Eastern Housing, one of the leading companies in the housing sector, sold flats and land worth Tk 252 crore in the 2019-20 fiscal year. However, in the fiscal year 2020-21, which ended last June, the sales have increased to Tk 264 crore. Of this, flats have been sold for Tk 6 crore and land for Tk 16 crore. Even in Corona, the company’s after-tax profit stood at Tk 36 crore in the last financial year, which is the highest in the last five years.

Many real estate companies, such as Eastern Housing, are doing well in Corona. After the first outbreak of the epidemic, the demand and sales of flats started increasing from July-August last year. That trend still persists. As the demand continues to grow, housing companies are taking on new projects.

However, the housing sector is facing two challenges in this auspicious day of business. One. Prices of various construction materials, including rod-cement, are on the rise. In just one year, the price of rod alone has risen by 48 percent. Two. Capital Development Authority (RAJUK) is preparing detailed zoning plan (DAP) for 2018-2035. In the light of that, Dhaka Building Construction Rules-2021 are being issued. If the draft is implemented, the size of the building will be reduced by 33-53 percent from what is currently being approved.

Alamgir Shamsul Alamin, president of the Real Estate and Housing Association of Bangladesh (REHAB), an association of real estate traders, recently told Prothom Alo that the price of flats would double if the draft DAP and building construction rules were implemented. If it is taken as an increase in the price of construction materials, it can stand at two and a half times. If that is the case then middle class people will not be able to buy flats. It will be difficult for the upper class to buy a flat. The housing sector will go to the brink of destruction.

Inflation of construction materials
The construction season has begun. The prices of construction materials including rods are also increasing. Especially with the increase in the price of raw material of rod in the world market, the producers are also increasing the price of the product in the country. Housing traders are planning to increase the price of flats as the prices of other construction materials have also gone up. Some companies have already increased prices.

The top five brands are now being sold at Rs 8,000 to Rs 60,000 per tonne in the retail market in Chittagong. At this time last year, the price of a ton of rod was Rs 52,000 to Rs 55,000. As a result, the price of rod has increased by about 46 percent in one year.

Entrepreneurs in the cement sector say that the price of clinker, one of the raw materials of cement in the international market, is going up. Last year the price of clinker was 45 per ton. It rose to 55 last March. Then the price of cement was increased in the country. In July, the price of clinker increased by 10 per ton. Although the production cost increased, the price of cement did not increase anew. In this case the companies take a little time to increase the price as the production capacity of the companies is more than the demand.

Credence Housing has started its journey in 2016 and has built a strong position in the housing sector. At present they have 30-32 projects running in different areas including Dhanmondi, Lalmatia, Mohammadpur. The company has also signed agreements with landowners to build 15 new housing projects this year.

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