Access to long-term, affordable housing finance remains a significant constraint to the development of Bangladesh’s housing sector, particularly for the low and middle-income households. Rapid urbanisation, sustained population growth, and rising land and construction costs have intensified housing demand, while the supply of affordable housing finance continues to lag behind escalating market demands. The absence of stable, long-tenor funding sources for mortgage lending has limited the ability of financial institutions to scale up housing finance and offer affordable loan terms.
The International Finance Corporation (IFC), a member of the World Bank Group, has commissioned a feasibility study for establishing the Bangladesh Mortgage Refinance Company (BMRC) that will function as a specialised secondary mortgage liquidity facility, providing long-term refinancing to primary mortgage lenders (PMLs) and thereby would strengthen the sustainability and depth of the housing finance market in Bangladesh.
The primary market research for the feasibility study focusing on the demand side of the prospective households is currently being conducted by InM in association with IFC and the Altair Consultancy and Advisory Services Ltd of London.
