The Causes and Impact of Increased Prices of Construction Materials in Bangladesh

Abstract

The construction industry in Bangladesh had been a cornerstone of national development and economic expansion, contributing significantly to GDP and employment generation. However, in recent years, the industry faced a severe challenge due to the continuous rise in the prices of construction materials such as cement, steel, sand, bricks, and aggregates. These price hikes disrupted project planning, delayed construction timelines, and increased the overall cost of infrastructure and housing projects across the country. The objective of this research was to investigate the root causes behind the escalating construction material costs and to examine the resultant socio-economic impacts on Bangladesh’s construction sector. The study adopted a quantitative research approach based on secondary data from government publications, industry reports, and trade statistics. The findings indicated that factors such as global supply chain disruptions, raw material shortages, import dependency, inflation, and currency devaluation are among the leading causes of rising costs. The study also revealed that these price increases had negatively affected project feasibility, public housing affordability, and economic sustainability. The research concluded by recommending policy interventions, promotion of local material production, and improved supply chain efficiency to mitigate the effects of material price escalation and ensure long-term stability in Bangladesh’s construction sector.