Price of construction materials skyrocketed again after election

Rod price increased Tk 35,000 in 2.5 yrs

Mahfuz Emran : There is a dollar crisis in the country for a long time. It has an impact on the entire economy. The impact of the dollar crisis on commodity imports in particular has been cause for concern, increasing the cost of production of various products. Many banks are not even able to open new LCs. In such a situation, there was a wave of uncertainty in the country even around the parliamentary elections. However, after all the apprehensions, the election was held without major problems.
Despite the election-centered uncertainty, the country’s housing sector is buoyed. The price of construction materials was quite low. The price of rods, a key construction material, fell by Tk 8,000 to Tk 10,000 per tonne, which crossed the record lakh mark. The prices of bricks, sand and stones also come down. However, this boom in the construction sector did not last long. As the elections progressed, the picture changed. The price of construction materials has started increasing again.
Housing sector organization Real Estate and Housing Association of Bangladesh (REHAB) sources said that the price of rods has increased by Tk 35 thousand per ton in just two and a half years. In 2020, the cost of buying a ton of rods was Tk 64 thousand, in 2021 it was Tk 70 thousand. The next year i.e. 2022 is Tk 94 thousand. In 2023, the record will exceed one lakh rupees per ton. Prices of cement, sand, stone, bricks, grills and railings have increased, labor costs have also increased.
However, at the end of 2023 i.e. before the 12th National Assembly elections, the prices of rods, sand and bricks decreased. The price of a rod comes to Tk 100,000 from Tk 90 thousand. Many companies take this opportunity to start buying rods, sand and bricks for new projects. Real estate traders are also relieved. It was expected that the price of flats or apartments will decrease as a result. The ongoing projects will also be completed soon. However, those calculations changed soon after the election. Suddenly the price of the rod increased. Soon after this, the prices of sand, brick and stone started increasing.
Retailers in different areas of the capital said that the price has increased by Tk 4,000 to Tk 8,000 depending on the company and the quality of the rod. Before the election, the rod was available at Tk 85 thousand per ton, now it is Tk 90 thousand. Tk 90 thousand per ton of rod has now become Tk 95,000 to Tk 96 thousand. And the rod of Tk 94 thousand is now again Tk 100,000 or close to it.
Abdur Rashid, a resident of Basabo in the capital, stopped his work due to fear of political unrest due to the election. Talked to him on Thursday (January 18). He told, “Suddenly, the price of rod-sand-brick has increased after the election. Labor cost also increased slightly. Additional money has to be provided by borrowing. In this way, due to the sudden rise and fall of the price, fear is created, the house builder is affected. Forced to increase the price of flats, which affects the common people.
When asked about the reason for the sudden increase in the price of rods, Shafiq, a businessman from Old Dhaka, said that due to the dollar crisis, the raw material of rods cannot be imported. Again, due to the problem of the Red Sea, the cost of transportation is also high. Due to this, the price has increased now.
Regarding the price reduction before the elections, he said that there was a kind of uncertainty among many people before the elections. There were no new projects. Government projects are also not new. Ahead of the election, prices fell due to a lack of buyers. Now the demand has increased, the businessmen are taking advantage of that opportunity.
Retailer Aminul told that the price of rods was low even two months ago. Now increased. Companies raise prices from time to time for various reasons. Now talking about the gas crisis, they have increased the price. Basically, the working season starts from November. Work is in full swing from December to February. The price of the rod has been increased on this occasion.
Looking around the market, the price of cement also fell by Tk 15 to Tk 20 per bag depending on the brand before the elections. Immediately after the election, it increased and is now selling at Tk 500 to Tk 560. Traders blame the raw material import crisis behind the increase in the price of cement.
Like rod-cement, the price of sand, stone, grill, railings and labor costs also differed before and after the elections. Vendors say that LC stone is now being sold at Tk 215 per foot after the election, which increased by Tk 10 to Tk 15. Piling stones are being sold up to Tk 190 with an increase of Tk 15 to Tk 20. With an increase of Tk 10 to Tk 15, red sand is being sold at Tk 55 to Tk 60 per CFT, with an increase of Tk 5 to Tk 10, white sand is being sold at Tk 20 to Tk 30, white local sand is being sold at Tk 17. The price of filled sand has also increased. The price has increased by about Tk 2 and now Tk 12 CFT is being sold.
However, the traders are blaming the hostile weather for the increase in the price of bricks. According to them, due to adverse weather conditions, problems have arisen in the drying of bricks. Many areas do not see sunshine for about one and a half to two weeks. As the bricks could not be dried, the production fell by half. Which has an effect on the price. Now number one brick is being sold at Tk 13,000 per thousand, which was sold at Tk 11,000 to Tk 12,000 a few months ago. Number two (according to quality) brick Tk 10,000 to Tk 11 thousand. The price has increased. Each CFT Khoya is being sold at Tk 100 to Tk 105, while old brick Khoya is being sold at Tk 66.
In this regard, Aminul Islam, owner of Allah Dan Traders, told that usually the construction season starts in November. Meanwhile, the price of construction materials increased slightly. Moreover, the cost of raw material rods increases, which has an impact on others. However, brick is an exception. Because the price of brick has not increased as the price of other materials has increased. Now fog is falling all over the country, humidity is high in the air. Because of this, the bricks are not drying, the production is reduced by half. The price has increased slightly.
In this regard, housing businessman and former vice-president of Rehab Liaquat Ali Bhuiya told that dollar crisis arose in the country after the Russia-Ukraine situation. Many banks are unable to open LC. The cost of raw materials of rods has also increased. This has increased the cost of rods, along with the cost of other materials. This has affected flat-apartments. Traders are forced to increase prices. The dream of middle-class housing is getting out of reach.