The Real Estate and Housing Association of Bangladesh (REHAB) has reported a stagnation in investment within the country’s housing sector, citing multiple challenges hindering growth. According to top leaders of the organization, the sector has been facing numerous crises, particularly since the student-public uprising. High registration costs, rising interest rates, and the flawed Detailed Area Planning (DAP) have compounded the issues, causing a slowdown in new projects and a rise in unemployment.
Speaking at a press conference at the CIRDAP Auditorium in Dhaka on Thursday, REHAB President Md. Wahiduzzaman outlined the key challenges, with the discriminatory DAP being the most significant. He argued that the DAP, introduced in 2022, has made housing unaffordable for the middle class. The reduction in Floor Area Ratio (FAR) has limited the height of buildings in Dhaka, exacerbating the housing crisis and driving up prices. As a result, house rents have soared.
Despite a decrease in the prices of construction materials such as rods and cement, the demand for apartments remains high, but the supply is low, leading to inflated prices.
REHAB) President Md. Wahiduzzaman highlighted the challenges facing the housing sector, with the discriminatory Detailed Area Planning (DAP) being the primary issue. The press conference was attended by Senior Vice President Liaquat Ali Bhuiyan, Vice President Mohammad Akter Biswas, Director Abdur Razzak, and Ayub Ali.
Wahiduzzaman stated that the DAP, introduced in 2022, has proven to be detrimental to the housing sector, particularly for the middle class. He emphasized that the new regulations, which reduced the Floor Area Ratio (FAR), have caused a decrease in the height of buildings in Dhaka, exacerbating the housing crisis. He warned that this would lead to higher flat prices and skyrocketing house rents in the future, making housing even more unaffordable for many.
Addressing the current state of the sector, Wahiduzzaman noted that despite a decrease in the prices of construction materials like rods and cement, there is a lack of buyers. This is attributed to housing institutions and landowners not building new houses, which has led to a rise in demand for apartments, while the supply remains low and prices continue to increase.
In response to a question about the impact of political changes, the REHAB President acknowledged that the housing sector has not been able to recover. While flat sales have decreased, the prices of apartments have dropped in some areas, while remaining stable in others.
The REHAB President noted that the housing sector has not recovered since the political change, with a decline in sales and price reductions in some areas, while prices remain stable in others.
REHAB is set to host its five-day housing fair starting Monday next at the Bangabandhu International Conference Center in Agargaon. The fair will feature 220 stalls, with visitors able to explore housing options, home loans, and construction materials. The fair will be inaugurated by AF Hasan Arif, advisor to the Ministry of Land, Civil Aviation, and Tourism, at 3 pm on Monday. Tickets for the event are priced at Tk 50 for single entry and Tk 100 for multiple entries.
REHAB leaders are optimistic that this year’s fair will attract a larger crowd, as it is the first to be held after a year-long hiatus due to elections. Vice President Mohammad Akter Biswas expressed hopes that apartments and plots worth Tk 1,000 crore will be booked at the fair.
