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Real-estate activities in Bangladesh have expanded steadily according to official statistics, though industry insiders say the sector is struggling with high taxes, regulatory restrictions, and weak investment conditions.
The official nominal Gross Domestic Product (GDP) data indicate real-estate output reached Tk 4.77 trillion in FY26, recording 52.5-percent growth from Tk 3.13 trillion in FY21.
The sector recorded year-on-year growth throughout the period, although the pace of expansion varied.
From Tk 3.13 trillion in FY21, the value of real estate activities rose to Tk 3.40 trillion in FY22, Tk 3.73 trillion in FY23, Tk 4.09 trillion in FY24, and Tk 4.45 trillion in FY25.
In FY26, the year-on-year growth was 7.19 per cent.
The continued expansion highlights the growing importance of real estate-related activities in the broader services economy.
The sector supports a wide range of economic activities, including housing development, property transactions, rentals, and other services linked to land and buildings.
However, insiders have a different assessment of the current state of the market.
Liakat Ali Bhuiyan, former senior vice-president of the Real Estate and Housing Association of Bangladesh (REHAB), says the sector is not doing well right now and is facing significant expansion challenges.
He also questions the growth data, asking how the figures are prepared and whether they accurately reflect the current situation.
Bhuiyan mentions the 15 per cent income tax burden as one of the biggest hurdles facing the sector, saying this is discouraging investment and making it difficult for realtors to expand their businesses.
He also points to the Detailed Area Plan (DAP) as another major constraint, saying restrictions under it are preventing developers from increasing the height of buildings in many areas.
“This is affecting the viability of projects and hampering the overall growth of the sector,” he adds.
According to him, the government needs to address the tax burden and review DAP-related restrictions to help revive investment and support sustainable growth.
The data shows the sector maintained a consistent upward trajectory despite economic pressures during the five-year period.
The expansion comes at a time when the economy is becoming increasingly dependent on services as a source of growth and employment.
The rising value of real estate activities therefore indicates not only increased property-related economic activities but also the broader transformation of the economy, with services playing an increasingly significant role alongside manufacturing and agriculture.
Dr Masrur Reaz, chairman of Policy Exchange Bangladesh (PEB), says the real estate sector is an important part of the services economy, but its growth depends heavily on investment, financing conditions, and business confidence.
He says rising urbanisation and population growth are creating structural demand for housing, but high financing costs, regulatory barriers, and weak purchasing power could constrain the sector’s expansion.
“Real estate growth cannot be viewed in isolation. The sector needs affordable financing, a better investment climate, and regulatory reforms to sustain growth,” he says.
He also stresses the need to improve land administration, reduce transaction costs, and ensure greater transparency to make the sector more efficient and support long-term investment.
