Slump in construction sector

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THE sales of apartments have markedly dropped in recent months, throwing the real estate sector in a real crisis. One major reason for the drop in sales thereof can be ascribed to the changed fiscal and other related factors, making investments in real estate sector difficult. Those who have money to make investment for purchase of apartments are not prepared now to do so for fear of the 'axe' falling on them. The real estate developers are bearing the major burnt of depressed sales. Those developers who had bought land at high prices are not investing fresh funds for construction of apartments because of depressed demand conditions. The owners who had transferred their land to the developers with the hope of getting a proportionate share of the flats to be constructed thereon will now have to wait for an uncertain period of time. They have received some cash funds as well for such transactions but registration deeds thereof are yet to be executed in good number of cases.
Meanwhile, the slump in real estate sector is most likely to have many adverse chain-reactions. A good number of sectors and sub-sectors producing construction items of various kinds will face difficult times. Their production performance will remain below the capacities. With sales down and operations at below the production capacity in such sectors and sub-sectors, there will be job-shedding, aggravating the unemployment problem. Already, the daily construction workers are finding it difficult to earn their income.
The authorities concerned do need to appreciate the ground-level realities and take necessary actions.
Abul Hossain
Mohakhali, Dhaka