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.

Search Map of Chittagong Investment Real Estate

Chittagong (/ˈtʃɪt əˌɡɒŋ/ chit-uh-gong; Chittagonian: চিটাং; Bengali: চিটাগং), officially Chattogram (Bengali: চট্টগ্রাম), is the second-largest city in Bangladesh after Dhaka and third largest city in Bengal region. It is the administrative seat of the eponymous division and district. It hosts the busiest seaport on the Bay of Bengal. The city is located on the banks of the Karnaphuli River between the Chittagong Hill Tracts and the Bay of Bengal. The Greater Chittagong Area had a population of more than 5.2 million in 2022. In 2020, the city area had a population of more than 3.9 million.

One of the world’s oldest ports with a functional natural harbor for centuries, Chittagong appeared on ancient Greek and Roman maps, including on Ptolemy’s world map. It was located on the southern branch of the Silk Road. In the 9th century, merchants from the Abbasid Caliphate established a trading post in Chittagong. The port fell to the Muslim conquest of Bengal during the 14th century. It was the site of a royal mint under the Delhi Sultanate, Bengal Sultanate and Mughal Empire. Between the 15th and 17th centuries, Chittagong was also a center of administrative, literary, commercial and maritime activities in Arakan, a narrow strip of land along the eastern coast of the Bay of Bengal which was under strong Bengali influence for 350 years. During the 16th century, the port became a Portuguese trading post and João de Barros described it as “the most famous and wealthy city of the Kingdom of Bengal”. The Mughal Empire expelled the Portuguese and Arakanese in 1666. Like the rest of Bengal British East India Company took control of the city in 1793. The Port of Chittagong was re-organized in 1887 and its busiest shipping links were with British Burma. In 1928, Chittagong was declared a “Major Port” of British India. 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. The city was the historic terminus of the Assam Bengal Railway and Pakistan Eastern Railway. During the Bangladesh Liberation War in 1971, Chittagong was the site of the Bangladeshi declaration of independence. The port city has benefited from the growth of heavy industry, logistics, and manufacturing in Bangladesh. Trade unionism was strong during the 1990s.

Chittagong accounts for 12% of Bangladesh’s GDP, including 40% of industrial output, 80% of international trade, and 50% of tax revenue. The port city is home to many of the oldest and largest companies in the country. The Port of Chittagong is one of the busiest ports in South Asia. The largest base of the Bangladesh Navy is located in Chittagong, along with an air base of the Bangladesh Air Force, garrisons of the Bangladesh Army and the main base of the Bangladesh Coast Guard. The eastern zone of the Bangladesh Railway is based in Chittagong. The Chittagong Stock Exchange is one of the twin stock markets of Bangladesh with over 700 listed companies. The Chittagong Tea Auction is a commodity exchange dealing with Bangladeshi tea. The CEPZ and KEPZ are key industrial zones with foreign direct investments. The city is served by Shah Amanat International Airport for domestic and external flights. Chittagong has a high degree of religious and ethnic diversity among Bangladeshi cities, despite having a great Bengali Muslim majority. Minorities include Bengali Hindus, Bengali Christians, Bengali Buddhists, Chakmas, Marmas, Tripuris, Garos and others.

Chittagong is the most important port city of Bangladesh

Get Our Latest List of Investment Property in Chittagong

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 with local knowledge and experience of property legislation will give you the best chance of success.

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.

 

Property Secured Investments is a Private Equity fund that invests in Chittagong and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

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