Housing slowdown temporary, recovery ahead

The ongoing downturn in the country's housing sector is not permanent, and the industry will recover once market confidence returns, said Md Reazul Islam, chairman of Rajdhani Unnayan Kartripakkha (Rajuk), amid concerns over falling sales, rising costs, and regulatory hurdles.

"The housing sector has gone through many cycles of ups and downs. Although the market is facing a slowdown now, it is not permanent. Better days will surely return," he said yesterday while inaugurating a four-day housing fair organised by the Real Estate and Housing Association of Bangladesh (REHAB) at the Bangladesh-China Friendship Conference Centre in Dhaka.

Islam also said real estate developers play a vital role in urban development, job creation, and overall economic activity.

The sector, which has strong backward linkages with industries such as cement, steel, ceramics, electrical goods, and fittings, is currently under pressure due to high interest rates, lower private investment, rising construction costs and stricter enforcement of planning rules.

The Rajuk chairman stressed the importance of following planning rules, particularly under the newly gazetted Detailed Area Plan (DAP), and urged a gradual shift towards environmentally friendly, or green buildings.

He also warned against unplanned construction that limits access for emergency services, saying such practices benefit only a few people while harming the city as a whole.

"Any development where fire service vehicles or ambulances cannot enter has no real economic or social value," he said, adding that unplanned construction increases urban risks and raises public costs.

Regarding the DAP, Islam acknowledged that its implementation has faced resistance and challenges but thanked developers for eventually accepting it.

He said the gazette is not final and will be updated by a technical committee to identify errors and suggest necessary corrections.

At the event, Ferdousi Begum, chairman of the National Housing Authority, urged developers to honour their commitments to help restore buyer confidence, especially among expatriates and middle-income families who invest remittance income in housing.

"Housing is deeply linked to employment, remittance utilisation, and government revenue," she said.

REHAB President Md Wahiduzzaman chaired the opening ceremony.