The housing and public works ministry has proposed a 100 per cent increase in government land prices under Rajuk and the Public Works Department in Dhaka city in view of current market rates.
The ministry has also recommended that most government land should be sold out as there is no justification of holding on to a huge landed property much of which is falling into squatters' hands.
The proposal will be placed at an inter-ministerial meeting likely to be chaired by Finance Minister M Saifur Rahman on September 13.
Officials said the proposed rates would remain much below the market prices.
But real estate developers believe that slightest hike in government land prices will leave negative impact on housing, doubling land registration and related costs.
According to the ministry suggestion, land under Rajuk at Gulshan, Baridhara and Banani will be sold at Tk 2.80 crore a bigha (Tk 14 lakh a katha), up from the current price of Tk 1.40 crore a bigha (Tk 7 lakh a katha).
Private land in the areas sells at much higher rates. In Mohakhali and Gulshan commercial hubs, a katha of land costs as high as Tk 50 lakh while the residential plots of Gulshan, Banani and Baridhara carry a price tag of Tk 15 to Tk 25 lakh a katha.
The ministry proposal puts
commercial land in Motijheel, Dilkusha, Nababpur, Fulbaria and Bangabandhu Avenue commercial hearts at Tk 4 crore a bigha (Tk 20 lakh per katha), up from the current price of Tk 2 crore a bigha. Presently, a katha of private land in the areas sells at around Tk 50 lakh.
Price of land in Motijheel's extended area behind Bangladesh Bank has been fixed at Tk 3 crore a bigha.
Land in Dhanmondi residential area has been proposed at Tk 1.60 crore a bigha (Tk 8 lakh per katha) in a jump from Tk 80 lakh a bigha. Private land now sells at Tk 20 lakh there.
The price of land at Kakrail, Elephant Road, Green Road,
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Fakirerpool, Segun Bagicha, Arambagh and Moghbazar has been proposed at Tk 2 crore per bigha (Tk 10 lakh per katha) from Tk 1 crore a bigha now. Presently a katha of private land in the areas runs a price of Tk 20 lakh.
The price of land at Tejgaon industrial area has been proposed at Tk 60 lakh a bigha from the present price of Tk 30 lakh.
Government land adjacent to less than 60 feet roads has been proposed for a jump to Tk 1.60 crore a bigha, up from Tk 80 lakh a bigha. Land in Azimpur area, both adjacent to roads less than 60 feet wide or above has been proposed at Tk1.20 crore a bigha from the current rate of Tk 60 lakh.
Similarly, land at Sher-e-Bangla Nagar administrative area has been proposed at Tk. 1.20 crore per bigha.
In Khilgaon area, the price of land has been proposed at Tk 80 lakh a bigha, up from Tk 40 lakh a bigha.
The price of land in Rajarbagh rehabilitation area has been proposed at Tk 80 lakh per bigha and landed property within 10 feet of a paved road at Goran at Tk 40 lakh a bigha and in other areas there at Tk 32 lakh a bigha.
Land in Mirpur carries a proposed price tag of Tk 32 lakh a
bigha.
Talking to The Daily Star a real estate developer said although the price of private land was much higher than the government property, any sale carried a registration cost on the basis of the government price.
"The government price sets the standard and provides the basis for economics of real estate development and housing plans," he added.
"If the government price doubles, the registration price rises in tandem and leaves a huge impact on developers and buyers. The price hike of city land will adversely effect people's purchase capacity."
He said a land sale included a registration cost of 13 to 14 per cent of the government land price.
"If the land rate is Tk 10 lakh a bigha, the registration fee will stand at Tk 1.3 lakh or more," he said.