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Satellite City Should Provide Affordable Housing, Not Serve as Investment Havens

Published : Friday, 14 August, 2026 at 12:00 AM
Walid Khan
The cities developed around Dhaka do not fully match the original idea of a satellite city. A satellite city is expected to be a largely self-sufficient urban area with housing, jobs, education, healthcare, shopping and other civic facilities. 
Over the year Uttara gradually developed as self-sufficient in some areas, especially in shopping and education. It has many schools, markets and other facilities. However, people living in Uttara still have to travel long distances for their livelihoods because enough job opportunities have not been created within the area.
As a result, Uttara and other cities developed around Dhaka have failed to achieve the full objectives of satellite-city development. These areas were not developed in a sufficiently planned and limited way. Therefore, residents still face problems in getting full civic facilities.
The case of Purbachal New Town is also important. About 20 years ago, plots were allocated there with the aim of developing a new city for around 1.5 million people. But the allocation of these plots was influenced by political considerations. At the beginning, some plots were allocated for as little as Tk 2.5 lakh.
In Purbachal, various politicians, freedom fighters, government officials, judges, defence officers, artists, athletes and VIPs received plots through quota-based lotteries. However, these plots were supposed to be allocated to ordinary people.

Over the years, many of these plots have changed hands. Many plots have been sold to housing companies for crores of taka. As a result, the middle- and lower-income people of the country have not received the expected benefits from the project.

Dr Ishrat Islam is a prominent academic, researcher and Professor in the Department of Urban and Regional Planning (URP) at the Bangladesh University of Engineering and Technology (BUET). 

The main purpose of developing satellite cities was to reduce population pressure on Dhaka. But the expected housing development has not taken place on a large enough scale. One major reason is that there has been no effective government pressure on plot owners to build houses within a fixed period.
When plots remain vacant for years, the main purpose of developing a new city is lost. Land that was supposed to provide housing for people and reduce pressure on Dhaka instead becomes an opportunity for speculation and profit.
The government should therefore stop allocating plots in this way. Instead, it should give priority to planned housing, affordable homes and the creation of employment opportunities. The government should also ensure that land allocated for urban development is used for its intended purpose within a fixed period.
Satellite cities should be developed for people, not for a group of opportunistic investors. Housing, employment and civic facilities must be developed together. Simply allocating land around Dhaka cannot solve the capital’s population and traffic problems.
The government needs to rethink its approach to satellite-city development. Instead of policies that mainly benefit an opportunistic group, it should introduce measures that ensure ordinary people, particularly those from middle- and lower-income groups, receive the real benefits of these urban projects.


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