Investment Property in Chittagong

Investment Real Estate in Chittagong

Investment Property in Chittagong
Investment Property in Chittagong

Chittagong property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Chittagong.

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Search Map of Chittagong Investment Real Estate

Chittagong (Bengali: চিটাগাং) (), officially Chattogram (Bengali: চট্টগ্রাম) also known as the Port City of Bangladesh, is a major coastal city and financial centre in southeastern Bangladesh. The city had a population of more than 8.6 million in 2017, making it the second-largest city in the country. It is the capital of an eponymous District and Division. The city is located on the banks of the Karnaphuli River between the Chittagong Hill Tracts and the Bay of Bengal. Modern Chittagong is Bangladesh’s second most significant urban center after Dhaka.

Chittagong plays a vital role in the Bangladeshi economy. The Port of Chittagong, one of the world’s oldest ports, whose coast appeared on Ptolemy’s world map, is the principal maritime gateway to the country. The port is the busiest international seaport on the Bay of Bengal and the third busiest in South Asia. The Chittagong Stock Exchange is one of the country’s two stock markets. Several Chittagong-based companies are among the largest industrial conglomerates and enterprises in Bangladesh. The port city is the largest base of the Bangladesh Navy and Bangladesh Coast Guard; while the Bangladesh Army and Bangladesh Air Force also maintains bases and contributes to the city’s economy. Chittagong is the headquarters of the Eastern Zone of the Bangladesh Railway, having historically been the headquarters of British India’s Assam Bengal Railway and East Pakistan’s Pakistan Eastern Railway. A controversial ship breaking industry on the outskirts of the city, which supplies local steel but causes pollution, has come under international scrutiny.

Chittagong is an ancient seaport due to its natural harbor. It was noted as one of the largest Eastern ports by the Roman geographer Ptolemy in the 1st century. The harbor has been a gateway through southeastern Bengal in the Indian subcontinent for centuries. Arab sailors and traders, who once explored the Bay of Bengal, set up a mercantile station in the harbor during the 9th century. During the 14th century, the port became a “mint town” of the Sultanate of Bengal, with the status of an administrative center.

During the 16th century, Portuguese historian João de Barros described Chittagong as “the most famous and wealthy city of the Kingdom of Bengal”. Portuguese Chittagong was the first European colonial settlement in Bengal. A naval battle in 1666 between the Mughal Empire and Arakan resulted in the expulsion of Portuguese pirates. British colonization began in 1760 when the Nawab of Bengal ceded Chittagong to the East India Company. During World War II, Chittagong was a base for Allied Forces engaged in the Burma Campaign. The port city began to expand and industrialize during the 1940s, particularly after the Partition of British India. During the Bangladesh Liberation War in 1971, Chittagong was the site of the country’s declaration of independence.

Chittagong has a high degree of religious and ethnic diversity among Bangladeshi cities, despite having an overwhelming Bengali Muslim majority. Minorities include Bengali Hindus, Bengali Christians, Bengali Buddhists, the Chakmas, the Marmas and the Bohmong.

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The financial stability of Chittagong has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Chittagong

Renting out your Chittagong buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Chittagongare – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Chittagong and be prepared to change your initial outlook.
  • Thoroughly research the Chittagong location with a special emphasis on fringe areas outside the main Chittagong metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Chittagong.
  • Ensure that your target investment property in Chittagong appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Chittagong properties yourself is an easy option, but are these savings justifiable when you run into Chittagong red tape? Physis Realty Chittagong office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Chittagong buy-to-rent sector.

With our expert guidance, investing in Chittagong provides the secure knowledge that your money is working harder than it would in a local Chittagong bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Chittagong, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Chittagong property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Chittagong

Flipping property in Chittagong

Flipping property is when we advise clients to buy a Chittagong property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Chittagong market has a time to react to the renovation.

The Flipping Strategy in Chittagong

Investment property flipping in Chittagong is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Chittagong real estate investments are sometimes referred to by professionals as ‘distressed’ Chittagong real estate.

What is distressed Chittagong property:

  • Chittagong property in need of renovation
  • Chittagong real estate with a change of puropose and use
  • Oversold Chittagong property
  • Bank repossessions in Chittagong

Put simply, long term investors in Chittagong purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Chittagong investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Chittagong property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Chittagong use a minimum profit value of 22% when looking at potential Chittagong projects. The reason for this is because there are lots that can go wrong in Chittagong property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Chittagong

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Chittagong, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Chittagong should be entrusted to only the highest-quality agency.

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