Flat prices in Dhaka are beyond the reach of common people

Flat prices in Dhaka were beyond the reach of common people. The price of construction materials has increased since the second half of last year. The price of the flat has increased by one point. The dollar crisis and the increase in the price of fuel at the beginning of this month have increased the prices of almost all types of construction materials, including rods and cement. Flat prices are going to increase again. All in all, buying a flat is going to become more of a nightmare for the middle class.

Housing traders said that due to the increase in the price of construction materials, the price of flats in new projects this year has increased by Tk 1,000 to Tk 3,000 per square foot depending on the company and area. The price of construction materials is increasing again. As a result, the price of flats will increase again.
It is known that the price of flats in Lalmatia last year was 12 thousand to 15 thousand per square feet, this year it has increased from 15 to 17 thousand taka. Last year, the average price in Dhanmondi was Tk 18,000 per square foot. Currently more than 20 thousand rupees per square foot. Even in Mirpur, the flats which were a little below 5000 taka per square feet, now exceed 6000 taka.

Alamgir Shamsul Alamin, president of Rehab, an association of housing traders, told Prothom Alo, “The housing sector is now facing challenges. The price of construction materials is constantly increasing. Two months ago, we calculated that the cost of construction has increased by at least Rs 500 per square foot. Now if we calculate the current market price of construction materials, the cost will increase further. He said that during the Corona period, companies reduce taking up new projects. That is why the supply of flats is less than the demand at present. So less unsold flats. But if the supply was high, the business slowdown would have been evident in all the companies in the current situation.
Intake Properties in 2011 in housing business. The company has already handed over 100 flats. Currently they have 18 projects under construction. The number of flats in these projects is about 300. All the projects of the organization are in different areas of Mirpur.

M Fakhrul Islam, managing director of Intake Properties, told Prothom Alo, “The prices of all types of construction materials, starting from rods, cement, bricks, sand, have increased. Wages of workers have increased. The flat that we sold in Mirpur last year for around Tk 5,000 per square foot, currently it will be a loss even if it is sold for more than Tk 6,000.

In December last year, each ton of rod was sold at 75 thousand to 78 thousand 500 taka. Last week, the price of each ton of rod increased from 87 thousand 700 taka to 91 thousand 800 taka. Steel sector traders say the price will increase further. According to them, the price of rods is increasing due to three reasons. The first reason is the abnormal appreciation of the dollar. For this, the import cost of raw materials has increased by 20 percent. The second reason is that the government has increased the price of all types of fuel oil from 42 to 51 percent since August 6. It has increased the cost of transportation. And the third reason, the production of factories has decreased due to gas-electricity crisis. It has increased the production cost of the rod. Like the rod, the cement market is hot. Last December, the price of cement per 50 kg bag was Tk 400-450. Last week, the price of cement per bag increased by 540 to 550 rupees depending on the company.

Credence Housing has established a strong position in the housing sector by starting its journey in 2016. At present, they have several flat projects going on in different areas including Dhanmondi, Lalmatia, Mohammadpur.

Jillul Karim, Managing Director (MD) of Credence said, “The price of construction materials has increased by about 25 percent from January to August this year. That’s why we have to increase the price of a flat from 2000 to 3000 rupees per square feet. Due to the sudden increase in the prices of flats, the buyers have adopted a slightly slower policy. There is a bit of a shock to the business.

It is known that the housing traders are in danger with the projects taken before last year. Because, due to contractual obligations, it is not easy to collect more money from the buyer even though the price of construction materials has increased at present. For that reason, Rehab has taken an initiative to increase the price per square feet by 500 taka in case of pre-booked flats. However, it has not officially announced its implementation.

Mohammad Sohail Rana, vice president of Rehab, said, “We are still thinking about the impact on the market if the price increase is announced. Apart from that, the price of construction materials is still on the rise. That’s why we will take a decision after a little more calculation.’ He said to the question whether the price of flats is increasing more than the price of construction materials, he said that if the price increases, the market will automatically correct itself after a while