Real Estate and Construction
The real estate market in Bangladesh is expected to reach $2.68 trillion by 2024, with residential real estate leading at $2.05 trillion. The market is projected to grow steadily at an annual rate of 7.13%, reaching $3.53 trillion by 2028. Dhaka’s skyline is changing to meet the needs of wealthy consumers, with new apartment buildings being built regularly. Despite the construction boom, it’s difficult to find “Flats for Sale” signs for luxury properties in upscale neighborhoods. Data confirms the growing demand for flats in the country due to factors such as population growth, rapid urbanization, significant remittance, and inflows of black money investment.
A significant portion of remittances coming into the country is invested in real estate. There is room for investments in luxury housing and expensive land as a way to legalize undeclared money of people. Up until March of the current fiscal year, apartments worth Tk24,000 crore were sold. Bangladesh’s real estate sector focuses on residential housing and apartment investments, with a growing demand for affordable, modern urban housing. The trend is towards high-rise, mixed-use developments integrating residential, commercial, and recreational spaces to provide convenience to urban dwellers.
Bangladesh’s real estate market experienced significant growth this year, and the government plans to introduce the opportunity to legalize undeclared money in the next fiscal year to further boost the sector. Rapid urbanization has led to increased demand for housing and infrastructure development, prompting plans for affordable housing projects and special economic zones to attract foreign investment.
Construction Materials
The Bangladesh construction market is valued at USD 32.33 billion, projected to reach USD 44.13 billion by 2029. Infrastructure development and urbanization are driving growth, contributing 8% and 4% to GDP, respectively. The sector’s demand for raw materials like steel and cement is increasing due to increased infrastructure activities and real estate growth. Local companies benefit from government projects utilizing locally manufactured construction materials.
Bangladeshi building material manufacturers have increased sales but lower profitability due to higher production costs. The price surge is due to increased global raw material costs from the Russia-Ukraine conflict and the ongoing dollar crisis in the country. In late 2023, the prices of high-quality and lower quality rods increased by 8% and 4% per ton, respectively. Scrap metal prices decreased to US$460-500 per ton. Local steelmaking capacity has doubled to 90 million tonnes over the past decade. Portland cement prices increased to Tk 500-560 per 50-kg bag. The rising prices of construction materials have led to challenges in the industry, causing firms to stop work on ongoing projects. There are concerns about compromised quality due to the use of substandard materials to protect profit margins. The sector is also facing shortages in electricity, gas, and US dollars, which have significantly impacted its operations.
Bangladeshi building material manufacturers have increased sales but lower profitability due to higher production costs. The price surge is due to increased global raw material costs from the Russia-Ukraine conflict and the ongoing dollar crisis in the country. In late 2023, the prices of high-quality and lower quality rods increased by 8% and 4% per ton, respectively. Scrap metal prices decreased to US$460-500 per ton. Local steelmaking capacity has doubled to 90 million tonnes over the past decade. Portland cement prices increased to Tk 500-560 per 50-kg bag. The rising prices of construction materials have led to challenges in the industry, causing firms to stop work on ongoing projects. There are concerns about compromised quality due to the use of substandard materials to protect profit margins. The sector is also facing shortages in electricity, gas, and US dollars, which have significantly impacted its operations.