Investing in real estate can be a wise decision for individuals who want to secure their financial future. In Bangladesh, buying more properties can be a great way to grow your wealth and create a stable income stream. In this blog, we will discuss three reasons why you should consider buying more properties in Bangladesh.
Rising Demand of Properties
Source: Live Ethio Real Estate Marketplace
The demand for properties in Bangladesh has been consistently increasing due to the country’s growing population and the rapid pace of urbanization. According to the World Bank, Bangladesh’s population has increased from 123.4 million in 2000 to 166.7 million in 2020. The UN projects that Bangladesh’s population will continue to grow, reaching 186.5 million by 2030.
With the increasing population, the demand for residential properties has increased. According to the Bangladesh Real Estate Market Report 2020, the demand for residential properties increased by 10-15% in 2020 compared to 2019. Furthermore, the report states that the demand for properties is expected to increase in the coming years due to the government’s focus on urbanization and the growing middle-class population.
The increase in demand for properties has resulted in a boost in property prices. According to a report by the Bangladesh Bureau of Statistics, the price index of land and houses increased by 8.35% in 2020 compared to the previous year. Moreover, the report states that the price index has been increasing every year, indicating a steady appreciation of property values.
Rental Income
Source: Embark Property Management
Investing in properties in Bangladesh can also provide investors with a steady rental income. According to the Bangladesh Real Estate Market Report 2020, the demand for rental properties increased by 20-25% in 2020 compared to 2019.
Furthermore, the report states that the demand for rental properties is expected to increase in the coming years due to the growing population and the trend of urbanization.
Moreover, rental income from properties is an excellent hedge against inflation.
According to the Bangladesh Bank, the inflation rate in Bangladesh was 5.5% in December 2020. However, the rental income from properties typically increases with inflation, providing investors with a stable income stream that keeps pace with inflation.
Diversification of Portfolio
Source: RBC Direct Investing-Royal Bank
Investing in multiple properties can provide investors with diversification, reducing their overall investment risk. According to a study by the International Real Estate Review, a diversified portfolio that includes real estate can provide investors with higher returns and lower volatility compared to a portfolio that only includes equities and bonds.
Furthermore, investing in multiple properties allows investors to take advantage of different opportunities in different locations. According to the Bangladesh Real Estate Market Report 2020, the property market in Dhaka, the capital city, is different from the property market in other parts of the country. Investing in properties in different locations can help spread the investment risk, ensuring that the overall investment portfolio is not affected by localized economic conditions.
Conclusion
In conclusion, buying more properties in Bangladesh can be a wise investment decision due to the rising demand for properties, rental income, and diversification of the investment portfolio.
Moreover, the stable political situation and growing economy have attracted foreign investors to invest in the country’s real estate market, providing an additional boost to property values.
However, investors should conduct thorough research and seek professional advice before making any investment decisions.
