Bangladesh’s housing sector is experiencing a deep downturn, with industry stakeholders and economists urging special policy support to revive the sector and boost overall economic recovery.
The sector, which contributes around 15 percent to GDP and supports 269 linkage industries, has seen apartment sales fall by up to 70 percent amid high inflation, rising construction costs and policy uncertainties. Monthly flat sales have reportedly dropped from around 1,000 units to nearly 500.
Industry experts say construction costs have surged by about 50 percent due to higher prices of rods, cement, bricks and other materials, while bank lending rates have climbed to 15-16 percent. They also cited high registration costs—exceeding 13 percent—and proposed tax hikes in the 2026-27 budget as major challenges.
The housing sector has investments exceeding Tk 2 lakh crore, involves more than 1,400 companies, generates around Tk 30,000 crore in annual revenue and provides employment to nearly 5 million people.
Experts have recommended reducing registration costs to 7 percent, introducing low-interest long-term housing loans, offering temporary tax incentives and adopting a transparent, technology-driven long-term policy framework to revive the sector and prevent wider economic repercussions.
