A suggestion for introducing financial-support scheme for the homeless and tenants sounds emphatic as costly building materials make housing unaffordable for many, including middle-and lower-income groups of people.
Building-construction cost in Bangladesh has almost doubled in last one decade with the building-material-price index having jumped 96 per cent, analysts said Friday, in the wake of latest spiral in prices of rod and cement in particular.
The ballooning building costs push people onto backpedal, especially in the metropolitan areas, in their aspirations for getting houses, they said.
Reports trace another subtle push-from big-money purchases of property in the country much the same way real-estate bubbles are taking place in big economies.
The house prices have become dearer in the metropolitan cities, including Dhaka and Chattagram, dashing down hopes of many for a roof of their own over their head and posing headwinds to the 'house-for-all' slogan of the government.
According to government statistics, the building-construction cost has escalated due mainly to higher price trend of construction materials over the last one decade.
Bangladesh Bureau of Statistics (BBS)'s recent survey shows that the Building Material Price Index (BMPI) has shot up 96.02 per cent in last 10 years.
The BMPI was recorded at 629.24 in the last fiscal year (FY) 2020-21, the BBS data showed. A decade ago in FY2011-12, the BMPI read 321.01.
Development analysts say the higher building prices have affected the residents of all cities in Bangladesh, especially in the megacities.
Houses for middle-and lower-middle class and poor people are still a far cry in the cities like Dhaka and Chattagram for "mismanagement" of the material prices, they said.
Government data show that some 5.0 million people in Bangladesh have no homes to reside in while three-fourths of the total population live in mud houses.
The Planning Comm-ission's five-yearly plan reveals that some 5.0m are homeless while 74 pc of the population live in mud houses.
According to the Household Income and Expenditure Survey (HIES) 2019, some 74.87-per cent families live in permanent mud houses while only 4.95 per cent households have pucca buildings. Also, 2.13 per cent reside in slums and makeshift mud houses.
According to the BBS survey, the number of the homeless people is on the rise. In 1991, some 0.95 million people were homeless which rose to 1.13 million in 2001 and to 4.6 million in 2010.
The homelessness is not visible in rural areas as people sans a homestead usually erect houses on their relatives' land. Many people live on the embankments in the coastal areas and those who have no option migrate to cities, and most of them remain homeless.
The latest BBS survey shows that the building cost has doubled mainly due to the higher cost- hike trend of the construction materials in the country.
According to the BMPI of the BBS, the construction-material cost has been enhanced by 103.18 per cent in last one decade.
Besides, the construction-related transportation cost has recorded a moderate rise by 84.84 per cent in last 10 years.
On the other hand, the labour cost has grown at a lower rate over the period.
According to the BMPI, the labour cost has increased by 42.98 per cent in the last 10 years.
Former Director-General of Bangladesh Institute of Development Studies (BIDS) Dr Mustafa K Mujeri told the FE that since many construction goods and raw materials in Bangladesh are imported, their prices depend on the international market trend.
However, the government should find out the reasons behind the higher price trends and ensure adequate supply of the materials for ensuring affordable prices for all.
"Since many people are still homeless, the government should ensure their residential facilities through making the house prices affordable," he said.
Centre for Policy Dialogue (CPD) Research Director Dr Khandker Golam Moazzem told the FE that, considering the higher construction prices, the government could introduce a financial- support scheme for the homeless and tenants.
"Due to higher rents of the houses in the metropolitan cities, many middle-and lower-middle- income and poor people spend some 30-50 per cent of their income for getting residential facilities. So, the government can introduce a financial-support scheme for the people under a certain amount of monthly income," he said.
