The Real Estate and Housing Association of Bangladesh (REHAB) has demanded the formation of a "monitoring cell" to determine the prices of construction materials and ensure the quality of products.

REHAB leaders made the demand at a view exchange meeting with State Minister for Commerce Ahasanul Islam Titu at the secretariat in Dhaka yesterday.

The real estate sector has been facing a deep crisis due to the increasing prices of construction materials, including rods, cement, and cables, they said.

"The price of flats in Dhaka has been out of the reach of common people due to the sharp rise in the price of construction materials and some other reasons, putting the housing sector on the verge of destruction," REHAB said in a press release.

REHAB President Md Wahiduzzaman, Senior Vice-President Liaquat Ali Bhuiyan, and Vice-Presidents M Ashraful Islam, Md Awal, Mohammad Akhter Biswas, and Abdur Razzak were present at the meeting.

They said companies were in a deep crisis regarding the projects that began earlier as the prices of construction materials have increased but they are unable to collect extra money from buyers due to contractual obligations.

"The rate at which the prices of construction materials are increasing has made it difficult to keep our promise to buyers of flats," they said.

They explained that developers take up projects in partnership with landowners and sell houses at the beginning of a project at a fixed price.

Due to the sales agreement, the price of the flat cannot be increased even if the prices of construction materials rise later, they said.

They added that in most cases flats remain unsold due to higher prices.

REHAB leaders also alleged that even if the price of a raw material decreases abroad, its price does not decline in the domestic market. At the same time, if there is a slight increase in the price in the international market, the price jumps locally.

They said this was because there is no effective system to determine their prices.

It is important to check the quality for the sake of safety, they also added.

The REHAB leaders urged the state minister to form a monitoring cell with representatives from the commerce ministry, REHAB, and other stakeholders.

Titu assured he would review REHAB's demands and implement them.