Political instability, slow economy cripple Bogura housing sector

   Bogura, a town known for its thriving real estate market, is now grappling with a severe downturn as the ongoing political instability and economic turmoil have significantly dampened people's interest in investing in new properties. 

 "Three years ago, we had to fight through the pandemic to keep our business afloat. However, the current situation has taken a different turn. Due to the ongoing political situation, the real estate business has collapsed," Md Sairul Islam, president of the Bogura Real Estate Association, told TBS recently.

 He added, "Many other sectors, such as tiles, rod, cement, electrical equipment, etc that depend on our business, are also facing losses. They are heavily reliant on the real estate sector. As a result, a significant part of the economy has become somewhat stagnant. This situation must improve."

Junaed Mishara, a young entrepreneur and engineer, who has been involved in the design and construction of various residential and commercial buildings over the last five years, told TBS that the district's real estate sector has been going through a very difficult time for the past five months. 

"Even paying wages to employees has become challenging," said Mishara, who runs a company named Mahir Engineering.

The Bogura Real Estate Association president said considering its significance in the real estate market, the district holds the fourth position in the country. "Following Dhaka, the commercial city of Chattogram occupies the next position. Sylhet city, known for its strong business foundations, ranks third."

Within 25 years of starting institutional operations, Bogura's real estate sector had outpaced other towns in the country, experiencing upward momentum, said Sairul Islam. "However, a significant setback occurred during the Covid-19 pandemic. After navigating through various political challenges and managing to recover, the sector has stumbled once again due to the current political instability," he said.

How real estate business grew in Bogura

According to information collected from the Bogura Real Estate Association, the real estate business in the region began in 1999 under the leadership of local businessman Moyez Mia. He initiated the journey by constructing a building named Ready Light in the Government Azizul Haque College area of the town. Afterward, a few others also ventured into this business. 

Due to its geographical location, Bogura serves as the "central hub" of the Rajshahi and Rangpur regions. It is a key area for agriculture, the manufacturing of industrial machinery, food production, and the processing and export of goods. As a result, there is a high demand for housing in the area, they said, adding that growing demand has led to the expansion of the real estate business in Bogura.

Bogura Real Estate Association leaders said at least 60 businessmen are involved in the real estate sector in the district. "The organisation currently has 43 members. Collectively, these businessmen have invested at least Tk1,500 crore in the real estate sector of Bogura. Around 1,000 workers are employed in this sector," said an association leader. 

The impact of the political and economic instability has also affected the lives of these workers, he said.

"In terms of area, Bogura is larger than Narayanganj City Corporation. This municipality, spanning 69.56 square kilometres, is home to over five lakh people. The presence of various educational institutions, a medical college, and the historical significance of the archaeological site Mahasthangarh, which is over 2,500 years old, have enhanced Bogura's importance," said the association leader.

As a result, demand for living in the town is higher than in neighbouring districts, he said, adding that many high-rise buildings are rapidly being constructed in a six-kilometre stretch from the Banani area of Shajahanpur upazila to Matidali under Bogura sadar.

Anwarul Karim Dulal, owner of Tropical Building Technologies Limited, said, "Business has been tough for the past few years. Initially, the pandemic dealt it a major blow, and now it's the political situation. People are afraid to spend money." 

He added. "For the last five months, our business has almost come to a halt. To put it bluntly, we barely have enough money to buy food. We are going through a very difficult time, and it's hard to share this with anyone."

Businessmen have stated that real estate developers in Bogura have been contributing to the country's GDP. Over the past few years, after gaining experience in Bogura, around 150 to 200 employees have gone on to work in various European countries. 

Highlighting the massive investments in the real estate sector, Dulal further said, "We are currently going through a period of uncertainty. We have taken out loans from banks and invested in the business, but we are struggling to make regular loan payments. To be honest, we are now on the verge of bankruptcy."

Rajedur Rahman Raju, managing director of Rupkotha Homes, said he has been successfully running a business in the real estate sector in Bogura for several years. "But for the past three to four months, there have been no sales. We suddenly found ourselves in this situation due to various kinds of instability," he said.

Raju went on to say, "At this time, no one is willing to invest money. The condition of the country's banks is also not very good, with many unable to secure loans. However, we remain hopeful that the country's economy will recover, and the situation will return to normal."

Obaidul Haque Sabbir, executive of the Corporate and Sales Sector for X Ceramic Group in Rangpur division, said the crisis in the real estate sector has had a significant impact on the ceramic business as well. 

He mentioned that due to the unstable political and economic situation over the past few months, the group's tile business has declined by at least 50%. "It's not just us; the situation is the same for everyone in the country," he added.