The property market in Bangladesh may expand by up to 9% in terms of sales of the number of units, which is great news for entrepreneurs looking to infiltrate the industry while it’s on the rise. Property tech, as experts are calling it, is currently an untapped and developing industry that hungry startups can easily find their way into. Untapped potential combined with a rise in the property market make this the prime setting for startup success. That is, however, if startups can be quick to jump on the train before it leaves.
Stability Leads To High Hopes In Property Market
Of the increase in sales and overall interest in the market, the managing director of one of the leading developers in Bangladesh, Sheltech, said that “People feel encouraged to invest if there is stability. And it can be assumed there will be political and social stability and investment this year.” The property market has actually been on the up since 2014 after India began to recover from political instability, and IDLC Finance even stated that in the past year they’ve posted about a 20% growth on their portfolio in terms of property. While this is all great news for individual homebuyers and those looking to turn a property for profit, it’s actually even better news for local Bangladeshi entrepreneurs looking for a unique industry in which to enter and apply their skills.
Why Property’s Hot For Startups
Even though it doesn’t sound as attractive or game-changing as FinTech, Blockchain or even AI, real estate is actually one of the startup world’s best-kept secrets. Since around 2017, venture capitalists have been funneling millions into real estate and the technology surrounding it. Referred to as proptech (property tech), this market offers multiple advantages for Bangladeshi startups. For one, market fragmentation ensures that there’s currently no tech-driven king in any area of Indian or global real estate. This leaves the door wide open for innovation and domination. Secondly, the market size is huge. Real estate is classified as the largest asset class in the world, and everybody on Earth needs a place to live. If venture capitalists see the potential in this market, then it’s likely for a good reason, and there are boundless opportunities waiting to be taken advantage of.
Choosing A Niche Within The Industry
As property technology continues to become more popular on a global scale, entrepreneurs located in Bangladesh and all throughout India will have to work to find a niche within the industry in order to compete. One of Bangladesh’s top entrepreneurs, Muhammad Shahin, actually created the world’s largest property marketplace in Bangladesh. Pbazaar.com was developed to solve property-specific problems localized in the Bangladesh market. While this is only one example of a way to apply technology and innovation in the world of real estate, there are others that have yet to be discovered. Other startups all over the globe are currently making strides in the areas of commercial property and its impact on climate change, home loan financing using artificial intelligence, and property licensing, to name a few.
Bangladeshi Startups Responsible For The Change
There’s no time like the present, and with trends predicting positive shifts in the real estate market, it’s up to Bangladeshi startups to take advantage of the opportunity to enter the property tech playing field while it’s still wide open. With venture capitalists already investing millions in this type of innovative technology and solutions-based services, it shouldn’t be too hard to find a way to secure funding in order to influence real change.
Author: Jenny Holt