Manila based Asian Development Bank conducted a feasibility study on constraints to housing finance access to low and middle income households in Bangladesh. The report was submitted to the government of Bangladesh. It identified weak legal enforcement in mortgage market, supply-side challenges, inadequate incentives and increasing construction costs as major constraints for lower and middle class to get access to housing finance. Other barriers included engagement of multiple institutions. gaps in regulatory process and enforcement, high registration costs and land prices and, poor land availability.
Permanent housing consists of only 19% of dwelling in Bangladesh where only 7% of the rural households have permanent housing. Despite this figures, only the high income households are being served especially, in Dhaka and Chottogram. The contribution of GDP of housing in under 3% where our neighbors India (7.77%) and Bhutan (11.8%) show staggering numbers.