUTSTRIPS MANY OF ITS REGIONAL COUNTERPARTS

change. Experts believe that continued reforms, enhanced transparency, simplified regulatory processes, and supportive policies are needed to attract and retain NRI investments.

“With the nation’s economic growth trajectory, the stage is set for a transformative era in NRI property investment, marked by sustainable gains and a deepening connection to their roots,” Valambhia says.

In a world where horizons are increasingly blurred, technology diminishes distances, and cultures intermingle with ease, the recent surge in NRI investments is a testament to the significance of cultural ties. And as NRIs continue to invest in their homeland, these contributions not only bolster the economy but also reinforce the bridge between their past and the future of India’s real estate landscape.

Bangladesh gets a boost

Dhaka, like many burgeoning megacities in the Global South, frequently bears the stigma of being one of the most inhospitable cities on the planet.

In the 2023 edition of its annual global liveability index, the Economist Intelligence Unit, the research and analysis division of the Economist Group, ranked the Bangladeshi capital 166th out of 173 cities.

The city’s narrative is often dominated by images of overcrowding, slums, and substandard housing. With a population of 23 million, Dhaka often grapples with some of the most severe air pollution worldwide. To many observers, there appear to be few silver linings.

And yet the country’s economic growth continues to far outstrip its regional counterparts. Per capita, its GDP is already bigger than neighbouring India. In 2021, the International Monetary Fund (IMF) predicted Bangladesh’s gross domestic product would soon exceed that of Denmark or Singapore.

This bright outlook was however dimmed last year by the post-pandemic global economic slowdown that has wreaked havoc in developing countries. The downturn was underscored in January when the IMF loaned the country USD4.7 billion.

Nonetheless, Bangladesh’s GDP is predicted to reach USD1 trillion by 2040 and real estate looks set to play a crucial role. According to the Bangladesh Bureau of Statistics, the sector contributed almost 8% to the economy in the last fiscal year. This marked a significant year-onyear increase, highlighting the sector’s expanding role. Increased urbanisation, rising income, and a growing middle class were cited as the key drivers by Alamgir Shamsul Alamin Kajal, president of the Real Estate and Housing Association of Bangladesh (REHAB).

“The government should prioritise the sector and formalise a sector-friendly policy in the next budget, considering the employment opportunities it generates,” adds Alamin. He also suggests that the government reduce the recently increased registration fee and offer

SINGAPORE’S PROXIMITY TO INDIA MAKES IT ANOTHER PREFERRED BASE FOR NRI discounts to incentivise first-time buyers. In 2022, the prime minister endorsed the Detailed Action Plan, a comprehensive 20-year blueprint designed to enhance Dhaka’s liveability and modernity.

While this ambitious plan has sparked optimism, real estate experts voice concerns about potential decentralisation, which could inflate property prices by up to 50%, rendering apartments unaffordable for many.

On a more positive note, the plan reportedly encompasses the creation of 202 kilometres of new cycle lanes and 574 kilometres of waterways. It envisions the establishment of nearly 30 new parks, including reserves and conservation zones, along with an array of new educational institutions and healthcare facilities.

The question of whether this ambitious plan can effectively address Dhaka’s environmental and population challenges remains uncertain. Regardless, the coming years will be crucial for shaping the future of one of the world’s most maligned cities.

Stormy conditions in Pakistan

Smoke and mirrors, rather than bricks and mortar, remain the foundations of Pakistan’s property market.

The sector is plagued with numerous issues, including overpricing, artificial growth, and various manipulations. In recent years, speculation and lack of transparency and regulation in the industry have resulted in significant asset-price bubbles, leading to a volatile market, while the lack of reliable data makes informed investment decisions almost impossible.

For the intrepid, there are opportunities to be had. Prominent developers, like Defence Housing Society and Bahria Town, are seen as reliable and trustworthy. Inevitably properties by these developers

PAKISTAN’S REAL ESTATE MARKET IS PLAGUED BY SEVERAL DIFFICULTIES, NOT LEAST THE NATION’S ONGOING POLITICAL TURMOIL command much higher prices due to their perceived credibility.

A sharp decline in remittances from the country’s diaspora in recent years has also hit the market hard. According to Mohammad Hassan Bakhshi, former chairman of the Association of Builders and Developers, overseas Pakistanis on average invested USD10 billion in the property market before the pandemic.

But with the recent economic downturn and heightened political instability expected to continue, there are concerns many may permanently opt for safer ports amidst Pakistan’s ongoing storm.