Land prices skyrocket in Dhaka

The price of land in the capital Dhaka has increased several times higher than last few years due to high demand and lack of adequate land.

According to the real estate businessmen, in 2021, the highest average price of residential land was Tk 7.75 crore per katha in Baridhara and Baridhara DOHS while the highest average price of commercial land was Tk 2.79 crore per katha in Motijheel.

The prices of lands in Baridhara and Motijheel have skyrocketed due to the high demand for safe and relaxed residence and commercial hub.

However, at present, this price is not the actual one. The actual price will be more as there is a difference between the current market price and the price of the sub-registrar’s office.  

The Ministry of Housing and Public Works updates the rate schedule (Price list) of the residential and commercial lands. The ministry has last updated the rate schedule of lands in Dhaka in 2011. It has taken an initiative to update the rate schedule after one era. For this, the work of fixing the area-wise new market value of lands under the National Housing Authority is going on. Besides land, prices of residential and commercial plots under the Rajdhani Unnayan Kartripakkha (RAJUK) will also be fixed. National Housing Authority will re-fix the new market value of lands of other areas including Dhaka. 

Real estate data said in 2021, the highest average price of per katha land in the Baridhara Residential Area is Tk 7.75 crore which was Tk 6 crore in 2020. The second highest average price of per katha land in Gulshan is Tk 6.25 crore, Tk 5.5 crore in Dhanmondi, Tk 4 crore in Banani, Tk 3.5 crore in Lalmatia, Tk 2.5 crore in Motijheel, Tk 2 crore in Mohakhali and Karwanbazar, Tk 1.55 crore in Mohammadpur, Tk 1.5 crore in Azimpur and Shantinagar, Tk 1 crore in Uttara and Shyamoli, Tk 80 lakh in Mirpur, Tk 75 lakh in Gendaria and Basabo, Tk 70 lakh in Kalyanpur and the average price of per katha land is Tk 60 lakh in Badda.     

On the other hand, according to mouza-based land zoning of the sub-registrar’s office in 2022, the price of per katha residential land (House) in Motijheel is Tk 2 crore 31 lakh 8 thousand 580 while the price of per katha land (Open space) is Tk 73 lakh 19 thousand 400.    

On the other hand, the price of per katha allocated commercial land in Motijheel is Tk 2 crore 79 lahks 45 thousand 885.

The second highest general land market price has been fixed for Karwanbazar is Tk 1 crore 49 lakh 61 thousand 540 while the price of commercial land is Tk 1 crore 85 lakh 48 thousand 475.

Similarly, the price of per katha residential land in Kakrail is Tk 1 crore 42 lakh 30 thousand 590 while commercial is Tk 1 crore 76 lacks 48 thousand 70, Tk 1 crore 10 lakh 6 thousand 490 in Ramna, Tk 1 crore 79 lacks 28 thousand 900 in Khilgaon Commercial Area, Tk 56 lakh 70 thousand 555 for residential while Tk 1 crore 86 lacks 12 thousand 495 for commercial land in Wari, Tk 25 lakh 45 thousand 842 for residential while Tk 1 crore 51 lakh 25 thousand for commercial in Jatrabari, Tk 76 lakh 22 thousand 505 for land, Tk 74 lakh 92 thousand 815 for residential land, Tk 1 crore 23 lacks 10 thousand 320 for commercial land while Tk 1 crore 7 lahks 42 thousand 160 for the price of per katha residential plot in Dhanmondi.      

The price of per katha residential land (House) in Gulshan is Tk 28 lakh 96 thousand 245, Tk 47 lakh 83 thousand 350 in Banani, Tk 97 lakh 49 thousand 190 in Mohakhali, Tk 59 lakh 44 thousand 785 for residential while Tk 85 lakh 17 thousand 630 for commercial land in Tejgaon Industrial Area, Tk 56 lakh 16 thousand 435 for residential while Tk 1 crore 86 lacks 12 thousand 495 for commercial land in Mohammadpur, Tk 45 lakh 97 thousand 395 for residential while Tk 1 crore 77 lakh 78 thousand for commercial in Meradia and Tk 78 lakh 72 thousand 810 for residential while Tk 87 lakh 54 thousand for commercial land has been fixed in Lalbagh.    

Real estate businesses said the actual market price in the maximum areas of Dhaka is more than the price of the Ministry of Housing and Public Works and the sub-registrar’s office. They said the high demand and high registration cost have increased the prices of land in the capital. 

Contacted, Shamsul Alamin, president of the Real Estate and Housing Association of Bangladesh (REHAB) told Bangladesh Pratidin that as per the government rate, the price of land in Dhaka is too high. The cost of land registration is also high.  Currently, land registration cost is more than 11 per cent. Land registration cost in the neighbouring countries is around 3 per cent. People spend a lot of money on land registration. 

Welcoming the rate schedule by the Ministry of Housing and Public Works, he said, “We had proposed to fix the land price based on distance from the road. We hope the authorities concerned would consider the matter while final updating the rate schedule.”

Officials of the Ministry of Housing and Public Works said the last coordination meeting of the committee was held in December last. The draft of the new rate schedule has been fixed. The final of rate schedule will be completed soon and distributed to the concerned organisations, they said.

@ The article was published on print and online versions of The Bangladesh Pratidin on February 4, 2023 and has been rewritten in English by Golam Rosul.