The Detailed Area Plan (DAP) for Dhaka, proposed by RAJUK in December 2021, has finally been approved by Prime Minister Sheikh Hasina on July 6th, 2022. Designed to transform Dhaka into a modern and livable mega city by 2035, the plan aims to decentralize the capital. However, this ambitious vision has raised concerns within the real estate industry, with experts predicting potential chaos. Let’s delve into the details of the DAP and its implications for the real estate sector.
Real Estate Price Hike
Under the DAP, the construction area of residential plots will be reduced by 33-53% compared to the existing standards. Previously, a 5-katha plot next to a 20 ft road would have a floor plan size of 13,500 sq ft with eight floors. However, with the implementation of DAP, this has been reduced to 9000 sq ft with five floors. The reduction is achieved through ward-wise allocation of floor area ratio (FAR). This means that throughout Dhaka, the floor space of buildings will decrease by nearly 50%.
With the city’s population continuously growing and demand for apartments skyrocketing, the competition to buy an apartment will become fierce. As a result, the prices of apartments may increase by 25% to 30%. This price hike poses a significant challenge for many aspiring homeowners.
Housing Rights Ultimately for All
The DAP serves as the foundation for land use zoning, infrastructure development, spatial planning, civic amenities, and utility services in Dhaka’s metropolis region, encompassing an area of 1562 sq km. The plan aims to decentralize the population by providing affordable housing in the outskirts of the city, including areas such as Gazipur, Narayanganj, Savar, Old Dhaka, and Keraniganj.
However, the DAP fails to consider the country’s economic and political stability and how it can impact other industries. Over 269 industries associated with the real estate sector, including steel, tiles, and cement, are at risk of incurring losses due to the DAP, compounded by post-pandemic inflation and volatile economic conditions. Additionally, recent fuel and construction material price hikes have driven up construction costs, making it difficult for a large portion of the population to afford even a small apartment. While the DAP aimed to provide affordable housing for the masses and promote equity, it has inadvertently widened the gap, leaving many individuals unable to afford apartments.
Dissatisfaction Among Landowners and Tenants
The new DAP rules primarily affect landowners, as they will be restricted to a minimum number of apartments per land. The reduction in floor area ratio means that landowners considering joint venture development may be offered 25-40% less usable area than before, leading to significantly reduced profits. This reduced share may no longer be viable for real estate developers, discouraging them from getting involved in land development. As a result, rents are expected to skyrocket due to the scarcity of available apartments and the high demand from potential tenants. This housing shortage and rent increase can create dissatisfaction among landowners, homeowners, and tenants alike. It’s worth noting that many real estate developers are still unaware of these changes.
Hope on Existing Projects
Fortunately, there is good news for those seeking reasonably priced apartments. The DAP will not impact ongoing construction projects and lands that were approved for construction under the previous rules. This means that you can still find apartments at affordable prices, provided they are part of existing projects. However, any land approved for construction after the gazette publication will need to adhere to the rules of the DAP, leading to higher prices.
Therefore, if you’ve been contemplating buying an apartment, now is the time to act. And who better to purchase from than bti? With a legacy dating back to 1984, bti is committed to providing excellent design, construction, and customer-centricity. We have a wide range of ongoing projects across Bashundhara R/A, Dhanmondi, Gulshan, Uttara, Mirpur, Aftabnagar, and more. Visit our website Zenith City News to explore our full collection of apartments in Dhaka and Chattogram or call 16604 or WhatsApp: +8801313401405.
Don’t miss this opportunity to secure your dream home in a rapidly evolving city. Choose bti for a seamless and trustworthy home buying experience.