Realtors hit by price hike of raw materials19 January 2022
The country's construction sector entrepreneurs are facing big trouble due to the soaring prices of basic raw materials used for the construction works.
All the raw materials-steel, bitumen, imported stone, cement and brick-have become costly -40 per cent higher than the government rates.
Following the increased prices of the raw materials, the cost of flat construction will go up by 50 per cent and the middle class people are likely to be unable to buy flat.
Besides, the fares of the residential flats will also be increased, according to the industry insiders.
"The unusual price-hike of construction materials has put additional pressure on the country's realtors and they have to count big losses," Alamgir Shamsul Alamin (Kajal), President of the Real Estate and Housing Association of the Bangladesh (REHAB) told The New Nation on Tuesday. "It has become difficult to complete the construction works on time by maintaining quality," the REHAB president said.
Steel prices have now reached a whopping Tk 80,000-Tk 82,000 per tonne from Tk 50,000-Tk 52,000 per tonne in November last year.
Likewise, imported stone has become costlier too with a minimum of Tk 11,000 rise in its price in the span of a year.
Bitumen also now sells at Tk 43,000 per 150kg drum, up by Tk3,200 from Tk6,300 a year ago. Cement prices have also gone up by at least Tk 40 per 50kg bag.
Besides, brick prices have increased to Tk 9,000 per 1,000 pieces from Tk 5,000.
Under this circumstance, the entrepreneurs of the construction industry are facing trouble to continue the ongoing projects and sought Prime Minister's intervention.
Kamal Mahmud, Vice-President of the REHAB, said, "With the price-hike, additional 50 per cent construction cost will be added."
Abul Kasem Khan, Chairperson of the Business Initiative Leading Development (BUILD), said, "Sudden rise in demand for flat is the main reason for increasing construction cost and low and middle income people will suffer for the situation."
In a letter wrote to the Prime Minister recently, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) said, "The construction cost has now reached such a level that it has become almost impossible to complete works of the ongoing and upcoming projects by maintaining proper quality."
"If the situation prolongs, the construction sector will face irreparable loss," it said.