Dhaka:Around Tk 50,000 crore could become entangled in lawsuits and legal complications over the next two to three years if the government fails to regulate the unregulated share-based housing business, Real Estate and Housing Association of Bangladesh (REHAB) warned on Sunday.
According to United News of Bangladesh, REHAB President Ali Afzal made the warning at a press conference at the CIRDAP Auditorium in the capital, stating that approximately 40,000 citizens have already been affected by this business model. REHAB highlighted that various individuals and organizations are operating share-based housing businesses without ensuring transparency in land ownership, project approval, construction capacity, and the use of collected funds, thereby exposing buyers to fraud, financial losses, and legal risks.
REHAB cited a recently published investigative report revealing that 9,823 cases concerning fraud allegations in land share-based housing projects are pending in courts as of September 30, 2026. These cases involve around 40,000 buyers and nearly Tk 12,000 crore. Under this model, a portion or share of land is sold with promises of constructing and handing over a specific-sized flat in the future. However, buyers often lack clear information about actual land ownership, approved design, legal rights to construct, fund usage, and the exact location of the flat.
The association emphasized that buying a land share does not guarantee legal ownership of a specific flat and noted allegations of selling shares of the same land or building to multiple people. Funds are sometimes collected without securing required project approvals, approved designs, and legal construction rights. The lack of skilled engineers and architects is also jeopardizing structural safety and construction quality.
Afzal pointed out that accounts of land prices, share sales, fund collection, and construction costs in such projects are often not transparent, raising concerns about proper collection of income tax, value-added tax (VAT), registration fees, and other government revenues. Meanwhile, law-abiding housing firms face various obligations, including land purchase, project approvals, construction quality, safety, tax, and VAT, and are dealing with unfair competition from those promising cheaper flats without adhering to regulations.
He added that disputes among land co-owners in share-based ownership can leave construction, flat allocation, possession, deed registration, and building maintenance uncertain. Furthermore, complications may arise in future sales of land or flats, mortgaging with banks, and distribution of property among heirs, potentially leading to prolonged litigation, financial crises, family conflicts, and social unrest.
At the press conference, REHAB presented a six-point set of demands to the government, urging to stop or regulate the unregulated business model of selling land shares with promises of specific flats. It called for barring fund collection without verifying land ownership, registration, liabilities, approved design, and legal rights to construct. The association also requested independent technical and legal audits of existing share-based projects and investigations into allegations of multiple sales, forged deeds, fake approvals, embezzlement, and fraud, with action against those responsible.
REHAB further demanded transparent and auditable accounts of land purchase, fund collection, construction costs, and progress for every project, along with the recruitment of qualified architects, engineers, and professionals to supervise quality and safety at every construction stage. They urged that new sales and fund collection be suspended until legal reviews are completed for projects lacking assured ownership, construction liability, investment security, and final handover.
The association stated that the housing sector is a significant source of economic activity, investment, employment, and revenue in Bangladesh, with more than 300 backward and forward linkage industries. The construction sector accounts for around 15-16 percent of the country's GDP and provides employment to nearly 5 million people. REHAB emphasized that the issue of unregulated share-based housing is not only a concern for a business body but a matter of national interest, as it involves people's lifelong savings, housing security, government revenue, and the country's investment climate. It warned that failure to act in time could lead to the state bearing financial, social, and legal costs.