The government’s infrastructure projects and rising homebuilding in rural areas and suburbs have provided scope for construction ingredient makers to make up for the void in demand created by the slowdown in the real estate sector.

“Government spending on infrastructure plays a driving role in construction activities,” said Aameir Alihussain, managing director of BSRM, the country’s largest steel maker.

Remittance inflows and increased farm income have also fuelled demand for construction materials, including rod, in rural and suburban areas.

“These sectors can fill up the vacuum that has been created for sluggishness in the real estate sector,” Alihussain said.

Currently, the government is implementing various projects, including flyovers and bridges, which have sustained the demand for steel, cement and other ingredients.

“We have seen strong growth in the demand for construction materials in rural and suburban areas,” said Md Alamgir Kabir, additional managing director of MI Cement.

Bangladesh annually consumes nearly two crore tonnes of cement against the production capacity of more than three crore tonnes, according to cement makers’ association.

The demand for construction materials would have grown faster had the real estate sector performed well, Kabir said.

Affluence is a factor behind the rise in construction of concrete homes in rural areas, said Masud Khan, chief financial officer of Lafarge Surma Cement Ltd.

“There has also been a good deal of construction activities such as building markets in upazilas and growth centres,” he said, adding that the demand for cement is high in export processing zones as well.

BN Dulal, secretary general of Bangladesh Auto Brick Manufacturers Association, said the real estate sector was the main driving force for brick makers.

“Now, the demand is high in rural and suburban areas. People in rural areas are constructing homes with bricks,” he added.

Bangladesh annually consumes 500-600 crore pieces of bricks and auto brick makers supply nearly one-third of the demand.