REHAB calls for ban on share-based housing business
Photo: Agamir Somoy
The Real Estate and Housing Association of Bangladesh (REHAB), the country’s leading housing sector association, has called for an immediate ban on unregulated business models that promise to construct and hand over apartments in exchange for selling portions or shares of land.
The organization warned that nearly 40,000 citizens have already been affected by such uncertain business arrangements. It also expressed serious concerns that at least Tk 50,000 crore could become entangled in legal complications over the next two to three years if the practice continues.
REHAB President Dr. Ali Afzal raised the concerns at a press conference held at the CIRDAP auditorium in the capital on Sunday afternoon.
In a written statement presented at the press conference, REHAB said unregulated business models were spreading alarmingly in the country’s housing sector. Under these arrangements, developers sell specific portions or shares of land while promising to hand over apartments in the future.
In most cases, the projects lack clarity regarding land ownership, approved building plans, construction capacity and legal guarantees. As a result, buyers often invest substantial amounts of money but fail to receive their apartments on time. There is also uncertainty over whether they will recover their investments.
According to information presented at the press conference, approximately 9,823 related cases were pending in courts across the country as of September 30, 2026. These cases involve an estimated Tk 12,000 crore in financial risks associated with the housing sector.
REHAB leaders said that an inspection of approximately 100 buildings developed under these unregulated models would reveal that 99.99 percent had been constructed in violation of approved plans or actual construction requirements.
To address the situation, REHAB placed six specific demands before the government.
The organization called for an immediate ban on unregulated models that promise apartment handovers in exchange for selling shares of land, or for bringing them under strict legal regulation.
It also demanded a halt to collecting advance payments without ensuring the project’s legal rights over the land, registration and approved building plans.
In addition, REHAB called for urgent independent technical and legal audits of buildings developed under these share-based arrangements. It demanded investigations and strict action against those involved in fake approvals and embezzlement. The organization also called for transparent accounting of construction costs and proper supervision by professional engineers and architects to ensure construction standards.
REHAB President Dr. Ali Afzal clarified that the organization was not opposed to any legitimate form of joint ownership or transparent investment. However, he said effective administrative and legal measures were necessary to stop activities involving business models that fail to guarantee specific apartments in exchange for buyers’ money or involve evasion of government revenue.
REHAB Senior Vice President Abdur, Vice President 2 Abu Khalid Mohammad Barkatullah, Vice President 3 A. F. M. Obaidullah and Vice President (Finance) Dr. Md. Harun Or Rashid, along with other directors, attended the press conference.
