Why so many people investing in Ctg shopping malls

In 2008, businessman Md Junayed persuaded his Qatar expatriate brother-in-law to purchase a 130-square-foot shop and his Saudi expatriate nephew to buy another 173-square-feet shop in Yunusco City Centre shopping mall in Chattogram city. 

At the time, the price per square foot for each shop was approximately Tk18,000. Currently, the selling price has risen to Tk25,000-30,000.

"Bookings for the shops were made around 2002-2008. The transfer took place in 2008. My expatriate brother-in-law and nephew purchased the shops as a secure investment. The purchase was very convenient for them as they could pay the prices in instalments." 

Now the shops have transformed into valuable assets for them, Junayed told The Business Standard.

Urbanisation and an expansion of trade and industry have brought lakhs of people to the commercial capital in recent years. Along with that, the number of market complexes has increased along with people's rising demands. 

And shopping malls have become popular.

Traders say once people of Chattogram used to rely on Riazuddin Bazar, New Market and Hawkers Market for shopping. Dependence on shopping malls has increased over the past decade. 

Essential items such as clothing and footwear, as well as both local and international branded products, are now available in these shopping malls. 

Over the last one decade, more than 20 shopping malls have mushroomed in the port city. Interest in building these commercial malls and buying space there has also increased.

Businessmen say the cost of investment in commercial buildings like shopping malls is increasing day by day compared to flats or apartments in the residential sector. 

Demand for possessions in shopping malls has soared as traders find it is a safe investment, on one hand, and the rent is also higher, on the other hand. 

For that reason, people are investing in buying shops in shopping malls without leaving their money unused.

Amin Centre, the first AC shopping mall at Lalkhanbazar intersection, was launched in the port city in 2002-03. Sanmar Ocean City and Yunusco City Centre were launched on CDA Avenue in 2006 and 2008, respectively.

After the launch of Sanmar Ocean City, the shopping mall culture also started to expand, said traders. Then Akteruzzaman Centre in the Agrabad area, City Shopping Mall on Access Road, AFMI Plaza, Fortune Mall and KBH Plaza on Bayezid Bostami Road in the Panchlaish area, Finlay Square in the Gate Number Two area, Bali Arcade, SAF Ameen Shopping Mall and Subashti Sayed Centre in the Chawkbazar area, CPDL Rahima Plaza, Khulshi Town Centre and Plaza DE CPDL on Zakir Hossain Road at Khulshi, Foy's Lake City Centre in the Foy's Lake area, Heaven City Centre and Alankar Shopping Complex in the Alankar area and Finlay South City and Elegy Sky Park in the Bahaddarhat area have gradually emerged.

According to data collected from shopping mall owners' associations and traders, in 2006, the purchase price of shops in Sanmar City was Tk4,000-8,000 per square foot depending on the location. 

Before the Covid pandemic in 2019, the price per square foot increased to Tk35,000-60,000. In 2023, the price per square foot rose to Tk55,000 to Tk1,00,000.

In 2017, Finlay Square was opened and prices of shops there ranged from Tk18,000-20,000 per square foot. Currently, it has jumped to Tk45,000-80,000.

In 2021, the cost per square foot of shops at Bali Orchid was between Tk31,000 and Tk45,000. Currently, it has risen to Tk40,000-55,000.

The price per square foot of shops at Fortune Mall was Tk45,000-65,000 in 2019. Now the prices have jumped to Tk55,000-80,000.

On the other hand, in 2019, residential buildings in South Khulshi had prices per square foot ranging from Tk7,500 to Tk8,500, while in North Khulshi, it was between Tk8,500 and Tk13,500. In Nasirabad, it was Tk7,200.

Currently, at South Khulshi, the price of a residential building per square foot is between Tk9,500 and Tk10,000; at North Khulshi it ranges from Tk12,000-Tk14,500, and at Nasirabad, it is Tk11,000.

"Investing in shopping malls is considered both secure and rapidly growing. For this reason, expatriates, doctors, engineers, and retirees invest through the purchase of shops," Asad Iftekhar, president of the association of shop owners in Sanmar Ocean City and Finlay Square, told TBS.

"The value of shops appreciates year by year. Additionally, in a bustling market, good rents can also be obtained."

He went on to say, "In Sanmar Ocean City and Finlay Square, there are over 500 shops. More than 70% of these shops are owned by expatriates. The rest belong to individuals from other professions."

Md Junayed, who is former general secretary of Yunusco City Centre Shop Owners Association, said, "As much as 90% of shops in our market are owned by expatriate Bangladeshis. There is no possibility of loss or depreciation in investment in the sector."

Mixed-used building in the offing

Mixed-use building, a structure that ensures all the amenities of urban life in a multi-story building, is a popular concept in the real estate sector of the 21st century. 

For the first time, one of the prominent industrial conglomerates in the country, Meridian Group, is constructing such a facility in the port city. The building, named "Meridian Kohinoor City," is being erected on approximately one acre of land along the Damapara Wasa Road, boasting 23 floors as a distinctive mixed-use development.

Experts say that such construction is completely new in Chattogram's real estate sector. The building is being designed in such a way that a tourist or resident can enjoy all the facilities of modern civic life, including entertainment and amusement, in one place. 

It will have a four-star hotel, shopping mall, food court, restaurants, huge gaming zone, Cineplex, and other amenities. In other words, it will not be just a shopping mall, but also an experience mall. The authorities plan to complete the project by December 2024.

"As the commercial capital, land prices in Chattogram are relatively high. Therefore, commercial aspects are usually considered when constructing buildings. We have thought differently in this regard. We are constructing the building in an international architectural style, giving priority to people's entertainment, Akib Kamal, director (business development) of Meridian Kohinoor City, told TBS.

He further said, "52% of the total space of the building will be common and the remaining 48% will be used for commercial purposes. Many brands from home and abroad have already booked spaces here."