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The Real Estate and Housing Association of Bangladesh (REHAB) has termed the Detailed Area Plan (DAP) 2022-2035 'discriminatory' and 'flawed', urging the interim government to revise the plan and quickly introduce new regulations to revive the housing sector and its 200-plus associated industries.
Speaking at a press conference at the National Press Club in Dhaka on Tuesday, REHAB President Md Wahiduzzaman said the implementation of DAP has brought new housing projects to a standstill.
"The new DAP imposes harsh restrictions on Floor Area Ratio (FAR), slashing building height and size allowances. Landowners are reluctant to hand over land, and development has nearly frozen," Wahiduzzaman said.
He warned that this stagnation is rippling across housing-related industries, such as steel, cement, bricks, tiles, paints, and cables, leading to factory shutdowns and job losses. "Demand for rod has fallen by 50 per cent. Many factories have reduced production or closed shifts," he said. "The longer the situation persists, the deeper the economic and social consequences will be."
REHAB leaders also pressed for a pro-business national budget that addresses VAT and tax burdens, stimulates investment, and boosts employment.
Speaking at the event, Sheikh Masadul Alam Masud, founding chairman of the Bangladesh Steel Manufacturers Association, said that the demand for steel rods-the most critical material in construction-has plummeted by nearly 50 per cent.
"At the end of the last year, several steel associations jointly disclosed this drop in demand. In the past four to five months, the situation has worsened," he said. Without immediate reforms to the DAP, many steel plants may be forced to shut down. "It takes around five years to reopen a closed factory, during which unemployment rises and the economy suffers," he warned.
Akhtar Hossain Dhali, senior vice-president of the Bangladesh Electric Cable Manufacturers Association, echoed similar concerns. "Local entrepreneurs meet 98 per cent of the nation's cable demand, but with the real estate sector in decline, our production has taken a hit," he said.
Dhali admitted laying off 25 per cent of his factory workers and fears further downsizing if conditions persist. "When there are no sales, there's no point in continuing production."
Shankar Kumar Roy, executive director of the Bangladesh Cement Manufacturers Association, noted a similar decline in demand for cement. "Every input in cement production is import-dependent. With falling sales, we are now in a crisis," he said. "If our businesses survive, the country will survive. We need solutions now." Emdad Ur Rahman, president of the Bangladesh Elevator, Escalator and Lift Importers Association, said their businesses have already halved.
"Many are scaling down operations or laying off staff to avoid further losses. The housing sector supports nearly 5.0 million jobs and provides food for 20 million people. We are not in favour of layoffs-we want to continue doing business, but the housing sector's challenges must be addressed immediately," Rahman added.
Tanvir Hossain, central treasurer of Bangladesh Timber Importers & Exporters Association, reported a severe collapse in the wood business due to the housing slowdown.
REHAB Senior Vice-President Liakat Ali Bhuiyan and Vice-President Abdur Razzaque attended the event, among others. Representatives from various housing-related industries were also present.
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