Market Research Report
Bangladesh Construction Market - Growth, Trends, and Forecast (2020 - 2025)
|Published by||Mordor Intelligence Pvt Ltd||Product code||937901|
|Published||Content info||150 Pages
Delivery time: 2-3 business days
|Bangladesh Construction Market - Growth, Trends, and Forecast (2020 - 2025)|
|Published: May 1, 2020||Content info: 150 Pages||
The Bangladesh Construction Market is estimated to grow at a CAGR of approximately 8% during the forecast period.
In 2019, the construction industry in Bangladesh spent a good year depending on increased development activities and megaprojects backed by a healthy economy and increased government spending. The price of construction materials has been stable throughout the year. Construction grew by 9.6%, supported by public infrastructure spending as well as private investment in housing the construction sector plays an increasingly important role in the economy in the context of continued urbanization and a range of major infrastructure projects undertaken by the government.
In 2019, The Executive Committee of the National Economic Council (ECNEC) of Bangladesh has approved two large mass rapid transit (MRT) projects worth BDT940bn (USD 10.8bn).The approval has been granted for MRT Line 1 and MRT Line 5 (Northern Route), which will overhaul Dhaka's transport system. Around BDT690.4bn will be financed by external organizations, such as Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA). The government will contribute BDT304.6bn, while the transport agency will fund the remaining BDT5.16bn. The two projects will receive BDT685.67bn from the JICA, of which BDT394.5bn is allotted to the Line 1 project and BDT291.17bn for Line 5 project.
Increase in GDP contribution from construction sector:
The construction sector of Bangladesh is playing an increasingly vital role in the economy amid continued urbanization and an array of large infrastructure projects undertaken by the government. It is one of the 15 major sectors that contribute to the GDP. The sector posted 9.92% growth in 2017-18, up from 8.77% in the year 2017. The sector's share of the GDP increased to 7.50% in the last fiscal year. There is a lot of investment in the construction sector and it will go up further if the government works strategically.
Demand for Residential Real Estate in Metropolitan Cities:
Apartment buildings are replacing houses and bungalows as Dhaka becomes more congested and land prices increase. The city is also moving towards the development of suburbs and suburban areas away from the urban core, which can ease the burden on roads and properties. As the income of the middle-class increases, the demand for housing is also increasing. Most customers prefer to have their own house, rather than spending a significant amount of their monthly income on rent. The increasing availability of home loans increases consumer ability to afford properties, further enhancing the convenience of buying a home. Infrastructural developments can have an impact as they increase the ease of trade around the world, enabling companies to enter areas that may have previously been too costly to operate in. When commercial space rents are growing, companies are also renting floors in residential areas, away from conventional commercial districts such as Motijheel. Commercial real estate applies to businesses, shopping centers, medical and educational establishments, and hotels, among others. Factories, warehouses, and other production plants are part of commercial real estate. The growth of this segment depends on business confidence, which has been bolstered by the rising economic growth of the country.
The report covers the major players operating in the Bangladesh Construction Market. The market is fragmented, and the market is expected to grow during the forecast period due to continues growth in the economy and an increase in demand for residential real estate in metropolitan cities and other few factors are driving the market.