The cost of construction materials, especially those linked to the housing sector, has been rising steadily, putting significant pressure on housing traders in Rajshahi. Over the past two to three years, the price of building a flat has more than doubled, while the prices charged to buyers have remained largely the same. This price discrepancy has left many in the industry struggling to stay afloat.
Leaders from the Real Estate and Housing Association of Rajshahi (REDA) have voiced their deep concerns, warning that the housing sector is facing an unprecedented crisis. They are calling for government subsidies and support to help sustain the industry during these challenging times. Without immediate intervention, they warn that the future of the housing market in the region could be at risk.
Leaders of the Real Estate and Housing Association of Rajshahi (REDA) have raised alarms over the sharp rise in construction material prices, which have significantly impacted the cost of building projects.
According to REDA, the price of construction steel has surged by 20%, with the cost of rods increasing from Tk 76.50 per kg in December 2021 to Tk 96.50 per kg. The price of cement has also seen a significant jump, rising 22-25% over the past year, from Tk 425 per sack to between Tk 530-650.
Domar sand, commonly used for casting, has risen by 22%, from Tk 38 per CFT to Tk 52. Similarly, the price of ordinary filled sand has increased by 22%, from Tk 3,100 to Tk 4,000 per truck. The cost of bricks has climbed by 33%, with the price of 1,000 bricks rising from Tk 9,000 in December 2021 to Tk 12,000 today.
In addition to rising material costs, wages for construction workers have also increased. Workers now demand daily wages of Tk 600-700, up from Tk 400-500 just a year ago.
These escalating costs have put tremendous strain on the housing sector, leaving industry leaders concerned about the sustainability of construction projects in the region.
Mizanur Rahman Kazi, General Secretary of the Real Estate and Housing Association of Rajshahi (REDA), has voiced serious concerns about the state of the housing industry in the region. He explained, "The housing business in Rajshahi began around 2012, and while some smaller ventures existed before that, the industry flourished from 2015 until the end of last year. However, this year, the sector is facing an unprecedented crisis. Rising material costs have made house construction nearly impossible."
Kazi added that many businesses have been forced to halt construction due to soaring prices of construction materials over the past two years. "I am struggling to maintain customer trust and protect the reputation of my company because of these skyrocketing costs. If this trend continues, nearly 300,000 people associated with the housing sector will be severely affected."
Taufiqur Rahman Lovely, President of REDA, also expressed alarm, stating, "The ongoing surge in prices is deeply troubling. The current situation is a bad omen for the housing sector. If the government does not provide incentives and support, both small and large businesses will face catastrophic losses. Many small businessmen will be forced out of the market, and even large developers will struggle to survive."
Both leaders are calling for immediate government intervention to safeguard the future of the housing industry and the livelihoods of thousands of people reliant on it.
Translated by Jisan Al Jubair
Bd-pratidin English
