1.

Introduction:

The COVID-19 pandemic has had a significant impact on the global economy, and Bangladesh
has not been immune to its effects. One sector that has been particularly affected is the real estate
industry. In this report, we will analyze the impact of the COVID-19 pandemic on the real estate
companies in Bangladesh, with a specific focus on Hasan and associated limited (HAL) and
Ameen groups. These companies are two of the major players in the Bangladeshi real estate
market, and their experiences can serve as a representative example of the industry.

2. Scope:

The scope area of the study is the information and data that we received on the internet. The
team members tried to use authentic links to prepare this paper. The statistics and various articles
helped us to understand the present situation of this industry and thus this term paper has been
built up.

 Impact on real estate industry :

The pandemic has had a significant impact on the real estate industry, with some sectors
experiencing more significant effects than others. One sector that has been particularly hard hit is
commercial real estate, especially office and retail spaces. With remote work becoming more
popular and many businesses struggling to stay afloat during the pandemic, demand for office
and retail spaces has decreased significantly. This has led to a rise in vacancies, lower rents and a
decrease in property values.

In contrast, the residential real estate market has fared better. Low mortgage rates and a desire
for more space and privacy have fueled demand for single family homes, particularly in
suburban and rural areas. As a result, home prices have risen sharply in many markets, and
inventory has been limited.

It’s worth nothing that the impact of the pandemic on the real estate industry has varied by
location, property type and other factors and the situation continues to evolve. This was a great
learning for us.
During the pandemic, the real estate industry was impacted in different ways, with some sectors
suffering more than others. Commercial real estate was heavily affected as businesses were
forced to shut down, leading to reduced demand for office and retail space. Residential real
estate, on the other hand, saw an increase in demand for larger homes and properties with
outdoor spaces as more people worked from home.
 Way to overcome this crisis:

Going forward, it’s important for the industry to be prepared for future pandemics by focusing on
innovative solutions such as virtual home tours and flexible workspaces. Such as:

 The pandemic has also highlighted the importance of labour health and safety issues in
the construction industry.
 It is now imperative for developers and contractors to prioritize worker safety protocols
and providing appropriate PPE.
 Additionally, the supply chain for raw materials has been disrupted, resulting in delays
and price increases.
 Developers and builders need to ensure timely procurement of raw materials to prevent
project delays and cost overruns.

So, without any hesitation it can be said that, Efficient supply chain management and strategic
partnerships with suppliers will be key to success in the post-COVID real estate industry.

3. Research Objectives:

This study shows the impact of COVID 19 on Real Estate Company of Bangladesh the
objectives could be summarized as follows

3.1 Scenario:

During the early stage of the pandemic, when the government imposed a two-month nationwide
lockdown between March 26 to May 30, 2020, all the housing projects came to a halt as people
did not make such big investments in a time of crisis so the demand for apartments was nil that
time. Because of the lockdown, around 6,000 projects of the REHAB members were in an
uncertainty as construction workers and other employees had to return home. Many customers
were also unable to pay their installments on time and so, due to the lack of funds.Because of
Covid 19 nationwide lock down acted as an obstacle to the growth of this sector, from which it is
gradually recovering because of the enormous support from the government.

3.2 Availability of Labor and Supply chain

During pandemic it becomes very detrimental about labor market, company liquidity, the supply
of materials, project delivery, and key cost components, and so on. The planned work cannot be
carried out due to the non-availability of sufficient numbers of skilled labors and staff. Moreover
due to effects of pandemic real estate sectors and the work-life of real estate professionals are
being hampered. As the high quality construction materials come from abroad and during
lockdown it was not available which causes a great impact on this sector.The lifeline of the real
estate sector is labor intensive and employees are a very critical resource that helps to increase
productivity and enhancing competitiveness in the market. The cost of construction supplies is
routinely rising in this manner increasing the structure cost. Related construction businesses
including brick, concrete, ready-mix, ceramic, MS bar, sanitary supplies, etc. have also been
facilitated by this sector’s growth

3.3 Money
The real estate industry of Bangladesh contributes approximately 12% of the
national GDP.a whole account for a larger share of the national GDP than
practically any other sector.
During COVID 19 pandemic many people lost their jobs and incurred huge losses in their
businesses because of back-to-back lockdowns and other measures that refrained people from
engaging in any economic activity. In effect, it created a cash flow shortage that affected every
industry and real estate is no exception.But when the sector was about to get worse,Our
government took some effective course of actions to keep the sector steady:
a) Provide permission to invest untaxed income in Real Estate
b) Implementation of single digits interest rate
c) Reducing overall property registration cost from 14%-15% to 10%-11.5% of the total
deed value
Soon after the legalization of undisclosed money in real estate, over BDT 3,200 crores was
invested in the sector during the first six months of FY 2020-21 alone. And as everything starts
to normalize, with reduced interest rates and registration fees, it is considered to be an optimum
time for buying a house As a result, many people are resorting to banking and non-banking
institutions for home loans and the real estate sector seems to be rebounding again. However,
with the lowest interest rate of 4% and the maximum loan facility of 75 lakhs, it is the
government employees who are greatly contributing to the real estate industry.

4. Methodology:

a) Selection of the topic and setting objectives: We, the team members have sat together
along with our respected faculty and finalized our topic to be “Impact of Covid-19 in
Real Estate Business”. We, then set of the objectives to execute the study.

b) Selection of two real estate companies: Two well-known real estate companies have
been chosen to continue this research. They are HAL (Hassan and Associates Limited)
andAmin Mohammad Group. REHAB membership is held by both companies.

c) Preparing a questionnaire: Based on the objectives, we have set a questionnaire to

continue the study.

d) Data Collection:We visited the two companies we had chosen for data collecting.We
interviewed some of the employees and officials and gathered data about their particular
companies' production.
e) Employees of these companies answered our proposed questions. They completed the
questionnaire based on their personal preferences.

f) Data Analysis:After gathering all of the information required to carry out this study, we
thoroughly analyzed it.Subsequent findings and recommendations were made.
5. Main Body Of the Report

5.1 Saliant information

Salient information of a company Amin Mohammad Group may include:

Amin Mohammad Group, a real estate developer that has built several residential and
commercial projects in Dhaka and Chittagong. It has been in the real estate business for well
over 20 years. Amin Mohammad Lands Development Ltd. (AMLDL) is a subsidiary of Amin
Mohammad Group (AMG). Mr. M MEnamulHaque established this group back in 1993 and then
went on to establish Amin Mohammad Foundation Limited (AMFL) which is a real estate
development company situated in Dhaka. Later on in the year 2000, Amin Mohammad Lands
Development Ltd. (AMLDL) was established and within a short time span it became one of the
most prominent land developer companies in Bangladesh.

Amin Mohammad Group has successfully handed over more than 5,000 residential and
commercial plots to their valued clients and the numbers keep increasing. Some of their most
iconic projects are Alokito Bangladesh, Ashulia Model Town, Amin Mohammad City, Amin
Mohammad Town, Green Model Town and Green Bonosree.

Their goal is to achieve excellence in the real estate sector and provide the best services based on
ethics and values. They aim to develop residential and commercial real estates of high standards
and earn our client’s gratification.

Their main purpose is to establish Amin Mohammad Land Development Ltd. (AMLDL) as a
world-class company in real estate development and surpassing the client’s expectations by
delivering excellent services.

Salient information of a Hassan And Associate (HAL)company may include:

1. Type of Properties: Construction, turn-key project, Real Estate, Commercial Space,

Apartments.
2. Geographic Area: HAL has projects in Dhaka, Chittagong, Mymensingh, Rangpur,
Sirajganj and many other major cities.
3. Experience and Reputation: HAL was founded in September of 1990, an active member
of REHAB and still in its best shape as a real estate company.
 4. Services Provided:The range of services provided by the company, such as buying,
selling, property management, construction, consultancy and real estate development.
5. Team Members: Naeema Hassan (Chairperson), Mahmudul Hassan( MD B.Sc. Engr.
Civil), Naimul Hassan (DMD M.B.A.), Adhora Madhuri Hassan (Director Technical, B.
Engr. Aerospace) and others like GM, Assistant GM, Senior Executive, Executive
Admin, Legal Advisor, Chief Engineer, 5 Project Engineers and so on.
6. Clientele: The target market and the type of clients the company caters to, such as
individual buyers, investors, or corporate clients.
7. Technology: The use of technology by the company, such as online platforms.
8. Financing and Investment:
9. Legal Compliance: An active member of REHAB.
10. Market Trends: The company is able to stay up-to-date with current market trends,
including changes in property values, consumer preferences, and government policies.

5.2Analysis:

We made 10 questions as a part of questionnaire and we send them to the relevant persons of two
real estate companies which were selected for our research work. They helped us by providing
their opinion through the survey.All the survey related questions are made based on the given
options low, medium, high which are rated by tentative value: 1,5,9. We took the opinion from
20 persons from each company. The weighted value of an option is multiplied by the number of
persons who choose the option and we got 3 value for 3 options and all of them are added. Same
procedure has been done for all 10 questions and finally we made a rank of the questions from
higher value to lower value.

Seria Factors Low Medium High Total Percentage

l No. (5) value
 (1) (9)

9 Fluctuation of inventory level 3 5 32 316 13.54%

and property price

7 Fluctuation of demand for 4 8 28 296 12.68%

properties

2 Selling of apartments and plots 6 10 24 272 11.65%

decreased during Pandemic

3 Workers who lost their job 7 10 21 246 10.54%

during pandemic

8 Implementation of safety issue 10 9 21 244 10.45%

6 Difficulties to obtaining fund 9 14 17 232 9.94%

during pandemic

1 Dissatisfaction on receiving 8 21 11 212 9.08%

Raw materials on time

4 Failure to accomplish 14 11 15 204 8.74%

Successful project during
pandemic

10 Impact on company's sales 13 19 8 180 7.71%

volume due to economic
uncertainty

5 Delay or cancel any project 22 13 5 132 5.66%

during pandemic

Grand Total 2334

Table 1: Weight analysis of the factors

 13.54%
14.00%
12.68%
11.65%
12.00%
10.54% 10.45%
9.94%
10.00% 9.08%
8.74%
7.71%
8.00%

5.66%
6.00%

4.00%

2.00%

0.00%
1 2 3 4 5 6 7 8 9 10

Figure 1: Bar Chart of the Factors

5.3 Findings:

From the table:1 and figure:1 we can observe that fluctuation of inventory level and property
price was the most alarming problem which created other major problems. One of them was
fluctuation of demand for property.

Fluctuations in inventory levels can have both direct and indirect effects on demand. Here are
some ways in which changes in inventory levels can impact demand:

Stockouts: If inventory levels fall too low, it can lead to stockouts, which occur when a product
is temporarily or permanently out of stock. This can negatively impact demand, as customers
may go to a competitor to find the product they need or lose trust in the brand

Overstocking: On the other hand, if inventory levels are too high, it can lead to overstocking,
which can tie up capital and lead to losses due to spoilage or obsolescence. This can also
negatively impact demand, as excess inventory may lead to lower prices or discounts to move the
product.

In most of the cases, demand from customers decreased during the pandemic due to the unstable
economic conditions in the world as well as Bangladesh caused lower sales of apartments and
plots, which places 3rd position in our analysis. All three things are closely related which are
shown in figure: 2 by indicating 3 slice which are blue colored.

Another alarming problem was losing job during pandemic. Due to lockdown, economic
problem and other reason, so many workers lost their jobs. In some cases, labor leave Dhaka not
to be affected by covid 19 and as a result they lost their job.

13.54%
7.71% 5.66%

8.74%
12.68%

9.08%

11.65%
9.94% 10.45% 10.54%

1 2 3 4 5 6 7 8 9 10

Figure 2: Pie Chart of the Factors

Recommendations:
 Build up a strong procurement department so that they can create a better networking and
relation with suppliers.
 Focusing on marginal profit to keep the market share stable.
 Ensuring the health insurance for the labor
 Contents Page
Title
EXECUTIVE SUMMARY
1. Introduction
2.Scope
3.Research Objective
4. Methodology
5.Body of the Report
5.1.Salient Information
a)Amin Group
b)Hassan And Associates Ltd
5.2 Analysis
5.3Findings
6.Recommendatios

Bangladesh University of Professionals

 A Term Paper
Course Name: Business Communication, Course Code: BUS7202

Submitted by:

Batch: 31, Section: A, Session:Sep-Dec 2021-22

MBA(Professional) Program
Faculty of Business Studies
Submitted To
Mr. Nafees Ahmed Imtiazuddin
Professor
MBA (Professional ) Program
Faculty of Business Studies
Bangladesh University of Professionals (BUP)
Date of Submission: 24th March, 2023