Home ›› 05 Sep 2022 ›› Front
The demand for plots along the Dhaka-Mawa expressway has gone up exponentially following the opening of the Padma Bridge as communication has become easier and investment potential has risen.
Developers say land prices there have increased almost 10 per cent in a year as many projects have already started to take shape in full swing.
The expressway, officially named Father of the Nation Bangabandhu Sheikh Mujibur Rahman Expressway, has brought the distance from the capital city to Mawa down to 34.7 kilometres since it was opened in March 2020.
That is the major portion of the country’s first-ever international standard four-lane expressway that covers a total of 54.7 km from Dhaka to Faridpur’s Bhanga.
During a spot visit, a good number of development or housing projects were seen alongside the expressway starting from Keraniganj to Munshiganj.
They include Priyangon, Maya Kanon, Jonmo Bhumi City, Amin Mohammad City, Dhaka Golden City, Dhaka Sun City, Notun Dhara, Idol City, New Dhaka City, Ensure Lake City, Satellite City, Ichamati Golden City, Dream Green City, Niketon City, Aakash, Modern Green City, Silver Housing City, South Dhaka Model Town, Dhorittree, Silver Green City, Pushpodhara, Shopnodhora, Wonderland and Padma Future Park.
According to the realtors, around 60 investors have already invested nearly Tk 1,00,000 crore in the projects, most of which are offering residential and commercial spaces.
Prices going up rapidly
New Dhaka City Managing Director Altaf Hossain told The Business Post that they bought nearly 400 bighas of land in Munshiganj’s Sirajdikhan 10 years ago for a housing project and the price of their plots has doubled in the last two years.
“A decade ago, this area was desolated land. Later, land developers and businesses started coming here seeing its potential. Now, we are seeing more and more businesses coming as the potential has increased thanks to the expressway and Padma Bridge,” he said.
Altaf continued, “When we bought the land, it cost Tk 30,000-40,000 per katha. But now it’s Tk 6,00,000-9,00,000 per katha depending on categories. My project has no more pieces of land left for selling.”
He said that there are around 60-70 projects along the Dhaka-Mawa expressway. The plots are sold at Tk 1,00,000-20,00,000 per katha based on land value and categories. After Padma Bridge opened, the prices have gone up 10-15 per cent from 5-6 per cent.
He added that their clients will build residential buildings in their project. “They will be complete by 2025. We will provide logistics but the clients will bear the other costs.”
Amin Mohammad Group’s Senior Executive (marketing and sales) Mizanur Rahman Akash said their project beside the expressway at Nimtoli is on 4,500 acres of land and it is already 70 per cent complete.
“After the expressway and Padma Bridge both opened, our project’s demand rose by at least 60 per cent. Now, our plots cost between Tk 15-21 lakh per katha depending on categories. The rate was Tk 8-12 lakh per kahta even just two years ago and Tk 6-11 lakh five years back,” he said.
Mizanur said they expect the rate to rise to Tk 40 lakh over the next three years. Commercial and residential buildings, mosques and parks will be built in this project.
“Many of the plots in seven sectors of our project are ready. So, our clients can build their homes if they want. We hope the full project will be completed by 2027,” he added.
A new horizon for real estate
Mannan Khan, a businessman, said he bought 9 shotangsho [1 katha = 1.65 shotangsho approximately]
land at Munshiganj’s Louhajang at Tk 1,80,000 per shotangsho many years ago.
“The price has increased four times in the last three years. My property is very near to the expressway. So, the demand is high,” he said.
Talking to The Business Post, Real Estate and Housing Association of Bangladesh (REHAB) Vice-President Kamal Mahmud said the areas along the expressway have huge investment potential, particularly to build residential and commercial spaces, as they are near the capital. “It’s a new horizon for us.
“Because of the Padma Bridge, the investment potentiality has increased exponentially. The demand for property will hopefully rise
further once the rail line on the bridge is completed and operational,” he added.
Kamal also said that many REHAB members have started projects there. However, the government should come up with a master plan and issue a guideline to have the area developed properly.
“The authorities need to take a planned initiative to provide gas, electricity and water to the establishments being developed there,” he stressed.
Huge potential
Bangladesh Institute of Development Studies Research Fellow Dr SM Zahedul Islam Chowdhury said the expressway and Padma Bridge have pushed up the investment potential massively. “More investments here will simply mean more jobs.”
“Small and medium industries can be set up in this area. Tourism and shipbuilding industries along the Padma River will be able to bring in more investments in future. But the environmental issue will have to be considered first since there are arable lands too,” he added.
The economist said developers who are investing there should follow the government’s rules and regulations while implementing their projects.
“The government should support the private sector to encourage more investment there to ensure affordable housing while providing
adequate facilities to set up planned industries, residential and commercial spaces.
“Economic activities in that area should be increased because there is a better communication system now,” Dr Zahedul said.
