REHAB for raising flat prices by Tk1,000 per sqft

The Real Estate and Housing Association of Bangladesh (REHAB) has said the prices of flats have to be increased by Tk1,000 per square foot (sqft) due to the rising cost of construction materials.
 
During a press conference on Saturday, the organisation demanded the withdrawal of the increased tax on construction materials in the proposed budget, as well as the scope to invest black money in the housing sector without any conditions.
 
The association of real estate traders also demanded a refinancing fund of Tk 20,000 crore for real estate traders.
 
REHAB President Alamgir Shamsul Alamin (Kajal) said, "We have studied 10-11 construction materials including rod, cement, sand, bricks and stones. In recent price hikes, the construction cost of flats has increased by about Tk500 per square foot. So, the customers will have to bear the additional cost of Tk1,000 per square foot as the developers acquire most of the lands in a 50:50 ratio."
 
The import duty on elevators has been increased by 19% in the proposed budget. The duties on various types of wires and pipes have been increased from 5% to 10%, and 15% to 25%, respectively, he said.
 
The supplementary duty on GI fittings has been increased by 20%. In addition, the duty on tubes, plates, electrodes and similar products has been increased from 10% to 15%. Aluminum Foil (Backed by others) was subjected to 20% supplementary duty in the proposed budget, he added.
 
This sudden increase in raw material prices will push the prices of flats further up, the REHAB president added.
 
Speaking at the press conference, Alamgir Shamsul Alamin said, "In the budget proposal of REHAB, we have given utmost importance to the opportunity of investing undisclosed funds without any condition. But our demand was not considered."
 
The REHAB president said the government had given "special" scope to invest undisclosed money with a 10% tax in the budget for FY2020-21 and at least Tk20,000 crore has been invested in this sector. But in the latest proposed budget for FY2022-23, that opportunity was announced to be cancelled. "I demand to retain the facility of investing undisclosed money as before."
 
Citing a reason for the high cost of land and flat registration, the REHAB president said, "Currently, the registration fee is being charged at 10-12.5% rate. We proposed to reduce the rate to 7%. Because, if the registration cost is low, buyers will be encouraged to show the correct price of the land. Thus, undisclosed funds will be reduced. But even this demand was not taken into consideration."
 
Regarding the formation of a special fund for housing loans, he said, "We have been demanding the formation of a Tk20,000 crore refinancing fund called 'Housing Loan' for several years. The proposed budget did not mention anything about this fund.
 
The REHAB president said the proposed budget could hurt the housing sector as none of its demands was met.