Surging home loan interest rates have brought Bangladesh’s mid-segment housing market to a near standstill in 2025, squeezing salaried buyers who depend heavily on bank financing and sharply raising monthly instalments beyond affordability.

Construction costs in Bangladesh fell for the seventh consecutive month in November, as official data from the Bangladesh Bureau of Statistics (BBS) showed a continued slide in building-material prices amid weakening market demand, according to industry insiders.