Part One

Introduction

1. Introduction:
1.1 History of Real Estate in
Bangladesh:
The urbanization of Bangladesh is quite similar to that in Latin America;
formerly called “over-urbanization” in 1950s, this is a situation where a
rapid rate of urbanization does not lead to corresponding growth in
industry and economy but results in a shift of people from low-productivity
rural agricultural employment to low-productivity urban employment or
underemployment. The major cities of Bangladesh exhibits the clearest
symptoms of over-urbanization, where an imbalance between rapid
population growth and insufficient employment opportunities led to an
increase in poverty and the mushrooming of slum and squatter
settlements (Valladares, 2002).

In Bangladesh, the problem of urbanization is further aggravated by

limited land supply in urban areas, lower land utilization and the lack of
proper planning and land use policy. Due to globalization, the urbanization
process is also increased. The ever-increasing urban population is creating
an increasing demand for shelter. Article 25 of the United Nations’
Universal Declaration on Human Rights (1948-1998) has clearly stated
that: “Everyone has the right to a standard of living adequate of the health
and well-being of himself and of his family, including food, clothing,
housing and medical care and necessary social services, and the right of
security in the event of unemployment, sickness, disability, widowhood,
old age or other lack of livelihood in circumstances beyond his control.
(UNO, 1948)

Bangladesh has one of the lowest land-person ratios in the world. The
situation is further aggravated every year through an irrevocable
reduction of per capita share of land for housing, as a result of continuing
population growth. Acknowledging the importance of housing, which is one
of the five basis needs incorporated in the constitution of Bangladesh, the
government is compelled constitutionally to play a vital role in securing
housing rights. The constitution of the People’s Republic of Bangladesh
states in Articles 15(a) that:

“It shall be a fundamental responsibility of the State to attain, through

planned economic growth, a constant increase of productive forces and a
steady improvement in the material and cultural standard of living of the
people, with a view to securing to its citizens--the provision of the basic
necessities of life, including food, clothing, shelter, education and medical
care”
From the above statement it is quite clear that providing shelter to all the
people is one of the fundamental responsibilities of sate. But being a
government of a poor developing country, it is almost impossible for the
government to ensure housing for all. As the public sector failed to provide
this, people have taken their own initiative to ensure their fundamental
need for shelter. Government alone cannot provide housing to all and
realizing this, they decided to share the task of providing safe decent
places to live with Real Estate Developers, to make people a productive
resource. As a significant development in the housing question has been
the adoption of the National Housing Policy (NHP) in 1993 (amended in
1997). The basis principle of the 1993 NHP is that the government would
play the role of an enabler of facilitator in the hosing sector (Article 4.2)
and not the role of a developer of provider. So the government of the
people’s republic of Bangladesh is somehow patronizing the real estate
developers to contribute in the housing sector of Bangladesh.

Statistics show that Bangladesh will need to construct approximately 4

million new houses annually over the next twenty years to meet the future
demand of housing. Estimates for annual requirements for housing in
urban areas vary from 0.3 to 0.55 million units. The share of urban
population in Asia is 39 percent at present and is projected to be 45
percent by 2015. In Bangladesh, 25 percent of the population (some 35
million people) now lives in urban areas; this proportion will be 34 percent
(75 million) by 2015. Dhaka with a total population of more than 10 million
is now the 22nd largest city in the world. While comparing the growth of
the real estate and housing and the construction sector with that of GDP,
trend growth in the two sectors for the period 1992-2002 was 4.8 and 7.5
percent respectively, this is much higher than the trend growth in GDP of
4.6 % for that period. The shares of the real estate and housing sector and
the construction sector in the GDP were quite high in the year 2002 and
accounted for 8.3 and 8.0% respectively. However, the incremental
contributions of these two sectors in the same year were also considerably
high at 6.0 and 12.8 % respectively (CPD 2003).

The Current trend of urban growth in Bangladesh is about 6-7% per

annum. At present 29% of Bangladesh’s population live in urban areas,
which will be 34% by the year 2025. (REHAB). Considering this situation in
this report is to identify the role of Real Estate Entrepreneurs in providing
the housing facilities for the growing urban population and how these are
influencing the growth pattern of the city and its sustain ability to the
trade.

1.2 Clarity of the Study:

Study is a presentation of acts best on review, observation, data, analysis,
and interpretation. It highlights the problem and currently situation along
with the past position and future prospect of any organization.

1.3 Scope of the study:

This study called internship program mainly job oriented experiences
which are generated by interviewing with targeted customers and the
people who are working at the top management of the Asset
Developments & Holdings Ltd. The duration of the study was two months.
This is an individual study, which is worked for this particular study under
my internship program supervisor. Since this is a formal study, the scope
of the study was not so detail. I just tried to give an over all scenarios of
the Real Estate Market and Opportunities as well as an actual market
image or share of the Asset Developments & Holdings Ltd by comparing
with other companies in the same industry.

The study covers overall Real Estate Market and Opportunities, Asset
Developments & Holdings Ltd Market Image Analysis and Marketing
System and all the data are collected from the organization’s annual
report and from other paper which are mainly secondary sources and
direct interviews with customers and top management’s people of the
company.

Information generated from the study has application in all the areas (4ps)
of the marketing aspect. These are vital input for identifying the actual
market share of the company.

1.4 Importance of the Study:

Human being has always been in search of new and better homes. Thus
cities, towns and villages grew, flourished and wither away. In the process,
societies forever demand and produce all kinds of goods and services,
through, never satisfied, we ask for things more different. Real estate
visibly shapes the way people live, work and innovates and therefore most
strongly defines culture and civilization.

Today Real state is recognized the world over as the main engine that runs
the economy, creating work not only for masons and managers,
accountants and architects, but also for makers and sellers of building
materials. It means work for maintenances, security cleaning and other
services; work for makers and sellers of appliances, furniture and vehicles;
work for bankers and bureaucrats, lenders and lawyers.
Purpose of this study is to locate and justify the current brand image of
Asset Developments and Holdings Limited, which has been established
through its’ superior products and customer services, in contrast with the
other leading real estate companies in Bangladesh.

1.5 Statement of the Problems:

1.5.1 Problem definition
1.5.1.1 Background to the problem
Asset Developments & Holdings Ltd. had been operating a lot of market
promotion activities, deeper research and development, proper employee
training, efficient management team over the years. Their current market
share is high. At present the company is considering the possibilities,
which may help to increase its market share largely. For why the authority
of its management is feeling to know the insights and images of its market
and other companies positions in the market.
1.5.1.2 Data analysis
The project was done by primary data analysis as the information’s
collected from customers and marketing executives of the company by
conducting direct interviews and those information’s were interpreted as
the projects major findings.

1.5.1.3 The qualitative research

The project was based on the qualitative exploratory research because the
company management wants to know the customer perceptions regarding
their companies and products insights, quality, presentations, brandings,
features and amenities, business policy, customer’s opinions and so on.

1.5.1.4 Factors considered

➢ Direct interviews were taken by a questionnaire from all types of
customers.
➢ Face- to – discussion with the marketing executives of ADHL.
➢ Randomly 100 customers were taken for interviews within the city.
➢ Customers having the positions of Businessman, Banker,
Multinational company’s executives, Doctor, Engineer, Consultant,
Private company’s manager, high official etc.
➢ Customers were fully ensured that their information’s against the
questionnaire would preserve confidentially and would not be
exposed anywhere.
1.5.1.5 Management decision problems
The decision makers are confronting with the problems which indicate the
product management decision maker what does he needs to do?

➢ Should newer products be introduced immediately?

➢ Should the existing promotional program be changed?
➢ Should the price of the product be changed?

1.5.1.6 Research problems

A problem that entails determining what information is needed and how it
can be obtained.

➢ Quality of the product.

➢ Availability of the product.
➢ Brand name effectiveness of the product.
➢ Communicating effectiveness of all the companies.
➢ Social responsiveness of the companies.
➢ Employee’s efficiency of the companies.
➢ Promotional items of the companies.
➢ Customer’s weakness of the companies.
➢ Customer’s satisfactions of the companies.

How information’s can be obtained

The necessary information’s only from customers by direct interviews with
questionnaires and from the marketing executives of the ADHL. The
sample size of customers was 100 the technique was random sampling
throughout the city.

1.5.2 Approach to the problem:

The exploratory and qualitative research procedures are followed to
conduct the project. That is I was only assigned to collect all the
information’s criteria regarding real estate market’s images from customer
and insights and understanding of this market. Hence there was no option
to conduct the conclusive research or any other research.

1.5.2.1 Causes for the exploratory research

To provide insights and understanding of the real estate market to know
the companies images.
 ➢ Information’s need is defined only loosely.
➢ The research process was flexible and unstructured.
➢ Sample size was small and no representative.
➢ Analysis of primary data is qualitative.
➢ Generally followed by further exploratory or conclusive research.
➢ Expert surveys.

1.5.2.2 Types of analytical model

➢ Primary data analysis.

➢ Cross tabulation model.
➢ Graphical interpretation of cross tabulation.
➢ Find outcome or result drawn from the semantic differential model.
➢ Recommendation drawn from the overall project experience.

1.6 Objectives of the Study:

Generally every study is conducted to find one or mere findings, if the
findings are predetermined they called the objectives of the study. The
main purpose of my study is to evaluate the market image of the Asset
Developments & Holdings Ltd by comparing with other company in the
same industry. Thus the main objectives of the study are as follows.

To show overall Sceneries of Real Estate Market and Opportunities in

Bangladesh and the market condition.
To analyze the market image of Asset Developments & Holdings Ltd
in the same industry.
To define the marketing Strategy of Asset Developments & Holdings
Ltd in the same industry.
To determine the level of customer satisfaction and their attitude
toward the company under study.
To identify Problems faced by the customers as well as the
marketers in the market of the same.
 To put forward some recommendation in the light of the problems
identified.

1.7 Methodology of the Study:

Methodology is the process or purpose of collecting of data and
information which are required in connecting with finding tools for best
possible situation of problems.

1.7.1 Data Collection Methods

For data collecting I have used both primary and secondary data. At the
starting point I have started by examining primary data to see whether the
problem can be fully or purely solved without collecting secondary data.
When the needed data did not exit, then I had gone to collect the
secondary data.
So, data gathered for specific purpose or a specific reason. Here, the
normal procedure is interviewing some people individually to get a sense
of hoe people feel and think about the topic in question.
1.7.1.1 Research Design:
1.7.1.1.1 Nature of the research design
Exploratory research
The exploratory research has been conducted due to short time and little
knowledge of the research focus. The main purpose of the survey is to
define the actual market image of the Assets Developments & Holdings
Ltd by comparing different company’s market image. So, exploratory
research is most effective for completing this survey.

1.7.1.1.2 Information Needed

To define the actual market image and market growth strategy of Asset
Developments & Holdings Ltd, it is very important to obtain great insight
of the following information.

➢ Quality of the product.

➢ Availability of the product.
➢ Brand name effectiveness of the product.
➢ Communicating effectiveness of all the companies.
➢ Social responsiveness of the companies.
 ➢ Employee’s efficiency of the companies.
➢ Promotional items of the companies.
➢ Customer’s weakness of the companies.
➢ Customer’s satisfactions of the companies.
➢ Future prospect of the companies.
➢ Corporate responsibilities of the companies.
➢ Contribution of the companies in the economy.
➢ Service facilities of the companies.

Based on the above required information, I have evaluated the market

conditions and market image of different company in the same industry in
order to determine the actual market image of the Asset Developments &
Holdings Ltd and the Marketing System of that company.

1.7.1.1.3 Scaling Technique

Votes have been collected from different customers against each of the
market image criteria have been weighted by a ten point scaling
technique where (10) are best and (1) is worst.

1.7.1.1.4 Questionnaire Development

Questionnaires were developed for customers. Customer’s questionnaire
was designed by 12 questions. Each of the questions was made on the
elements, which comprise the market image. The questions were MCQ
type and the respondents were required to answer (tick mark) many
alternatives as it was difficult to determine one or two answers, because
all the companies kept in the answer lines are having the same operations,
qualities and images in the market.

1.7.1.1.5 Sampling Technique

Type of sample item was a customer, for customers the sample size was
100. The technique was random sampling throughout the city. Customers
of this survey were generally Businessman, Banker, Multinational
company’s executives, Doctor, Engineer, Consultant, Private Company’s
manager, high official etc.

1.8 Limitations of the Study:

It couldn’t be claimed that this study was 100% based on impractical data.
Undoubtedly it has got some limitation regarding the representation of the
factors which are collected from customers and people of the company. At
the data collection for the study, I have been facing following problems.

Time Limitation

Time limitation is one of the major problems for most researchers to

diagnose the problem. Like the other study, it has time limitation to
identify the actual problem and provide some recommendations.

To keep confidence Information

During the period of data collection it has been observed that the
tendency of employees has been to keep information confidential.

Sample Size

Though the sample size was fixed for the study, with this sample size it is
very difficult to get good result.

Lack of Interest

At the time of data collection, it has been observed that most of the
interviewers did not pay attention in answering questionnaire.

Ignorance of the company top manager

Most of the company’s managers were not willing to answer the

questionnaire due to their assigned tasks. So, I have been facing problem
to study and question papers in the said topics

Study is not the conclusion of this field, but it will be more or less helpful
for other related organization. However I proceeded by overcoming such
limitations and constraints.

1.9 Literature Review

There is not much writing on real estate business in Bangladesh. A very
few columns are written in different magazines. The Real Estate and
Housing Association of Bangladesh (REHAB) IS only organization of real
estate companies of Bangladesh. A research was conducted in 1997 by
REHAB using a sample of 126 projects of 56 real estate companies which
only represents a profile of the real estate developers. Out of 126 projects
105 was residential, 9 were commercial, and 12 were residential cum
commercial. Of the 126 projects 25 were completed, 81 were construction,
and 20 were in pipeline.

Part: Two
Real Estate Sector in Bangladesh
An Overview

2. Real Estate Sector in Bangladesh:

2.1 Industry Profile:

Dhaka City, born during the Moghul Empire and grown with the British
rule, is expanding rapidly. From the beginning of the 20th Century its
growth and latter development is marked with sheer lack of proper and
far-reaching planning. The impact is now being felt at the end of the
century. Dhaka City is undergoing terrific growth phase throughout the
last two decades. While there are so many real estate developers in the
market, there are also very few of them who have maintained the quality,
safety and customer preference. It is customary in the country that the
first day quality and impression is lost after a while when people start
getting a bit of familiarity. This happens due mainly to lack of
professionalism. Sometimes the consumers here are in a fix to choose a
particular brand out of many.

A good number of real estate companies are working under one umbrella
association named 'Real Estate and Housing Association of Bangladesh'
(REHAB). Almost 361 Companies are at present affiliated with this
association, while more than 400 companies are working independently.
BTI took a leading role in the formation of the industry association and is
one of the founder members of the REHAB.

2.2 Bangladeshi the growth Real

Estate: Riding wave
The economic performance of Bangladesh has provided strong impetus to
the real estate sector, which has been witnessing heightened activity in
the recent years. Substantial end-user and investor interest, large scale
investment in infrastructure and rapid urbanization have contributed to
the growth trajectory of real estate In Bangladesh. The real estate growth
story is clearly visible in urban areas. High growth in services as well as
manufacturing sector has resulted in high demand for commercial and
industrial real estate. The following table shows the important factors
which are forcing the real estate sector in Bangladesh.

Booming Real Estate In Bangladesh

Demand Pull Resultant

Resultant Impact Supply Push Factors
Factors Impact

•Robust and • Increasing • Policy &

sustained occupier base Regulatory are • Entry of
Macro going to be number of
economic • Significant rise in reformed such as domestic &
growth demand flexibility of foreign
for foreign direct players
•Upsurge in office/industrial investment increasing
Industrial & space competition &
business • Positive outlook of consumer
activities, esp. • Demand for global affordability
new economic newer avenues investors
sectors. for • Easy access
entertainment, • Fiscal incentives to to mean of
•Favorable leisure & developers project
demographic Shopping financing
parameters • Simplification of
• Creation of urban • Increases
•Significant rise demand for new development developers
in housing.. guidelines risk appetite &
 consumerism allows large
• Growth in • Infrastructure scale
•Rapid services such as support development
urbanization IT/ITes, tourism & development by
and hospitality government • Improved
•Gamut of etc. quality
financing of real estate
options • Service facilities assets
at affordable such as garbage
interest rates disposal, central • Development
satellite TV of new urban
•Scarcity of open connection, areas &
space in the apartment’s effective
important areas services serves utilizations of
of the city. time, roof top prime land
facilities, and so parcels in
•Hazards of on. large cities
purchasing land

•Hazards of
construction of
building.
•Price of land
and apartment
is creasing day
by day.
•Rent of the
apartment is
comparatively
high than the
rent of the
privately
constructed
apartments.
• Open market
economy and
remittance of
foreign
currency is
easy.

The recent times have also witnessed an evolution of the sector - towards
greater institutionalization and corporationalisation. With the entry of
global players, inflow of foreign capital, evolution of capital markets,
geographical diversification and introduction of reforms, the sector has
undergone some significant structural changes. Even critical concern
areas like transparency in the sector is also improving significantly. The
trend is expected to continuing the coming years.

2.3 Market Structure and Growth:

About the market concentration in the real estate sector Real Estate
business, especially apartment projects, took off in the Dhaka City in the
late 1970s. From the early 1980s the business started to flourish and
showed robust growth. At present, more than 400 companies are active in
the real estate business in the country. About 95 per cent of this business
is still dominated by the top 10 companies. The market is highly
segmented, primarily based on location, price of the land and size of the
apartments. We stated that the main reasons for the development of real
estate business in Dhaka city were:

➢ Scarcity of open spaces in important parts of the city.

➢ Hazards of purchasing land.
➢ Rapid increase in the population of Dhaka.
➢ Fiscal-Financial incentives such as the decrease in the rate of
bank interest.
➢ Restriction of remittance flows which financed the sector.

Rent of apartments had been relatively high compared to the opportunity

cost of privately constructed flats. Service facilities which are enjoyed
collectively, such as garbage disposal facilities, central satellite
connection, security, roof top facilities and lift, save time and reduce costs.
Legal and Regulatory Framework.

The legal and regulatory framework concerning the housing and real
estate development includes laws such as Building Construction Act
(1952), Town Improvement Act (1953), Dacca Master Plan (1959) and
Building Construction Rules (1984). These laws are not adequate to
facilitate resolving habitation problems. Other limitations of these rules
included a lack of appreciation about the differences between planning
and building rules, the outdated nature of such rules and the inability of
the rules to address the demands of an expanding city and targeting only
the middle and high-income groups. There is no standard housing plan for
Metro Dhaka. The Master Plan (1959) was, in general, prescriptive in
nature, with particular public provision proposed on an individual basis for
specific places, with exceptions made for schools and open spaces for
which generous standards were proposed. The rigid land use zoning of the
Master Plan (1959) is out of date as a basis for development management.
The Bangladesh National Building Code (1993) which was intended to
ensure safety in construction has not been made mandatory. The Building
Construction Rule (1984) demands a great deal of information from the
applicant, but imposes very few compliance requirements on him. The
procedures involved in the enforcement of law such as taking permission
before development and construction were felt to be cumbersome. It was
found that a developer has to apply to eight different authorities including
WASA, DESA, Titas, Fire Department, civil aviation authority and ward
commissioner for permission, which costs money and time. Moreover, the
information solicited by the agencies relate mainly to ownership, rather
than providing guidance for strategic and development control. Since the
housing plans are not detailed, there is ample scope for breach of rules.
Lack of adequate staff capacity of the oversight agencies limits monitoring
and leaves scopes for non-compliance with the rules and regulations. Two
laws which were expected to be enacted, namely Private Housing Policy –
2002 and Multi- Storied Building Construction Policy –2002, will ensure
risk-free construction.

Financing the Housing Sector is not found adequate because of high

interest rates and limited sources of funds. This is true both for the
financing of the developers and the purchasers. The state-owned House
Building Finance Corporation (HBFC) is burdened with bad loans, and loan
disbursement has tended to be low in recent years. Delta-BRAC Housing
came into this market as private-NGO collaboration, but their interest
rates are as high as 16 per cent which is higher than even that of the
HBFC by one per cent. The major financing organizations for housing are
the HBFC and the Commercial Banks while financing by other
organizations like Delta-BRAC, National Housing and Micro credit lenders
are insignificant. Budgetary Measures in FY2003 Budget Unlike the past
fiscal budgets, the government through the FY 2002 - 2003 budget
provided a number of incentives to boost the real estate sector of the
country. These measures include exemption of registration fees on land
development, land sale and apartment transfer which is expected to bring
down the overall tax in this sector to the level of 13.5 per cent, waiving of
registration fees in cases where the apartment is resold within 5 years of
buying and halving of property transfer tax at source. Estimates show that
these measures have saved an average buyer about Tk 5 lac on a Tk 45
lac worth apartment. Dr Bhattacharya observed that if tax is paid at a flat
rate per square feet of apartment, unaccounted for funds can be
mainstreamed.

Reflecting on the response of the sector to these new measures, after a

protracted slump these measures have been able to infuse new hope. He
also appreciated the reduced registration cost and other related costs,
which resulted in the recent increase in the number of apartments which
were registered. Estimates showed that in the first six months of Fiscal
Year 2003 budget 1,500 apartments were registered over and above the
normal number. Though these apartments were purchased earlier, many
of the buyers did not get them registered because of the high cost
involved. Thanks to the increase in apartment registration, the
government could mobilize an extra amount of about Tk 41 core as non-
NBR tax. He, however, mentioned that though the provision to allow
investment of unaccounted money generated half of the additional income
from registration fees, amounting to about Tk 20 core, the incentive itself
has raised questions as regards the ethics of such measures. Whilst
appreciating the beneficial measures taken in the budget, a number of
additional budgetary interventions which include:

➢ To keep up the impetus, the current tax breaks may continue.

➢ Registration fees are perceived to be still high and can be
reduced by making provisions for realistic land price
disclosure.
Fiscal support for linkage industries can lead to reduced raw material cost.

2.4 Opportunity Spectrum:

The phenomenal growth witnessed in Bangladesh real estate has widened
the opportunity spectrum of the sector even beyond the established asset
classes’ business. Commercial, retail, residential, industrial and hospitality.
This section maps the opportunity in both the asset classes and the
emerging asset classes.

2.4.1 Commercial Real Estate

The boom in the Commercial Real Estate (CRE) segment is being fuelled
by a robust demand from MNCs and corporate Bangladesh alike,
particularly from IT/ITeS, BFSI, Telecom and Pharmacy companies.

Key Growth Drivers

Entry of MNCs from different country
Growth in knowledge and technology intensive sectors
Growing number of domestic company.
The primary growth driver of commercial real estate is the MNCs, which, is
growing at 9.5-12 per cent annually. According to a survey industry is
expected to grow to US$ 120 billion by 2012. As per estimates this
translates into in excess of 180 million sq. ft of commercial office space
requirement by 2012 -13.
2.4.2 Residential Real Estate
In Bangladesh residential real estate is driven by increasing urbanization,
rising incomes and decreasing household sizes, the residential segment
has been on an upswing over the past few years. Several other sectors
such as financial services, biotechnology, telecom, pharmacy, insurance,
and consulting businesses are witnessing strong growth and have added
to the rising demand.

Key Growth Drivers

Growing number of first-time home buyers
Increasing income levels
Increasing number of households
Increasing affordability of homes
Affordability of housing
Penetration of mortgage finance

2.4.3 Real Estate Opportunities

As economy of Bangladesh is changing rapidly that results market is
becoming to much competitive and customers are becoming focal point of
all the activities. At present some companies are already come up with
quality that maximizes the customers’ satisfaction and started operating
in this market. So as time goes, market becomes very competitive in
nature. In this situation before launching a new model apartment, the
ADHL must carefully develop every step of the marketing decisions and
should be based on market information, customer perception, quality and
gut feeling. Beside this competition, there are some opportunities for the
marketers in Bangladesh. These are as follows

Opportunities of real estate in Bangladesh may also be

 Health Cities: Large scale integrated development

 Hospitals: combining the services of a hospital and a hotel
 Slum-rehabilitation
 Mass housing
 Free trade and warehousing zones/logistics parks
2.5 Size and contribution of the Real
Estate:
The size of the real estate sector and its contribution to the economy in
terms of employment generation, accrual of investment, contribution to
exchequer, output trends and linkage contribution of this sector are stated
bellow:

2.5.1 Employment Generation

The real estate sector at present employs about one million people, either
directly or indirectly involved about 30 lac people in the sector. According
to the Labor Force Survey (LFS), in 2006 5.5% of the labor force was
engaged in construction where as for 1999-2000 it was 2.1% and 1995-96
it was 1.8%.

2.5.2 Investment
Recent information concerning investment in the housing sector shows
steady growth in both absolute terms and as a percentage of total private
investment and GDP. During the first three years of the fifth Five Year Plan
period, the investment in housing and construction was US$ 1273.65.
According to this trend till 2007 the investment in housing & real estate
sector will be more than 2500$USD. (CPD).

2.5.3 Contribution to Exchequer

The keynote paper indicated that the contribution of the real estate sector
to the exchequer is a substantial one. Various revenues like VAT,
registration fees, utility connection fees etc. generated in the real estate
sector amount to about Tk 36 crore per year. Regarding payment of
corporate income tax of the real estate companies no ready information
was available.

2.5.4 Output Trend

During the peak years of the early 1990s, over 3,000 apartment units
were built by developers every year. Today around 10,000 units are built,
but recent time this trend has declined due to delayed delivery of
apartments by an average of six months, economic downslide, global
recession, and the poor law and order situation.

2.5.5 Linkage contribution

The real estate sector has also made substantial contributions to the
growth of a host of backward and forward linkage sectors which include
Rod, Cement, Bricks, paints, ceramics, aluminum, furniture, consultancy
and many others. In this context, he provided examples of catalytic
influence of the real estate and housing sector in development of linkage
industries whereby the sector is immensely contributing to employment
and the GDP. Those include Bangladeshi state-of-the-art ceramic
industries, Thai and Kai aluminum, More than a dozen paint industries, A
large number of furniture making and interior design companies, An
exponentially growing cement sector, which is helping the country to
attain self-sufficiency in this important input.

2.6 Impacts of Private Real Estate

Developments on Patterns of
Urbanization:
Actually the private real estate entrepreneurs are providing residential
facilities for the higher income group. Profit maximization is their only
motto. Hence, huge lack of services and facilities are observed in the
recent real estate schemes. Consequently, several unexpected and
disastrous impacts are observed. In observed land use composition with to
the standard are stated in the table.

Land Use % of planned total % of actual land

parameter land area use area

Residential 40-65 80-85

Community
5-10 2.5-3.5
Facilities

Road & Streets 20-30 10-12

Open Space (parks
5-10 0
and playground)

Shopping 5-10 0

Here it is seen that for maximizing the profit the private developers are
selling more than 80% of the total project area.
In Bangladesh the housing problems is basically for the lower income
people, but the private real estate developers are developing the
apartments for the higher income people. Due to poor load bearing
capacity of soil, high-rise buildings are very difficult to build in places
being developed by real estate companies at present. Hence, low density
of residential area is resulting in the form of inefficient utilization of the
land resources. Urban area is expanding horizontally without maintaining
any guidelines.

Where selecting the potential land for private land banking, the urban
expansion zone was given utmost priority. The expansion zone is the
potential urban area where services and utility facilities are supposed to
expand within short period of time. When this area is facilitated with the
utility and services, the land price also increase substantially. This is a
land speculation process may be called private land banking which has
created a belt around the city. There are several impacts of this process:

➢ To accommodate the incoming rural to urban migrants, the city

needs to expand. But this belt is creating hindrances for the city
expansion. The Inner city is facing tremendous pressure of
migration. Due to the skewed distribution of land, people are forced
to live in slums and squatters. At the same time the land value is
also increasing. The result is a potential land price bubble in this
area.
➢ People are purchasing the land, keeping them vacant for a few years
to get more benefit while selling the same. Hence, city is expanding
with rural nature and rural areas are loosing its identity.
➢ City is forced to expand to a direction in a linear nature through the
gaps of the private land banks which is not either expected or
planned before.

Several questions can be raised regarding the positive impacts of this

process. Through creating tremendous pressure on the core area of the
city whether or not, this process can maintain equity in the distribution of
land. Unfortunately the answer would be negative as the land ownership
pattern is really skewed and complex. Moreover large parcels of lands are
occupied by the government organization like Cantonment, Bangladesh
Railway etc. at the heart of the city which is either left vacant or under
utilized.

Of course urbanization is always essential for economic diversification and

country’s long term sustainability. From this point of view, these real
estate developers are patronizing urbanization alternatively helping
Bangladesh in its economic sustainability. But, where urbanization is itself
a burden for Bangladesh and how far this process can create
diversification that is questionable.

The unexpected and unplanned growth of residential areas is creating

extra problems for the city managers. There is no link between the
existing structure plan and the real estate developments. Consequently
these projects are creating sheer stress on the planned development of
the city. This is also creating polarization in the demand of services
facilities.

2.6.1 Findings & Recommendations:

2.6.1.1 Right to Housing for all

The rich people housing is not a problem. If strengthening is the purpose,
middle and low income groups should be targeted. Due to the high price of
land, most of which is privately owned, it has become very difficult to
include middle and low-income people in any housing scheme. Thus
providing shelter for low-income people without subsidies has become
quite difficult. Though provision for middle and low-income people is
possible in government owned khas land, this process is very difficult due
to many cases became unsuccessful because it was observed that even if
quality shelter is provided for low-income people, ultimately those facilities
are enjoyed by the high-income group. Inclusion of relevant experts in
decision-making is required in this regard and the private sector should
also be involved in this process.

The real estate sector should incorporate the idea to set an example in the
world by providing housing for the poor. There are many examples of
allocating land at nominal prices but such examples are not available for
low-income people.

In the absence of a land policy, it can not be made clear how land can be
made available for new uses and how sharply increasing land prices can
be controlled. For low and middle-income people the problems of land
scarcity and high prices were of continuous concern. The price of one
katha (i.e. 720 sft) of land being around Tk. 50 lac has put low and middle-
income people out of the housing market.

Though 30 per cent of people living in Dhaka are slum dwellers there is no
housing policy for them. The developers develop for profit. If proper
attention is not paid, the number of slum dwellers will increase rapidly. In
the eastern fringe of Dhaka all the lands up to the Balu River are being
grabbed, and whatever development is taking place in that area is not for
low-income people. The purchasers are constrained by their capacity
especially because of the high cost of borrowing.

2.6.1.2 Housing Ignored in Research

It has been observed that research on the housing sector is quite
inadequate, studies by academics are mostly theoretical with an academic
bias; when they are conducted by developers, business gets the utmost
emphasis; when the government themselves perform the study only the
thoughts of the government are reflected.

2.6.1.3 Control over the Real Estate Sector

About 95 per cent of the business in the real estate sector is controlled by
10 companies and 47.3 per cent of total private investment is in the
housing sector. These ten companies have a large share of total private
investment.
In recent days, more and more companies and many corporate bodies
with surplus capacity to invest have entered the real estate sector. They
are buying hundreds of acres of wetland for filling and development.
However, this will not contribute to a sustainable environment.

2.6.1.4 Dhaka – City of Migrants

Though Dhaka stretches over a very small area and through in-migration
alone its population is growing by 2.5 to 3 lac every year and currently
totals 30 lac slum dwellers, an appropriate land policy is still missing. The
draft housing policy formulated in 1991 projected that 3.1 million housing
units for urban areas and another 2.1 million will be required for rural
areas. Thus, the total demand of new housing units is likely to exceed 5
million per year. However, in the paper the number was mentioned to be 4
million, which was considered as an underestimation.
2.6.1.5 on the issue of Finance
Growth of the real estate sector is not possible without proper financing
being available to both the developers and purchasers. Cost of funding
and cost of borrowing are major issues in this regard. At present,
contribution of the financing organizations to the sector as a whole is quite
inadequate and this is holding back its growth. Since the developers
borrow money for a very short-term, the rate of interest is not much of a
problem for them. Their problem is primarily with access to credit and
delays in decision-making.

In many cases developers are not properly follow the procedures for
borrowing money from financial organizations. Three parties get involved
in the process – the developer, the landowner from whom the land was
leased and the one who buys the apartment. Thus, the legal aspects of
borrowing become cumbersome. A simplified legal method should be
established for all institutions and should be made mandatory. While
selling apartments, the developers do not properly mention in their
prospectus that the apartment is mortgaged against some borrowing.
When litigation arises, in many instances the apartment buyers claim that
during the purchase they were ignorant about the mortgage and bought
the property in good faith. In many cases, adverse judgments were given
which seem to be reasonably correct. To avoid such complexities the
financing organizations tend to avoid the real estate development sector
and rather lend money to other sectors.

The interest rate is so high that it is extremely difficult for a purchaser to

pay the installments of the loan from the rental income. In many cases
their projections go wrong because there are instances when the
apartments remain vacant for months on end. Unless they have some
additional capacity to repay the loan, they become a defaulter and it then
becomes difficult for the financing organizations to manage the loan. So
there is a need to restructure the housing loan. The specialized
organizations which finance the housing sector have nothing to do with it,
as they are borrowing from the banking sector at a 13 to 13.5 per cent
rate of interest on an average. As per the provision offered by Bangladesh
Bank, they cannot secure any deposit fund if its maturity is less than one
year. The general preference of the depositors is to keep the money in the
deposit for very short period though its renewal takes place on a roll over
basis. He felt that Bangladesh Bank, as with other banks, should keep the
maturity pattern flexible so that the potential investors can choose the
most suitable deposit plan, which may be later used for housing loan.

The buyers should get loans at lower rates of interest and with longer
repayment periods. International financing organizations like WB, ADB, IMF
etc. should also finance the housing sector development if some
appropriate guarantor is available. This role can be played by the
Bangladesh Bank.

2.6.1.6 Housing - Scope of Definition

The definition of housing should not be limited to shelter or living space.
Though in general terms housing is meant for shelter, in an academic
sense housing entails house of many kinds comprising educational
institutions, recreational centres, shopping centres, and many others. We
don’t only sleep, we need housing, schools, hospitals, shops and many
such things. With such a narrow focus on housing that dealt with only
residential use, at some point we may find that illegal shops, schools or
colleges have taken over the sides of the highways.

2.6.1.7 Rules - Inadequate and often violated

Legal and regulatory aspects of housing development are inadequate and
developers are violating the stipulated set back rules of RAJUK by not
leaving undeveloped spaces as stated in the set back rules.
RAJUK officials in many cases illegally give permission for building of
houses in exchange of bribes. Unlimited use of land by a small number of
people taking advantage of remittance flows or inheritance is not desirable
and therefore should be restricted with the help of legal and regulatory
measures.

2.6.1.8 Urban Planning Ignored

The Dacca Master Plan formulated in 1959 was burdening us for 35 years
but it was never reviewed which was supposed to be done every five
years. For this the Master Plan created many problems for us. If the
Structure Plan formulated in 1995 could be implemented to solve many of
our problems.

Though planning is an important aspect, for planning of Dhaka City there

is no defined system of budgeting. Therefore, it is quite impractical to
expect the general public to do something by their own initiative unless
the government comes forward. Before liberation when only 5 per cent
people lived in urban areas, the Urban Development Directorate was
formed with a Director in the status of Secretary. At that time, urban
planning was well in practice, but several efforts have since been taken to
close down this organization. He observed that over the last 30 years this
organization has not had any planner and therefore could not render
functionality.

We need a National Land Use Policy. The government with the help of the
people should decide on ways and means to keep the country’s prime land
for agriculture because we have to feed 140 million people, and the
government also has the responsibility to provide housing for everybody
including the poor.

2.6.1.9 Partnership and Participation Required

If real estate developers build apartments in residential areas, they should
ensure necessary environmental support as well. Clinics, schools and NGO
offices are being housed in apartments developed by the real estate
developers. Otherwise, people residing in those areas are facing many
problems.

2.6.1.10 Sustainable Environment Threatened

The present process of development ignores environmental consequences.
As a result low lands and drainage routes are being blocked. Though
RAJUK has formulated DMDP it has very little application. It also
emphasized that whatever developments are taking place, have to ensure
sustainability and environmental assessment.

2.6.1.11Tendency in Architecture
The type of apartments being developed resembles a form of box
architecture. In current design practice basically a box is made first within
which 3 or 4 flats are designed with an outward masking of good elevation
and facade treatment where improvement of space articulation and
gaming with volume of space is absent. Housing is not just a means of
providing square feet of floor space. Rather, a system which is more
inclusive of other aspects should be practiced. The small children that live
in those boxes do not have any recreational facilities. They are seen
playing football on computer screens instead of playing in the green
spaces.
Finally
Though low-income people are needed in the city as construction or
garment workers, the number required is not as high as thirty lac. Those
people are in Dhaka because the villages cannot provide them with
livelihood opportunities. So steps should be taken by the government to
keep these rural people in rural areas. Projects like ‘Grihayon’, ‘Asrayon’,
‘Ghore Phera’ etc. should be fostered and promoted, In order to reduce
rural-urban migration, dedicated programs for the poor should continue. In
drawing this conclusion, everyone should carry out his or her
responsibilities properly so that Bangladesh could have a housing sector
that met the expectations of all stakeholders.
 Part Three

Organization part-
About
Asset Developments & Holdings
Ltd.

3.Asset Developments & Holdings

Ltd:
3.1 History:
Bangladesh has come a long way since its independence. It has improved key social
indicators and the well being of its people. The Asset Developments & Holdings Ltd
has been an integral part of this progress. ASSET DEVELOPMENTS & HOLDINGS LTD
philosophy is simple: To improve living standards.

As a result of this philosophy, ASSET DEVELOPMENTS & HOLDINGS LTD is today

Bangladesh’s largest residential real estate company. Its slogan is that we are
dedicated to providing customers of real estate with the highest quality services
possible. The ASSET DEVELOPMENTS & HOLDINGS LTD System is actively
increasing its presence and market share in the Bangladesh and bringing the most
recognized name brand in real estate sector. ASSET DEVELOPMENTS & HOLDINGS
LTD fully supports the principles of the Fair Housing Act. When buyers think about
real estate, they think of the ASSET DEVELOPMENTS & HOLDINGS LTD brand. In
fact, the ASSET DEVELOPMENTS & HOLDINGS LTD Brand is the most recognized
name in real estate sector.

ASSET DEVELOPMENTS & HOLDINGS LTD the largest private sector business
conglomerate of Bangladesh started its journey back in 18th day of November
1999. With a record of the highest growth rate in the history of Bangladesh Real
Estate Industry, ASSET DEVELOPMENTS & HOLDINGS LTD has maintained its
leadership position with consistent growth over the years. The company maintained
its growth performance even when the industry experienced a decline in market
growth.

3.2 The Profile:

Asset Developments & Holdings Ltd.
Corporate Office ➢ 91 Gulshan Avenue Gulshan,
Dhaka-1212

Office Of Management ➢ 91 Gulshan Avenue Gulshan,

Services Dhaka-1212

Office Of Project Planning ➢ 40/5North Avenue Gulshan,

Dhaka-1212

Year of Establishment ➢ 1999

Product Line ➢ Apartment

Turnover in Taka in 2007 ➢ 1800 Million

Number of Employee ➢ 3000

Market segment ➢ - High Class
- Higher Middle Class

3.3 Activities of the Company:

Real Estate Business in private sector mainly concentrated on land
development and construction of apartments. ADHL develops unimproved
and undeveloped land and then sell the plot to the people and make profit,
and they also construct residential and commercial buildings and sell them
to make profit. In order to accomplish the above task the company proceeds
in the following ways.

The first task of the company is to find out elite class of society they who are
in housing needs. Such class includes the engineering association, teachers
association, doctor association, agriculturist association etc. Generally such
classes are grouped according to the professions.
The next task of the company is to collect corporate data of the above
identified classes. Generally these data includes the followings.

➢ Income level.
➢ Living style.
➢ Living standard.
➢ Thinking about housing.

After studying the potential customers then the company informs them
regarding the on going projects and also the corning projects in detail.

3.3.1 Land Procurement policy

It has been observed that procurement policy depends upon the location,
size, shape and proper documentation. Other countable factors are cash
involvement, higher biding of rival’s etc.
The company normally collects information about land by giving
advertisement in newspaper or by personal contact. Landowners also
themselves provide information from their own. Generally this company
offers cash or apartment or both cash and apartment against the land to the
owners.

3.3.2 Terms and Conditions Set by ADHL

The following terms and conditions are to be maintained while transacting
with ADHL.
Application
Interested buyers are asked to submit application on the prescribed form
with due signature along with the earnest money. The company also
reserves the right to accept or reject application without assigning any
reason.

Allotment
Allotment is normally based on first come first serve basis. On acceptance of
the application and down payment, the company issues allotment letter to
the applicant on receipt of which he/she starts making payments as per the
specified schedule. Buyers willing to make a one- time payment are
entertained with substantial discount. Until the full payment of installments,
buyers cannot transfer the allotment to the third party.
Payment
All payments are made by A/C payee cheek or bank draft or pay order or
cash, in favor of the owners. The company receives payments. Buyers are
requested to follow the payment schedule. The company also issues or may
issues reminder to the buyers for delay payment. The buyers are liable to
pay delay charge @ 4% to 5% per month. If the payment is delayed beyond
two months, company has the right to cancel the allotment.
Hand Over
Normally the possession of the apartments and lands are handed over within
the specified schedule. This may be delayed due to the reasons beyond the
control of the company, such as force, natural climates, political disturbance,
strikes, etc. The handing over is made after the full payment of the
installments.
Utility Connection
Connection fee, security deposits for water, gas, and electricity, and
incidental cost relating to these are not includes in the price of the projects.
Buyers make these payments directly to the authorities concerned and the
company provides all the necessary assistance.
Transfer of ownership
Proportionate share of undivided land is registered in favor of each allotted
as per the current rules and regulation of Ministry of Works.
Transfer Cost
All cost relating to transfer of ownership of the proportionate share of land is
borne by the allotted on actual basis.
Management
The buyers must become a member of the owner’s cooperative society,
which is formed by the owner of the land and apartments for the
management of common services such as lift, pumps, security, compound
etc. Each allotted must deposit a specified amount in the reserve fund of

3.4 key Success Factors:

3.4.1 People
An organization is as good as its human resources. Based on this very basic
fundamental philosophy, ASSET DEVELOPMENTS & HOLDINGS LTD believes
that human beings are its most valuable assets and prime movers. ASSET
DEVELOPMENTS & HOLDINGS LTD also believes that the potential of human
resources is limited only to the extent to what one can put to use. Realizing
this, ASSET DEVELOPMENTS & HOLDINGS LTD makes considerable
investments in attracting and developing talent ant and dynamic
professionals, not only to do their job flawlessly, but also to give them an
environment, which fosters innovation and entrepreneurship. The extent of
empowerment that is enjoyed by its people at various levels of the
organization enables each employee, from the very bottom to the top, to
contribute to the overall momentum of the company. The employees of
Asset Developments & Holdings Ltd. are differentiated not just on the
strength of their professional competence, but also on the basis of individual
resilience of character and the spirit of enterprise.

In the face of today’s competitive business environment, ASSET

DEVELOPMENTS & HOLDINGS LTD develops and retains high achieves and a
motivated workforce and provides an excellent working environment for
them that reflect and promote a high level of loyalty and commitment, both
to it’s employees and from its employees. At ASSET DEVELOPMENTS &
HOLDINGS LTD, good work is always expected and rewarded. Over the years,
the company has been successful in providing an environment and culture
that nurtures individual growth and development, and allows people to attain
personal fulfillment as well as achieve company objectives. The competent
workforce of the company provides it’s with every reason to be optimistic
about the future.

3.4.2 Quality:
Committed to making a difference
Asset Developments & Holdings Ltd. is committed to provide living standards
of the people. This commitment demands massive social responsibility of
ensuring quality in terms quantity, purity, stability, safety, efficacy and
presentation of the product. At every stage of the production, a stringent
control mechanism involving raw material testing, in-process quality control,
finished product testing as well as stability monitoring and documentation is
maintained to ensure the highest quality product consistently.

Training & Development: Investment for future

The ever-changing market place has fuelled ASSET DEVELOPMENTS &
HOLDINGS LTD’s determination to keep up with the changing times by
constantly strengthening the information base, exploring new lines of
business and expanding domestic. This prompted the company to undertake
infrastructure development to build competitive advantage in order to retain
its position as a leading real estate company. ASSET DEVELOPMENTS &
HOLDINGS LTD is committed to developing individual’s human, technical and
conceptual skills through various educational and a wide range of internal
and external human resource development and job related training programs
each and every year.

At ASSET DEVELOPMENTS & HOLDINGS LTD, a well-planned and structurally

designed in- house training activity-involving sales, marketing and
production etc. is conducted throughout the calendar year. These training
programs are conducted by in-house resource persons on a regular basis and
as per scheduled. ASSET DEVELOPMENTS & HOLDINGS LTD employees also
received training from Rapport Bangladesh Limited and Tack training
international on the following topics:
➢ Time Management.
➢ Customer care.
➢ Customer relationship management.
➢ Leadership.
➢ Team building and leadership.

3.4.3 Commitment to the Customer:

Asset Developments & Holdings Ltd professionals are dedicated to providing
you with the best service throughout the real estate transaction! Take a look
at the following pledge certificates to detail the services you can expect.
Service Pledge

➢ Dedicate myself to making the process of buying your next home as

easy and as successful as possible.
➢ Respect you, your needs and be honest and forthright.
➢ Hold your best interests in the highest regard throughout the process.
➢ Value and respect your time, being as efficient and effective as
possible
➢ Understand your needs and respond quickly.
➢ Consult with you to determine your particular real estate wants and
needs.
➢ Use my base of experience, knowledge, tools and the most up-to-date
training to best serve you.
➢ Explain each step of the process and act as a guide to help you make
most informed decisions.
➢ Disclose material facts known about the property and respond to
questions concerning the property.
➢ Help determine your purchasing power, while explaining alternative
methods of purchasing and/or financing.
➢ Provide an action plan for locating the right property, at the right price
and terms, in an acceptable time frame.
➢ To the best of my ability, continuously show you new properties that fit
your needs.
➢ Provide a Customized Home Search Plan for locating the right property
for you, only showing you properties that will best meet your needs
and in accordance with Fair Housing regulations and ethical real estate
practices.
➢ Use the most comprehensive database of listings in the area, to help
you find the home that best meets your needs, whether to be the
Multiple Listing Service and/or other methods.
➢ Provide the resources of Century21.com that offers thousands of
listings, allowing you to easily review homes that are right for you,
access in-depth information on neighborhoods, and additional
information.
➢ Use my knowledge and expertise to promote the most valuable
purchase on your behalf. I will assist you in evaluating the market
value of properties that are of interest to you and help you obtain the
most advantageous price and terms.
➢ Provide access to financing that meets your needs, at the lowest
possible rates available to you.
➢ Advise and assist you in completing your purchase agreement, and
present your offer with integrity in a light most favorable to your
needs.
➢ Upon acceptance of an offer by you, pre-settlement (escrow) activities
throughout the closing process will be monitored as permitted by law
or local practice.
➢ Offer to provide you with information regarding other professionals
(e.g. attorneys, Tax consultant, Govt. authorities) that may assist you
during and after your move.
 ➢ Utilize the Asset Developments & Holdings Ltd System to provide you
with in the area of your new home, to assist you further.

3.4.4 Exclusive Buyer Service:

➢ Consult with you to determine your particular real estate wants and
needs. This includes providing information as to the advantages and
disadvantages of the choices available to you, in order to help you
make informed decisions.
➢ Maintain your confidentiality and represent your best interests
throughout your buying process.
➢ Help you define your financial ability to purchase, explain alternative
methods of purchasing and financing, and assist in arranging mortgage
financing.
➢ Provide an action plan for locating the right property, at the right price
and terms, in an acceptable time frame.
➢ Search using available methods to locate the property that will best
meet your needs and wants. This may include properties listed with
our office, offered through other real estate companies, as well as
unlisted properties.
➢ Show properties that meet your specifications, in accordance with Fair
Housing Regulations and ethical real estate practices.
➢ Disclose material facts known about the property, and other relevant
information that is likely to affect your ability to obtain the right price
and terms.
➢ Assist you in evaluating the market value of properties that are of
interest to you, and suggest negotiating strategies to help you obtain
the most advantageous price and terms.
➢ As your advocate, advise and assist you in completing your purchase
agreement, and present your offer in a light most favorable to you.
➢ Refer you to other professionals (attorneys, accountants, inspectors,
mortgage lenders, etc.) for information or assistance as appropriate.
➢ Upon acceptance of an offer between you and the seller, monitor all
pre-settlement (escrow) activities throughout the closing process as
permitted by law or local practice.
➢ Consult and communicate with you on a regular basis throughout your
entire real estate purchase process.
➢ Recommend home warranty to protect you.

3.4.5 Customer Service:

Huge amounts of money are on the line when people buy real estate and
houses. Buyers and sellers need to trust real estate agents, and customer
service is the key to generating trust and sales in real estate. "Service is
king, and it can make or break a company. "Nothing beats knowledge,
experience, problem solving and responsiveness. Combining that with good
manners usually wins a customer for life. It is one thing to talk about
excellent customer service, but it is another to demand it and maintain it as
a key element of an organization's culture. The first reaction to customer
complaint is a negative one. No matter how much you’ve tried, some of them
will not be satisfied. But you should try and see customer complaints in a
positive light. Complaining clients are clients who care about getting better
service. They want to keep working with you. Therefore, instead of seeing
comply as a blow to your business, try and see them as valuable feedback.

3.4.5.1 Importance of Customer Service

Whatever your business is customer service can make or break your

business quickly. From a real estate organization to the kid that delivers your
newspaper customer service should be your top priority. If your customer
service skills leave a lot to be desired you will lose out on referrals as well as
repeat business.
Customer service is the key to any business because bad word of mouth
advertising travels ten times faster than good word of mouth. Here is a
perfect example. If you go to get your hair cut and it is terrible. The first ten
people that will listen to the story, you will be sure to tell them where not to
get their hair cut. However, if you liked your haircut you will not go around
boasting about it. The first few people that notice and compliment you on a
nice haircut, you will be happy to refer them to the nice girl at the mall that
cut and styled your hair.

Same goes for where you ate lunch. If you liked the food but not the
customer service you will be sure to tell people where not to go before you
tell them a nice place to go. It is just human nature that makes a lot of
people tend to be this way.
So let’s start off on the right foot and make a good customer service
impression as a real estate organization for your customers.

The most important thing that you can do first and foremost is smile. Sounds
so simple doesn’t it? Have you ever heard, “It’s all in the delivery?” It is so
very true. Take the time as real estate agent to smile and use eye contact
when speaking to your customer. Acknowledging your customers with
courtesy, eye contact and smiles makes them feel important and open to
you. They will feel the need to be less guarded. Customers will be more likely
to share what their needs are and truly what might be holding them back
from using your services today.

Customer service is about integrity and a positively professional attitude

towards your customer. Don’t be a glass half empty real estate agent sales
representative. Be the glass is have full customer service representative.
Listen to what it is they need and if you can help them then do it. If you can’t
assist them refer them to someone who can help the assist them better with
their needs. The customer will almost certainly refer you to someone they
know or be back for another service or product that you do offer. By doing
that for them, you just told them that you cared about them and their needs.
The customer now trusts you and will know that you will be honest in what
you can and cannot do for them. This is how long term customer
relationships are built.
3.4.5.2 Be Familiar with Buyer/Seller Needs
If you are a real estate organization that has a customer that you helped to
buy a home, you can get quality leads for your satisfied customer/client. You
took the time to sit and earn their trust, they have told you their needs now
it is time to go to work for them. Be committed to each individual client.
Whether the client is a buyer or a seller, be accessible for them in a timely
fashion.

One thing you won’t want to do is to neglect one customer for another. Each
individual customer or client should have your full attention. Make the best
of the time that is given to you with each client. They will appreciate you for
it and repay you with great word of mouth to your future clients as well as
repeat business.

3.4.6 Six Steps to Remarkable Service:

Asset Development & Holdings Ltd continues its center of attention to increase
customer loyalty by improving the quality of customer service. Employees of this
real estate go through to understand and work through these steps (every time) for
customer loyalty and customer retention.

Connect with customer

The people of the ADHL always try to be connected with their customers to
meet there expectations by providing better quality, flexibility of the larger
selection and innovative products.

Discover what they want

People of this company are highly concerned to define what the customer
wants while they are negotiating with the buyers of apartments and sellers
of the land. At this stage, the company also gets the flexibility of getting
background information and their perceptions regarding the company and its
market position.

Know what you can do

To increase customer loyalty, the people of the selling department of ADHL
spend their considerable time to define what they should do when the
customer show his or her positive attitude toward for closing the buying
process.

Do it
Whenever people of the ADHL can understand what the customers want and
how they want to close the buying process then they do in accordance of
customer responses.

Follow-up
It is highly practiced in the ADHL for maximizing its customer feedback
because it believes that business is defined by customer relationship.

Thank them
Having completed the buying process for the apartment buyer and the
selling process for the land sellers, the AHDL’s selling and purchasing
department gives them feedback and ensure them for their expectations and
finally congratulate them.

3.4.7 Achieving Customers Satisfaction:

Service Quality and Customer Expectation of Asset
Developments & Holdings Ltd
In any kind of business, keeping a high quality is essential to sustain in the
market. And a successful organization like Asset Developments & Holdings
Ltd. the service quality must be more than enough to drag as well as to keep
the customers.
Responsivenes
Reliabilit
Tangible
Empath
Pric
Customer
Situation
Produc
Person
Servic
s Assurance
y
sy ale
Satisfactio
t
Factors
Qualit
n
y

Customer Perception and Satisfaction

To serve with the best quality, reliability, which is the ability to perform the
promised service dependably and accurately, must be maintained.
Responsiveness, which is the willingness to help customers and provide
prompt service, must also be maintained. This dimension emphasizes and
promptness in dealing with customer requests, questions, complaints and
problems. By hiring right (mainly theory X) kind of employee, this concept
can be satisfied. Again, assurance is defined as employee’s knowledge and
courtesy and the ability of the firms and its employees to inspire trust and
confidence. This dimension is likely to be particularly important for services
that the customer perceives as involving high risk and/ or about which they
feel uncertain about the ability to evaluate outcomes. So we must hire
efficient employees. Then empathy is defined as the caring, individualized
attention the firm provides to its customers. The essence of empathy is
conveying through personalized or customized service that customers are
unique and special. All customers want to feel understood by and important
to firms that provide service to them. So empathy must be there.
So if these points are ensured to have the best quality, the service quality
increases itself. And this is very much important to achieve the goal of the
organization.

How To ASSET DEVELOPMENTS & HOLDINGS LTD Satisfy

their Customers:
Keeping customer satisfied is key to success and it doesn't matter if are
selling products or services to external or internal customers. For improve
customer satisfaction company perform the following ten activities.

Understanding
Make sure what customers really want. Use that information to follow up with
actions and solutions.

Access
People want an ease of doing business. ASSET DEVELOPMENTS & HOLDINGS
LTD offer multiple communication methods (phone, web, or call center) and
make sure the experience is speedy, efficient, and pleasant.

Respect
Customers want someone who understands and can respond to their needs.
ASSET DEVELOPMENTS & HOLDINGS LTD always acknowledges customers
and treats them with respect to earn their trust and their business.

Personalize
People like to feel special. Sending specific, personalized messages will help
eliminate some customer's feeling of insignificance, help connect with those
people, and help form a bond with them.

Streamline
Offer processes that are streamlined and automated, but also have available
guidance or confirmation at the end of the automated process to ensure that
the customers issues, orders, etc., have been resolved or fulfilled. Always
have an option to escalate issues to a customer service Department.

Track Information
Create a knowledge base so customers do not have to repeatedly give their
contact, product, or problem details.
Target
Use data to be proactive, but also use it for a targeted purpose. Do not try to
sell the same widget or service to your entire customer base. Approach only
those customers who are most likely to be interested.

Empower
Empower customer service department to resolve problems on the spot,
including offering discounts or special services to retain customers who
might otherwise head to a competitor.

Easy Doing Business

Find ways to make it so easy for customers to do business with you that
switching to a competitor would be work for the customer.

Interpret Need
Note the difference between what customers say and do (customers say
they want free shipping, but willingly pay for it with no complaints), and find
ways to use that information so that everyone benefits.

3.5 Construction of ADHL

Safety and security first.

Highest safety- Standard on the basis of ACI code.
24 hours supervision during construction.
Earth quake protection up to 8.4 Richer Scale.
Cement and concrete are regularly tasted in laboratories for ensuring
the quality.
All construction are supervised by well qualified term of experienced
engineers.

3.6 Infrastructure of ADHL

Office layout is divided into 13 sections to ensure smooth execution and
implementation of their projects.
1. Planning and Development.
2. Architecture and Design.
3. Engineering.
4. Marketing
5. Procurement
6. Accounting
7. Administration
8. Public relation
 9. Land
10.Advertising
11.Loan
12.Security
13.Human Resource.

3.7 Financial Sources of ADHL

• Own Fund
• Bank’s Loan
• Advance Payment of customers

Part Four
 Marketing Activities of Asset
Developments & Holdings Ltd

4. Marketing Activities of ADHL:

4.1 Marketing Strategy of ADHL:

Generally marketing means a social and managerial process by which
individuals and groups obtain what they need and want through creating and
exchanging products and values with others. Many people think of marketing
only as selling and advertising. However, selling and advertising only the tip
of the marketing iceberg. It the marketer does a good job of understanding
consumer needs, develop products that provide superior value, and prices,
distributes and promotes them effectively, these products will sell easily.
Marketing of fixed assets are not such as other products or services. It is
because buyers think a lot before making a buying decision of such product.
They consider a number of things before making such decisions. So
marketing strategy used in this business is like the other products marketing
strategy. The marketing strategies used by the ADHL are stated below:
Like the other company’s products marketing strategy, the marketing theory
of ADHL is made up of the 4 p’s. Product, Price, Place, Promotion. Each “P”
contributes to its marketing.

4.1.1 Analysis 4 p’s of ADHL:

4.1.1.1 Product Strategy
Normally we know, a product is anything that maximizes utility of the
consumers. With respect to product, marketing strategy consists of the
following features of a product:
Asset Developments & Holdings Ltd. is committed to provide to the living
standards of the people. This commitments demands immense social
responsibility of ensuring quality in terms quantity, purity, stability, safety,
efficacy and presentation of the product. At every stage of the production, a
stringent control mechanism involving raw material testing, in-process
quality control, finished product testing as well as stability monitoring and
documentation is maintained to ensure the highest quality product
consistently.

In my study, products are land and buildings for residential and commercial
use, for these products the main features are as follows

Product Varity of the ADHL.

Durability of the Products.
Design of the Products.
Location.
Sizes and
Without Impediments.

Quality Maintenance and Control

In the case of land the quality is assured by developing firms and eliminating
its problems such as lowland ness, legal obligation, impediments etc. On the
other hand, in the case of building construction quality materials are used
and all the necessary materials are used and maintained accordingly, in
some cases necessary expert’s opinions are also considered. All the quality
factors are controlled by the direct supervision of the MD of the company as
well as with his selected personnel specialized in the respective fields.

4.1.1.2 Pricing Strategy

Generally price is the amount of money charged for a product or service, or

sum of the value that consumers exchange for the benefits of having or
using the product or service. Again pricing policy is the course of action or
guiding philosophy that helps a business firm to pricing decisions smoothly
and perfectly. It also guides the firm to achieve its goals. It is an important
element of the entire marketing strategy of a firm. A firm can easily
manipulate the demand of the target market by handling its price carefully.

At the present time, the market is highly segmented, primarily based on

location, price of the land and size of the apartments. As a result, the ADHL
is highly concerned to provide highest quality residential real estate by
considering its price as accepted by the target market. The most common
statement of the marketing executive of ADHL is that “we are dedicated to
providing customers of real estate with the highest quality services possible
so the price of Asset Developments & Holdings Ltd is higher than other
competitors”

Pricing Objectives:

The objectives of pricing strategy must be consistent with the company’s

overall mission and purposes. A company can obtained six major objectives
through its pricing survival. These are maximum current profit, maximum
revenue, maximum sales growth, maximum market skimming, and product
quality leadership. Asset Developments & Holdings Ltd pursues three of the
above objectives- Survival, maximum current profit, and maximum sales
growth through its pricing.

Survival: Company pursues survival as its major objectives. Since ADHL

strong competitors and change in consumers wants for lands and housing,
therefore survival is one of its pricing objective.

Maximum Current Profit: It estimates its demand and costs

associated with alternative prices and choose the price that produces the
maximum current profit, cash flow and rate of return on investment.

Maximum sales Growth: ADHL sets a reasonable price for its products
(lands and apartments) considering the competitors prices. The company
wants to maximize unit sales and thus profit.

Pricing methods

There are a number of price setting approaches, these are- markup pricing,
target return pricing; buyer based pricing, going rate pricing, sealed bid
pricing approach. At the present time, ADHL adopts going rate pricing
method for its products. In going rate pricing the firm bases its price largely
on the competitor’s prices with less attention paid to its own costs and
demands. The study shows the pricing of the real estate depends on certain
factors such as location, square feet, quality of construction, construction
cost, and amenities, markup policy, competitors’ price and demand for the
product. In the case of pricing, ADHL considers the following factors.

Determine the purchase price

Estimates the developments costs.
Predict the future costs of the land.
Fixed costs of the asset.
Variable costs of the assets.
Lastly competitors’ costs.
4.1.1.3 Place/Distribution Strategy
In the face of today’s competitive business environment, Asset
Developments & Holdings Ltd develops and retains high achieves and a
motivated workforce and also provides an excellent working environment for
them that reflect and promote a high level of loyalty and commitment, both
to its employees and from its employees. At Asset Developments & Holdings
Ltd, good work is always expected and rewarded. Over the years, the
company has been successful in providing an environment and culture that
nurtures individual growth and development, and allows people to attain
personal fulfillment as well as achieve company objectives. The competent
workforce of the company provides with every reason to be optimistic about
the future.

4.1.1.4 Promotion Strategy

Promotion mix is composed of four tools of communications- advertising,
personal selling, sales promotion, and publicity. In the face of today’s
competitive business environment, ADHL develops and retains high achieves
and a motivated workforce. We create an excellent working environment for
them that reflect and promote a high level of loyalty and commitment, both
to our employees and from our employees. At ADHL, good work is always
expected and rewarded. Over the years, the company has been successful in
providing an environment and culture that nurtures individual growth and
development, and allows people to attain personal fulfillment as well as
achieve company objectives. It is our competent workforce that provides us
with every reason to be optimistic about the future.

ADHL is committed to developing individual’s human, technical and

conceptual skills through various educational and a wide range of internal
and external human resource development and job related training programs
each and every year.

At ADHL, a well-planned and structurally designed in- house training activity-

involving sales, marketing and production etc. is conducted throughout the
calendar year. These training programs are conducted by in-house resource
persons on a regular basis and as per scheduled. ADHL employees also
received training from Rapport Bangladesh Limited and Tack training on the
following topics:

 Time Management
 Customer care
 Customer relationship management
 Leadership
 Team building and leadership
ADHL is spending on promotional activities which are shown in the following
table-

Expenditures on Promotion Program

Figure-1.1
(TK. In Million)

Year Sales Advertise Personal Total

Promotion ment Selling
2000 2 19 6 27

2001 5 22 9 36

2002 7 17 8 32
2003 9 21 5 35

2004 14 14 12 40

2005 16 12 11 39
2006 10 23 14 47
2007 13 20 16 49
Total 76 148 81 276

Source: Annual Report of ADHL

Advetising
Here most of the importance is given to the advertisement and on creating
customer faith and also to the after sales services. ADHL spends the biggest
portion of its total promotion budget for advertising. When we look at the
company, we can easily realize that the company could successfully
anticipate the effectiveness of advertising. Here some of vehicles used as
media for the advertisement of ADHL products.
Newspaper
Advertisements are published frequently on the most of the national dailies
citing feasibility, opportunities, advances etc along with attractive
photograph of the projects.
Neon Sign Billboard
Lots of billboard and neon sign are established at the different places of the
city. Generally these places are selected according to the commercial
importance.
Television
Advertisement is also frequently shown on the national and private channel
in order to attract the potential customers and also to get the people to know
about the projects.

Personal Selling
Company maintains good relationship with the customers. Generally, the
company follows two mode of personal selling for maintaining long term
relationship with their target customers.

Field force employees

A number of employees are engaged in door to door marketing. They go to
the customer’s houses, explain them about projects and request them to
come to the office about the real condition of the projects. Generally this is
the task of influencing the people to make a purchase decision.

In House Marketing Team

In hose marketing team is the part of the marketing department of the
company. Usually they work with the direct customers who come to the
office directly for land and office purpose. Different personnel of the in house
marketing team co-ordinates with the customers. The personnel explain
explain different aspects of the projects to the customers and also give them
answer of questions. However their main motto is to sell their products by
giving service.
Sales Promotion
Sales promotion is another essential ingredient in marketing campaign.
Advertisement offers a reason to buy, whereas sales promotion offers an
incentive to buy. ADHL offers the following – discounts, gifts, low cost
services price off, cost free services etc.
Sales policy of ADHL:
Moat of the company in this industry develop sales policy based on in house
in house sales personnel. The out side sales forces are generally used to
create customers. In case of purchasing a plot or a flat the first task a
customer has to do is booking the plot or flat with a specified amount of
money. After the booking rest of the are done by sales and credit realization
personnel. In case of selling ADHL follows the following two sales policies.
Sales at a time with cash payment
In this case at first the customer pays the booking money and after one
month of booking pays the rest of amount.
Sales on installment
This is comparatively relaxed policy. There are several installment schemes.
In this case the purchaser can pays a specified amount either in 12 or 24 or
36 or 60 or 72 installments.

4.2 SWOT analysis of the company:

The SWOT analysis provides a useful strategic guidance. A SWOT analysis (Strength,
Weakness, Opportunities and Threats) allows in constricting balance sheet for the
company. In the analysis one can bring together all the internal factors, influencing
company’s strength and weakness. Based on these factors we can identify external
fact0ors which can help to define opportunities and threats that a company faces
due to competitive forces and trends in the business environment.

Strength
Company has excellent service department.
Brand name is the company’s most important assets.
Company always concern about to know, what is new and how can it
overcome.
It has efficient management.
Good reputation all over the Bangladesh
Wide distribution capability
Healthy financial position
Has moderate experience in the business field
Innovation capacity is excellent

Weakness

It does not have vast marketing program

 It does not have own training department
It has low capacity to define the target market

Opportunity
Very few domestic companies compete in this industry. So, there is big
change to explore business activities
Most of the company does not know the actual market size of real estate
business. As the need for better housing is increasing, there is a great
opportunity to measure the market and penetrate the market.
ADHL also takes the financial risk to bring any change and penetrate the
market.
Price should be moderate and somewhat below the competitors price.
It has creative power to develop innovative thing.

Threats
Competitors are becoming a big threat for the company.
Low price of the competitors is another threat.
Political Instability is another great threat for the company.
Changing customers demand.
Changing world economy rapidly.

Part Five
 Project Part
Analysis and Findings

5. Analysis and
Findings:

5.1 Primary Data Analysis Customers:

After taking the answers of the questionnaire from the customers, those
following findings and analysis have been prepared. Here all the primary
data collected from the customers against the questionnaire.
Question-1 On which Real estate company’s products do you normally
emphasizes?
Votes casted against the above question from 100 customers are shown as
following
 Name of the Real Number of votes
Estate Company obtained
Eastern 4
BTI 5
Advance 6 Figure 1.2
Asset 45
Sheltech 3
Bay 3
Assurance 5
Rangs 6 Question-2.
Navana 5
Building for Future 6 In your opinion, at present which
Urban 4
Dom ino 4
company is ensuring superior
Amin Mohammad 4 product quality?

Votes casted against the above question from 100 customers are shown as following

Name of the Number of

Real Estate votes
Company obtained
Eastern 5
BTI 8
Advance 7
Asset 16
Sheltech 8
Bay 6
Assurance 9
Rangs 10
Navana 7
Building for Future 7
Urban 6
Dom ino 5
Amin Mohammad 6

Figure 1.3

Question-3
Which company’s brand name is easier to memorize?

Votes casted against the above question from 100 customers are shown as
following
 Name of the Number of
Real Estate votes
Company obtained
Eastern 5
Figure 1.4
BTI 10
Advance 9
Asset 45
Sheltech 4
Bay 3
Assurance 4 Question-4
Rangs 5
Which company offers comparatively
Navana 3
Building for Future 2 reasonable price having the
Urban 4 appropriate product quality?
Dom ino 3
Amin Mohammad 3 Votes casted against the above question
from 100 customers are shown as following

Name of the Number of

Real Estate votes
Company obtained
Eastern 10
BTI 8
Advance 7
Asset 13
Sheltech 5
Bay 6
Assurance 9
Rangs 12
Navana 6
Building for Future 4
Urban 5
Dom ino 9
Amin Mohammad 7

Figure 1.5

Question-5

Which company is pioneer in introducing newer products

consequently?
Votes casted against the above question from 100 customers are shown as
following

Name of the Number of

Real Estate votes
Company obtained
Eastern 3
BTI 5
Advance 9
Asset 14
Sheltech 7
Bay 10
Assurance 8
Rangs 12
Navana 6
Building for Future 7
Urban 5
Dom ino 11
Amin Mohammad 8

Figure-1.6

Question-6

Which company’s products are more available in most of the area?

Votes casted against the above question from 100 customers are shown as
following

Name of the Number of

Real Estate votes
Company obtained
Eastern 4
BTI 11
Advance 10
Asset 6
Sheltech 5
Bay 3
Assurance 5
Rangs 10
Navana 5
Building for 6
Future
Urban 4
Dom ino 18
Amin 13
Mohammad

Figure- 1.7

Question-7
Which company provides the most informative promotional
materials regarding the product?

Votes casted against the above question from 100 customers are shown as
following

Name of the Number of

Real Estate votes
Company obtained
Eastern 6
BTI 8
Advance 7
Asset 18
Sheltech 6
Bay 7
Assurance 8
Rangs 9
Navana 7
Building for 6
Future
Urban 5
Dom ino 6
Amin 7
Mohammad

Figure-1.8

Question-8

Which company’s Executives are smart enough to communicate

with you?
Votes casted against the above question from 100 customers are shown as
following

Name of the Number of

Real Estate votes
Company obtained
Eastern 2
BTI 4
Advance 8
Asset 24
Sheltech 6
Bay 4
Assurance 10
Rangs 8
Navana 5
Building for 6
Future
Urban 3
Dom ino 15
Amin 5
Mohammad

Figure-1.9

Question-9
Which company’s Executives are more active in responding
customer’s suggestion?

Votes casted against the above question from 100 customers are shown as
following

Name of the Number of

Real Estate votes
Company obtained
Eastern 2
BTI 10
Advance 8
Asset 24
Sheltech 4
Bay 4
Assurance 12
Rangs 7
Navana 6
Building for 4
Future
Urban 3
Dom ino 9
Amin 7
Mohammad

Figure-1.10

Question-10

Which company operates the most innovative marketing

approaches frequently?

Votes casted against the above question from 100 customers are shown as
following

Name of the Number of

Real Estate votes
Company obtained
Eastern 3
BTI 6
Advance 7
Asset 24
Sheltech 5
Bay 4
Assurance 11
Rangs 7
Navana 8
Building for 6
Future
Urban 4
Dom ino 10
Amin 5
Mohammad
Figure-1.11

Question-11

Which Company committed to on time handover the Apartment?

Votes casted against the above question from 100 customers are shown as
following

Name of the Number of

Real Estate votes
Company obtained
Eastern 3
BTI 5
Advance 6
Asset 51
Sheltech 4
Bay 3
Assurance 7
Rangs 4
Navana 3
Building for 4
Future
Urban 2
Dom ino 4
Amin 4
Mohammad

Figure-1.12

Question-12

Which Company committed to post handover service?

Votes casted against the above question from 100 customers are shown as
following
 Name of the Number of
Real Estate votes
Company obtained
Eastern 3
BTI 6
Advance 7
Asset 45
Sheltech 5
Bay 4
Assurance 6
Rangs 4
Navana 3
Building for 6
Future
Urban 2
Dom ino 6
Amin 3
Mohammad

Figure-13

5.2 Result in Semantic differential

model:

All the companies’ market images according to the customer’s opinions are
shown by a semantic differential figure where ten point scaling technique
was used.

Output drawn in ten point scale

Name of Number of votes obtained Ten point scaling technique
the Real
Estate Criteria
Company
 P Pro Bra P Ne A Pro Sm R Inn Tim Po
r duc nd ri we v mot art e ova ely st
o t Na c r ai ion Exe s tiv Ha Ha
la al p nd
d Qu me e Pro bi Mat
cut o
e nd ov
u alit Me & duc li eria ive n Ma ove er
c y mo Q ts t ls s rke r Ser
t riz u y e tin vic
E e a t g es
m li o
p t C
u
h y st
a o
si m
z e
e rs

Eastern 0.4 0.5 0.5 1.0 0.3 0.4 0.6 0.2 0.2 0.3 0.3 0.3

BTI 0.5 0.8 1.0 0.8 0.5 1.1 0.8 0.4 1.0 0.6 0.5 0.6

Advance 0.6 0.7 0.9 0.7 0.9 1.0 0.7 0.8 0.8 0.7 0.6 0.7

Asset 4.5 1.6 4.5 1.3 1.4 0.6 1.8 2.4 2.4 2.4 5.1 4.5

Sheltech 0.3 0.8 0.4 0.5 0.7 0.5 0.6 0.6 0.4 0.5 0.4 0.5

Bay 0.3 0.6 0.3 0.6 1.0 0.3 0.7 0.4 0.4 0.4 0.3 0.4

Assurance 0.5 0.9 0.4 0.9 0.8 0.5 0.8 1.0 1.2 1.1 0.7 0.6

Rangs 0.6 1.0 0.5 1.2 1.2 1.0 0.9 0.8 0.7 0.7 0.4 0.4

Navana 0.5 0.7 0.3 0.6 0.6 0.5 0.7 0.5 0.6 0.8 0.3 0.3

Building for
0.6 0.7 0.2 0.4 0.7 0.6 0.6 06 0.4 0.6 0.4 0.6
Future

Urban 0.4 0.6 0.4 0.5 0.5 0.4 0.5 0.3 0.3 0.4 0.2 0.2

Dom ino 0.4 0.5 0.3 0.9 1.1 1.8 0.6 1.5 0.9 1.0 0.4 0.6

Amin
0.4 0.6 0.3 0.7 0.8 1.3 0.7 0.5 0.7 0.5 0.4 0.3
Mohammad

5.2.1 Output drawn in ten-point scale:

Output drawn in ten-point scale: Only for Asset Developments &

Holdings Ltd.
(Customers point of View)
Summation of scaling ranks of all criteria (12):

SL No Criteria Point
01 Product Emphasize 4.5
02 Product Quality 1.6
03 Brand Name Memorize 4.5
04 Price & Quality 1.3
05 Newer Products 1.4
06 Availability 0.6
07 Promotional Materials 1.8
08 Smart Executive 2.4
09 Response to Customers 2.4
10 Innovative Marketing 2.4
11 Timely Handover 5.1
12 Post Handover Services 4.5
Summation 32.5
Overall position in the scale which shows 32.5/12= 2.71
Assets Developments & Holdings Ltd.’s
market image

5.3 Recommendation and findings:

5.3.1 Findings from customer’s survey

Assets Developments & Holdings Ltd’s market image obtained the rank of
2.71 in terms of the 10 point scaling judgment found by the customer’s
survey analysis. More details if we interpret the 2.71 ranking in the
percentage (%) format it would be the 20.71 percent. With the systematic
questionnaire, the market of ADHL has high potentiality to survive. The
major findings of this survey are as follows

➢ Actual market image of Asset Developments & Holdings Ltd.

➢ Company has opportunity to be market leader in this industry.
➢ It has moderate market share in the industry.
➢ Actual market size of the company
➢ The main competitors of the company
➢ The reason of highest market share is quality.
➢ Marketing strategy of the company.
➢ Customer satisfaction and their attitude toward the company
 ➢ Problem faced both customers and marketers in the same industry.
➢ Ensure that Brand is viewed as an asset of the company.

5.3.2 Findings in the real estate business:

The task of marketing is not an easy, one mainly for such fixed asset, which
cannot be replaced. Again now we are living in a very fast changing world.
The demand of people also changing frequently and the result is a difficult
position for every company to meet the changing customer demand. In the
case of marketing and other function, the company department faces the
following problems.

Lack of customer faith

The most difficult job for the most marketing executives is to create faith on
customer mind. They always hesitate to make such purchase decision. They
hardly believe the company and its projects for following reasons.

• There is no direct government supervision in this sector. So they feel

insecure to make purchase decision from the company.
• There is no government policy to guide the business.

Lack of customer knowledge regarding housing

This result in too much time is needs for the marketer to make a better
understanding regarding their perception about the company product.

Failure in commitment

Sometimes the company fails to hand over the plot or flat within the
specified period due to several factors like storage in raw materials, legal
building, deadly in preparation of necessary papers etc.

Political Instability
It is another problem in marketing. Due to political unrest construction and
development, works delayed which delay the whole project. For this, hand
over date is also extended. So, it reduces the good will of the company and
customers faith.
Natural Climate

Natural climate like heavy rainfall, flood, storm, earth quake,

usually delayed the project work. So, unfavorable natural climate
is one of the main problems in this business.

Competitors
Competitors always change the policy frequently in this industry which is
also considered as another major marketing problem.

Miscellaneous
Disturbance of illegal, collectors of subscription, corruption from the
government and non- government bodies is also major problem in this
sector.
 Part Six

Conclusion & Recommendation

6. Conclusion & Recommendation:

Today Real state is recognized the world over as the main engine that runs
the economy, creating work not only for masons and managers, accountants
and architects, but also for makers and sellers of building materials. It means
work for maintenances, security cleaning and other services; work for
makers and sellers of appliances, furniture and vehicles; work for bankers
and bureaucrats, lenders and lawyer. Human being has always been in
search of new and better homes. Thus cities, towns and villages grew,
flourished and wither away. In the process, societies forever demand and
produce all kinds of goods and services, through, never satisfied, we ask for
things more different. Real estate visibly shapes the way people live, work
and innovates and therefore most strongly defines culture and civilization.

In Bangladesh perspective, it is almost impossible for the government to

ensure housing for all. As the public sector failed to provide this, people have
taken their own initiative to ensure their fundamental need for shelter.
Government alone cannot provide housing to all and realizing this, they
decided to share the task of providing safe decent places to live with Real
Estate Developers, to make people productive resources. So, government
should provide much flexibility to the developers to provide better housing
facilities not only to higher income people but also middle and lower income
people.

At the present time, the population of our country is increasing at very

alarming rate but total rent are remains constant. The demand of housing is
very high, particularly in Dhaka city. So, the prospect of real estate business
is very high. Now if the real estate companies run their business according to
the demand of middle class, lower middle class, and higher middle class
people, the business must be profitable. From the study, which I have
conducted at ADHL found that they are using all the possible policies to run
the business. The report also has shown the overall picture of the real estate
market and opportunity in Bangladesh.

I was assigned in the real estate sector in Bangladesh. Three months are
short to understand every aspect of a company and overall market condition
of this sector. Actually it needs more time to determine the over all market
size, conditions, opportunity, and business activities of the company.

Within the short time, I have tried to show the overall scenario of real estate
sector and its marketing activities and actual market image of different
company through direct interviews from different customers based on
marketing activities of Assets Developments & Holdings Ltd.

And finally, I hade tried my best to analyze the company’s market image and
position on the basis of my surveys results. So from my own experience I
may suggest the following recommendations for sound and success market
operation of the company:
 The company management response to the market must be efficient
and active.
The company should recruit experienced and active people should be
appointed in the marketing division.
Product Price should be moderate and adjusted with the competitors’
price.
The company executives should be more caring to the customer’s
speeches and opinions.
The company should establish sound and effective communication
channels with internal customer through electronic mail.
Decentralized authority to prompt communication and decision.
The company should establish franchises in different location for
prompt customer Care.
Website needed for the convenient of the customers.
Company should give more advertisement in different media like
Radio, TV, Newspaper, and Magazine.
It also should offer credit facilities to different classes’ people in order
to increase their ability to purchase the plot/apartment.
The company must increase the promotional activity.
Establish incentives for frequent and repaid feedback on performance.
Use appropriate technology to help jobs easier, more productive, less
redundant & repetitive.

Finally Asset Developments & Holdings Ltd. has the opportunity to increase
its market share as its market image regarding the above survey found by
20.71 percent.
Part Seven

Bibliography
7. Bibliography:

Marketing Research (An Applied Orientation) by Naresh K.

Malhotra
Prentice, Hall of India (5th edition)

Marketing Management by Philip Kotler Prentice, Hall of

North America (11th edition)

Business Research Methods by William G. Zikmund

,Thomson, South-Western (8th edition)

Prospectus of Asset Developments & Holdings Ltd.

Real Estate and Housing Association of Bangladesh (REHAB).

BBS (Bangladesh Bureau of Statistics) (1991) Statistical year

book of Bangladesh (Dhaka: Reproduction, Documentation
and Publishing Wing, BBS)

ADB (Asian Development Bank) (1995). Technical Assistance

Performance Audit Report on the Housing Sector

Bangladesh House Building Finance Corporation,

http://bhbfc.gov.bd/eknajar.html

Website:

➢ www.scribd.com
➢ www.wikipedia.com
➢ http://www.un.org/Overview/rights.html
➢ www.rics.org/research RICS Research Valladares. L. and
Coelho. M. P. (2002) Urban Research in Latin America:
Towards a Research Agenda (UNESCO, 2002
➢ www.ifc.org/ifcext/municipalfund.nsf/AttachmentsByTitl
e/IFC_Housing_Finance/ $FILE/IFC+and+Housing+Finan
ce.pdf
8. Annexure:
Questionnaire Pattern for Customer:
The questionnaire pattern for customers Sample size: 100
Customers
Please give tick (√) mark to your chosen answers from each of the following
questions.

1. On which Real estate company’s product do you normally

emphasize?

(a) Eastern (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance
(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad
(m) Domino (n) none (o) All (p) No comment

2. In your opinion, at present which company is ensuring superior

product quality?

(a) Eastern (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance
(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad
(m) Domino (n) none (o) All (p) No comment

3. Which company’s brand name is easier to memorize?

(a) Eastern (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance
(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad
(m) Domino (n) none (o) All (p) No comment

4. Which company offers comparatively reasonable price having

the appropriate product quality?

(a) Eastern (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance
(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad
(m) Domino (n) none (o) All (p) No comment

5. Which company is pioneer in introducing newer products

consequently?

(a) Eastern (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance
(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad
(m) Domino (n) none (o) All (p) No comment
6. Which company’s products are more available in most of the
area?

(a) Eastern (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance
(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad
(m) Domino (n) none (o) All (p) No comment

7. Which company provides the most informative promotional

materials regarding the product?

(a) Eastern (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance
(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad
(m) Domino (n) none (o) All (p) No comment

8. Which company’s Executives are smart enough to communicate

with you?

(a) Eastern (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance
(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad
(m) Domino (n) none (o) All (p) No comment

9. Which company’s Executives are more active in responding

customer’s suggestion?

(a) Eastern (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance
(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad
(m) Domino (n) none (o) All (p) No comment

10. Which company operates the most innovative marketing

approaches frequently?

(a) Eastern (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance
(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad
(m) Domino (n) none (o) All (p) No comment

11. Which Company committed to on time handover the

Apartment?
(a) Eastern (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance
(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad
(m) Domino (n) none (o) All (p) No comment

12. Which Company committed to post handover service?

(a) Eastern (b) BTI (c) Advance (d) Asset (e) Sheltech (f) Bay (g) Assurance
(h) Rangs (i) Navana (j) Building for Future (k) Urban (l) Amin Mohammad
(m) Domino (n) none (o) All (p) No comment