Construction costs in Dhaka may rise further as the Ministry of Housing and Public Works has moved to increase fees for land-use clearance, design approval, and various building-related permissions. Once the draft Dhaka Building Construction Rules 2025 are gazetted, the new fees will apply at every stage of the building approval process, officials at the Rajdhani Unnayan Kartripakkha (RAJUK) and representatives of the housing sector confirmed.
If fees for land-use clearance, design approval, and construction permits rise several times, the cost of building both residential and commercial structures will increase significantly. Industrial construction may also become costlier. While the government’s revenue is expected to rise, private-sector investors could face additional pressure, and ordinary homebuyers may be discouraged from purchasing new properties.
For years, the fee for land-use clearance and extension of the design approval period stood at Tk1,000. The new draft rules propose raising it to Tk5,000 — a fivefold increase. Additionally, a new fee of Tk5,000 per katha has been introduced for applications related to multi-unit residential block development, a category that previously carried no charge.
Officials say pressure on land use and construction in Dhaka has increased substantially over the years, prompting a revision of the fee structure.
Under the existing Building Construction Rules 2008, various fees are charged for building construction, development, preservation, and demolition within RAJUK’s jurisdiction. The new proposal makes these fees more layered, with several categories seeing substantial hikes. For example, approval for a building with a total floor area of 3,000 square meters currently costs Tk26,000. Under the draft rules, this could rise to Tk150,000. For a 5,000-square-meter building, the fee may increase from Tk42,500 to Tk250,000. For structures with 30,000 square meters of floor area, the fee may jump from Tk 207,000 to as high as Tk 1.5 million. RAJUK officials said the larger the floor area, the higher the proposed approval fee.
Some fees remain unchanged in the draft. These include Tk 30,000 for hill-cutting permits, Tk 10,000 for pond excavation, and Tk 1,000 for utility certificates and renewals. The draft also proposes eliminating the Tk 10,000 application fee for special project clearance and appeals.
The fee for boundary-wall construction is set at Tk 20 per square meter or a minimum of Tk 2,000; billboards will require Tk 50 per square meter or at least Tk 5,000. For water-body construction approval, the fee is set at Tk 100 per cubic meter, or a minimum of Tk 10,000. A new fee of Tk 5,000 per katha has been added for block-based residential unit applications. Residential building approvals will require Tk 50 per square meter, while industrial or commercial buildings may pay up to Tk 150 per square meter. Religious establishments — including mosques, temples, churches, and pagodas — will remain exempt, though they cannot be used for private purposes.
According to ministry sources, the revised fees were sent to the Ministry of Finance in the third week of last month seeking consent. The request includes RAJUK’s recommendations for the increased fees. Once the gazette is published, the new rules will formally take effect. At the same time, amendments to the Detailed Area Plan (DAP) allowing increased building heights in several zones have been finalized and will be incorporated into the new rules.
Mohammad Mostafizur Rahman, urban and suburban planner at RAJUK, said: “Everything evolves with time. The urban reality of 2025 is very different from that of 2008. That is why the construction fee structure is being updated. Once the gazette is issued, it will come into effect.”
Engineer Mahmudur Rahman of the Real Estate and Housing Association of Bangladesh (REHAB) said increased approval fees could discourage ordinary buyers from investing in new buildings.
“Developers have not made significant profits over the past three years. The government should consider public convenience and hardship before setting any fees,” he said.