A growing trend is emerging in Bangladesh’s housing sector, where buyers are increasingly choosing flats through land-sharing arrangements instead of purchasing from traditional real estate developers.
Stakeholders say this shift is being driven by declining public trust in real estate developers. Instead of partnering with developer companies, some groups are buying land themselves and constructing apartment buildings independently.
Those involved in such projects say the approach helps reduce costs and allows them to customise the building design and floor plans according to their preferences.
One such example is Golam Mortuja, a resident of Mohammadpur, who recently started building a residential project with several of his childhood friends.
Mortuja, a journalist by profession, told TIMES of Bangladesh, “We are carefully selecting and using the best materials available in the market.”
He said their building is being designed to withstand earthquakes of up to magnitude 10 on the Richter scale, which he believes would not have been possible with a ready-made apartment.
The project, which has been under construction for the past three years, is expected to cost around Tk 4,400 per square foot, excluding land costs. Mortuja noted that such projects involve large financial transactions and that maintaining documents and accounts can be complicated.
“We are all very close and trustworthy people, so we have not faced any problems,” he said, advising that land-sharing projects should ideally be undertaken only with close and reliable people.
Although the process involves more hassle and requires greater time commitment, several buyers said they turned to land-sharing projects.
Various companies are now joining this trend by offering services to people who are unable to find reliable land-sharing partners or lack expertise in managing the construction process. One such company is Genex Properties, which has already launched several projects in the Bashundhara Residential Area.
The firm’s Managing Director Md Zakir Hossain said the company integrates its experience in documentation and construction management to make the process easier for land-share buyers. According to him, construction costs in their projects range between Tk 3,500 and Tk 4,500 per square foot, depending on the amenities.
As an advantage of the model, he said all participants become landowners, meaning buyers do not need to pay separate flat registration fees. They only bear the land registration cost, which he claimed is roughly one-tenth of the usual expense.
However, several buyers have reportedly been scammed by similar companies. Recently, Holistic Home Builders allegedly embezzled around Tk120 crore from nearly 470 customers through fraudulent share sales.
When asked about such allegations, Zakir said, “Customers need to be cautious from the beginning and verify a company’s credibility.”
According to Genex Properties, buyers interested in land-sharing projects must first pay booking money ranging from Tk1 lakh to Tk5 lakh. The remaining payment is made on the day the land registration is completed.
Zakir said this structure reduces the risk of fraud for customers because ownership of the land is transferred early in the process.
After the land purchase, a committee of landowners is formed to oversee the project. The company provides guidance on plan approvals, hiring architects, and sourcing construction materials, although buyers ultimately decide whether to follow those recommendations.
“We always encourage buyers to use quality materials because that also strengthens our credibility as a company,” Zakir said.
According to his estimate, obtaining the necessary authorisations takes about one year after land purchase, while construction requires another three years to complete.
Field visits and social media searches found several companies currently operating in the land-sharing sector, although no formal industry association has yet been formed.
Zakir said the sector should have its own association and government regulations to protect clients from fraud. “Until then, clients need to remain cautious,” he added.
Real Estate and Housing Association of Bangladesh (REHAB) Vice President Mohammed Akter Biswas said, “Buying or constructing flats through land-sharing arrangements is risky because there is no authority to resolve complaints and no proper government oversight.”
“The prospect of higher profits attracts many people, but this is a high-risk investment,” he told TIMES. He said around 80 per cent of such buildings lack proper approvals and alleged that many individuals involved in these projects have sold their shares and disappeared.
Biswas said some traditional real estate developers have also faced similar allegations. However, established developers operate under stricter regulations and trade body oversight, which reduces the risk of fraud.
He added that the government is losing significant tax revenue because many of these flats are not formally registered.
He said the business should either be discouraged or brought under a proper legal framework through clear regulations. Biswas further said professional developers are better equipped to ensure construction quality, source reliable materials, and maintain professionalism, making buildings more dependable.
