The Capital Development Authority (RAJUK) has proposed a dramatic increase in plot prices in Dhaka, bringing many properties out of reach for the average citizen. In the case of plots in Purbachal, the price per katha has risen from BDT 200,000 to BDT 5,000,000, while in Uttara, the price has jumped from BDT 600,000 to BDT 7,500,000.
The authority has also recommended substantial increases for residential, commercial, institutional, and industrial plots across the city. These proposals were approved at RAJUK’s board meeting on 21 January and have now been forwarded to the Ministry of Housing and Public Works for final approval. If sanctioned, all new plot allocations will be subject to these revised prices, and registration fees will be calculated accordingly. It is noteworthy that the last official revision of plot prices occurred in 2007.
Urban planners have raised concerns about RAJUK’s priorities, questioning whether the authority is acting as a city planner or as a property trader. Historically, RAJUK has shown more interest in managing housing projects rather than providing planned urban development. Critics argue that the authority should prioritise making the capital habitable rather than engaging primarily in profit-driven real estate activities.
RAJUK traditionally determined residential plot prices based on land acquisition costs and development expenditures, while other categories of plots were priced higher. In practice, however, many plots were resold at significantly higher rates immediately after allocation, resulting in substantial revenue loss for the government. In 2021, RAJUK proposed price adjustments below market rates, but the government did not approve the plan. Subsequent interim governments instructed RAJUK to align plot prices with current market values, leading to the latest board-approved proposals.
RAJUK Chairman Engr. Riazul Islam told reporters that the authority intends to prevent individuals from becoming millionaires through preferential plot allocation. “Once the ministry approves, all pending plots will follow the new rates. RAJUK has full legal authority to revise prices, as has been done in the past,” he said.
Urban planner Prof. Aktar Mahmud noted that aligning prices with market rates will increase government revenue and RAJUK’s returns, but questioned whether the authority’s primary goal is planning the city or profiting from property.
Proposed Plot Prices by Area
| Area/Project | Plot Type | Current Price (BDT per katha) | Proposed Price (BDT per katha) |
|---|---|---|---|
| Purbachal | 3 katha | 200,000 | 5,000,000 |
| Purbachal | 5 katha | 225,000 | 6,000,000 |
| Purbachal | 7.5 katha | 250,000 | 7,500,000 |
| Purbachal | 10 katha | 300,000 | 8,000,000 |
| Uttara 1–7 | Residential | 1,500,000 | 12,500,000 |
| Uttara 8–14 | Residential | 1,500,000 | 10,000,000 |
| Uttara 15–17 | Residential | 600,000 | 7,500,000 |
| Gulshan | Residential | 5,000,000 | 30,000,000 |
| Banani | Residential | 5,000,000 | 25,000,000 |
Commercial and industrial plot prices have similarly increased. For example, Gulshan’s commercial plots rise from BDT 18,000,000 to BDT 100,000,000, while industrial plots in Shyampur, Postogola, and Jurain have been proposed at BDT 75,000,000 per katha from a previous BDT 8,000,000.
Apartment prices have also been revised. At Hatirjheel, rates per square foot increased from BDT 8,000 to BDT 10,000; in Lalmatia from 10,000 to 15,000; and in Dhanmondi from 12,000 to 15,000. Other areas, including Mohammadpur and Gulshan, have seen similar adjustments.
Lyakat Ali Bhuiyan, Senior Vice President of the Real Estate and Housing Association of Bangladesh (REHAB), said the association is not yet fully aware of the impact, and the effect of these hikes on the housing market remains to be seen.
The proposed price adjustments are expected to significantly impact Dhaka’s property market, aligning official rates with current market trends but potentially further limiting housing affordability for the general public.