Presenting 6-point proposals for the development of the housing sector

The Real Estate and Housing Association of Bangladesh (REHAB) has presented 6-point proposals to the government to develop the country's housing sector, ensure planned urbanization and housing for the common people. On this occasion, REHAB President Dr. Ali Afzal, along with entrepreneurs from the housing sector, paid a courtesy call on the Honorable Prime Minister and presented these proposals. The meeting was held today, Wednesday (July 22, 2026) at the Cabinet Division of the Bangladesh Secretariat. Housing and Public Works Minister Zakaria Taher Suman, and Mostafizur Rahman Bhuiyan (Dipu), MP, and other leaders were present at the meeting.

During the meeting, the REHAB President said that REHAB, as the only government-recognized trade body in the housing sector, has been working as a development partner of the government for the development of planned urbanization and housing for more than 35 years. He said that the housing sector is one of the most important driving forces of the Bangladesh economy. Currently, about 5 million people have been employed in this sector and this sector contributes 15% to the GDP. He also mentioned that more than 300 linkage industries including cement, rods, bricks, ceramics, tiles, glass, paints, electrical equipment, sanitary, furniture, transportation, etc. are being operated around the housing sector.

The proposals that the REHAB President presented to the Prime Minister include

1. Formulation of a national land zoning policy to build a planned Bangladesh.

Bangladesh's population is continuously increasing. To ensure maximum use of limited land, it is very important to formulate a national land zoning policy taking into account the potential population, urbanization, and housing needs until 2100. The land of the entire country should be scientifically classified as agricultural, forest, water bodies, residential, commercial, industrial areas, and protected areas, and separate usage rules should be determined for each zone. This will prevent uncontrolled land use, agricultural land, industrialization and housing development will be orderly and it will be easier to build a sustainable and livable Bangladesh for future generations. To ensure housing security for future generations through planned and vertical urbanization, it is necessary to take long-term plans now. In that reality, the current DAP and construction rules need to be re-evaluated and reformed to suit the times.

2. PPP-based housing program for the low and lower-middle class.

I recommend taking up a flat and housing construction program on the basis of public-private partnership (PPP) to ensure affordable housing for the low and lower-middle class citizens. If this initiative is implemented with a combination of government land, policy support and private sector expertise and investment, it will be possible to ensure safe and quality housing for low-income people.

3. Long-term housing loans at single-digit interest rates for the middle class.

I humbly request the launch of a special scheme of long-term housing loans at single-digit interest to realize the dream of the middle-class people of the country to have their own housing. If home loans are launched on easy terms like in the developed world, millions of families will get the opportunity to have safe and permanent housing and there will be a positive momentum in the housing sector.

4. Rationalization of registration costs, VAT and tax structure.

Our country's registration costs are the highest in Asia. I request that our country's registration costs be reduced to 5 percent like Malaysia, China, Thailand and Hong Kong. If the tax rate is realistic, buyers will be encouraged to register the actual transaction value and the tendency to create undeclared money will decrease and the government's revenue will also increase. We believe that the development of a country is not possible without taxes, but the tax system should be realistic, investment-friendly, fair, hassle-free and completely digital.

5. Withdrawal of 15 percent capital tax imposed on landowners.

I humbly request the withdrawal of 15 percent capital tax imposed on land owners on the construction of flats in the current fiscal year. Since this tax liability is created before a person actually derives financial benefits, additional pressure is being created on the common people. Its effect is ultimately increasing the price of flats and increasing the housing cost of the common buyer.

06. Complete digitalization of the plan approval process.

I request you to take initiatives for complete digitalization of all activities related to plan approval for building construction and land and flat registration to reduce delays, unnecessary bureaucratic complications and unwanted interference. This will make the service fast, transparent, accountable and harassment-free, which will further accelerate the development of the housing sector.

Dr. Ali Afzal informed the Prime Minister that REHAB has always been working as a responsible partner in the government's development journey and is keen to do so in the future. He expressed hope that if these proposals are implemented, the housing sector will become more dynamic and it will be easier to fulfill the dream of housing for the middle class. At the end of the meeting, the REHAB President sought the Prime Minister's kind consideration and necessary guidance.

Prime Minister Tarique Rahman said that the country's housing industry is one of the driving forces of the national economy. The development of this sector is very important for the overall economic growth of the country. The government is working to create a transparent, accountable and investment-friendly environment where the development of the housing sector will be planned, sustainable and corruption-free.

The Prime Minister said that urbanization should not be limited to Dhaka; other regions of the country should be given equal importance.