Taking recommendations from the country's apex business leaders, self-made business owners and prominent urban planners and architects into consideration, the government decided to expand commercial spaces in the city's posh areas, sources told the Dhaka Tribune.
The decision comes a few weeks after Dhaka's development authority Rajdhani Unnayan Kartripakkha (Rajuk) launched a drive to evict unauthorised establishments in Dhanmondi, Gulshan and Uttara residential areas on July 25. Rajuk plans to run the drive until August 31.
The eviction drive was launched in the wake of the July 1 terror attack on Holey Artisan Bakery, which was set up in a residential buildingin Gulshan. The government decided to shut down around 2,400 business which had been set up on residential plots in Gulshan, Dhanmondi and Uttara.
Since the drive began, Rajuk has evicted about 100 business, most of which were owned by self-made entrepreneurs. The eviction resulted in the loss of their investment, while around 2,000 people employed at those establishments lost their jobs.
A large number of educational institutions have been shut down or given a notice to move immediately, putting the academic future of hundreds of students at risk.
Speaking to the Dhaka Tribune, Rajuk Chairman Bajlul Karim Chowdhury said the government took such decision considering the rapidly increasing population of the capital city.
He said Rajuk sent a proposal to the Ministry of Housing and Public Works seeking approval to changethe status of residential establishments on 11 roads in Uttara and one in Gulshan 2 for commercial use.
“The ministry is currently processing the list. If they approve the proposal, the status of residential plots on those roads will be converted to non-residential and their owners will be able to use them for business purposes,” he added.
Decision on such establishments in Gulshan 1, Uttara and Dhanmondi has yet to be made, he further said.
He said the Dhanmondi residential area was developed by the Public Works Department, not Rajuk. “But if the government deems it necessary to change the status of residential establishments there, then steps will be taken accordingly.”
When contacted, Housing and Public Works Minister Mosharraf Hossain acknowledged the matter and said the proposal would be placed before the Cabinet.
High conversion fees required
The government has increased the fees to convert land category from residential to non-residential in the upscale areas of Dhaka by 750% over the last few years, apparently to discourage commercialisation of the neighbourhoods.
Following recommendations from the Parliamentary Standing Committee on the Ministry of Housing and Public Works, Rajuk increased land conversion fees for converting a katha of a plot from the category of residential to non-residential or commercial in the residential areas of Gulshan, Banani, Baridhara, Nikunja and Uttara.
When the conversion system was initiated in 2004, Rajuk fixed the conversion fees to be Tk8 lakh in Gulshan and Banani and Tk4 lakh in Uttara.
In 2011, the fees were increased to Tk5 lakh in Uttara. For Banani Road 11, the fee was fixed as Tk10 lakh per katha.
Currently, the conversion fee is Tk50 lakh residential to commercial conversion and Tk30 lakh for residential to non-residential conversion in Gulshan, Banani and Baridhara. In Uttara and Nikunja areas, the fees are Tk 25 lakh and Tk15 lakh.
Rajuk authorities did not mention the fixed rate for Dhanmondi area, but an official, seeking anonymity, said the conversion fee is Tk25 lakh per katha.
Thursday, June 04, 2026
