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In the past few decades, Bangladesh has seen unprecedented economic growth. This has resulted in a rapid increase in the standard of living for its residents. With this increase, however, comes an increase in demand for many things, including housing, mostly in urban areas. But as time passes, and the population of our country grows larger and larger, this demand for urban housing is becoming harder to satisfy. This is why in today’s article, we will be discussing different housing solutions for Bangladesh, and look at how different stakeholders can play an important role in providing these solutions. But first, we will be discussing the problems.

Urbanization And Its Headaches

Dhaka Skyline
The Urban Landscape Of Dhaka

The major cities of Bangladesh helped drive its economic growth. They became hotspots for industrial and commercial activities, and as these cities grew larger economically, more and more people moved into the cities. This increasing rural-urban migration started to become a problem, as the infrastructure of major cities were ill-equipped to satisfy the housing demands of so many new residents. Even with a massive boom in real estate in the 90s and 2000s, these housing demands were never truly met. This problem affected and continues to affect mostly the middle class, with 80 percent of Dhaka’s residents still having to rent homes. These are people who have aspirations of owning homes but the sky-high prices of property in major cities, plus inadequate financing opportunities present, have deterred them from ever making such purchases.

The Urban Poor

Korail Slum
Korail Slum

Another problem that came with the urbanization of our nation is the recent economic migration to major cities such as Dhaka. This is mostly due to rising sea levels destroying the livelihood of fishermen and farmers in the south of the country, who have come to Dhaka to start life anew. Other than that, poorer people from many other parts of the country also migrate to Dhaka to look for new opportunities. But these people face numerous challenges when it comes to housing. With proper low-cost housing unavailable in Dhaka, they have to resort to living in slums, where housing conditions are dismal. The urban poor are in desperate need of proper low-cost housing. In the next section, we will be looking at how different sectors can help provide urban housing solutions for Bangladesh and alleviate the housing problems of the lower and middle classes.

Housing Solutions For Bangladesh

HDB Housing In Singapore
Public Housing In Singapore

Bangladesh’s real estate sector is thriving, but it’s driven mostly by profit and speculative practices by landowners and developers. Their main purpose is to serve the demands of the upper and upper-middle classes, leaving the middle and lower classes in the lurch. But with proper policymaking from the government, along with initiatives from NGOs and the private sector, the housing crisis can be negated. This is why we will be looking at how these different sectors can help provide proper housing solutions for Bangladesh.

Initiatives from NGOs

The numerous Non-Governmental Organizations (NGOs) operating in Bangladesh have always been at the forefront of helping tackle issues regarding poverty and social security. And when it comes to housing, it’s no surprise that NGOs are one of the first to come to the aid of the people. A press release from the UNDP office in Bangladesh detailed how NGOs are experimenting with initiatives for low-cost housing. Documented in this press release are two initiatives from ARBAN and BRAC. ARBAN utilized its micro-credit savings and built low-housing apartments for 42 members in Mirpur. Similarly, BRAC has partnered with the municipality in Jhenaidah to build affordable housing in the Jhenaidah Citywide Housing Process.

Public Housing

The word public housing can conjure negative connotations in the minds of most people. When thinking of them, images of drab, crime-ridden neighborhoods come to mind. But one city-state has managed to figure out the public housing problem. In the middle of the 20th Century, Singapore was facing a similar problem to what Dhaka is facing now. Overcrowding in the city had resulted in most people resorting to living in slums and crowded houses. The government took immediate action by creating the Housing & Development Board, the sole purpose of which was to ensure high-quality housing for Singaporeans. Even after facing numerous hiccups along the way, the HDB managed to achieve its goals via numerous fiscal policies, subsidies, and price control, with 90 percent of the country’s population living in public housing spaces. 

The Private Sector

Private developers and financial institutions still drive the real estate sector in the country, and they have a massive role to play in solving the urban housing crisis. Most developers still target the upper strata of Bangladeshi society, leaving many people in the middle class feeling a bit alienated. Home loans are also very difficult to obtain in Bangladesh. If the real estate and financial sectors could work hand in hand, owning a home might become more accessible to the middle and lower classes. Mortgage loans can help make buying a house easier for many people, and the availability of lower-cost housing would make buying homes a lot easier for many people. In one of the episodes of Bproperty talks, Syed Mahbubur Rahman, CEO of MTB Bank, talks about how the finance and real estate industries can work together to solve different crises in their respective industries.

Urban housing is still a massive issue in Bangladesh. A major portion of our country’s population does not have access to the financial tools and resources required to purchase property. But the aforementioned initiatives could turn out to be amazing housing solutions for Bangladesh and help many people gain access to adequate housing.

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