Eastern Housing, a sister concern of Islam Group, engaged Young Consultants (YC) to conduct a comprehensive feasibility study to assess the viability of establishing a housing development project on the outskirts of Dhaka, Bangladesh. The assignment aimed to evaluate the proposed residential development from financial, economic, marketing, technical, socioeconomic, and environmental perspectives. The study focused on examining the market potential for apartment housing beyond the central urban area, identifying key development requirements, and assessing the project’s commercial prospects and financial sustainability to support the client’s investment planning and decision-making.
As part of the assignment, YC conducted field surveys and collected both primary and secondary data to assess the market prospects for apartment housing in the outskirts of Dhaka. The research involved personalized, face-to-face interviews with respondents from multiple sectors to understand housing demand, potential customer preferences, affordability considerations, and other factors influencing residential property purchasing decisions. The findings provided an evidence base for evaluating the potential target market and the commercial attractiveness of the proposed housing development.
The technical and site assessment examined the suitability of the proposed location for residential development, including its connectivity to transport infrastructure and the availability and requirements of essential utilities. The study also considered the technical and operational requirements for implementing the proposed project, together with the management capabilities and skilled personnel required to support effective development and operation. These assessments helped identify key considerations affecting the feasibility of establishing a residential project in the peri-urban areas surrounding Dhaka.
The market assessment examined prevailing demand and supply conditions in the apartment housing sector, relevant real estate market trends, and the competitive environment. YC assessed competitor offerings, potential market opportunities, and supply and value chain considerations to inform the development of an appropriate marketing strategy. This analysis supported an understanding of the proposed project’s potential market positioning and the factors likely to influence its competitiveness and long-term commercial viability.
The financial and economic assessment evaluated the project’s estimated investment requirements, anticipated operating performance, and potential financial returns. YC examined the project cost, proposed debt-to-equity structure, and loan repayment schedule. Financial analysis incorporated financial ratio assessment, break-even analysis, return on investment (ROI), and debt service coverage ratio (DSCR) to evaluate the project’s potential profitability and its capacity to meet financial obligations. The broader feasibility assessment also considered the socioeconomic and environmental dimensions relevant to the proposed housing development.
The assignment culminated in the preparation of a detailed feasibility study report consolidating the findings of the field surveys, market research, site and technical assessment, and financial, economic, socioeconomic, and environmental analyses. The report provided Eastern Housing with an integrated assessment of the demand outlook, development requirements, investment considerations, and potential risks associated with establishing a housing development project on the outskirts of Dhaka, supporting informed consideration of the proposed investment.
Key Assignment Details
Client: Eastern Housing, a sister concern of Islam Group
Country and location: Dhaka, Bangladesh
Assignment period: October 2007 – December 2007
Assignment duration: 3 months
Total staff input: 3 staff-months
Associated consultants: Not specified
Key professional staff: Mr. M. Zakir Hossain – Project Manager; S. M. Firoz Hassan – Coordinator
Sat - Thu: 09:30AM - 05:30PM
Fri: Closed
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