ABSTRACT
This chapter highlights the historical development of the real estate business in Bangladesh, current practices, and challenges for the development of housing markets in Bangladesh. The financial sector of Bangladesh constitutes banks, non-bank financial institutions, insurance companies, microfinance institutions, and two capital markets. The emergence of the mega city Dhaka is the outcome of urbanization in Bangladesh. The development of the real estate business in Bangladesh can also be attributed to several other reasons. The majority of the home owners use household savings, loans from friends and family, and the sale of other land as sources of housing finance. The following are the sources of formal housing finance in Bangladesh: commercial banks, a government agency, home loan providers, life insurance companies and other sources. The legal framework for the real estate business in Bangladesh is still in its infancy.
