TDS Desk:

Due to political change and ongoing political and economic instability, the country’s housing sector has been in a deep slump for over a year. Sales of new projects and ready flats have dropped to half of normal levels, with the downturn most visible in the capital, Dhaka.

Top executives from several leading real estate companies say that in the past year, sales of luxury flats in Dhaka’s upscale areas have plunged by 80%. Sales of mid-range flats are down 40–50%, and lower-priced flats have dropped by 20–30%. Many buyers who had previously booked flats or commercial spaces are now failing to make regular installment payments. This has pushed small and mid-sized firms into severe financial crises, and even price cuts have failed to attract buyers.

Over the past decade, government officials, doctors, lawyers, university professors, and corporate professionals were the main buyers in the housing market. But since the political shift in August last year, the buyer profile has changed. Uncertainty and a lack of confidence in long-term investments have made people hesitant to make major decisions like buying a flat.

The housing slump has also hit dependent industries hard. According to the Trading Corporation of Bangladesh (TCB), prices for the most commonly used 60-grade MS rods have fallen 12% in the past year, dropping to Tk 85,000–89,000 per ton. In mid-2024, rod prices were nearly Tk 100,000 per ton, but they are now even lower than in March 2022.

Bangladesh Steel Manufacturers Association (BSMA) data shows that before the political change, the country used 650,000 tons of rod per month; now consumption has fallen to 400,000 tons—a drop of about 35%. BSMA Secretary General Suman Chowdhury said, “On July 27, rod prices fell 9% within a few minutes. In such a volatile market, running a business has become almost impossible. Due to bank loan pressure and rising production costs, many small mills have suspended production.”

Industry insiders warn that unless political stability, easier loan conditions, and a business-friendly environment are ensured, the housing sector’s crisis will only deepen. As a result, the apartment—once the dream home for the middle class—remains out of reach for many.