International Journal of Civil, Structural, Environmental and

Infrastructure Engineering Research and Development (IJCSEIERD)

Vol.1, Issue 2 Dec-2011 31-50
© TJPRC Pvt. Ltd.,

DEMAND SUPPLY ANALYSIS OF HOUSING PROJECTS IN DHAKA

METROPOLITAN AREA OF BANGLADESH

MOHSINAT NASRIN
Bachelor with Honors and Masters Degree in Urban & Regional Planning,
Jahangirnagar University, Savar, Dhaka-1342, Bangladesh.
mahmud_polsc@yahoo.com

ABSTRACT

Housing need is a complex and ever changing process. The government intends to create a favorable
and conducive environment in the country to give impetus to the housing sector. In the capital the land
development for residential use started a long time ago by government agency. In these consequences,
private sector came forward to address housing issue with its limited strength in the early eighties. The
private developers are playing a dominant role in housing market and able to meet a significant share of
housing demand. However, this study purpose is to make a list of housing projects, to analyze the
demand supply situation by calculating the accommodation capacity of those projects considering
projections and to suggests policy recommendation to ensure legitimate and optimum utilization of land
uses in Dhaka metropolitan Area (DMA). This study also focuses the Compatibility of Land Uses
regarding Planning Laws in DMA. The research also find out that the population in DMA will
accommodate efficiently if it is possible to maintain the density standard and other rules and regulation
which is given in PRLDR and other planning regulation and improving the monitoring and maintenance
system.

KEY WORDS

DMA, Housing, Essential Factors for Housing, Importance of Housing, Characteristics of Housing,
Land, Land Use, Role of the Entrepreneurs in Housing, Role of the Government in Housing, Role of the
Private Sector in Housing, Different strategies for housing development, Public Housing Projects, Private
Sector Involved in Housing Development, Accommodation Capacity of Private Housing Projects,
Housing Accommodation capacity by public Authority, Compatibility of Land Uses.

1. INTRODUCTION

Housing is the total living environment including dwelling units, land, the neighborhood services
and utilities needed for the well being of its inhabitants. Dhaka the capital city of Bangladesh is regarded
as one of the fastest growing city in the world. It is expected to rise to 25 million in 2025 which will rank
4th Asia (GOB-ADB, 1996). As the population is growing in this mega city, considering the dwelling
places required for these large numbers are very inadequate. As a result the residential areas of Dhaka
city are turning into overcrowded dirty and unhealthy environment. Population growth, urbanization is
considered in the keynote as the next most alarming threat to the housing sector. Huge population in the
city is creating enormous demand on housing because it is one of the basic needs of the human being
Mohsinat Nasrin 32

(Khan, 2006). The housing shortage was estimated in 1991 to be about 3.10 million units composed of
2.15 million in rural areas and 0.95 million units in urban areas. The annual population growth rate of the
city is 4.34% and the household size is 4.8 (BBS, 2001). So it is generating the demand for 50,000 new
houses annually. But the average rate of production is only 20,000 units per year (Seraj & Murshed,
1990).

The distribution of land ownership pattern in urban areas is extremely unequal and skewed. More
than 70% of the population in Dhaka city does not own any land in the city. Moreover, less than 30% of
the household in the city own more than 80% of its land (Hasan and Kabir, 2002). Land acquired by the
government agencies and later distributed for private housing has become low- density (30 people per
acre) acres. Moreover the speculators in urban land markets hold significant amount of land especially in
the fringe areas and thereby create a pressure on the supply of such land for further development (Hasan
and Kabir, 2002). In these consequences, private sector came forward to address housing issue with its
limited strength in the early eighties. At the beginning, very few private land developers were involved in
the housing market. The total numbers of these developers was 336 in 2007and at present 589 in
2010(REHAB, 2010). The number of private land developer is more than 50 (Khan, 2006). These private
real estate entrepreneurs are providing residential facilities for city residents.

This sector is not actively patronized by the legal basis of the provision of community facilities
under a planned built residential project where it is a basic unit of urban residential area (Jahan, 2002).
So, the study is an attempt to delineate the location and areas of both public and private housings projects
in Dhaka Metropolitan Area (DMA), to make a list of housing projects, to analyze the demand supply
situation by calculating the accommodation capacity of those projects considering projections and to
suggests policy recommendation to ensure legitimate and optimum utilization of land uses in Dhaka
metropolitan Area.

2. STUDY AREA

Dhaka City, being the administrative, commercial and cultural capital of Bangladesh has now turned
th th
into 26 Mega City and 10 most Populous City of the world. It is the nerve center of the country. The
population of Dhaka has grown from only 0.1 million in 1906 to 3,36,000 in 1951 and 10.71 million in
2001 (Census 2001). It is growing at an alarming rate (5.6% during 1991-2001 inter-casual periods). At
this about 200000 migrants are entering Dhaka every year for whom about 40000 new housing unit are
required. Considering the requirement the housing requirement for population due to natural growth plus
annexation the replacement, it can be estimated even on a very conservative scale that about 100000 new
units of all types are required every year in Dhaka city.
33 Demand Supply Analysis of Housing Projects in Dhaka Metropolitan Area of Bangladesh

Map 1: Map of the Study Area

Source: EPC, 2011; Modified by the Author

3. METHODOLOGY

Methodology means a specific method or technique to complete any type of study such as thesis,
reports, projects, scientific works etc. After having a clear idea about the study area, relevant and
expected data to achieve the objectives of the study and the probable sources for the required data were
listed. The data sources include-

• Primary sources: interview of different officials of private developers.

• Secondary sources: REHAB, NHA, CUS, RAJUK, BUET, different thesis, newspapers, maps,
articles, books, journals, search from Internet etc.

4. HOUSING PROJECTS IN DMA AREA

Housing Projects are taken by both public authorities and private organizations. The government can
meet only 7% of the total demand whereas private sector entertains the bulk of 93% (Haque, 2004).
Mohsinat Nasrin 34

4.1 Public Sector’s Involved in Housing Development

The different Departments/Directorates namely department of Architecture, Public Works

Department (PWD), Housing and Settlement Directorate (HSD), City Development Authorities
(RAJUK) and Urban Development Directorate (UDD),etc. under the Ministry of Housing and Public
works are involve in the public sector housing.

Map 2: List of Public Housing Project in DMA

Source: EPC,2011;Modified by Author.

The below table shows the identification number of the Public housing projects and also the location
of the housing projects:
35 Demand Supply Analysis of Housing Projects in Dhaka Metropolitan Area of Bangladesh

Table 1: Location Identification of the Projects

No. Of Name of Projects No. of Name of Projects

projects Projects
0 Banani Model Town 18 Residential flats for Squatters/Low
income group of people at section no- 11,
Mirpur, Dhaka
1 Uttara Model Town (1st phase) 19 Construction of 182 Nos 1250& 1060 sft.
Flat
2 NIkunja – 2 (Joarshahara 20 Construction of Residential cum
Rehabilitation Area) commercial building at Dhaka near ,
Mohammudpur , Dhaka
3 Nikunja – 1 Residential Area 21 Mohammadpur Housing Estate
st
4 Jhilmil Residential Project (1 22 Kalyanpur Housing Estate
Phase)
5 Uttara 3RD Phase 23 Baridhara Residential Area & Diplomatic
Zone
6 Uttara East Housing Project 24 Baridhara ‘J’ Block Residential Area
7 Gandaria Rehabilitation Area 25 DOHS Baridhara,
8 Karwan Bazar Rehabilitation 26 DOHS Banani,
Area
9 Jatrabari Housing state 27 Officers Housing Area at Malibagh
10 Shyampur Rehabilitation Area 28 Jhilmil Residential Project (2nd Phase)
11 Construction of 360 Nos 1336 29 DOHS Mohakhali,
sft.
12 Mirpur rehabilitation project 30 Gulshan Model Town
13 Mirpur Housing Estate 31 Jurain (I, G Bagan) Rehabilitation Area
14 Construction of Shapnanagar 32 Construction of 1716 Nos residential
Residential flats flats at section-16, Mirpur, Dhaka
15 Construction of 1020 Nos 33 Residential flats for Selling to the
Residential Flats Squatters/Low income group of people at
Mirpur, Dhaka
16 Lalmatia Housing Estate 34 Construction of 14 storied Community
Centre Cum flat
17 Dhanmondi Residential Area 35 Residential flats for Selling to the
Squatters/Low income group of people at
section no- 11, Mirpur, Dhaka
Source: RAJUK, 2010. Web pages of NHA, HSD

4.2 Private Sector Involved in Housing Development

Private houses are built from private initiatives with or without governmental help. So far this is the
largest sector that provides housing for all categories of people. Houses are built either by individuals or
Mohsinat Nasrin 36

a small quality by the private developers. Most of these houses are assumed to be in the formal sector,
accepted by the authority as a legitimate form of house. However provision of cheap houses for the lower
income groups are mostly in slums and squatters, which are termed as informal housing (Khan, 2001). In
Dhaka, Private Housing Cooperatives and Housing Companies have been active since the 1950s gaining
some momentum in the 1990s.

Private housing projects in Dhaka Metropolitan Area is Given below:

Table 2: Private Housing Projects in Dhaka Metropolitan Area

Housing Projects No. of Housing projects

Approved Housing Projects 30

Housing Projects without approval to RAJUK 79

Illegal Project Identified by RAJUK 18

Source: RAJUK, 2011, web pages of NHA & HSD

Map 2: List of Private Housing Projects Approved By the RAJUK

Source: EPC, 2011; Modified by Author.

37 Demand Supply Analysis of Housing Projects in Dhaka Metropolitan Area of Bangladesh

The below table shows the identification number of the Public housing projects and also the location
of the housing projects:

Table 4 : Location Identification of the projects

No. of No. of
Name of Projects Name of Projects
Projects Projects
0 Pallabi Residential Project, 16 Sismal Land Project Bagbari, Mirpur
Mirpur
1 Arambag Co-operative Housing 17 K.M. Das Lane Residential Project,
Society, Mirpur Motijheel
2 Sikdar Real Estate, Dhanmondi 18 Cap Hasan Housing paikpara, Mirpur
3 Kallayanpur Land Project, 19 Potogola River View Land Project,
Mirpur
4 Baitul Aman housing Society 20 Postogola Residential Project
5 Adarsa Chayanir Grihanirman 21 Mollica Residential Project,
Samity, Mirpur
6 Cap Hasan Housing complex, 22 Blue Star Apartment Housing
Tejgaon (Niketon)
7 Mohammadpur Pisciculture 23 Probal Housing, Mohammadpur
Housing
8 Sunibir Grihanirman Samabaye 24 Janata Co-operative Housing
Samity, Mohammadpur
9 Dhaka Real Estate, 25 Basundhara Residential Project, A-F
Block
10 Metropolitan Christians Co- 26 Mukti Real Estate, Mirpur
operative Housing, Tejgaon
11 Janata Housing Project, Mirpur 27 Shyamoli Housing, Uttara
12 Mohanagar Project 28 Rahat Reality Residential Project
13 Banasree and Aftabnagar 29 Hatirjhil Project
14 RayerBazar Project 30 Rahat Reality Residential Project
15 Pallabi- 2nd phase Residential
Project
Source: RAJUK, 2011
Mohsinat Nasrin 38

Map 3: Private Housing Projects which are developing without applying for approval to the
RAJUK

Source: EPC, 2011; Modified by Author.

The below table shows the identification number of the Public housing projects and also the location
of the housing projects:

Table 4: Location Identification of the Projects

39 Demand Supply Analysis of Housing Projects in Dhaka Metropolitan Area of Bangladesh

No. of No. of
Name of Project Name of Project
Projects Projects
0 Abdur Rafiq Housing project 41 Shyamoli Housing,
1 Adarsa Chayanir Grihanirman Samity, 42 Swadesh- Shornali Abashan
2 Green Model Town 43 Swadesh Sunvalley Abashan
3 Ashiyan City 44 Tayer Bazar(Sibibili) housing
4 Basundhara R/A Project 45 Japan Garden City
5 Bashabo Abashik Prokilpo 46 Uttaran Abashik Prokalpo
6 Bestway NRB Valley 47 Uttaran Satellite City
7 Baitul Aman housing Society 48 Rahat Reality Residential Project
8 Cap Hasan Housing paikpara, 49 Hatirjheel Property Development
Limited
9 Dhaka Real Estate, 50 Saudia Property Development
Ltd
10 Dakhina City 51 BDDL property Development
Ltd
11 Makan Model Town 52 Metropolitan Christian
Association
12 Badda Model Town 53 Metropolitan Christian
Association
13 Moon City-2 54 Urban Property Development
Ltd
14 Arambag Co-operative Housing Society, 55 ICAB City Company Pvt. Ltd
15 Cap Hasan Housing complex, 56 Neptune Development and
Tejgaon(Niketon) Housing Ltd
16 Arambag Housing Society, 57 Swadesh property Development
Ltd
17 Mohanagar Project 58 Concord Real Estate and
Development Ltd
18 Banasree and Aftabnagar 59 Jamuna Builders Ltd
19 Postogola Residential Project 60 Xenovalley
20 RayerBazar Project 61 Western City Ltd
21 Pallabi Residential Project 62 Givency Real Estate
22 Pallabi- 2nd phase Residential Project 63 Mozammel development Private
Ltd
23 Sismal Land Project Bagbari, 64 Banani Property Development
Private ltd
24 K.M. Das Lane Residential Project, 65 Kaderabad Housing Ltd
25 Postogola River View Land Project, 66 Buriganga Housing Ltd
Mohsinat Nasrin 40

Sutrapur
26 Kallanpur Land Project 67 Latif Real Estate Ltd
27 Basundhara Residential Project, A-F 68 N.M housing Ltd
Block
28 Hatirjhil Project 69 South west Development Ltd
29 Priyo Prangan Paribagh 70 Ali and Noor Real Estate
30 Janata Co-operative Housing 71 Ashian Land Development Ltd.
31 Janata Housing Project, Mirpur 72 South west Development Ltd
32 Chaya Kunja 5 73 Ali and Noor Real Estate
33 Blue Star Apartment Housing 74 East West Property Development
LTd
34 Mohammadpur Pisciculture Housing 75 Gias Nagar
35 Mollika Abashik Prokolpo 76 South Town
36 Probal Housing, Mohammadpur 77 Bhuiyan Abashik Prokolpo
37 Reliance Model Town 78 Anwar City
38 Sikdar Real Estate, Dhanmondi 79 Jubak Housing
39 Sunibir Grihanirman Samabaye Samity, 80 Mowla Housing Project
Mohammadpur
40 Mollica Residential Project,
Source: RAJUK, 2011.
41 Demand Supply Analysis of Housing Projects in Dhaka Metropolitan Area of Bangladesh

Map 4: List of Illegal Housing Projects Identified by the RAJUK

Source: EPC, 2011; Modified by Author

The below table shows the identification number of the public housing projects and also the location
of the housing projects:
Mohsinat Nasrin 42

Table 5: Location Identification of the Projects

No. of No. of
Name of Projects Name of Projects
Projects Projects
0 Noor Nagar Housing Project 9 Janak nanani Model Town
1 Town View Residential Project 10 Rayer Bazar Model Town
2 Dhaka Uddan Multipurpose Society Ltd 11 Fenci International Project

3 Aftab Nagar and Bonoshri Extension 12 Mohammadia Housing Project

4 Main Land City 13 Chand Housing

5 Shyamoli Welfare Project 14 Nobodoy Housing
6 Mina Bazar Project 16 Latif Real Estate
7 Nobi Nagar Project, Mohammadi 17 Boshumoti Residential Project
Housing
8 Ali Noor Real Estate Project
Source: RAJUK,2010

5. DEMAND AND SUPPLY ANALYSIS OF HOUSING PROJECTS

Dhaka City, being the administrative, commercial and cultural capital of Bangladesh has now turned
th th
into 26 Mega City and 10 most Populous City of the world. Traditionally, government land
development programs and personal initiatives of private land owners was the major source of land and
housing supply in Dhaka Metropolitan area. Housing demand is increasing with the growth of the city.
Population Accommodation Capacity of Housing projects in DMA is given below:

Table 6 : Population Accommodation Capacity of Housing Projects in DMA

Population Accommodation Capacity

Housing Projects Area in Acre
(350 person per acre)

Public 5266.257 1883440

Private 13880.14 4858050

Source: RAJUK, 2011. Web pages of NHA, HSD

5.1 Accommodation Capacity of Different Housing Authority

Maximum Housing accommodation is provided by the RAJUK, and the Power Development Board
and National Housing Authority provided housing in Dhaka Metropolitan area.
43 Demand Supply Analysis of Housing Projects in Dhaka Metropolitan Area of Bangladesh

Table 7 : Housing Accommodation Capacity by Public Authority

Development Authority No. of Housing Projects

PWD 1

RAJUK 16

Defense Officers Housing Society 3

NHA 13
Source: RAJUK, 2011. Web pages of NHA, HSD

Figure 1: Percentage of Housing Accommodation Capacity by Public Authority

Source: RAJUK, 2011. Web pages of NHA, HSD

RAJUK played a key role in planning and development of Dhaka. RAJUK provide approximately
75% of housing among public housing authority. PWD builds public flat housing employees. PWD
provide approximately 9% of housing. NHA has been succeeded in providing 15704 housing units for
lower income group of people.

5.2 Present and Future Land Requirement

According to DMDP study top 30% income holders of Dhaka city are only supported by public or
private housing schemes (DMDP, Urban Area Plan, 1995-2005). That’s why in calculating the land
served and future land requirement top 30% income holders are considered.
Mohsinat Nasrin 44

Table 8 : Present and Future Land Requirement for the Affordable People

Land served in acre Land required in

Total
Affordability acre (350person
Year Population Public Private land
(top 30%) per acre) for top
served
30% people
2010 11342552 3402766 5266.257 13880.14 19146.4 9722.188
25731032
2025 7719310 ------- ------- 22055.17
(projected)
Source: Field Survey, 2011.

Table 9 : Present and Future Land Requirement to Accommodate DMA Population

Land Land required in acre for top

Land served in
required for Percentage 30% people (350person per
DMA area in (350person per acre)
Year Total of DMA acre)
Acre
population in area
Percentage Percentage
acre In acre In acre
of DMA of DMA

19146.4 24%
2010 32407.29 42% 9722.188 13%
76599.95
2025 73517.23 95% 22055.17 29% ---- ----
Source: Field Survey, 2011.

5.3 Major Findings from Demand Supply Analysis

It is clear from the table 4.4 that, to accommodate top 30% affordable people using a density of
350 person per acre in DMA area only 13% (9722.188acre) of DMA area is required whereas
the supply is 24% (18245.21acre) of total DMA area, where the supply is almost double than
the demand.

After 15 years in 2025, to accommodate top 30% affordable people with the same density in
DMA area 29% (22055.17acre) area will be needed whereas already 24% land is supplied. So
additional 5% land will be required to accommodate the people.

It is possible to accommodate the total population of DMA within 42% (32407.29acre) land of
DMA if proper planning is practiced. After 15 years in 2025 95% (73517.23acre) of DMA area
will be needed to accommodate the total DMA population.

6. LAND USE COMPATIBILITY

Some of The housing projects established in DMA by violating the proposed land use which was
mentioned in Detailed Area Plan. The name of the housing projects that violating the rules is given
below:
45 Demand Supply Analysis of Housing Projects in Dhaka Metropolitan Area of Bangladesh

Table 10 : Public Housing Projects and Proposed Land Uses

Proposed land Use in

Public Housing projects
DAP
Mohammadpur Housing Commercial
Karwan Bazar Rehabilitation Area Commercial

Construction of Residential cum commercial building at Dhaka near Asad

Commercial
Avenue , Mohammudpur , Dhaka
Construction of 1716 Nos residential flats at section-16, Mirpur, Dhaka Commercial
Construction of 14 Housing storied Community Centre Cum Commercial
& Residential flat Building for selling at section- 5 Rupnagar, Mirpur , Commercial
Dhaka
Shyampur Rehabilitation Area Commercial
Source: Field Survey, 2011

Table 11 : Private Housing Projects and Proposed Land Uses

Private Housing projects Proposed land Use in DAP

Baitul Aman housing Society Commercial

Cap Hasan Housing complex, Tejgaon (Niketon) Commercial

Bestway NRB Valley Retention Pond

Swadesh Sunvalley Abashan Retention pond

Janata Housing Project, Mirpur Commercial

South west Development Ltd Retention pond and Flood flow Zone

Buriganga Housing Ltd Retention pond and Flood flow Zone

K.M. Das Lane Residential Project, Motijheel Commercial

Blue Star Apartment Housing Commercial

Source: Field Survey, 2011
Mohsinat Nasrin 46

Map 5: Housing Projects Different Spatial planning Zone in DMA

Clustering of
Housing
Projects

Proliferation
of Housing
Projects in
SPZ-4 &
SPZ-5

Source: Prepared by Author, 2011

47 Demand Supply Analysis of Housing Projects in Dhaka Metropolitan Area of Bangladesh

Map 6 : Showing the Encroachment in Main and Sub Flood Flow zone and Retention pond Areas
by Private Housing Projects

Sub Flood
Flow Zone &
Retention
Pond Area

Retention
Pond Area
and Main
Flood Flow
Zone

Source: Prepared by Author, 2011

• The SPZ 4 is identified in DMDP as main flood flow zone, but many private housing projects
are developing in that area without approval to RAJUK.

7. RECOMMENDATION

It is evident from the study that the DMDP policies are extremely violated by the PRLDCs. Lack of
expertise, government initiatives, institutional weakness, wide spread corruption and political influences
upon the administration is also deteriorating the situation.
Mohsinat Nasrin 48

Ensure Better Enforcement of DAP

Ensure Better Performance and Role of Development Agencies and Local Bodies

Coordination among Different Development Agencies

Improving Monitoring System

Land Use Zoning

Areas of agricultural Zone

Areas of Flood Flow Zone

Strengthening the Capacity of Local Government

Public and Private Partnership

8. CONCLUSION

Housing is one of the basic needs of human. The problem of housing in Dhaka city is very acute and
frightening. During the last few years the degree of urban growth has been very rapid, giving rise to
corresponding high demand for housing. In Dhaka City affordability is one of the prime issues that
should be considered in supplying land and housing. This study mainly identifies the location and area of
housing projects and their accommodation capacity. This study also focuses the Compatibility of Land
Uses regarding Planning Laws in DMA. Many of housing projects have not maintained the rules and
regulation and proposed land use which is described in DAP (Detailed Area Plan). The research also find
out that the population in DMA will accommodate efficiently if it is possible to maintain the density
standard and other rules and regulation which is given in PRLDR and other planning regulation. To
accommodate the population in DMA properly by these housing projects the monitoring and
maintenance system should also be improved. To accommodate population and improve the housing
situation in DMA both preventive and curative measures should be taken. Some of the steps would be of
the macro level such as national urbanization policy.

So there should be proper regulation to control the development and at the same time incentives and
credit facilities should be provided to the land developer and as well as the plot purchasers. The proper
guideline foe the housing project should be given by the government and planning standards for
community services and facilities should be developed and introduced with the consideration of
economic and social aspects of the inhabitants of the city.

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