The country's construction industry, valued at USD 32.33 billion in 2024, is poised for strong growth and projected to reach USD 44.13 billion by 2029, with an annual growth rate of 6.42 per cent. In the process infrastructure development and urbanization remain key drivers, contributing to the country's GDP growth.
Infrastructure alone accounts for 8 per cent of GDP growth, while urbanization adds another 4 per cent, significantly increasing demand for construction materials like steel and cement, industry sources said.
The sector however braces allegation for high cost quotation for materials and labour thus unreasonably positing higher cost for industry leading to higher GDP valuation. The sources said this is not possible in a highly competitive market.
The government's focus on large-scale infrastructure projects through public-private partnerships (PPP) is accelerating economic progress. This includes investments in power and transportation sectors, essential for meeting the country's growing electricity demand, forecast to reach 40 GW by 2030.
Notable ongoing projects, such as Khulna-Mongla Port railway and Rampal Power Plant, are not only enhancing regional connectivity but also reinforcing energy security.
The real estate sector, contributing 7.93 per cent to GDP in FY 2022-23, has also seen a surge in growth, creating new economic opportunities. Rising property values, particularly around Dhaka's outskirts, have generated increasing interest in real estate investment, further bolstering the sector's impact on Bangladesh's economy.
Local construction firms have played a pivotal role in these developments. According to a senior official of Bangladesh Association of Construction Industry (BACI), the sector has made significant strides, with local engineers, architects, and skilled professionals handling almost all projects, except for a few mega-projects.
These projects often involve consortiums of local and foreign companies, fostering technological exchanges and reducing dependency on foreign expertise.
A leading construction industrialist emphasized that the industry's growth over the past decades has relied on domestic resources and technical expertise. "The country is now self-sufficient in construction, saving significant foreign currency," he said, highlighting the role of local contractors in driving infrastructural development.
However, the sector faces allegations of cost manipulation and preferential treatment in project allocation. Some claim that certain industrialists have secured contracts by inflating budgets or bypassing competitors.
Industry leaders have refuted these claims as baseless. "It is impossible to manipulate the government's procurement process," stated a prominent figure in the industry, defending the integrity of the competitive bidding process that follows strict government regulations.
A senior official of Local Government and Engineering Department (LGED) acknowledged that rising costs of construction materials and labor have contributed to increased project expenses. Delays caused by land acquisition and other factors often extend project timelines, leading to higher overall costs. However, he stressed that these issues arise from external conditions rather than from any misconduct by contractors.
As Bangladesh's construction sector continues to thrive, contributing to both economic and infrastructural growth, industry leaders remain confident in its trajectory, dismissing allegations of impropriety as unfounded.
