 Fariha Rahman

 Sadia Sattar
 Anindita
Barua
 Mouri Barua
 Tanita
Tasneem
 THE REASON BEHIND THE
APPEARANCE OF REAL
ESTATE INDUSTRY

 Bangladesh is a densely populated

country and our housing facility is
not enough to support this huge
population.
 Due to the increasing demand and
land price boom it has become
difficult for individual to afford
suitable housing in the city.
 Real estate firms help city-dwellers
with affordable low-cost housing.
 THE RISING OF REAL ESTATE
INDUSTRY AND FORMATION OF
REHAB

During mid-60’s, the real

estate development in private
sector started in Bangladesh.

 The concept of apartment

development started in the
later part of 70’s.
 THE RISING OF REAL ESTATE
INDUSTRY AND FORMATION OF
REHAB
 With increasing number of Real estate
companies necessity for protecting the
interests of Real estate was strongly felt
and comes as a solution named REHAB.
(Real Estate and Housing Association of
Bangladesh) in 1991.

 The proud members of REHAB is presently

occupying 95% of the total market share,
so REHAB can be as the considered
industry for Real-estate companies.
 REHAB at a glance:
REAL ESTATE AND HOUSING
NAME OF THE ASSOCIATION
ASSOCIATION OF BANGLADESH
Year of establishment 1991

No. of member in 1991 11

No. of member in 2006 (JUNE) 253

No. of apartment units delivered by
56000 (app.)
the developer in last 20 years
No. of apartments units delivered
5500-6500 units
by REHAB members per year (2004)
No. of plot units delivered
4500-5500.
by the developer per year
Approx. turnover per year 1250 core Taka (12.50 billion)
Revenue to government 100 core Taka
Contribution to GDP 12-14%
 SALES HISTORY OF
PRODUCERS AND THEIT
MARKET SHARE
 In the later part of 70’s Eastern
Housing Ltd. Started developing
ownership apartments in
Siddheswari and Moghbazar areas in
Dhaka.
In the decade of 80 a good number of
developer companies came into the
industry.
Presently REHAB has 193 members.
About 35 of them are occupying the
total market share.
 Property Mart:
• Buy Apartment
• Buy Plot
• Buy Office Space
• Buy Shop Space
• Rent
• Buy & Sell
 Industry Participants:

• Builders/Developers
• Architectural Firm
• Real Estate Agents
• Construction Companies
• Engineering Consultants
• Contractors
• Interior Design Firms
• Security Service
 Company Review
Building Technology & Ideas ltd. (BTI) is one of the
pioneers in the field of Real Estate Development in
Bangladesh.
Since 1984 the company has developed high
quality residential complexes and over the years has
come to be recognized as one of the leaders in the
Industry.

It all started with Forum Apartments at Indira Road.

In 1984
• BTI is one of the founder members of the (REHAB).

o In 1998 BTI became the first Real Estate Developer and indeed also
the first Construction Company of Bangladesh to be awarded with
the Internationally recognized ISO-9001 certification for quality in
the "Design and Construction of Buildings".
o
Our team consists of some of the best planners, architects,
structural designers, supervising engineers, legal and financial
experts and marketing & management professionals.

o BTI is investigating diversification into the Leisure and Recreation

industry and Hotel and Tourism Industry.
Completed Projects of BTI inDhaka
&Chittagong
City Dhaka Location
Vintage Home Banani
Inspiration Banani
The Kingsway BariDhara
Glory Homes Baridhara
Grand Plaza Gulshan
Imperial Mogbazar
Europa Mogbazar
Crystal Palace Mohammedpur
Radiance Mirpur
The Royalty Kalayanpur
Pearl Uttara
Continental Uttara
Glory Uttra
Chittagong City Location

Windermere Khulshi

Paranoma-1 Nasirabad

Paranoma-2 Nasirabad

Universal Homes Khulshi

Fairlawns Panchlais

We have 24 completed projects and 7 oncoming projects in

Dhaka.
In Chittagong we have 6 completed projects and 4 ongoing
projects
 Present Concentration of BTI
• Presently we have found that port city
Chittagong has much potentiality in real estate
sector and needs a concentration in this field. So
we the BTI Group is now comitted to serve the
Port City Chittagong. Before going to that we
have done some demand analysis and
competitive review on Chittagong market.
 Competitive Review
Company Percentage Market
Share(no of
Apt.)
Equity Property 23% 772
Management Ltd
Sanmar: 20% 671

Ideal Home Builders 14% 469

Ltd:
BTI 16% 537
Shinpukur 12% 402
Asset Development 09% 303
Unitech 06% 203
Total 100% 3357
 Competitive Review
Equity

Sanmar

6% Ideal Home
9% 23%
Builders
12% BTI

Shinpukur
16% 20%

14% Asset
Development
Unitech
 Market Segmentation

Market segmentation divides a

market into subsets of
prospective customer who
behave in the same way, here
similar want, or have similar
characteristics that relate to
purchase behavior.
 • Incomes Basis Market
Segmentation
Income Percentage Market Size
Range (no. of flats)
( Monthly)
40,000 – 47% 1577
60,000

70,000 25% 839

-1,20,000
1,50,000 – 15% 503
2,00,000
2,00,000 - 10% 335
5,00,000
5,00,00 & 03% 100
 Income Based
Market Segmentation
50%
45%
40%
35% 40000-60000
30% 70000-120000
25%
150000-200000
20%
200000-500000
15%
500000& above
10%
5%
0%
Percentage
 Occupation Based Market
Segmentation
Occupatio Percentage Market Size
n (No. of
flats)
Business 41% 1376
man
Govt. 21% 705
service
holder
Banker 11% 369
Doctor 18% 604

NRB 09% 303

Occupation Based Market
Segmentation

9%

18% Businessmen
41%
Govt.service holder
banker
Doctor
11% NRB

21%
 Location Percentage Market size(No.of
flats)
Khulshi 23% 772
Nashirabad 21% 704
Nizam Road 10% 335
Katalgonj 09% 302
Nandankanon 13% 436
Lalkhan Bazar 09% 302

Agrabad CDA 07% 234

Mehdibagh 06% 201
Panchlaish 02% 67
Total 100% 3357
 Social Class
Class Size (sq/ft) percentag Market
e size
Luxurious 2200-4500 17% 570
Apt(upper
class)
General 1600-2199 41% 1376
Apt(upper
mid class)
Economic 600-1600 42% 1409
Apt(middle
class)

Total 100% 3357

 Psychographics
&Lifestyle Based
Segmentation
 We have done Psychographics &
Lifestyle research attempts to segment
customers according to their activities
interests and the opinions.
 Lifestyle:
Lifestyle Apt. size % Market
share(no. of
flats)
Price Economic 77% 2585
Conscious (600-1600)

Design Luxurious 23% 772

Conscious (2200-4500)
 Psychographic
Nature Location % Market
share (no.
of flats)
Outgoing Centre of the 77% 2585
city where all
amenities
available
Homebody Apart from the 23% 772
crowded
City area
Total - 100% 3357
Base Target Market % Market Calculation
Size
Location Khulshi+Nasira 23%+21% 1506 .67*2247
bad+Nizam +10%
road+Nandonka +13%=67%
non
Social class Upper+Upper 41%+42% 3357 1*3357
mid+Middle +17%=100%
Occupation B.men+Govt.ser 41% 2148 .8*2685
vice+Doctor +21%18%=80
%
Income 40000- 47%+25% 2540 .87*2919
60000+70000- +15%=87%
120000+150000-
200000
Lifestyle Price 77% 3357 1*3357
concious+Desig +23%=100%
n concious
Psychographic Outgoing+Home 77% 3357 1*3357
body +23%=100%
 We have contract with the
following banks:
• DBH
• IDLC
• HBFC
• Islamic Bank
• HSBC
 These bank provide housing
loan facilities to our
customers through our
agents.
 Chairman

Director M.D./CEO Director Executive

Director
General Manager

Administration Accounts & Finance Sales & Marketing

Civil Eng.
Electrical Eng. A&F Store SalesMarketing
Senior Senior
Projector Projector

Junior Junior
Projector Projector

SupervisorSupervisor
 Product Features
Main Features of the product:

• The developer proposes to design and construct

Apartment complex of one parking, community
room, generator & electric sub-station room, bath,
kitchen etc. and reception floor at the ground level.
• The Apartment will consists of Drawing, Dinning,
Bedrooms, Baths, Kitchen, Verandah, Maid’s room &
Toilet.
• Reserved Car parking for every Apartment covered
and protected with the high tech security system.
• Independent electric meter in each apartment.
• Concealed electrical wring(BRB cables)& all power outlets with ear
thing connections.
• Waterproof laminated door.
• Concealed hot & cold water lines in all toilets, except for the
servants.
• Tiles in all floors, stair & lobby.
• Roof top parapet wall.
• Plastic paint in all internal walls.
• French polished door frames & shutters.
• Exterior paint by Weather coat.
 Utility Connections

• All apartments will have independent

Gas connections for two burners.
• Titas gas approved gas line lay our
design.
• Gas pipe connection from Titas gas.
• Best quality water pumps.
• Lay out design water lines.
• Sufficient water supply from WASA by
calculated average consumptions.
Salient features of the Building

• Heavy secured gateway with decorative lamp posts as per

elevation of the building.
• Spacious entrance with comfortable secured driveway.
• An elegantly designed main reception lobby with guest waiting
room & personal mail box.
• Superior quality high speed lift from a reputed manufacturer
with capacity of lifting eight(08) persons, adequate lighting,
emergency alarm.
• Spacious lift lobby in each floor & mirror polished tiles in all lift
lobbies.
• Stair Tiles in all staircases.
• Fire Extinguisher in all staircases with proper lighting
system.
• Office room for management.
• Termite protection treatment in the ground.
• International standard generator & its KVA capacity to
cover lift, common lights, pumps and five points in each
apartment.
• Elaborate Intercom system to connect each apartment
to the concierge desk.
• Telephone connection points in Master bed & living
area.
• One community space in the roof.
 MARKETING PROGRAM
 Advertising & Communication:

• Press releases & Paper Advertisement

• Articles
• Customer Success Stories
• Letters to the Editor
• Press Conferences, Interview, or Media
Tours
• Radio, Television, or Press Interviews
• Seminars or Speaking Engagements
• Event Sponsorship
 Advertising & Communication:

• Pop-up Adds in Web Sites

• Lobbying
• Leaflets
• Electronic display
• Neon sign
 Economical factors:
 Social:
o Positive :Real estate company is creating
separate society.
o Negative: It creates different social groups.

 Political:
o For political disturbance like Hartal,
Oborodh etc. it hampers the construction
work of the real estate industry.
o Rules, regulation also changes for political
changes in many times so it hampers real
estate industry.
 Technology:
o Foreign countries are developed with
high technologies. But, Bangladesh has
not reached at that stage.

 Demographic:
o Bangladesh is a populated but a small
country. So Real estate business is
developing here.
 OBJECTIVES
 Program Objectives:
o Pricing:
• Profit maximizing through pricing
• High price for best qualities or
luxurious facilities.
• Price range will cover the middle
income people.
o Advertising/Promotion:
• Discount & Allowances pricing
• Giving advertisements on digital
billboard, through housing fair.
 SWOT ANALYSIS
 STREGTH:
– Increasing long term prospect of real estate and housing
business.
– Infrastructural and technological facilities increases for that
industry.
– Positive response from the client.
– A large number of investors have came foreword to invest in
this sector and invest climate is suitable for that.

 Weakness:
– Unhealthy competition in the industry.
– High interest rate of housing loan.
– Procedure of approval from RAJUK or CDA on Lay-out plan
is complex.
– Lack of inter ministerial coordination caused a lot of
suffering to the developer company.
 Opportunity:
– Land owner agreed to go on mutual
development of their assets.
– Skill and competence in Housing Construction
Sector continued.
– Promotion and coverage by the print and
electronic media.
– Legal and documental support increases day to
day.

 Threats:
– Costs are gradually increases for increasing
materials price.
– Some company damages image of the industry.
 Regulatory:
The members of REHAB
maintain the BNBC code with
the following requirements-
DESA, WASA, PDB, Titas, City
Corporation, Civil Aviation
Authority, Fire service etc.
 CORPORATE OBJECTIVE
Our corporate philosophy is very
simple
“give the customer value
for their money”
The company mission is to provide a
better and comfortable living for the
customer of the millennium & meet
and adopt with the over changing
business environment & to assure
customer satisfaction with quality
and efficient professional service.
CORPORATE OBJECTIVE
 Sales and Promotion:
o Sales volume increase 15%
o Promoting communication and
suggestions from all participants
including employees, customers,
competitors etc.
 Marketing:
o Develop a solid corporate identity
in our specified targeted market
area.
CORPORATE OBJECTIVE
 Finance:
o Realize a positive return on
investment within least time
o Gross margin higher than 50%

 Human Resource Management:

o To start training program for sales
person & search most professional
expertise in this field.
 Product Life Cycle
Sales and
Profits ($) BTI

Sales

Profits

Tim
e
Introducti

Maturity
Developme

Decline
Growth
nt Stage
Product

on
 PRICING
 We are using two types of pricing
approaches;
 Cost-based approach
 Competition-based approach
In the cost-based approach we sum up
the cost of building, construction and
some additional percentage.
 We fix the price as per unit of sq/ft
 The price of per sq/ft varies from
location to location.
Competition based approach:
 Price charged by competing firms
 PRICING
 Location wise price of apartment (Chittagong city):

NO. LOCATION PRICE PER SQUARE FEET

1 Khulshi Taka.2500/- to 3500/-
2 O.R. Nizam Road Taka.2200/- to 2800/-
3 Nasirabad Houaing Society Taka.2200/- to 2800/-
4 Mehdibag Taka.2000/- to 2500/-
5 CDA Residential Area, Agrabad Taka.1800/- to 2400/-
6 Nandankanan Taka.2200/- to 2500/-
7 Lalkhan Bazar Taka.1700/- to 2200/-
8 Panchlish Taka.2200/- to 2500/-
9 Katalgonj Taka.2200/- to 2500/-
 PRICING STATEGY

Profit BTI

Optimal
Price Price
Price Rate Too
Too
High
Low

Price
 ITEM COST
Construction related
cost:
Brick 2,00,000
Brick Chips 40,000
Cement 5,00,000
Concrete 6,00,000
Sand 40,000
Stone Chips 1,20,000
Aluminum Bar 4,30,000
Rod 5,00,000
Tined Glass 45,000
 ITEM COST
Safety grill 20,000
Plastic Paint 50,000
Sanitary items:
Tiles 5,00,000
Mirror 18,000
Bathtub 1,00,000
Sanitary Fittings 9,00,000
Conceal Hot & Cold 2,40,000
Water Line
Electric Accessories:
Lift 12,00,000
Generator 2,00,000
 ITEM COST
Electric Switches & Plug 1,20,000
Point
Power Outlet & Earthling 50,000
Connection
Wiring in each 60,000
apartment
Other:
Double burner gas outlet 2,64,000

Wasa line 50,000

Fire Extinguisher (in 3,000
each floor)
Architectural Firm 5,00,000
 ITEM COST
Engineering 2,00,000
Consultants
Interior Design 4,00,000
Firms
Security Service 10,000
Total 7,5,10,000
 CONTINGENCY
APPROACH
Basically apartment for residential
purpose. Suppose in Nasirabad there
are many flats that are used for
residential purpose. If the demand for
apartment falls, we will sell these
apartments for commercial purpose-
office, garments, schools etc.
In case of raw materials unavailability
or high price of raw materials to
maintain our budget we will follow
downsizing policy.