Background and Prospects of Private Sector Housing Finance in Bangladesh

Abstract

Almost all socio-economic groups both in urban and rural areas in Bangladesh experience housing problem. In a developing country like Bangladesh with a low level of industrialization but a very high growth rate of urban as well as total population, housing is perceived as a very acute national problem. Due to the lack of proper government policy and shortage of fund accommodation is becoming a major problem in the country especially in the large cities. Every year an insignificant percentage of the development budget of the country is allocated to housing sector and the allotted fund is invested to construct flats for government officials who make up 4% of the manpower of the country. Individuals with their own resources are building about 95% of total residential buildings and the rest is done through borrowing from formal or informal market.