Afghanistan faces a widening housing shortage as growing numbers of migrants return from neighboring countries, and a number of residential project developers are complaining about rising construction material prices and mounting difficulties in the construction sector. They say that, on one hand, the Taliban have made the process of issuing construction permits delayed and complicated, forcing them to pay bribes to move their work forward, and on the other hand, rising construction material costs have created serious problems for the continuation of their projects. According to these developers, interference by Taliban members during project implementation is another major challenge they face. Some of them say that due to rising construction material prices, they have been forced to halt their construction projects. Meanwhile, a number of construction material sellers cite blocked trade routes, the war in Iran, and rising demand as the main factors behind the increase in construction material prices.
Jabbar (pseudonym), who says the construction of his residential building has remained unfinished for nearly a year due to a Taliban ban on construction and then rising construction material prices, complains of numerous problems in this sector.
This man says, “It has been about a year since I began construction of the building. Previously, I would buy land, build a block, sell it, and then start a new project, but since the Taliban came, many problems have emerged. Obtaining a construction permit takes months, and without paying bribes, work barely moves forward.” According to him, interference by Taliban officials during project implementation is another serious challenge. He adds: “Every time Taliban members come to the construction site, they interfere with the project’s work, and if you do not pay them, they create problems.”
Jabbar also considers the rise in construction material prices to be another factor behind the halting of projects, and says, “For a while, the Taliban halted construction. Then, with the outbreak of the war, trade routes were closed. Now that they have allowed construction again, the price of construction materials has risen sharply. Every time we ask the reason, they say the roads are closed, while some traders also withhold materials from the market so they can sell them later at a higher price and make a greater profit.” He says, “Today, there is almost no line of work that is safe from Taliban interference. People can no longer focus on their work with peace of mind.”
Hekmatullah (pseudonym), a Kabul resident who has halted construction of his building due to rising construction material prices, complains about the increase in prices. He says, “The Taliban allowed construction again, but when people cannot afford to buy construction materials, how are they supposed to build their homes? Every time we go to buy materials, sellers tell us the roads are closed, materials have become scarce, and prices have risen two to three times.”
Referring to the problems he has faced during construction, he adds: “If we build with these high prices, how will we sell it later or even rent it out? There are so many problems. The media say one thing, but in practice, people face many challenges. When construction materials are not available, or their price is exorbitant, what use is having a construction permit?”
Ali (pseudonym), a construction material seller, says that although prices rose after construction resumed, the increase intensified further after the war in Iran and disruptions to trade routes. He says, “The closure of trade routes has made transporting construction materials more costly for importers. In addition to transportation and customs costs, the blocking of import routes through Iran and Pakistan has forced traders to use alternative, more expensive routes, which has ultimately driven up the price of materials.”
This seller also considers rising demand to be another factor behind the price increases. He says, “After the rise in deportations of migrants, many people turned to construction. Some people even demolished their single-story homes to build multi-story buildings in their place. Although the Taliban halted construction for a while, once permission to build was granted again, projects resumed rapidly. Alongside rising demand and limited supply, the price of construction materials also increased.”
Shekab (pseudonym), an economic affairs expert, says Afghanistan has become largely self-sufficient in the production of rebar (reinforcing steel bars), but remains dependent on imports for cement and many other construction materials. According to him, domestic production fails to meet market needs due to the absence of necessary standards, high production costs, and low supply volume. He adds that closed trade routes, rising construction material prices, and a lack of transparency in the construction process have created serious challenges for the construction project market.
This economic expert says: “Major investors, by controlling the largest share of the market, have monopolistically driven up the sale prices of buildings and passed on the rising cost of construction to buyers many times over. In contrast, small-scale projects have largely lost the capacity to continue construction and compete in the market due to rising costs.”
Shekab adds: “Investors will enter long-term projects with greater caution and prefer to invest their capital in quicker-return sectors, such as goods trade or transit, unless special customs facilities or cheaper and more reliable transit routes are provided for the import of construction materials.”
This comes as a number of the country’s citizens had earlier complained about existing challenges in the construction process. In an interview with the Hasht-e Subh Daily, they had said that the construction process faces numerous structural and administrative challenges, including administrative corruption, bribery, and bureaucratic red tape within Taliban institutions. According to them, from the stage of obtaining permits to project implementation, costs and completion times have risen sharply.
The return of migrants from Iran and Pakistan, combined with homes falling within the path of urban development plans for road construction, and on the other hand, rising rents, has confronted citizens with unprecedented challenges.
This situation has not only increased pressure on the housing market but has also created serious problems for many families in finding suitable shelter. At the same time, the absence of organized urban planning and a shortage of necessary services have heightened concerns among citizens and added to the difficulties of daily life.
You can read the Persian version of this report here:
افزایش قیمت مواد ساختمانی و باجگیری طالبان؛ نگرانی مردم از توقف ساختوساز
