The housing sector in Bangladesh, once considered one of the country’s most promising industries, is now facing a serious crisis. Despite its enormous potential to contribute to the economy, the sector is marred by widespread irregularities, a lack of transparency, and a severe erosion of public trust. At the heart of the problem lies the dominance of a handful of powerful corporate groups who have monopolized the industry, leaving both local and expatriate buyers vulnerable to exploitation.

Allegations have surfaced against some prominent real estate companies who have been accused of land grabbing, particularly targeting properties owned by Bangladeshis living abroad. These individuals, often honoured by the government as "remittance fighters" for their contributions to the national economy, now find themselves fighting to reclaim lands unlawfully occupied by developers. Reports suggest these companies have used their influence to pressure rightful owners into selling their land at undervalued prices, adding to the growing sense of injustice in the sector.

One of the major concerns plaguing the housing market is the unchecked flow of black money into real estate. The previous Awami League-led government, accused of acting in an autocratic manner, provided tax incentives for investing undisclosed wealth in property, despite repeated warnings from economic experts. While such measures may have temporarily boosted transactions, they also opened the door to potential market distortion and the formation of a real estate bubble.

This infusion of untraceable money, combined with the unethical practices of some developers, has severely damaged the confidence of prospective buyers. Complaints are mounting from people who claim that developers have failed to deliver flats and commercial spaces on time or in accordance with contractual agreements. For many, particularly expatriates, legal recourse is costly and time-consuming, further discouraging investment in the sector.

Even the apex body of developers, the Real Estate and Housing Association of Bangladesh (REHAB), has not escaped criticism. While senior REHAB officials admit to receiving numerous complaints against member companies, critics argue that the organization has historically prioritized the interests of its members over the grievances of aggrieved buyers. This perception has further fueled distrust in the regulatory system that is supposed to safeguard consumers.

Experts in the housing industry point to several other pressing issues that are undermining growth. These include the absence of a revised Detailed Area Plan (DAP), soaring construction material prices, and high registration fees. Political uncertainty following the recent change in government has only added to the sector’s volatility, with many developers and buyers adopting a wait-and-see approach.

Middle-income families, who form the backbone of the housing market, are among the worst affected. Faced with a rising cost of living, many are hesitant to commit their limited savings toward long-term investments in property. For some, the risks now outweigh the benefits.

Rina Begum and Swapan Hossain, a middle-income couple from Kochua in Chandpur, are a telling example of this growing caution. They had planned to buy a flat in Dhaka’s Dhanmondi area and had already made a down payment. But now, they’re looking to sell the property instead of continuing with the instalments.

“We’re not feeling secure,” said Rina. “We had some savings in a Shariah-based Islamic bank, but now we’re struggling to withdraw those funds. Bank officials have asked for more time. We wanted to keep paying for the flat, but we’re feeling uncertain. We’re concerned that the economy might decline further or political tensions might rise.”

Their situation is far from unique. With the property market in a slump and the economy showing signs of strain, many prospective buyers are reluctant to make long-term financial commitments. In such a scenario, selling a property has also become a challenge, making it a lose-lose situation for many.

Further complicating matters is the interim government’s ambiguous stance on the provision in the proposed FY2024-25 budget that allows black money holders to invest in property by paying a 15 percent tax. Until there is a clear policy on this, both developers and buyers are expected to remain on edge.

Experts have called for the establishment of a powerful, independent commission to investigate irregularities and propose wide-ranging reforms to bring order to the sector. They argue that restoring trust and confidence is crucial if the housing industry is to reclaim its role as a key driver of Bangladesh’s economic development.

The real estate sector holds immense potential—not only as a source of employment and economic activity but also as a fundamental part of national infrastructure and urban planning. But unless the government takes bold steps to address the current crisis, the industry may continue to spiral downward, leaving behind a trail of broken promises and disillusioned citizens.

Without immediate and structural reforms, Bangladesh’s housing sector risks alienating both local and international investors, further undermining its economic stability at a time when confidence and transparency are most needed.