Housing industry fighting for survival: Dr Shadi-Uz-Zaman

Tasnuba Akhter Rifa :

The housing sector, one of the vital pillars of Bangladesh’s economy, is now facing one of its most challenging periods. Contributing nearly 15 per cent to GDP and directly or indirectly employing about 4o lakh people, the sector’s current crisis threatens the nation’s broader economic stability.

In an exclusive interview with The New Nation, Dr Md. Shadi-Uz-Zaman, Managing Director (MD) of Notundhora Assets Ltd., Notundhora Real Estate Ltd., and Notundhora Group shared his insights on the challenges, potentials, problems and solutions needed to save the industry.

Dr. Shadi-Uz-Zaman was also the founder of the country’s first Professional Real Estate Training Institute, and the first recipient of the “Professional Doctoral Certificate in Real Estate Management.

The business leader said, “The housing and real estate sector is not merely about building homes-it is one of the main driving forces of the economy.”

“It contributes almost 15 per cent to GDP and sustains around 4 million jobs. Any instability here inevitably spreads across the economy,” he said.

The business icon painted a bleak picture of the current situation. Prices of key construction materials, especially rods and cement, have risen unchecked by 20-25 per cent, raising project costs by nearly 30 per cent.

“At the same time, people’s purchasing power has declined, and new investment is slowing down. Developers are under intense pressure,” he explained.

Another major setback is RAJUK’s newly implemented Detailed Area Plan (DAP).
“With the reduction of Floor Area Ratio (FAR), where previously we could build 8-9-story buildings, we are now restricted to 5-6 stories,” he said.

“This discourages landowners from handing over their land, while developers are stepping back from new projects, finding them unprofitable. The result is layoffs, salary reductions, and tightened expenses, turning the sector into a fight for survival,” he added.

The MD said that though RAJUK has approved around 40 housing projects, the National Housing Authority has not approved a single private project. “This lack of coordination is a serious barrier.” He proposed creating a “Housing Project Approval Building,” a one-stop solution where all approvals can be completed under one roof.

To enhance transparency, he suggested introducing a grading system for developers (A, B, C categories). “Such grading would restore public trust and bring accountability into the sector,” he explained.

The discontinuation of opportunities to legalise undisclosed money is another blow, added Dr. Shadi-Uz-Zaman. “This decision may reduce domestic investment and encourage capital flight abroad. If that money could be invested in the housing sector, it would generate employment and accelerate economic growth.”

He reminded that housing is linked to more than 400 sub-sectors, including cement, rods, tiles, sanitary ware, plastic, electrical equipment, and furniture.

“When the housing sector slows, the shockwaves ripple through the entire industrial sector. Keeping this sector alive is means keeping the national economy active.”

To build skilled manpower for this vital industry, Dr Shadi-Uz-Zaman established Bangladesh’s first Professional Real Estate Training Institute in 2013.

“Developing professional human resources is crucial for sustainability,” he noted. As part of corporate social responsibility, his group also honours eminent personalities in society.
“It is our way of giving back and staying connected to the people.”

Looking ahead, Dr Shadi-Uz-Zaman believes decisive government action is essential. “The government must simplify policies, reduce corporate loan interest rates, decentralise project approvals, and encourage private investment. Without these steps, the housing sector cannot recover.”

He concluded with, “If we fail to save the housing sector, the country’s economy will face a long-term shock that will not be easy to overcome. Saving housing is means safeguarding the future economy of Bangladesh.”