Industry analysis The construction industry of Bangladesh has improved substantially during the last twenty years. About 10% of GDP of the country comes from this sector alone. It absorbs a very big labor force as well as enhances big job opportunities for engineers, architects, managers, foremen, supervisors, technicians, electricians, machine operators, drivers etc. At present this is a booming industry and people engaged in this sector are earning a reasonable salary and other benefits. And this is surprising to note that there is a dearth of trained personnel in this sector, in our country.
Construction includes buildings of all type i. e. high rise and low rise for accommodation of people or providing space for commerce and industry, jetties in river or sea, bridges, air ports, roads, highways etc. All structures are supposed to be built following designs and drawings prepared by architects and foundation engineers, structural engineers, sanitary engineers, mechanical, electrical and electronic engineers etc. The design and drawings in the country are generally based on Code of Practice of USA, UK, EU and BANGLADESH named as Bangladesh National Building Code (BNBC).
The construction activities are carried out as per specifications of the contract presently based on Federation Internationale Des lngenieurs Conseils (FIDIC). Engineers of all advanced countries of the world prepare design and drawings following relevant Codes of Practice and these are being checked thoroughly before sending to sites for execution. Unfortunately in our country and many other developing countries, various stages as explained above are not implemented properly.
The consultant or employer’s engineers responsible for preparing designs and drawings do not generally send drawings in time, there by delaying the project implementation. After drawings are sent to sites, various mistakes are found on the drawings which are to be corrected. The contractors in our country generally do not like to work properly and interested to have maximum profit neglecting maintenance of the quality of works. There have been many incidents/ accidents in our country during execution of construction works or after completion of these works causing loss of life of the people and their property.
These occurred due to negligence of representatives of the contractor or engineers of other associated agencies and come under human right violation. But a few people are punished for their negligence. Various structures have collapsed due to construction defects and/ or design defects or fire caused due to short circuit, killing many poor people and injuring a lot. But very few people responsible were punished for their negligence of duties. From the details of such incidents/accidents, we can understand the seriousness of the situation prevailing in our country.
These could have been averted substantially, if we could have designed these structures properly following proper mathematical analysis, relevant codes of Practice and prepare detailed drawings and execute the same under strict supervision of qualified and experienced persons and follow the contract documents properly. Unfortunately due to corrupt practices, engineers / architects of most of the projects instead of trying to help the contractor for speedy completion try to delay the work by raising unnecessary hindrance to gain their own personal interest. These should be stopped.
The police during any accident also do not generally help the victims or their family. With a rising population and increasing housing demand, apartment culture has grown up in Dhaka sharply. Apartments were first introduced by the formal private developers in early 80s to the housing history of Dhaka. It first appeared in Dhaka near Central Road and subsequently the city experienced a boom in apartment development in all residential areas including Paribagh, Maghbazar, Siddeshwari, Shantinagar, Dhanmondi, Mirpur, Banani, old DOHS, new DOHS, Gulshan and Baridhara.
In line with this, house rent in Dhaka increased by 250 percent between 1990 and 2007. During the last decade, the total volume of Real Estate, Renting and Business service sector increased every year which implies a positive growth in the sector every year. But, compared to overall GDP growth, this sector expanded at a slower rate. That is why in overall GDP the contribution of this sector has a downward trend. The overall GDP contribution of the sector was 7. 02% in 2009-2010. In a crude measure, the total volume of the sector was approximately 26575.
74 crore BDT in 2010-2011. The growth in this industry also facilitated a fast growth in many linkage industries like glass and glass products industry, brick industry, cement industry, ceramic industry, iron and steel industry etc over the last decade. Such consistent growth in the real estate sector is mainly due to a consistent demand at the consumer end.
Through analyzing the consumer responses, it is estimated that demand for houses in upcoming three years is around 30,000 to 40,000; in upcoming five years demand is around 60,000 to 80,000; and in upcoming 10 years demand are around 95,000 to 130,000. In case of flats, estimated demand in upcoming three years is around 75,000 to 100,000; in upcoming five years demand is around 90,000 to 125,000; and in upcoming 10 years demand are around 70,000 to 95,000. In line with the demand, the prices of real estate properties are also rising very fast.
Price hike of land and construction materials also add to the overall price hike. The price of land is increasing at a very high rate after 1990. After 2000, the rise in land price became steeper.
There is no control of the govt. over the price increase of land within Dhaka city. Increased land price have a direct impact on apartment price. Also, after 2005, price of bricks, granular sand, cement, grade 60 rod etc. had a rapid, almost exponential, increase. Due to such unimaginable increase in land price as well as sharp increase in prices of the construction materials price increase of apartments became an obvious consequence. Year:Size of GDP(Crore Tk):Overall GDP Growth (%):Real Estate% of GDP:Real Estate(Crore TK):growth% 2001-02 225,261 4.
42 8. 63 19,440 — 2002-03 237,101 5. 26 8. 48 20,106 3. 43 2003-04 251,968 6. 27 8. 30 20,913 4. 01 2004-05 266,974 5. 96 8. 12 21,678 3. 66 2005-06 284,673 6. 63 7. 87 22,404 3. 35 2006-07 302,971 6. 43 7. 64 23,147 3. 32 2007-08 321,726 6. 19 7. 49 24,097 4. 11 2008-09 340,197 5. 74 7. 34 24,970 3. 62 2009-10 360,845 6. 07 7. 20 25,981 4. 05 Area Average Price of Apartments % Increase in price over the past two decades (Taka/Sq. feet) Year Year Between Between 1990 1995 2000 2005 2010 1990-2000 2000-2010
Dhanmondi 2150 2200 2400 3300 14000 2% 483% Gulshan 2115 2080 2450 4500 14000 16% 471% Banani 1750 1950 2200 3100 12500 26% 4 68% Baridhara 1850 1950 2150 4000 20000 16% 830% Lalmatia 1800 1950 2400 3400 8500 33% 254% Mirpur 1250 1300 1500 2500 5500 20% 267% Uttara 1650 1750 2000 2700 5300 21% 165% Shantinaga 1850 1900 2200 2700 5000 19% 127% Siddeswari 1450 1800 2250 2750 5500 55% 144% Malibag 1600 1850 2250 2500 7000 41% 211% Mohammadpur 1450 1600 1800 3500 4500 24% 150% Shamoli 1350 1500 1600 2100 7000 19% 338% Kolabagan 1800 2000 2250 2100 5500
25% 144% Monipuripara 1850 2000 2250 3300 5500 22% 144% Green Road 1600 1700 2000 2500 5500 25% 175% Elephant Road 1600 1800 2200 2500 5500 38% 150% Segun Bagicha 1450 1550 1900 2500 6000 31% 216% Reference http://www. rehab-bd. org/new_Comprehensive_Study_On_The_Real_Estate_Sector_Of_Bangladesh. pdf www. newstoday. com. bd/index. php? option=details&news_id…