REAL ESTATE SECTOR
1.1 Background Of The Study
Bangladesh
is an independent country of South Asia. It is
a small country; but its
population
is very large in proportion to its area. In a developing country like Bangladesh
where population has been increasing without any stopping, need for house has
got more importance in recent past. At present, the population of different
cities of Bangladesh
is increasing rapidly in which the population density of Dhaka City
is larger then any other city. The causes are population growth, migration of
rural population to urban areas and developing new area in the Dhaka City.
The population growth rate of Bangladesh
is high, at over 2.30% ever year. The 1996 census records the urban population
represents almost 20 percent of the total population of the country. This
population is growing at. an alarming rate of over 5% per year. The growth of
urban population indicates the high demand for urban residential houses. The
growth rates of population in urban are-is are higher than those of the
national. During the period from 1961 to 1973 the national population increased
by 71.36% but the urban population increased 179.06%, which is about seven
times the national growth. A recent study by the United Nations reveals that by
2012 D. The population of Dhaka will be
2 core as compared to 490 millions in 1985.
Bangladesh is one of the Least Development Countries' in the world,
with annual per capita income of USS 90. Extreme poverty continues to be
a major problem in urban areas where approximately 20% of the population live
in hard core- poverty. The standard of shelter in such a poor country is
correspondingly low some 23% of urban dwellings are of a temporary structure.
In some urban areas upto-10% of the population have no living accommodation at
all. Overcrowding and minimal or no infrastructure and services are further
problems.
Most of the people of our country live in the
rural areas. But in rural areas job opportunities are very low. For this
reason, migration is increasing from rural areas to urban areas. As a result,
population is increasing rapidly in urban areas. Most of the people living in
rural areas are ill created and poor. Most of the house in result areas is
Jhupri, Kacha Ghar, and Semipaca.
Acute shortage as well as poor state of housing services
characterizes the urben housing sector in Bangladesh. Housing is one of the
basic human needs like food and clothing. It provides shelter safety and sense
of belonging to employment generation and overall productivity improvement. But
in Bangladesh
the housing situation is unsatisfactory in both rural and urban areas
in respect of numbers as well as conditions. In the urban
areas housing situation is more degrading as it is characterized by higher
degree of inequality. Population has been increasing without any potential stop
sign; seed for house has of more importance in the recent past. But now the population
problem has further deteriorated in the city area.
1.2 Problem Statement
The main focus of this report is
to analyze the problems and prospects in the Latif Real Estate Limited. It also helps to bring the idea of the
overall functions and situation of the real estate organization. Real Estate
sectors now a first growing sector and for the economic development and
improvement of the country it needs to emphasis the overall condition. The
remarkable problems in real estate sector are as follows:
·
Limited land property
·
Cost of land and building materials rising
·
Competition increasing
·
Govt. rules and regulation barriers
·
Legal barriers
·
Shortage of capital
1.3 Objective Of The Study
The primary purpose of this
report is to get an idea about the Business Plan of “Latif Real Estate
Limited”, a third generation country and make an industry analysis on the
Real Estate sector of Bangladesh.
Specific Objectives
·
To find out the position of “Latif Real
Estate Limited ” in the Real Estate sector.
·
To find out how its present strategy is working.
·
To analyze the comparative performance of “Latif
Real Estate Limited ” and some other selected private Limited Company.
·
To know the successive position of each Real
Estate sector.
·
To analyze the performance in some key areas.
·
To find out existing problems of the Company.
·
To formulate alternative strategies for solving
the problems.
·
To recommend some better solutions for solving
the problems.
·
To formulate an implementation plan for the
recommended steps.
·
To formulate a contingency plan as a safeguard
for changing situation.
1.4 Research Methodology
Research Design
Both descriptive and exploratory
researches have been selected to analyze this paper. Here the researcher
discussed the credit appraisal procedure of ADL and critically analyze the
appraisal procedure with the standard one. Comparison analysis has also been
taken part in this study.
Data Collection Procedures
There are two main sources of
collecting data. To complete this report data has been collected from both
primary and secondary sources. The primary data has been gathered by formal
discussion with the credit officials and borrowers. Some secondary data has
also been collected to make the report more concrete. These data has been
collected from different financial statements, annual reports, newspapers,
books and business outlets and materials etc. that they prepare to submit in the
head office.
1.5 Limitation
To prepare this report, I have
faced some limitations, which are mentioned below.
Limitation of time
It was one of the main
constraints that hindered to cover all aspects of the study.
Lack of Secondary
The annual report was the
main secondary Information0
source of information that
was not enough to
complete the report and
private
the reader a clear idea
about the Company.
Limitation of the Scope
While collecting data, they did
not disclose much information due to the confidentially of the organization.
|
2.0 Rules And Regulations Of Capital City Development Authority
After preparing the design or plan, every body have to
receive permission from capital City Development Authority under the rules of
construction of Imarat, or this Architecture should help them. But under the
constitution of Capital City Development Authority's 6 section, it is very
clearly identify that the aduate architect or engineer, Diploma architect or
engineer prepares plan or design for three floors building but High raise
building it should be prepared by only graduate architecture or engineer. The
other article of this section is follows:
Documents should be placed with attached the followings:
i) Seven copies of design with area and site
of land,
ii) The existing road and nearest road of
land.
iii) The Metric units measure it and design
will be prepared according to the Metric unit and also attached indicators so
that easy to identify the North side.
iv) After that, one can place his application
with signature of architecture, C.S. design, the way to entire to the land
evidence of ownership, layout of plan and others. The road will be wide near
about 3.65 miter of the plot and link road of this Site. If residence and
non-residence land is closely related, then in case of build building on
non-residence area it should keep minimum distance of 2.5 meter from residence
area and open windows is not permitted to the residence site.
d) For genera!
maintenance of site, you can make a wall on destination line of 1.75 miter high
or 2.75 miter high grill or make net or rallying wall for construction.
e) According to the
Capital City development Authority's constitution the maximum high of a
building will not exceed the twice length of road near the building.
f) The car parking
facilities should be facilitated in each building.
g) The basement floor will be treated like Ground floor,
and then it is first, second, third floor and so on. [t is also mentioned that there is no
bedroom, kitchen room, birth room will not.
h) The roof of building will be made with carefully so that
the water could not fall into other building or place. It is also "kept in
mind that open your window, sunshade, only for .50 miter.
i) There is a secret door to be attached for come out the
house in case of any type of , danger. Beside this, it is necessary to have a
fire alarm, fire ' mechanisms and others.
j) The space for 1 meter behind of house and
.80 meter for the both side of house should keep for the area of 134 sft house.
In case of 132 to 200 miter house, the space for 1 meter behind the house and 1
meter for the both side of house should keep.
2.1
Construction Procedure
One can start his construction work after getting
permission from this City Development Authority. The specified engineer will go
to the land and test the soil and give the report to the concern people. If
soil is soft then the deep foundation will need other wise unnecessary. In our
country, to follow the "RCC frame" or " Brick work "
procedure for constructing the building. Foundation may be done so quickly by
the RCC frame to use concrete. According architecture, that brickwork is
applicable only for four or five floor building.
2.2 Building Code
LFD : Load Factor Design
LPG : Liquefied Petroleum Gas
MCSP : Multipurpose Cyclone Shelter Programme
OMRF : Ordinary Moment Resisting Frame
RC : Reinforced Concrete
RS : Rolled Steel
RSJ : Rolled Steel Joist
SMRF : Special Moment Resisting Frame
SPA : Surge Prone Area
LPG : Liquefied Petroleum Gas
MCSP : Multipurpose Cyclone Shelter Programme
OMRF : Ordinary Moment Resisting Frame
RC : Reinforced Concrete
RS : Rolled Steel
RSJ : Rolled Steel Joist
SMRF : Special Moment Resisting Frame
SPA : Surge Prone Area
SRSS : Square Root of
the Sum of the S.quares
UBC : Uniform Building Code; Published by the ICBO
WSD : Working Stress Design
UBC : Uniform Building Code; Published by the ICBO
WSD : Working Stress Design
2.3
Importance And Role Of Real Estate Business In National Economy
Every
person has a dream in his/ her soul to possess a beautiful house of his/her
own. But it is very difficult to own a house now a day because of severe crisis
of land and gradually increasing demand of housing. So, it is not possible for
all to build a house purchasing land. So come the Real Estate business
initiatives to fulfill the demand of residence of urban people. This statement
so far includes only the importance of Real Estate business in our national
life. The following points can also reveal the importance of Real Estate
business specifically.
2.4
Contribution Of National Economy
Real
Estate business affluence our national economy by ensuring profits to the
Promoters
and thus tax to the government.
2.4
A, Real Estate solve the problem of Housing and Resident
For
the facilities of modern and better life pattern, people concentrated in urban
area only with a job or merely with a business. Real Estates provide them
Shelter and house for easy accommodation here in the urban area.
2.4 B,
Securing and shifting to modern life
Real
estate business improves our life pattern by proving housing facilities in a
developed area and facilitates government to assist people easily in
restructure facilities and utilities needed.
2.4
C, Real estate solve our unemployment problem
Real
Estate business provides employment opportunities for our unemployed people.
People are directly and indirectly benefited with various employ opportunities
by the Real Estate business.
2.4
D, Real estate reform Social life
Real
Estate business also assists people to develop better social life providing
playground, community center, park and other social recreation facilities.Real
estate business provides employment opportunities for our unemployed people.
People are directly and indirectly benefited with various employer
opportunities by this business. The development of the locality and extension
local markets generates huge employment facilities for local unemployed
people.In Bangladesh's city life, Real Estate plays an important role by
providing easy accommodation facilities with safety shelter and better life pattern.
2.4 E,
Rationality of Selecting 'Real Estate Sectors' as an object of Investigation
At
present the birth rate in Bangladesh
has decreased but the death rate also decreased, that is why the population is
increasing day by day. With increasing population housing facilities are not
increasing in tandem.It is fact that Real Estate now is a booming business. At
present, in the urban area, it is no longer possible to provide accommodation
facilities in according with the increasing demand of urban population. Because
lands are not increasing although people are. For this, to assist all within
this limited land, high rise buildings are been made for residence. This is,
the increasing demand of housing and crisis of open space for constructing
building, we have to go upward that is expanding housing vertically rather than
horizontally. In this regard, Real Estate promoters are putting numerous
contributions to light a kindle of hope among those who are land-less and
homeless in urban areas. Bangladesh 'is the poorest south Asian country. The
severe crisis of land for residence and the higher purchase value of land
always frustrate the middle class,
It also uplifts the social status of civil people. We can not ignore its
huge contribution in national economy, unemployment problem solving,
environment protection and building a civil society. So, Real Estate is an
important business contribution to the urban people as yet.
2.5 Real Estate Business Take The Challenges Of
Urbanization
One
of the major indicators of the advent of civilization is man's building a d-
selling for himself with indigenous materials such as wood, stone, mud, straw,
leaf, bones etc. As the pre- historic population increased, caves and niches
could not accommodate them anymore. Man was forced to make a home to take
shelter from rain, sun, and predatory animals. Thus began the process of human
civilization many millenniums ago that continue in the present time. The
climate, topography, and availability of building materials have determined the
shape and size of human abodes down the centuries. Early Egyptian and
Mesopotamian built their dwellings with mud and rock. Their kings built mighty
p! ices and tombs with blocks of stones. Timber has been the most popular and
widely used material for building homes all over the world. Bricks and concrete
bricks gradually replaced timber in the urban areas. In the rural areas,
especially of Asia. Africa and Latin America, umber is still being used to build homes.
Cities sprang up and began to spread all around the globe and this new
phenomenon added a new dimension to the need for residential homes for a
population belonging to various income groups. While sky-scrapers and luxury
villas dotted the skyline, shanties grew silently in their shadows mocking an
incompatible economic system. Cities began to allure rural population since the
30s and today it has created a horrific situation that needs to be taken care
of an argent basis.
The need for a dwelling place is a basic one and every citizen of a
country has the right to having one. For example, in Bangladeshi constitution
also says in Article 15: " It shall be a fundamental responsibility of the
state to attain through planned economic growth, a constant increase of productive
forces and a steady improvement in the material and cultural standard of living
of the people, with a view to securing to its citizens- The provision of the
basic necessities of life, including food, clothing, shelter, education and
medical care.....
" According to the UN, "
Rapid urbanization and globalization of the economy ha? resulted in
increased productivity and economic competitiveness in most .cities However, it
has also widened social inequalities, often leaving behind the pool, the
uneducated and most critically, women and children. Success has also further
marginalized ethnic and radical monitories, led to conflicts in urban
environments.
These challenge are forcing local governments to assure new
responsibilities in matters relating to economic,
Affairs, security and management
of municipal services.
2.6 Problem
Facing The Real Estate Sector
The
Real Estate sectors are facing a lot of problems now a day. Government should
taken these problems and inspire these sectors.
Problems
are:
1. Government
should restrict the VAT.
2. Government
should provide complete safety and security for construction period of the
projects.
3. The main
items of these industries like, MS Rod, Cement, Stone chiefs, and Bricks etc. are not strictly controlled by
the government.
`As
for example 30% construction price increased as a result the Tice of apartment
ultimately raised.
4. Every year
in Dhaka City
the Real Estate
company giving donation to miscreant tk. 30000000 for their
safety and secure.
5. Most of the technical personnel when gathered
their experience from these sector they are leaving these companies for high
salary offers from sectors.
2.7 Future Strategy Of Real Estate Sector
Most
of the Real Estate companies have charged their business strategy following
points are mentioned here:
1. Apartment
sizes reducing, those means, Luxury and Spacious sizes from 3000 to 3200 sft
now reduced 1500 to 2000 sft.
2. Most of the developers are interested to
build economy that like 1000 to 1200 sft.
3. Most of the
developers have founded out their target customer as retired government
employees and their apartment price between 8 to 10 lacs.
4. Fitting/ fixing/
structural stability is designed also in most economic way.
4. Bank loan arrangement
has taken into consideration for the customer.
6. Easy installment
system also is providing for the customers.
Chapter-3
An Organizational Overview
3.0 Background
AKANKHA
Developers Limited is a privet limited company form under the companies Act,
XVIII of 1994. Since its inception, Akankha Development Company has been
delivering various projects in apartment and building construction sector. It is
now one of the fastest growing developers in the field of apartment
construction sectors in the country. The company is founded and run by a
steadily growing team of dedicated professionals having vast experience in this
sector. Dhaka being the 8th largest mega city
of the world and the overwhelming capital of the country and other major cities
are expanding their boundary considering the growing demand of rehabilitating
and commercial spaces in the modern area. Akankha Development Company is
proceeding accordingly observing the diversified demand of the valued customers
in the cities.
3.1 Corporate Information
3.3 Special Futures Of The Company
- It has been performing Residential and Commercial activity and striving to introduce Construction functions.
- It is the pioneer in introducing and launching different customer friendly different schemes to tap for channel sings the same to the productive sectors of the economy.
- For uplifting the standard of living of the limited income group of the population the Company has introduced Consumer different Schemes by providing financial assistance to the consumers for procuring household durables, which have had encouraging responses.
- The Company is committed to continuous research and development so as to keep pace with Real Estate Sector.
- The operations of the Company are fully computerized so as to ensure quick, prompt flawless and services to the customers.
- The Company has introduced camera monitor system (CCTV) to strengthen the security services inside the Company premises.
3.4
Company Objective
Latif Real Estate Limited.
Specializes in residential and commercial real estate listings and sales in the
Hot Springs and surrounding areas. Hot Springs offers so many amenities,
including 622/A, Boro Mogh Bazar; 218, Boro Mogh Bazar; Road No-2, Bonani
(Beside Lake); Panthapath (East Raza Bazar). Our firm’s primary
objective is to be a successful negotiator for our clients, whether buyer or
seller.
The Real Estate Company features a property management division. We welcome for inquiries whether one are placing one’s property for lease or searching for the perfect lease for new home or commercial ventur
The Real Estate Company features a property management division. We welcome for inquiries whether one are placing one’s property for lease or searching for the perfect lease for new home or commercial ventur
3.5 Role of the organization in the
economic
Development
F Business role of the LDL:
- Achieve business vision through quality and customer acceptance by providing services.
- Maintain highest ethical standards in every aspect.
·
Customer
focus – a perspective of quality throughout:
·
The entire
organization.
- All processes, systems and services.
- Compliance – with regulatory requirements.
- Added value – through continuous improvements to benefit customers and the bank.
Organ gram Latif Developers Ltd.
· The Name of the Company isLatif Real
Estate Limited.
· The Registered Office of the Company will be
situated in Bangladesh.
- The objects for which the Company is established are all or any of the following and all the objects will be implemented after obtaining necessary permission from the Government / Concerned Authority / Competent Authority before commencement of business
- To undertake and carry on all kinds and description of construction and to submit tender, quotations, estimates and to execute agreement with the Government agencies, corporations, private organizations or persons and to survey, supervise, design, construct, erect, maintain, improve, alter pull down, repair or rebuild any building, mills, factories, plants, communications, roads, bridges, water tanks, tanks, wells, reservoirs, embankments etc i.e. supplying of construction materials.
- To carrying on the business as Civil, Hydraulic, Electrical, Mechanical and all other kinds and descriptions of Engineers and to do all or any work of' construction in connection therewith.
- To undertake and carry on business of contractors, any kind of consulting engineering including planning, designing and supervision of any construction work.
- To carry on the business of builders, contractors, manufacturers and suppliers of any or all kinds of construction materials.
- To contract mills and factories and to lay down cables, wires, lines and lamp and to generate electricity and light.
·
·
To carry on
the business of improving and developing lands and properties belonging to the
company or otherwise to the third parties whether Governments, semi government
or private.
·
To establish,
maintain and promote any branch office of the company in Bangladesh or
elsewhere and to regulate or discontinue the same.
·
To buy or
otherwise acquire any property movable immovable, to sell, exchange, surrender,
transfer, lease, mortgage, convent, layout and dispose of and deal with
property and right of all kinds.
· To take on
lease, purchase, acquire any lands, buildings, mills, factories, works,
machinery and any immovable property of any description which may be deemed
necessary or convenient to any business which the company is authorized to
carry on.
·
To borrow or
raise money from any bank, financial institution or from any other source and
to secure the payment or repayment of such loans or debts in such manner as may
be determined by the Directors of the company and in particular by creation of mortgages or charge on all or any of
the movable or immovable property of the company, both present and future
including its uncalled capital or by the issue of' debenture or debenture stock
of the company charged on all or any of the property of the company and to take
loan or borrow money or such further terms and conditions as may be determined
by the lenders and the directors of
the company
· To invest money of the company not immediately
required in such manner as may from time to time be determined.
· To carry on the business which may seem to the
company of being conveniently carried on in connection with any of object of
the company or which may seem directly or indirectly to benefit the company.
· To create and issue different classes of shares,
debenture, stocks and to redeem, cancel, accept or surrender any share,
debenture or debenture stock.
· To do all or any of the above objects in any part
or of the whole either as principals, agents, contractors, trustee or otherwise
or either alone or in co-operation/ collaboration with others and whether by or
through agents, sub-contractors or otherwise and to appoint suitable persons,
firms or companies for that purpose.
· The liability to the members of the company is
limited by shares.
Interpretation
- In these present unless there is anything repugnant in the subject or context.
- The Company" means "LATIF DEVELOPERS LIMITED."
- “The Act" means the Companies Act, XVIII of 1994 for the time being in force in Bangladesh.
- "The Office" means the Registered office of the Company for the time being.
- “The Director" means the Director of the Board of Directors of the Company for the 'Lime being.
- "The Board" means the Board of Directors of the company for the time being. The Managing Director" means the Managing Director of the company.
- 'The Registrar" means the Registrar of Joint Stock Companies & Firms, Bangladesh. 'Month" means calendar month according to English calendar year.
- "The seal" means the common seal of the company.
Limited Company
The
company is a "Limited Company" within meaning of Section 2 (1) under
clause I'A) of the Companies Act, 1994 and accordingly the following provisions
shall be applicable to the company.
- No invitation shall be issued to the public to subscribe for any share or debenture of the Company.
· The number of members of the Company, (exclusive of
the persons in the employment of the Company) shall be limited to fifty,
Provided however that when two or more persons hold one or more shares in the
Company jointly they shall be treated as a single member; and
·
The right to
the transfer shares of the Company shall be restricted in the manner and to the
extent hereinafter appearing.
- The business of the Company shall include all or any of the several objects expressed in the Memorandum of Association.
No comments:
Post a Comment