The real estate market is experiencing a slowdown in flat sales, primarily attributed to soaring prices. Over the past 18 months, flat prices have surged by 35-40%, influenced by a 40% rise in construction material costs due to global economic fallout from the Russia-Ukraine war.
The Real Estate & Housing Association of Bangladesh (REHAB) reveals increases in rod costs by Tk 130, cement by Tk 24.75, sand by Tk 28.12, and stone chips by Tk 78.75 per square foot. The devaluation of the local currency against the US dollar further fueled material costs. The lack of clarity in the Detail Area Plan (DAP) guidelines and an overall unfavorable economic climate are also contributing factors. The situation raises concerns about unemployment in the sector and potential economic repercussions.
Despite attempts at promotions and discounts, small companies are facing financial challenges in the current market. The hope lies in a potential economic revival post the upcoming national elections in January.