The steady march up the price ladder continues. While the land rates have been going up at an unexpected pace, construction related costs, too, are on the rise. The cement prices have already gone up. And It appears that the prices would for another hike soon.
The cement prices which went up slightly in last couple of months in the city are likely to hike further.
At present, the price of a bag of 50kg cement went up by Tk. 30 to 40 during the last few days. Industry circle said they had to raise the price as the import of cost fuel went up and Bangladesh taka devalued seriously against US Dollar. The price, which for a long time had been on the lower side compared to other countries, is being hiked in several rounds and the spurt in construction activity in the last few years has only furthered it.
Usually, the construction activity soars during summer as most want to finish off the external and roof works before the arrival of monsoon. Given the recent rise in land procurements, this time around the construction works are expected to be taken up on a much larger scale. There is an anticipation of government works, including housing schemes and irrigation related projects, commencing shortly, which could put construction material in demand.
Increased freight costs
The price hike of cement is sure to affect the booming apartment business. The builders have raised the prices of apartments by 25 per cent. They said the price hike has resulted in the halt of the business in the real estate sector.