The housing sector in Bangladesh continues to face unique challenges and evolving demands. Shahjalal Islami Bank PLC. leverages interest rate movements, the growing importance of semi-urban housing with Shariah-compliant products and digital solutions to support a diverse range of customers and foster sustainable growth in the market.

The Daily Star (TDS): What trends are you seeing in home loan or construction finance demand in the last 2-3 years?

Mosleh Uddin Ahmed(MUA): In the last 2-3 years, due to political turmoil, there has been a significant decline in the other investment sectors of Bangladesh. But as the dwelling place is a basic need of people, we do not observe any sharp decline in house building investment like other investment sectors. It is also true that there is no increasing growth in this sector, but we may say that a constant growth is achieved.

TDS: How are interest rate movements and regulatory shifts affecting homeownership or construction projects?

MUA: In the last 2-3 years, the profit rate has moved from 9% per annum to 14% per annum. Such movement affects the large-scale developer construction, and it has also affected the personal-level construction. On the other hand, regulatory shift has almost no effect on this sector.

TDS: What products or schemes (e.g., green housing loans, women’s housing finance, SME developer financing) are gaining traction?

MUA: At present, we do not have specific products such as Green Housing Loans or Women’s Housing Finance in our portfolio. However, we offer similar Shariah-compliant investment products that promote inclusiveness, sustainability, and ethical growth in housing investment. We also encourage our clients to include several sophisticated technologies, like solar panels, to have green energy.

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