An entrepreneurial ecosystem analysis of the development of built real estate industry in Khulna

Rapid urbanization is a defining characteristic of the 21st century, with a significant portion of this growth occurring in low-income metropolitan cities. On the one hand, urbanization can be a catalyst for economic development (Ji et al., 2020), attracting investment and fostering innovation (Ahmed & Hernandez, 2023). On the other hand, it can strain existing infrastructure and exacerbate social inequalities (Sukanya & Tantia, 2023), particularly regarding access to affordable housing. The real estate sector is a pivotal component of urban development and economic growth, particularly in developing countries. The sector's significance is underscored by its contribution to gross domestic product (GDP), employment generation, and the provision of essential infrastructure (Acolin et al., 2022). Existing research has identified various factors influencing real estate growth, including economic indicators, demographic shifts, and infrastructure development (Ngoc et al., 2023; Joghee et al., 2020; Barreca et al., 2020). However, a critical gap remains in understanding these growth factors from an institutional perspective, particularly in developing countries like Bangladesh. However, the dynamics of real estate growth in low-income metropolitan cities remain underexplored. This research seeks to address this gap by focusing on Khulna, a low-income metropolitan city in Bangladesh, which has experienced noticeable real estate growth despite its economic constraints. 

While extensive research has been conducted on real estate markets in developed and rapidly developing cities, there is a paucity of studies focusing on low-income metropolitan areas (Galster & Lee, 2021). This research is motivated by the need to address this knowledge gap and contribute to a clearer understanding of real estate growth in low-income metropolitan cities. By examining the institutional environment, including the role of urban development authorities and the broader entrepreneurial ecosystem, this research aims to provide valuable insights for policymakers and stakeholders involved in fostering sustainable urban development in Bangladesh and beyond. The study's focus on the entrepreneurial ecosystem of the real estate sector is particularly relevant. The entrepreneurial ecosystem comprises various actors, including developers, financiers, regulatory bodies, and consumers, whose interactions and activities collectively drive sectoral growth (Banc & Messeghem, 2020. In low-income cities like Khulna, where formal financial and institutional support may be limited, understanding how this ecosystem operates becomes even more critical. This research will investigate the attributes of Khulna’s real estate entrepreneurial ecosystem, identifying key players and their roles in fostering growth. Insights gained from this analysis will help in developing strategies to strengthen the ecosystem, thereby promoting sustainable real estate development. 

Bangladesh presents a compelling case study for investigating real estate growth in a low-income metropolitan context. The country is experiencing rapid urbanization, with Dhaka, the capital city, facing a significant housing shortage. While the real estate sector has witnessed notable growth in recent years, challenges persist, including limited access to financing for low-income buyers and inadequate regulatory frameworks (Asaduzzaman & Hameem, 2021). Khulna, the third-largest city in Bangladesh, presents a unique case for examining the growth factors of the real estate sector. The city’s economic landscape is characterised by limited industrial activity and a predominantly low-income population. Despite these challenges, Khulna’s real estate sector has expanded significantly over the past decade. This paradox of growth amidst economic adversity raises critical questions about the underlying factors driving this expansion. Understanding these factors is crucial for formulating policies that can sustain and enhance real estate development in similar urban settings.

• Research Project