Published : 09 Nov 2026, 12:28 AM
Updated : 09 Nov 2026, 12:28 AM
Flat prices in Dhaka are rising because land is scarce, not simply because construction materials cost more, says Mobarak Hossain, chairman of real estate company MH Group.
“From my experience, the reason behind rising flat prices in Dhaka is the shortage of land. Supply falls short of demand, pushing up land prices and, in turn, apartment prices. This is beyond anyone’s control,” he said.
Mobarak spoke to bdnews24.com’s discussion programme “Chinwag with the Chiefs” about the current state of the country’s housing sector, flat prices, construction quality, business challenges and his company’s future plans.
Prices were also rising in other divisional cities, he said, but in Dhaka the supply shortage mattered more than higher construction costs.
Jobs and services kept drawing people to the capital; even some officials posted at Upazila level lived there with their families.
Building Beyond Dhaka
Mobarak rejected the view that buying a flat had become a luxury, saying housing demand would persist. Planned townships outside Dhaka and better transport links could ease pressure on the capital.
“If we can take some of this demand away from Dhaka, improve connectivity around the city and develop townships in different places, it will be possible to build apartments a little farther away for lower-income people too,” he said.
He described the market as being in transition: unlike consumer goods, housing was not bought repeatedly, and even wealthy owners might not purchase a second apartment.
Profit and Construction Standards
Asked about developers’ high profits, Mobarak said opportunities were no longer what they had been, largely because land prices had risen.
He recalled asking a gold trader who owned land in one of his projects whether business had been better when gold cost Tk 50,000 a Bhori or now, at Tk 150,000 to Tk 200,000. Developers had enjoyed greater margins when land was cheaper, he said.
Mobarak disputed claims that construction materials were routinely substandard. Quality mattered, but so did correct proportions and proper use, he said.
“Problems can arise if the cement ratio is wrong or the required amount of reinforcement steel is not used,” he said.
Buyers were now more aware and could check documents on their phones. He urged them to be wary of unusually low prices and verify a developer’s reputation, experience and project documents.
“If you know it costs 100 to make something, why would you invest simply because someone offers it for 60?” he said.
Asked about fire risks, he said he knew of no such incidents in buildings of companies he knew or had worked with.
Keeping the Business Afloat
Real estate firms faced constant challenges and needed to adapt while maintaining patience and professional ethics, he said.
“A buyer pays part of their life savings in advance and the rest in installments. Both their trust and their money are in my hands,” he said.
Plans for Birulia
MH Group also operates in garments and buying services. Mobarak said he had no plans for industrial investment during his generation, though the next generation might decide otherwise.
The group’s “Lake Island Dhaka” project is in Savar’s Birulia about 2km from central Dhaka in a straight line.
Birulia has eight universities, with 13 possible. The project is planned to include schools, colleges, healthcare facilities and other civic amenities.
The Turag River limits access, but Hossain said land in the area remained relatively affordable under the Detailed Area Plan.
“If I can secure this land, it will remain within reach of ordinary and middle-income people. I sometimes tell colleagues that if I had a lot of money, I would not sell it. I would hold on to it, because in eight to 10 years its value could surpass land in the northern part of the city,” he said.
