real estate business in sylhet (final)

Real Estate Business in Sylhet

Introduction

eal estate is “Property consisting of land and the buildings on it, along with

its natural resources such as crops, minerals, or water, immovable

property of this nature, also an interest vested in this, more generally an item of

real property; buildings or housing in general. The business of real estate is the

profession of buying, selling, or renting land, buildings or housing.” The

organizations which are involved in buying, selling or renting land, building or

housing are the real estate developer company.

R

Background of the Study:

Bangladesh is an over populated country and day by day population is increasing

rapidly which created the housing problem. Land prices skyrocketed. Due to high

price, insufficiency of land, high cost of land registration, and high price of

building materials, people are now not interested to buy a land for building their

own house. That’s why they turn to real estate companies who are providing

flats or apartments. In response, real estate business has enjoyed a boom over

the years. In all over the Bangladesh, there are now companies growing up like

mushrooms. Most of the companies are situated in Dhaka, Chittagong and Sylhet

but also spreading throughout other divisional and district towns like Comilla,

Cox’s Bazar, Bogra, Rajshahi, Khulna, Mymensingh, Gazipur etc.

Most of the real estate businesses are conducted by private sectors. In Sylhet real

estate business expand vastly in twenty-first century. In this century a large

number of real estate companies formed in Sylhet. Some of these companies are

Next Plan Development Limited (NPDL), Batayan Shahjalal Developers Ltd.,

Merline Builders (PVT.)Ltd., Royal Homes Limited, North Surma Syndicate (Pvt.)

Ltd.

| 2Real Estate Business in Sylhet

Objectives of the study:

The broad objective of this study is to develop an understanding of the overall

picture of apartment/flat market of Sylhet City with particular emphasis to

customer’s behavior, preference and expectation side. The specific objective is to

know customers’ behavior pattern and to identify and gain insights about the

preference of the apartment buyers or customers while choosing and buying the

apartments or the real estate companies.

Types of Real estate business:

Various types of real estate business are practiced in the world.

1. Land Development

2. Retail Shopping Centers developing and selling 3. Office Buildings selling and renting 4. Apartments/Multi-Family Housing5. Land/Apartments/Building renting 6. Multi-dimensional real estate business

In Bangladesh including Sylhet generally most of the real estate businesses are

categorized into three major sectors. So, most of the real estate companies in

Sylhet are formed based on these categories. A categorized model of real estate

businesses in Sylhet is given in next page.


Real estate busines

Land development

Plot selling

Land renting

Apartment/ Housing

Residential home and apartment

Office building

Shopping mall

Shop & Storage house

Hotel

Residential & business house renting

Multi-dimensional

Both apartment & land

Office building & shopping mall

Land and Properties renting and all types of real estate business


Real Estate Companies in Sylhet

Some of the well known real estate companies in Sylhet are ….

Next Plan Development Limited (NPDL) Batayan Shahjalal Developers Ltd. Merline Builders (PVT.)Ltd. Royal Homes Limited North Surma Syndicate (Pvt.) Ltd.

Now we are shortly describing the profile of these companies.

Next Plan Development Limited (NPDL)

NPDL is the renowned architectural and engineering design studio in Sylhet. It

starts its work with architecture and engineering design in 2005. Now it also

works as Real Estate Developer Company.

Type: Architecture and Engineering designer.

Location:

Head Office: First Floor, Kaniz Plazza, Zindabazar, Sylhet.

Contact: 0821-813933, 01819580456, 01715356380

Web Address: www.npdbd.com

Services: Architectural Design, Structural Design, Electrical Design, Plumbing & Sanitary Design, Graphic Design, Real Estate Development, Building Contact, Supervision, Fire fighting system design, 3D modeling, Animation, Cost Estimation, Survey, Land Planning & plotting, Soil Test, Renovation work.

Projects:

Architecture and Engineering Designed Projects: Some of NPDL’s

architectural and engineering designed projects are Apon Blue Tower, Bijou

Palace, Anower Vista, Sadiq Villa, Sufia Complex etc.

Real Estate Business Projects: NPD Rose, NPD Sunflower.

http://www.npdbd.com/


Batayan Shahajalal Developers Ltd.

Batayan Shahajalal Developers Ltd. is a newly established developer company in

Sylhet. It has started its work from 2011. It conducts business based on

apartment developing and selling.

Type: Residential Apartment Developer and Seller.

Location:

Sylhet Office: 27/2 payra Dorga Moholla Jornarpar, Sylhet.

Contact: 0821-722733, 01611 197010

Dhaka Office: House 69/2 (4th floor), Road # 7/A, Dhanmondi R/A, Dhaka.

Contact: 02-9124673, 01715842758

London Office: Relax property service, 7 Westport Street, London E1 ORA

Contact: 0207 7909493

Web Address: www.shahjalaltower.com

E-mail: [email protected]

Project: Shahajalal Tower. 27/2 payra Dorga Moholla Jornarpar, Sylhet.

Merline Builders (Pvt.) Ltd.

Merline Builders (Pvt.) Ltd. is one of the renowned developer companies in

Bangladesh. It conducts its business in Sylhet sincerely. It started its work with

more than 1100 projects. More than 100 projects are completed and 200 are

under construction of them.

Type: Business and Residential Apartment Developer.

mailto:[email protected]

http://www.shahjalaltower.com/


Location:

Head Office: Merlin Tower (11th floor), Subidbazar, Sylhet, Bangladesh.

Contact: 0821-712260, 01977660001~10

Wed Address: www.merlinbuildersbd.com

Projects: Merlin Tower, Tasmia Tower, Sharmin Jumana Tower, Mayesha

Tower, Naza Tower, Tahsin Tower, Ayesha Tower are the most top project of the

company.

Royal Homes LimitedRoyal Homes Ltd. is a multi-purpose company with the primary focus on

property development. It is a joint venture company between local Bangladeshi

& NRBs (Non Residence Bangladeshi). But, it gives importance on land

development. Royal Homes has launched its first project "Royal City" which is

ideally located on Shahporan Bi-pass road, a beautiful land script area called

Dakshin Surma. The project is a premium location and is situated in one of the

most important road network in Bangladesh.

Location:

Head Office:Royal Homes Limited

Shefa Bhaban, Mirboxtula, Sylhet 3100, Bangladesh.

Contact: +88-0821-726760, 2830281, +88-01713363666 Email: [email protected] Address: www.royalhomesltd.com

Project: ‘Royal City’ is a brand that has set a benchmark in the real estate

industry through its quality, professional management and commitment to the

customer satisfaction. Royal Homes Ltd. takes pride on its success and salutes

the team works really hard.

http://www.royalhomesltd.com/

http://www.merlinbuildersbd.com/


It possesses a position of excellent transport links. It just minutes from heart of

Sylhet city. The rail station is also minutes away. The project is comprised of

more than 3000 plots with all the residential facilities to be provided by the

Royal Homes Limited. These include: school, hospital, children's park, mosque,

community center, shopping mall, Lake Etc. It is the biggest (in terms of

authorized capital) & well planned (in terms of design) land project in Sylhet -

the Eastern Capital of Bangladesh.

North Surma Syndicate (Pvt.) Ltd.

North Surma Syndicate (Pvt.) Ltd. was established in 2005. It is doing its

activities trustfully. It focuses on location and modern architect design to build

apartment. NSSL makes both business and residential apartments.

Type: Business and Residential Apartment Developer.

Location:

Head Office: Surma Tower (6th floor)

Surma Point, V.I.P. Road, Sylhet.

Contact: 0821-723373, 01715 598732

Project: Surma Tower.


Analysis of Comparative Status

Our listed five real estate companies are better than any other companies in

Sylhet. But, each of them has some difference from other. Most of them are

difference in their focus, business type, policies and constructional design. Like

as NPDL and Batayan Shahajalal Developers Ltd. basically focus on architect

and engineering design; Merline Builders (Pvt.) Ltd. and North Surma

Syndicate (Pvt.) Ltd. mainly focus on location but, they don’t ignore the

architect design, they also follow the modern architect design. Since Royal

Homes Limited focuses on land development, they always locate large area of

land in a good location.

In the business types – NPDL is a service based developer company. It provides

services in real estate development work. Batayan Shahajalal Developers Ltd.

and Merline Builders (Pvt.) Ltd. basically create and sell residential

apartments. On the other hand North Surma Syndicate (Pvt.) Ltd. develops

both business and residential apartments. It sells and rent showroom, office and

flats. Royal Homes Limited works for multi-purpose real property

development. But, it mainly develops land and sells plots.

People have a good faith on these real estate companies. Merline Builders

(Pvt.) Ltd. and Royal Homes Limited have the best status and reputation in

Sylhet as real estate developer. And NPDL is most top architect and engineering

designer company.

Customers’ Behavior Pattern

Most real estate study is based on neoclasssical economic theory that assumes

that people make rational decisions about renting and buying real estate as part

of their attempt to maximize utility. While recognizing that real estate markets

are imperfect, most real estate researchers do not examine the influence that the

diversity of real estate consumers has on the demand for real estate. Consumers

are complex human beings driven by internal and external forces, some of which

are beyond their control and many of which they are relatively unaware.


Internal forces are Consumer Choice, economic condition, motiation,

knowledge and learning, Attitudes, self-concept, personality and lifestyle.

The external forces are reference groups, culture, social class and family.

Some of these forces are briefly described below with the consideration of

realestate buyer in Sylhet.

Consumer Choice

Much of the study of consumer behavior focuses on consumer choice. Consumer

choice depends on utility theory in economics and attitude theory in social

psychology of consumers. Choice to buy real estate is directed buy the

customer’s economic stranght and utility processes of wealth, and their

psychology.

Economic Condition

Consumer behaviour is mostly varing on the economic condition of the

consumers. A person who has a sustainable and well economic condition, he

usually like to buy luxurious apartment. Economic condition is the most

important and strong force to drive customer to buy real estate property.

Motivation

The forces that derive a person to buy a good or service is called motiation.

Needs, economic conition, scarcity or availablity of natural resources, attraction

for something etc. are good motivators. Most of the people have an attraction to

have real property. Economic condition of people in Sylhet is well because of

forign currency. That factors forces the customers to buy apartment and land.

Knowledge and learning

In the present age internet makes easyer to know about anything. Most of the

real estate developer companies have web page to provide information about

their projects. So that customers can easily learn about the real estate

companies and their projects, even customers can see their apartments’ design,

picture and feature. That helps them to buy the apartment.


Self-concept

Self-concept is an organized set of perception of the self, comprised of such

elements as the perceptions of one’s characteristics and abilities; the perception

of oneself in relation to others; and objectives, goals and ideals which are

perceived as either positive or negative. Self-concept is now generally viewed in

several dimensions: ideal self, real self, self in context and extended self

(possessions and artifacts help define who one is).

Real estate can be a viewed as part of the extended self, an object that helps to

form identity. By their very nature, single family homes almost always perform

many highly emotional, individualized, personal roles in the lives of their

occupants. Consumers will choose to purchase real estate that either fits with

their current self-image or is associated with the ideal image they want to

achieve. This may be reflected in both choice of housing style and neighborhood.

Personality

Personality accounts for consistent patterns of behavior based on enduring

psychological characteristics. It is the pattern of traits and behaviors that makes

one individual unique and different from all others. Personality may be

described using the psychoanalytic, socio-psychological, or trait-factor theories.

Thus, a consumer’s personality may affect his real estate investment choices. A

risk taker is more likely to consider purchasing a run-down property in a

marginal neighborhood, planning to improve the property and take advantage of

neighborhood improvements. A risk taker would also be more likely to choose an

adjustable rate mortgage than a risk avoider, no matter what the financial

comparison shows.

Lifestyle

Lifestyle refers to the distinctive ways in which consumers live, how they spend

their time and money, and what they consider important as activities, interests


and opinions. Lifestyles evolve over time, so consumption patterns are changing

over time.

Most of the high and middle class people in Sylhet now prefer modern

architectural designed apartments. Sometime they reject their old model house

to achieve new model apartments. The real estate companies make the work

easy.

Reference groups

Reference groups are individuals or collections of people whom the individual

uses as a source or point of comparison for attitudes, beliefs, value or behavior.

Each real estate consumer is influenced by his or her unique set of reference

groups. A buyer of an apartment influences other to buy an apartment.

Culture

Culture consists of society’s beliefs, values, ethics, customs, shared meanings,

rules, rituals, norms, and traditions. Culture provides people with a sense of

identity and an understanding of acceptable behavior.

Cultural norms that affect real estate demand include beliefs about whether each

child should have a private bedroom, but a shared bath. Most of the people in our

society prefer apartments with lift service, moderated design and facilities and in

a good location. The value placed on individualism is reflected in the demand for

customized homes. Builders would be wise to watch changing cultural values,

producing properties that are more environmentally friendly and housing

layouts that are more suitable for family activities and interaction.

Social class

Social stratification represents the hierarchical division of members of a society

into relative levels of prestige, status and power. Social class refers to divisions

based on economic and demographic characteristics. Those in same stratum

have roughly similar consumption, lifestyle, and income, and socialize with each

other. Nine variables have emerged from the research as most important in


determining socialclass: the economic variables of occupation, income and

wealth; the interaction variables ofpersonal prestige, association and

socialization; and the political variables of power, class consciousness and

mobility. Most people feel comfortable when they are with people of similar

values and behavior and limit their social interactions to their immediate social

class.

Possessions are symbols of class membership, with wealth reflected in the items

purchased. The most important possession decision reflecting a family’s social

class is the choice of where to live, both the type of home and the neighborhood.

Thus, social class will affect what neighborhoods and architectural design

consumers will consider for housing. In addition, housing layouts must

accommodate the furniture and living style of members of each social class.

People trying to move up through the social class structure might choose a house

and neighborhood that they think members of the higher class would choose.

In our society we see rural people rarely buy apartment in town they prefer to

buy land in villege. A high class person want to buy an expensive apartment in

top residential area. But, comparatively low class people try to buy apartment

with comparatively low price in general residential area.

Family

The most influential reference group is the consumer’s family. The family teaches

the consumer cultural values that have a substantial impact upon shopping

behavior. It continues to be a point of reference even when the consumer has

formed his own household.

Family members may be involved in real estate decision making. One member

may influences other members of a fimily to buy or not to buy an apartment or

plot. So, family members are the good motivator of a buyer.


Customers’ Perception to the Developer Companies

Today customers have a good faith to the developer companies. They fill that the

developer companies realy help them. Developer companies are now make a

great opportunity for people to have an appartment easily. To know about

customers perception, the survey is very important. By conducting our survey

we know the customers parception about their developer companies. Most of the

consumers are satisfied with their developer companies. For example, the

customers of NPDL belive that their company applied a good architect design

and engineering methods and they get the services with afortable rate.Tother

developer companies like as Merlid Builders (Pvt.) Ltd. use good row meterials

which are perfect for the building size and also apply modern architect and

engeneering design. Companies are follow earthquake protection building code

to build apartments and use fire alarm system in apartments . The cost of the

apartments are in the customers’ purchasing capacity. Some of the customers

thing that who have no land in his or her faourate city he or she can buy an

apartment from developer company if he or she has enough ability. Customers

think that it is better to hire a developer company to build an apartment on self

owned land than build by one-self.

But, some of the customers hae negative perception about the developer

companies because of their sufferings. They sey that all developer companies are

not do the business honestly. They do not provive services properly. Some real

estate companies not follow the building code of city corporation, not provide

fire alarm system. Customers also complain that the developer companies may

not use proper row meterials and used meterials are low quality. Sometime their

lift is too small. These dissatisfactions of the customers are the threat for real

estate companies.

Dishonesty of one real estate developer company may break down the whole

real estate industry. So, real estate developer companies should be more

conscious about their activities and reputation.


Post Purchase Behavior of Customers

The behavior after purchase something is called post purchase behavior.

Consumers post purchase behavior could be divided into three parts:

1. Post purchase Satisfaction2. Post purchase Actions3. Post purchase use.

Post purchase Satisfaction

Satisfaction is the function of closeness between expectation and products

perceived performance. In this case if the apartment failed to satisfy the

consumer then the consumer will be dissatisfied. If the apartments exceed the

consumers’ expectation then the consumer is delighted. Most of the customers

on whom we conduct our research are satisfied with their apartment. In Sylhet

different consumers choose different real estate companies, so in this case post

purchase satisfaction varies from customers to customers on the basis of their

psychology, expectations, and experiences.

Post purchase Actions

If the consumer is satisfied he will talk about his apartment to others and thus

other people will be inspired to buy this company’s apartments. Our sample unit

is not different from them. If they are satisfied, they influence to buy apartment.

This Post purchase Actions are also depends on customer’s psychology,

expectations and experiences.

Post purchase use

The marketer should monitor that how their product is used. For example, does

the consumer buy the apartment to live in it or to sell it? It varies from person to

person, some people buy apartments to live in, some to rent it and others to sell

it when it becomes more valuable.


Attributes that Create Impression about Developer Company

Attribute means - (i) to regard as resulting from a specified cause; consider as

caused by something indicated; (ii) to consider as a quality or characteristic of

the person, thing, group, etc.

Consumers may use the same attributes to evaluate apartment choices, but have

different beliefs about the apartment and their ability to satisfy their need.

Although both consumers may want a microwave, one may believe that a built-in

model is too small and will be difficult to replace while another believes that

built-in models can be just as large as a countertop model and will be relatively

easy to replace.

Customers’ attributes are depending on some expectation which can create

imprecation about Real Estate Developer Companies. Some of the expectations

are -

Budget

A budgeted amount is the expected amount a customer keeps aside. In this

section, we are interested to know the budgeted amount kept by the customers

for the purpose of buying an apartment constructed by a typical real estate

developer company. In the survey it was found that maximum number of

consumers’ (53%) budget for an apartment is 40 – 50 lacks taka. Also, a

substantial number of consumers (26%) have a budget of more than 50 lacks,

whereas 21% of consumers’ budget is around 30 – 40 lack for purchase an

apartment. If any real estate company’s apartment’s price has gone beyond the

buying capacity of a group of people they will reject the company to buy

apartments.

Types of apartment


Types of apartment are also an important factor in consumers’ preference in

terms of an apartment. Because there are several types of apartments and

consumers can purchase any type of apartment based on their need, income and

budget. So it is important to find out that which type of apartment is more

popular among the consumers. In the survey it was found that about 57%

consumers prefer economy apartment, 25% customer prefer Semi Luxuries

apartment. On the other hand duplex apartment (10%) and luxury apartment

(9%) are more preferable to wealthy customers.

Preferable Facilities in an Apartment

Facilities of apartment are also an important factor of consumers’ preference in

terms of an apartment. Facilities are actually design and development related

features which makes one apartment project different from others and one

company from other. That’s why it is important to know that which types of

facilities are most preferable to the apartment purchaser.

Augmented Expectation

Customers expect a playground, a gymnasium, proper parking area, place for

gardening etc. In Sylhet developer companies never fulfill those augmented

demand, they only fulfill the need for parking but it may not appropriate with the

number of cars at all.

Water and Gas Supply

Most of the customers want regular water and gas supply. Many companies

cannot satisfy their customers in this case because of shortage of these elements.

How customers determine about quality

Most of the consumers’ are more concerned about quality rather than price. Now

it is important to know how consumers determine or decide on quality or for

what factors consumers think some apartment is of better quality than others.

Preference between apartment and land


Many customers have a dilemma between purchase of an apartment or a land.

Some think that purchase of an apartment from a developer company is

advantageous. Some consumers think that purchase of a land and then construct

own building is better. But it came out so that majority of the customers, around

seventy percent prefer purchase of an apartment to a land. The reasons

mentioned were: purchasing apartment has no construction hassle and also

saves one’s time needed to oversee a construction oneself; Increasing,

skyrocketing land price makes it difficult to purchase a land; increased and

volatile price of construction related raw materials is also one reason, that is,

once started with a predetermined budget it is difficult to manage with own

investment. On the contrary 37% consumers prefer purchase a land and

construct own building. The reasons stated were: Control over asset; proud

owner of a land and building; it is a source of income etc.

Above are some of the attributes that greatly influence to create imprecations

about developer companies.

Location

In location selection both customers and real estate companies follow an

important strategy. Companies and customers prefer any important point, a busy

city, market area, and side of highway or junction of important roads, popular

residential area etc. to build or buy apartments.

Awareness of Customers

Customers should aware about the developer companies in buying apartment. A

customer should evaluate the following factors to buy an apartment -

Is the company approved by the government?

Old or new established company.

See the company’s previous activities or project.

Evaluating their previous projects.


Communicate with the companies previous consumers.

Observing row materials.

Knowing the time length to be completed the apartment, if it was

under construction.

Is the company conducting its business honestly?

Knowing the lifetime of building.

Is the building designed by an expert engineer?

A customer must buy apartment from a reputed company. Buyer should read the

deed and all document of the deal properly and should be clear about his

ownership and rights.

Conclusion

Our discussion on ‘Real Estate Business in Sylhet’ provides knowledge about real

estate companies and businesses in Sylhet, and their customers. A significant

portion of the study deals with consumers’ buying behavior pattern, perception

and attributes.

The comparative status analysis the similarities and difference among the real

estate companies basis on their types, design and business strategy. The

consumers’ behavior pattern analysis the factors that drive a customer to

purchase real estate assets. Customer perception talks about the customers’

beliefs to the real estate companies. Post purchase behavior has discussed the

customers’ satisfaction and dissatisfaction with their apartments. Attributes

estimate the customers’ expectation from real estate companies and their real

achievements from the company. It also estimated consumers purchasing

capacity and percentage of various segments. A customer must be aware about

the real estate companies while he or she buying an apartment to protect himself

from loss.

Bibliography


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www.iiste.org

Developing Country Studies ISSN 2224-607X (Paper) ISSN 2225-0565 (Online), Vol.2, No.2, 2012

Karen M. Gibler

Associate Professor

Stetson School of Business and Economics

Mercer University

Susan L. Nelson

Professor

Department of Marketing

Box 8366

University of North Dakota

Thank you

http://www.iiste.org/

http://www.royalhomesltd.com/gallery.html

http://www.biggerpockets.com/renewsblog/2010/10/12/4-different-types-of-commercial-real-estate/

http://www.biggerpockets.com/renewsblog/2010/10/12/4-different-types-of-commercial-real-estate/




http://merlinbuildersbd.com/new/

http://npdbd.com/about


Appendix

real estate business in sylhet (final)

Education