The Real Estate and Housing Association of Bangladesh called for policy measures aimed at making housing more affordable for middle-income families, warning that high taxes, registration costs and expensive home loans were pushing homeownership beyond the reach of many citizens.
The association on Wednesday urged the government to view the housing sector as a driver of economic growth rather than merely a source of revenue collection ahead of the national budget for the forthcoming financial year 2026-27.
In a press statement, REHAB president Ali Afzal proposed a series of measures aimed at improving housing accessibility.
These measures include offering single-digit interest rates on housing loans, reducing registration and stamp duty fees, establishing a dedicated housing credit fund for middle-income buyers and rationalising taxes on construction materials.
‘Housing is a basic need, not a luxury,’ Afzal said, arguing that double-digit mortgage rates had significantly increased the financial burden on prospective homeowners.
He said that many middle-income families were unable to purchase apartments because monthly loan installments consumed a large share of their income.
Afzal also stressed the wider economic importance of the housing sector, noting that it supported around 269 related industries, including steel, cement, glass, ceramics, transport, banking, insurance and architectural services.
‘A single apartment transaction creates economic activity across multiple sectors,’ he said, adding that a vibrant housing market contributed to employment generation, industrial growth and government revenue.
He argued that reducing registration costs would encourage more property transactions and ultimately increase government earnings through a higher volume of sales.
He said that rising taxes and costs associated with construction materials had pushed up apartment prices, making housing less affordable.
Rationalising the tax structure on key inputs such as steel, cement, glass and ceramics would help lower construction costs and expand access to housing, he added.
On the issue of allowing undisclosed money to be invested in the sector, Afzal described it as a temporary measure, saying that the long-term solution lied in creating a fair and simple tax system that encouraged voluntary compliance.
With the budget announcement approaching, he expressed optimism that the associaiton’s proposals would receive consideration during the finalisation process.
