Real-estate developers in Dhaka have expressed frustration over the revised Detailed Area Plan (DAP), stating that new rules for calculating the Floor Area Ratio (FAR) have reduced the buildable floor space in several prime city zones and could hinder future housing development.

The new, more complex FAR formula—introduced to guide vertical expansion and improve urban density—has brought mixed results. While some parts of the capital are set to benefit from a significant rise in permissible building heights, others face sharp reductions that developers say threaten the financial viability of projects.

According to the revised plan, areas such as Dhanmondi, Gulshan-Banani, Satarkul, and Nasirabad have seen cuts in allowable FAR, even as other neighbourhoods like Khilkhet and Mirpur DOHS have received substantial increases—from 2.0 to 4.4 and 2.5 to 4.8, respectively.

Peripheral regions, including Keraniganj and Savar, are also expected to witness higher vertical growth under the new framework.

The DAP introduces incentives for developers offering block-based housing or larger open spaces, providing additional FAR allowances. Yet, realtors argue that these measures are insufficient to offset the restrictive elements of the new system.

One key concern is the rule requiring developers to surrender 45 per cent of plots over two acres for open spaces—an arrangement they say leaves too little land for civic facilities. Smaller plots below 15 katha with a 30-foot road width are also unlikely to qualify for significant FAR bonuses unless they fall within Transit-Oriented Development zones.

Developers further highlight disparities between central and peripheral areas, where FAR allocations remain comparatively low, discouraging investment outside Dhaka’s core.

The plan also reduces the FAR bonus for affordable housing from 0.75 to 0.5 while raising the minimum plot size from 5 katha to 15 katha. Since most urban plots fall below that threshold, many developers will no longer qualify.

A new rule requiring 5 per cent of total floor space to be reserved for affordable housing has also drawn criticism as being impractical for most private projects.

Industry officials warn that a lower achievable FAR could increase apartment prices, placing additional pressure on middle-income buyers and potentially slowing private investment in urban renewal.

They caution that unless the plan is revised to balance development goals with affordability, Dhaka’s housing shortage may deepen rather than ease.