B Mirror Desk : Since the regime transition last year, Bangladesh’s luxury apartment market has taken a serious hit, with several high-value purchases falling through as politically connected buyers, primarily associated with the dissolved Awami League, fled the country or were imprisoned.
Developers claim that former ministers, MPs, and party members reserved dozens of affluent apartments, some valued at Tk21 crore, many of whom paid merely down payments before vanishing. It has been challenging to resell these units.
Consider a six-story luxury development on six kathas of land on Road 7 in the Baridhara Diplomatic Zone that was introduced in late 2023. A former MP from the ruling party reserved a 2,900 square foot, third-floor apartment in February for Tk57,000 per square foot, or around Tk17 crore, which was to be paid in 15 installments. Transfer of the deed was scheduled for June 2025.
However, the MP and his family fled into hiding after the Awami League was overthrown on August 5, 2024. He stopped making payments after six installments and told the developer in November that he would no longer be continuing, requesting a refund and the resale of the flat.
According to Marufur Rahman, the project’s supervising engineer, the former Cox’s Bazar MP has subsequently been taken into custody, media. We are currently attempting to sell the apartment again.
He stated that two former MPs and a party whip had reserved three of the project’s six units, each of whom paid six installments before canceling. The company is currently working on processing refunds and reselling the items.
The structure is almost finished; just inside work remains, according to a site visit on April 26. Italian marble floors, imported oak wood doors and windows with high-end foreign float glass, and two ground-floor parking spots are all features of each property. The apartments have two balconies facing north, three spacious bedrooms, and a separate servant’s room. A swimming pool and six Swiss umbrellas that open automatically in the rain are located on the rooftop.
The political turmoil has had a significant impact on a number of upscale developments, including this one.
“Projects like these usually attract politicians, top business people, and bureaucrats,” claimed an unidentified managing director of a large real estate firm. Investment has drastically decreased since August of last year.
He mentioned that many purchasers, including former MPs, ministers, and party leaders, are either in hiding or have had their accounts frozen. As a result of their lack of access to funds, they have canceled their bookings. High-end apartment developments are primarily located in the affluent neighborhoods of Dhaka, such as Gulshan, Banani, Baridhara, Dhanmondi, Bashundhara, Niketan, and Nikunja. Records from the Gulshan Sub-Registry Office indicate that 728 luxury flat deeds, valued between Tk6 crore and Tk21 crore, were registered from January to July 2024, totaling approximately Tk8,000 crore in transactions. In stark contrast, only 39 luxury apartment transactions were recorded from August 2024 to March 2025, with just 21 occurring between January and March 2025, including a mere six in Gulshan.
Data from the Directorate of Registration reveals that luxury flat transactions reached Tk21,000 crore in 2023, compared to Tk19,000 crore in 2022, Tk15,500 crore in 2021, Tk14,000 crore in 2020, and Tk12,000 crore in 2019, indicating a significant reversal of the previous growth trend. Md Wahiduzzaman, President of the Real Estate & Housing Association of Bangladesh (REHAB), stated to the media, ‘It’s not only luxury apartments that are facing challenges; mid-range and standard units are also struggling. Developers are left with unsold inventory and investments that are frozen.’ He referenced internal company data showing over 100 unsold luxury flats and more than 2,000 unsold regular apartments in ongoing projects throughout Dhaka.
In June 2024, Benazir Ahmed, a three-time MP from Dhaka-20 (Savar-Dhamrai), entered into an agreement to purchase a six-storey house on five kathas of land in Bashundhara’s Block ‘E’ for Tk7.5 crore, making an advance payment of Tk50 lakh, with the remaining balance due by December. However, in late August, he notified the seller through an intermediary, Oziul Islam Roman, that he would not proceed with the purchase and requested a 90% refund. ‘We have been unable to secure a new buyer since the cancellation,’ Roman stated. ‘The owner, who is based in Canada, is now willing to sell for Tk7 crore.’
A local AL leader entered into a Tk3.5 crore agreement for a five-storey residence on Road 17, providing a Tk30 lakh deposit. After August 5, he disappeared. Seller Jahangir Hossain mentioned that the deed is registered, making it impossible to cancel or resell without the buyer’s consent. Leading developers like SHANTA Holdings, Southbridge Real Estate, Building Technologies & Ideas, Concord, Navana, Sheltech, Rangs, Dom-Inno, and others are now experiencing a decline in buyer interest, rendering new launches precarious. Amalendu Biswas, General Manager of Sales at Rangs Properties, stated, ‘While most of our current units are sold, we are postponing new launches due to the market downturn.
‘ Former REHAB director Naimul Hassan noted that the industry is facing its most significant slowdown in years and called for government action to stabilize the sector. ‘The influx of undisclosed funds, a key factor in the real estate market, has diminished,’ he remarked, suggesting that such funds should be permitted for housing investments again, along with new tax incentives from the National Board of Revenue (NBR). Md Nazrul Islam, secretary at the Ministry of Housing and Public Works, indicated that there is limited capacity for the ministry to assist the luxury housing market. ‘If individuals earn and spend legally, the government has no objections—we support it,’ he stated. ‘However, beyond that, there is little room for intervention.’
