Budget measures could raise flat prices, says REHAB

The proposed budget for 2026-27 fiscal year could push up apartment prices by increasing construction costs, according to Ali Afzal, president of the Real Estate and Housing Association of Bangladesh (REHAB).

REHAB is still reviewing the budget in detail, but its initial assessment suggests that it offers little meaningful support for the housing sector, he said.

New taxes and duties on construction materials are likely to raise costs. The specific VAT on rods, in particular, will increase building expenses — costs that developers may have little choice but to pass on to buyers through higher apartment prices, Afzal said.

He added that REHAB has long advocated reducing registration costs for flats and land, arguing that lower fees would encourage genuine transactions, stimulate investment in the housing sector and increase government revenue.

However, the proposed budget does not address the issue.

Afzal noted that the housing sector is linked to around 269 industries, including steel, cement, ceramics, electrical goods, furniture and transportation. Any slowdown in the sector would therefore have broader economic consequences.

To support the sector, the government should lower registration costs, adopt housing-friendly tax policies, expand access to long-term affordable financing and ensure a stable investment environment, he said.

Afzal welcomed the provision allowing the declaration of undisclosed investments under a self-disclosure mechanism, saying that REHAB would review the details before giving a final assessment.