Rising costs, policy bottlenecks strain real estate sector
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Bangladesh's real estate sector is facing significant challenges due to rising costs, policy bottlenecks, and macroeconomic uncertainty. The sector, which contributes around 10% to GDP, is grappling with limited access to long-term housing finance and complex regulatory procedures.
Bangladesh's real estate sector is under strain due to rising raw material and energy costs, higher bank interest rates, and limited access to long-term housing finance. The latest fuel price hike is expected to intensify these pressures, with rod prices already rising by Tk8,000-Tk10,000 per tonne. Cement prices have also increased by Tk40-Tk50 per 50kg sack. The sector, valued at $2.68 trillion in 2024, is projected to grow to $3.53 trillion by 2028 but faces constraints due to rising costs and policy frictions. Industry insiders argue that high registration fees, complex regulatory procedures, and multiple layers of taxation are dampening market activity. The government is urged to regulate raw material prices, strengthen market monitoring, and reduce the cost of doing business to support the sector.
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