The Real Estate and Housing Association of Bangladesh (REHAB) is set to host the REHAB Fair 2024, the largest gathering of real estate stakeholders, starting tomorrow (Monday) at the Bangabandhu International Convention Centre (BICC) in Agargaon, Dhaka.
The five-day event comes amidst a downturn in the country's housing market, marked by declining flat and land sales.
At a press conference held Thursday at the CIRDAP Auditorium in Dhaka, REHAB officials highlighted the challenges plaguing the housing sector. They cited high registration costs, rising interest rates, and a "controversial" Detailed Area Plan (DAP) as major factors causing stagnation in investments.
REHAB President Md. Wahiduzzaman, who delivered a written statement at the briefing, expressed grave concerns over the impact of the new DAP, introduced in 2022. "The discriminatory DAP has proven detrimental. Two years ago, we warned that this policy would push housing, a basic necessity, beyond the reach of the middle class. Our predictions are now coming true," Wahiduzzaman said.
He explained that the decrease in Floor Area Ratio (FAR), a key metric regulating building heights, has severely restricted construction in main Dhaka. "The lower FAR has caused the housing crisis to deepen. Fewer buildings mean higher flat prices, and consequently, skyrocketing rents," he added.
The downturn has significantly impacted the construction sector. "Despite the recent fall in rod and cement prices, there are no buyers, as housing agencies and landowners are refraining from starting new projects. This mismatch has led to an increase in demand for apartments, but a sharp decrease in supply, keeping prices high," Wahiduzzaman pointed out.
REHAB leaders also noted that the sector had been grappling with crises even before the July uprising, with unemployment rising and economic pressures intensifying. —UNB
