Housing Finance Institutions in Bangladesh- A Comparative Study on BHBFC & DBH

Abstract

Bangladesh is one of the promising housing markets with considerable growth potentials though it has been experiencing slow growth since 2010 due to some major problems. To resolve the housing shortage and revive the growth potentialities, providing housing finance is one of the important aspects that must be considered to meet housing needs. Though there has been continued expansion of the financial system, the need for housing finance remains inadequate. Many initiatives have been taken, including government-subsidized housing finance to help people to own a house, yet, low and middle-income groups have been confronting difficulties to get housing finance. This paper presents a comparative study between two specialized housing financial institutions in the development of housing sector in Bangladesh. It has been found that BDH is doing much better than that of BHBFC though it’s the pioneer specialized housing finance institution in Bangladesh. There is also a discussion about factors affecting housing finance by these two specialized housing finance institutions. Data are collected from secondary sources and analyzed by using qualitative analysis and regression analysis by using SPSS software.