Real estate crisis to worsen without policy action
Staff Reporter :
Bangladesh’s real estate sector is grappling with a series of escalating crises, and home ownership may soon become increasingly unaffordable for the general public unless urgent reforms are implemented, warned Md Wahiduzzaman, President of the Real Estate and Housing Association of Bangladesh (REHAB).
Speaking at a press conference held at the National Press Club on Tuesday, Wahiduzzaman stated that the housing sector is under immense pressure due to inefficiencies in institutional ownership, regulation, and production.
“We have reached a critical juncture where the entire housing ecosystem is being adversely affected. Government institutions such as the National Housing Authority are failing to deliver effectively due to a lack of coordination,” he said.
Although 98 percent of construction materials are sourced domestically, many real estate projects have stalled due to sharp cost escalations. Developers across all tiers-small, medium, and large-are facing existential threats, Wahiduzzaman added.
He highlighted that the sector’s instability is being fuelled by poor urban planning, indecision among policymakers, and interference from vested interests.
As a result of the housing shortfall, residents in Dhaka are being compelled to pay up to five times the fair market value for accommodation. “If structural reforms are not initiated promptly, the situation will only worsen,” he cautioned.
The press conference also addressed other pressing concerns such as the complexity of property registration procedures, land scarcity, and growing uncertainty surrounding new investments.
Wahiduzzaman urged the government to take immediate policy action and establish coordinated efforts to safeguard the future of the real estate industry. “If swift measures are not taken, production in the housing sector will decline further, which will have serious implications for the broader economy and public welfare.”
REHAB confirmed it has initiated dialogue with various ministries and government agencies, and is preparing to submit a comprehensive proposal aimed at ensuring a sustainable and inclusive future for the sector.