Debate Over the Detailed Area Plan

Regulations outlined in the Detailed Area Plan (DAP) are restricting housing solutions needed to meet Dhaka’s growing accommodation demands, according to realtors, who argue that the current urban policies are causing more harm than good.

“The new regulations may look good on paper, but in practice, they make it almost impossible to build affordable housing,” said Abdul Latif, Vice-President of the Real Estate and Housing Association of Bangladesh (REHAB).

Latif, who is also the Managing Director of Basic Builders Ltd, explained that the floor area ratio (FAR) restrictions in the new DAP are severely limiting their ability to address Dhaka’s housing needs.

The FAR dictates how much floor space can be built on a given plot of land. Under the new regulations, maximum allowable construction has been significantly reduced in many zones across Dhaka and surrounding areas.

In some residential neighborhoods where buildings could previously rise ten to twelve stories, new rules now limit heights to only four to six stories.

According to Latif, this results in a loss of more than 30 to 40 percent of buildable space, making many housing projects financially unfeasible.

“The cost of land has not decreased. Construction costs are rising. Yet we are being told to build fewer units per plot. The math simply doesn’t add up,” he said.

He added that many projects already underway are facing redesign requirements, cost overruns, or outright cancellation due to these policy shifts.

While policy restrictions limit supply, construction economics have worsened across the board. Over the past two years, the prices of steel, cement, bricks, and other core materials have risen by nearly 30 percent, driven by global supply chain disruptions, inflation, and higher fuel costs.

Meanwhile, apartment prices have remained flat in many parts of Dhaka as buyer confidence weakens amid economic uncertainty.

“Our input costs have risen, but demand has softened. Many buyers are adopting a wait-and-see approach. Some have even cancelled bookings,” Latif said.

He also noted that higher diesel prices and increased import duties have raised transportation and logistics costs, further straining developers.

“We are operating on razor-thin margins now. For many firms, real estate is no longer a profitable business,” he said.

Latif criticized the DAP for promoting density control in the wrong areas.

“In high-demand, working-class neighborhoods like Mirpur, Badda, and parts of Uttara, developers are being asked to reduce vertical growth. But these are precisely the zones where housing pressure is the highest,” he explained.

Meanwhile, luxury areas like Gulshan, Banani, and Baridhara already have strict regulations in place. In many parts of the city, the designated “growth zones” still lack basic infrastructure—such as public transport, sewage systems, and reliable water supply—making development there practically impossible.

Latif stressed that a one-size-fits-all policy does not suit a city as complex as Dhaka.

“You cannot apply the same rule across such a diverse urban landscape. Dhaka needs targeted, data-driven planning,” he said.

In response to mounting population pressures, the government has promoted decentralisation—moving administrative functions and industries outside Dhaka to ease congestion.

However, Latif remains skeptical.

“There is talk about shifting ministries and departments to Gazipur or Purbachal. But unless those areas develop the necessary infrastructure, jobs, schools, and hospitals, people will not move,” he said.

He added that real decentralisation requires significant investment in public services, mass transit systems, and incentives for businesses to relocate.

“At present, decentralisation is just a slogan. People will only move if it genuinely improves their quality of life, not just because a government office relocates.”

The brunt of the housing crisis is falling on the middle and lower-middle classes, many of whom have saved for years to buy a small apartment in the city. With fewer new projects, reduced unit sizes, and increasing prices, that dream is rapidly slipping away.

“If these policies continue, housing will become unaffordable for most families in Dhaka. We are already seeing a rise in informal settlements and unplanned housing,” Latif warned.

He called for immediate policy adjustments, including flexible FAR regulations in high-demand areas, encouragement of public-private partnerships, and incentives for affordable housing development.

“We are not opposing planning,” Latif said. “We are advocating for balanced, inclusive, and economically viable planning.”

Calling for meaningful dialogue with stakeholders, he added, “Real estate is not just about profits. It’s about people’s right to shelter, dignity, and stability.”

Meanwhile, the Bangladesh Institute of Planners (BIP) argues that the DAP aims to strike a balance between development and sustainability in Dhaka, warning that relaxing DAP guidelines to favour real estate interests could have long-term consequences for the city’s liveability.

“The new DAP introduces area-based population density norms for the first time in Dhaka’s history, which are essential for sustainable city planning,” said BIP President Adil Mohammed Khan. “We cannot afford to let Dhaka continue growing unchecked.”

A key component of the plan is the regulation of the floor area ratio (FAR)—the ratio of a building’s total floor area to the size of its plot.

DAP 2022 introduces a varying FAR system across the city, adjusted according to the urban level of each area and the capacity of its infrastructure, services, and utilities, aiming to manage density and reduce strain.

However, developers are pushing back, seeking to raise FAR limits and revert to a uniform, plot-based system—a move Khan strongly warns against.

“For instance, the FAR in areas like Badda could rise from 2 to 3.4, and dwelling units per katha could increase from 1.6 to 3,” Khan explained.

“This would double the number of families living on a two-katha (1,440 square foot) plot from three to six. If this pattern repeats across hundreds of neighbourhoods, we could see density levels exceeding 50,000 people per square kilometre—well beyond what any livable megacity should sustain.”

He added that high population density affects not only comfort and convenience but also safety and liveability. Many areas in Dhaka already suffer from narrow lanes and unplanned construction. Allowing indiscriminate vertical growth could turn these areas into dangerous fire hazards.

“We are seeing more cases where fire trucks can’t enter alleys during emergencies because the lanes are too narrow and congested,” Khan said. “If we allow unregulated high-rise construction in these same neighbourhoods, we will only worsen the risk. In a fire emergency, delayed response can cost lives.”

Khan emphasized that loss of accessibility for emergency services—especially fire services—is one of the most critical dangers of poorly planned urban growth. Recent fire disasters in Dhaka have shown how fatal these lapses can be.

The DAP 2022 marks a significant departure from the 2008 plan, which prioritised rapid development and was more lenient regarding FAR and construction approvals.

In contrast, the updated DAP focuses on balancing development with sustainability, emphasizing green spaces, improved infrastructure, and population control.

“We are trying to correct the mistakes of the past,” Khan said. “The 2008 DAP allowed fast growth but neglected critical issues like traffic congestion, pollution, and emergency access. This time, we want to build a city that can breathe.”

“Developers might see a dip in profits initially, but these policies are necessary for the city’s long-term survival,” the BIP President added.

“We are not against development; we are against uncontrolled, unsafe, and unsustainable development.”

He also stressed that while the government is open to reviewing some aspects of the DAP to make it more practical, it will not compromise the core objectives of maintaining the city’s liveability and safety.

“We are open to discussions, but the primary goals must remain intact to safeguard Dhaka’s future.”

“Dhaka’s growth is inevitable,” Khan concluded. “But it must be managed. We must choose between chaotic expansion and thoughtful development. The DAP gives us the opportunity to make that choice.”