Housing Sector Lacks Expected Incentives, Construction Cost May Rise

The Real Estate and Housing Association of Bangladesh (REHAB) has expressed concern that the proposed FY 2026–27 national budget does not reflect expected policy support or incentives for the housing sector.

According to REHAB, new taxes and duties on construction materials—particularly steel rods and other inputs—are likely to significantly increase construction costs, which may directly raise housing prices for consumers.

The national budget was presented in Parliament on Thursday (June 11) by Finance Minister Amir Khasru Mahmud Chowdhury. In an immediate reaction, REHAB said that long-standing demands from the sector have not been addressed in the new budget.

The association also reiterated its demand for reducing property registration costs, arguing that lower costs would increase transactions, encourage investment, and ultimately boost government revenue.

REHAB noted that the housing sector is a key driver of the economy, linked with around 269 related industries including steel, cement, ceramics, electrical goods, furniture, and transport. Any slowdown in the sector could therefore negatively affect employment and the broader economy.

The organization urged the government to consider reforms such as lower registration fees, housing-friendly tax policies, easier financing, and a stable investment environment.

Analysts warn that rising construction costs could make urban housing less affordable, particularly for the middle class.