The country's real estate business gained momentum again following a declining trend in the post-Covid-19 situation. But the momentum has recently declined. The sudden hike in the price of construction materials has been attributed to the diminishing momentum. The price hike has generated fears again in the sector.
General people are losing hope of having their own flat due to the high price of cement, stone chips, and iron bars. However, industry experts have urged the stakeholders to take effective measures to keep the price of flats within the reach of buyers.
The iron rod is the main material for the construction of houses and installations. However, the price of the product has been rising unbridled for quite some time.
Based on quality, the price of rod has gone up to Tk 7,000 per ton. At present to buy a 60-grade rod per ton a consumer has to pay at least Tk 80,000 which was Tk 55,000 at the corresponding period last year.
According to global market data, meted scrap, the main material of steel production has gone up to USD 630 per ton recently. This was USD 300 to USD 350 per ton last month.
Rod manufacturers said that the booking rate of scrap and billet has increased in the world market. The booking price for scrap in March-April was USD 470. And it has gone up to 60. Besides, the extra money has to be counted for the rent of the ship.
Milestone Housing Ltd Director Md Aminul Islam told Bangladesh Post, “When we start a project, we estimate total expenditure for construction. But when prices of construction materials go up after the estimation, it becomes difficult for us to make our clients convinced and demand extra money from them.”
“We have several ongoing projects at Rampura, but against the price hike some of our project construction is being delayed,” he added.
Besides rods, prices of cement, stone chips, sand and tiles have also gone up. Housing traders said the cost of building houses has risen by 15 percent as prices of construction materials have increased.
The stakeholders are urged to keep the market of construction materials normal to keep pace with the overall development work.
REHAB vice president Lion Sharif Ali Khan told Bangladesh Post, “We have already talked with other parties who are directly or indirectly involved in the house building industry. They are showing the high prices of materials in the international market which have affected our country too. Discussing with stockholders we are trying to keep flat price to an affordable level for our buyers.”