Real estate sector suffers Tk 1,656cr in losses due to unrest, claims REHAB

February 20, 2015

Country’s real estate sector suffered losses of Tk 1,656 crore in the last 46 days due to a nonstop blockade and frequent hartals enforced by the BNP-led alliance since January 6, claimed sector leaders. The sector leaders at a press conference on Thursday demanded loan rescheduling facility for two years and waiver of interest on bank loans during the political unrest. The Real Estate and Housing Association of Bangladesh organised the press conference at the Sundarban Hotel in the capital.
Leaders of a number of backward linkage industries also attended the programme.
‘We urge the political parties to resolve the ongoing political crisis immediately through a dialogue considering the sufferings of people and economy,’ REHAB president Alamgir Shamsul Alamin said.
Financial transactions and sales in the real estate sector dropped to the minimum level as developers cannot transport construction materials to their sites due to the blockade and hartals, he said.
‘Legal complexities are arising as developer companies are failing to comply with the conditions mentioned in the contracts between land owners,’ Alamgir said.
The investment worth Tk 25,000 crore in the sector is facing severe risk and the livelihood of 40 lakh workers is in danger due to violent political programmes, he said.
‘We do not support any political violence in the country and we urge the political parties to establish peace shunning confrontation,’ Alamgir said.
Bangladesh Re-Rolling Mills Association general secretary Abu Bakar Saddique said that more than 200 factories had been forced to suspend production due to lack of raw materials and poor sales as blockade and hartals disrupted transportation.
Around 200 factories are in production in small scale but the companies have failed to pay their workers in time, he said.
Mustafa Kamal Mohiuddin, secretary general of the Bangladesh Land Developers Association, said that land developers invested Tk 5,000 crore but they were not getting any return in the last two months due to the political unrest.
The sector will take at least two years to recover the damages it is suffering now, he said.
Bangladesh Paints Manufacturers Association vice-president Abdur Rahman said that paints manufacturers suffered losses of Tk 325 crore in the last two months as political turmoil hampered the construction works seriously.
‘I request the political leaders, those who are responsible for the situation, not to hold businessmen hostages,’ he said.
Abdul Matin Khan, vice-president of the Bangladesh Pathar Babosayee Samiti, said that productions in 462 stone crushing mills remained almost suspended due to lack of buyers and transports.
‘More than 7 lakh workers in the sector are passing their days in severe hardship as we cannot pay their wages properly,’ he said.

-With New Age input

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