Bangladesh’s Housing Crisis Deepens as Sales Plummet and Developers Retreat
Bangladesh’s housing market has struggled for years, with sales dropping sharply due to economic pressures and political instability. Developers, once capable of building 15,000 to 20,000 flats annually, now face unsold units and reduced demand, forcing them to cut back on new projects.
The decline in apartment sales has been steady over the past three to four years. Monthly transactions have fallen from 900-1,000 units to just 350-400, despite ample supply. High-end and mid-range flats, once popular, now sell at only 20 to 30 per cent of previous rates, particularly after last year’s political shift.
Annual sales have also plummeted, dropping from around 15,000 flats between 2010 and 2012 to fewer than 10,000 in 2022-23. Rising costs, including registration fees and bank interest rates of up to 15 per cent, have made mid-range flats—priced between Tk 1 crore and Tk 2 crore—unaffordable for many middle-class buyers. With economic uncertainty and high inflation persisting, the market has shifted toward cheaper, basic housing. Yet, no major developers have publicly increased production of low-cost units to meet this demand. The ongoing political instability continues to discourage buyers, deepening the sector’s slowdown.
The housing market remains under pressure, with fewer buyers and excess inventory. High costs, economic instability, and political concerns keep demand low, leaving developers hesitant to launch new projects. Without significant changes, the sector’s recovery appears unlikely in the near term.
