Crisis in housing industry, decline in flat sales


The country’s housing industry is in crisis due to various reasons including high cost of construction materials and inflation. Traders in this sector were already unhappy with the Detailed Area Plan (DAP). New DAP (2022) added Floor Area Ratio (FAR). The height-size of the building has changed greatly according to the land. Both businessmen and land owners are losing interest in it.

The entrepreneurs of the housing sector say that Rajuk is approving the design of new buildings according to the Far. Due to the decrease in new projects, the housing sector is suffering. However, Rajuk says, wants to make a livable city with public welfare for everyone. It is with this importance that the draft building construction policy has been made.

Traders or landowners will not suffer due to fur less or more. There is no additional cost or loss. In the metro area, where there is more fur, there are more facilities, there is an opportunity to build a big building. DAP Project Director. Ashraful Islam

Ahsan is a resident of West Dhanmondi area. He told Jago News, ‘Many people want to build buildings through a developer company to avoid problems. Where equal ownership is available. But now that is not the case with the ‘FAR’ (floor area ratio) issue. We will get permission to build seven floors due to the area fee here. Where three and a half floors will be my share. So why should I pass the plan or give it to the developer company. I have a four-storey house right now.’

Crisis in housing industry, decline in flat sales

Reduced plan pass

According to the Real Estate and Housing Association (REHAB), a body of housing traders, 18,000 to 20,000 plans are usually passed every year. An average of two to two and a half thousand plans were passed in each of Rajuk’s eight zones. Now there are 1000 to 1200 plans being passed on FAR and DAP issues.

Reluctance to build new buildings in Far’s Marpanch

According to the draft building regulations, a four-storey house can be built within 20 feet of road ‘Far’ 2 in an area. If it is below 20 feet, the ‘far’ will be further reduced to one and a half or two quarters, where three to three and a half storey houses can be built. The owners are not interested in giving land. Because the developer company demolishes and develops two to three storied buildings on the land it takes. Although the land is developed, the house is three-storeyed.

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Because of this, many landowners are talking about discrimination on the fur issue. Businessmen have the same complaint. Abdur Rashid, a resident of Kanthal Bagan area, told Jago News, ‘There are tall buildings on both sides of my land. A new building is also 10 floors. Now I can build a six-story building because of the new rules. But there are big buildings on both sides of my house.’

Crisis in housing industry, decline in flat sales

However, a Rajuk officer in charge of a zone inspector told Jago News, ‘Due to the demands of housing traders, the house will be built in light of the previously approved plan. But now the height of the building and the number of flats will come according to those who will take the new plan. It will be the same if it is approved earlier.’

Due to DAP, the dream of housing, one of the basic needs, is going beyond the reach of the middle class. Decent housing for all is becoming increasingly difficult. We are working to ensure that neither ‘far’ nor ‘dap’ stands in the way of planned urbanization.- Liaquat Ali Bhuiyan, Senior Vice President, Rehab

Rajuk city planner and project director of DAP. Ashraful Islam told Jago News, ‘The construction regulations of 2008 were not scientific. Now there is no greenery in the city, there is no road, the good environment is decreasing. The new rules are realistic and scientific. Traders or landowners will not suffer due to fur less or more. And if the building is less, the cost will be less. There is no additional cost or loss. In metro areas where fir is more, there are more other facilities, there are opportunities to build big buildings.’

Flat sales have decreased

Rehab sources say that an average of around 15,000 flat-apartments were sold every year from 2010-2012. From 2013-2016, an average of more than 12,000 flats were sold every year. Between 2017-2020, an average of 14,000 flats were sold every year. From July 2020 to June 2022, around 15,000 flats have been sold every year. After that, the sale of flats decreased due to the implementation of DAP and the increase in the price of construction materials. In the financial year 2022-23, sales are close to 10 thousand. In the recently concluded fiscal year 2023-24, it further decreased to below 10 thousand.

Crisis in housing industry, decline in flat sales

Flat prices have increased

Even though the sale has decreased, the price of the flat has not decreased. The price has gone beyond the reach of the middle class. Three years ago, flats which were 5 to 6 thousand taka per square feet, now it has gone to 8-10 thousand. The highest price increase is elite apartments.

Liaquat Ali Bhuiyan, Senior Vice-President of Rehab and Chairman of Brick Works Limited, told Jago News, ‘The dream of housing, one of the basic needs, is going beyond the reach of the middle class due to DAP. Decent housing for all is becoming increasingly difficult. We are working to ensure that no ‘fur’ or ‘dap’ stands in the way of planned urbanization.’

Crisis in housing industry, decline in flat sales

According to the new rules, the number of flats will decrease with the height and size of the building. It does not pass the plan. In the future, businessmen will be discouraged from investing in the housing sector, land owners will also suffer. The government will lose huge revenue.’

“It takes two to three years for a project to be completed,” he said about the high prices even though the sale of flats is low. The flat sold now is also of that time. During this period the price of construction materials skyrocketed. Price has been adjusted. The price of the main construction material rod is close to lakhs of rupees, the price of brick-sand-cement is also high. Now you can’t give a flat at a loss if you want. If the price of construction materials comes down, the price will reach the middle class again.’

EAR/ASA/ASM