The country’s real estate sector and its 200 associated linkage industries have urged the government to take immediate steps to address concerns over the current Detailed Area Plan (DAP) and building regulations, warning of widespread economic stagnation if left unresolved.

At a press conference held in the capital on Tuesday, the Real Estate and Housing Association of Bangladesh (REHAB) voiced serious concerns over the DAP 2022–2035, which came into effect in 2022.

The plan has imposed significant restrictions on building height and floor area, deterring landowners from entering into new development agreements and leaving developers unable to launch fresh projects, the sector leaders said.

REHAB President Wahiduzzaman said that the stagnation in the housing sector—alongside the nearly 200 linked industries employing around four million people—was a direct consequence of the DAP’s ‘discriminatory’ provisions and complex rules related to Floor Area Ratio (FAR).

‘Due to the ongoing stagnation, many businesses have already been forced to lay off workers,’ he said. ‘If this continues, the impact on the broader economy could be severe.’

Wahiduzzaman said that the housing sector and its allied industries contribute approximately 15 per cent to the country’s GDP.

Representatives from a wide range of industries, including steel, cement, electric cables, elevators, tiles, bricks, and paints, echoed the concerns. Many reported a sharp fall in demand for building materials as a result of the slowdown.

Sheikh Masadul Alam Masud, founding chairman of the Bangladesh Steel Manufacturers Association, said the demand for steel rods has plunged by nearly 50 per cent, putting factories at risk of closure.

Akhtar Hossain Dhali, senior vice-president of the Bangladesh Electric Cable Manufacturers Association, noted that businesses in his sector have already begun cutting staff to cope with the downturn.

Shankar Roy, executive director of the Bangladesh Cement Manufacturers Association, confirmed a similar drop in cement sales, while Emdad Ur Rahman, president of the Bangladesh Elevator, Escalator, and Lift Importers Association, stated their industry has seen a 50 per cent reduction in business activity.

Many companies have already curtailed operations, reducing their daily shifts from three to two, or even one.

Despite attempts to boost demand by lowering prices, industry leaders say the market remains sluggish.

REHAB and industry representatives called on the interim government to act swiftly and decisively to resolve the crisis.

They stressed the urgency of restoring confidence in the real estate sector and ensuring the continued viability of the industries it supports.