Property Development Planning and Approvals in Bangladesh

by Barrister Tahmidur Rahman | Sep 8, 2026

Projects & Real EstateFrom land use to handover8 min read

Property Development Planning and Approvals in Bangladesh

Property development advice for developers, landowners, investors, lenders and corporate occupiers in Bangladesh, covering land due diligence, RAJUK and other development authority approvals, building permits, joint venture agreements with landowners, sales to buyers, occupancy and the disputes that can arise at every stage.

Overview

How property development approvals work in Bangladesh

Property development in Bangladesh succeeds or fails on land and approvals. A strong design and a good market are not enough if the title is defective, the land use does not permit the planned building, or the building permission does not match what is constructed. Developers, landowners and investors face a layered system of national codes, development authority rules and local requirements, with frequent changes in practice. We guide clients through that system, from land diligence to occupancy and handover, as part of our real estate and projects practice in Bangladesh, and coordinate closely with architects and engineers.

In Dhaka, the Rajdhani Unnayan Kartripakkha (RAJUK) is the main development authority, applying building construction rules made under the Building Construction Act 1952 and the Detailed Area Plan, which sets land use zones and development controls across its jurisdiction. Chattogram, Khulna, Rajshahi and other cities have their own development authorities, and city corporations and municipalities play roles elsewhere. The Bangladesh National Building Code sets technical standards for design and construction. Typical stages include land use clearance, building permission, construction under supervision, and an occupancy certificate. Large projects may also need environmental clearance, fire-safety plan approval and aviation height clearance.

The Detailed Area Plan for Dhaka, adopted in 2022, changed the arithmetic of many projects by linking permitted floor area to road width, infrastructure and zone, and by protecting flood flow zones, water bodies and open spaces. Some landowners and developers found that earlier expectations about building height no longer held. Revisions and clarifications have continued since then. For any site, we check the current plan designation, applicable rules and any pending changes or court directions, so that the development plan and land price reflect what can lawfully be built, rather than what neighbouring buildings appear to have achieved.

Most residential development in Dhaka is carried out through joint ventures between landowners and developers, under which the landowner contributes land and receives a share of the completed flats and often a signing money payment. These agreements, and the registered powers of attorney that usually accompany them, are a frequent source of disputes over delay, quality, allocation and transfer of flats to buyers. The Real Estate Development and Management Act 2010 sets duties for developers and protections for buyers and landowners. We draft these arrangements carefully, because a well-structured agreement prevents many of the problems that otherwise end in court.

Disputes in property development range from title challenges and injunctions by neighbours to developer delay, buyer claims, landowner termination and enforcement action by development authorities over deviations. Adv Syed Wahid leads our litigation work in the civil courts and the High Court Division, while Barrister Tahmidur Rahman and Barrister Remura Meheruba Mahbub advise on investment, finance and arbitration aspects. Pre-case mediation is being introduced for certain disputes under the Legal Aid Services (Amendment) Act 2026, rolling out by district. For advice on a property development site, a joint venture or a dispute, please contact our Dhaka office.

01 · What we handle

Core workstreams

  • Land and title due diligence
  • Planning and building approvals
  • Landowner and developer joint ventures
  • Sales and buyer documentation
02 · How it runs

Four clear stages

  1. 01Investigate the site thoroughly
  2. 02Structure the deal
  3. 03Obtain approvals
  4. 04Sell and hand over
03 · Start here

Talk to a partner

Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.

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How we help

Our property development services

Workstream 01Projects & Real Estate

Land and title due diligence

  • Investigate the site thoroughly
  • Structure the deal
  • Obtain approvals
  • Sell and hand over
Workstream 02Projects & Real Estate

Planning and building approvals

  • Investigate the site thoroughly
  • Structure the deal
  • Obtain approvals
  • Sell and hand over
Workstream 03Projects & Real Estate

Landowner and developer joint ventures

  • Investigate the site thoroughly
  • Structure the deal
  • Obtain approvals
  • Sell and hand over
Workstream 04Projects & Real Estate

Sales and buyer documentation

  • Investigate the site thoroughly
  • Structure the deal
  • Obtain approvals
  • Sell and hand over
Workstream 05Projects & Real Estate

Finance and investment structures for projects

  • Investigate the site thoroughly
  • Structure the deal
  • Obtain approvals
  • Sell and hand over
Workstream 06Projects & Real Estate

Property development disputes

  • Investigate the site thoroughly
  • Structure the deal
  • Obtain approvals
  • Sell and hand over
01

Land and title due diligence

Before any money is committed, we examine title through the chain of deeds, survey records such as CS, SA, RS and city survey khatians, mutation and land development tax records, and searches for litigation, acquisition notices, khas or vested property issues and encumbrances. We also check physical access, boundaries and possession, then report clearly on risks and how they can be cured or priced.

02

Planning and building approvals

We map the approvals needed for the site, including land use clearance, building permission, environmental clearance, fire-safety plan approval, aviation height clearance and utility connections, and coordinate the legal side of each application with the architect. We advise on Detailed Area Plan designations, floor area and height limits, and how to respond to queries, objections or refusals from the authority. Early engagement often shortens the process.

03

Landowner and developer joint ventures

We draft and negotiate joint venture agreements and powers of attorney between landowners and developers, covering signing money, flat allocation, specifications, timelines, delay compensation, approvals responsibility, sales rights, handover and termination. Acting for either side, we aim for clear and enforceable terms that protect our client and reduce the risk of disputes, which are common here. We also advise on renegotiation when plans change.

04

Sales and buyer documentation

For developers, we prepare allotment letters, sale agreements, payment schedules, deeds of sale, and handover documents, and advise on the Real Estate Development and Management Act 2010 and registration requirements. For buyers and investors, we review developer documents, title, approvals and construction progress before purchase, and advise on remedies when delivery is late or the flat differs from what was promised. Clear documents also ease resale.

05

Finance and investment structures for projects

We advise banks, financial institutions and investors on construction finance, mortgages over land and future flats, escrow arrangements, project companies and foreign investment in property development. We review security documents, approvals and the developer's obligations to landowners and buyers, so that lenders and investors understand the competing claims on the project before they advance funds. Property development lenders need this full picture before drawdown.

06

Property development disputes

We represent developers, landowners, buyers and neighbours in title suits, injunctions, specific performance and declaration suits, claims for compensation, and writ petitions against development authority decisions. We also handle demolition, sealing and penalty notices for deviations, and negotiate settlements that allow projects to be completed where that serves our client better than prolonged litigation. Early settlement often protects the property development timetable and budget.

RecognitionThe Legal 500Asia Pacific ranks Tahmidur Remura Wahid (TRW) Law Firm for dispute resolution in Bangladesh.
Cross-border reach6 jurisdictionsMatters coordinated with counsel in the UK, US, UAE, China, India and Singapore.
Bar and admissionsDhaka and LondonBarristers and advocates in Bangladesh, with a solicitor of England and Wales (non-practising).
HeadquartersDhakaHouse 410, Road 29, Mohakhali DOHS. Consultations in person or by video.
Who leads this work

Partner-led, on every matter.

Projects & Real Estate matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.

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01

What approvals are needed for a property development project in Dhaka?

A typical project needs land use clearance from RAJUK, building permission based on approved drawings, and construction supervised in line with the approval, followed by an occupancy certificate on completion. Depending on size, height and location, the project may also need environmental clearance from the Department of Environment, fire-safety plan approval from the Fire Service and Civil Defence Directorate, aviation height clearance near airports, and utility connections. Developers must also comply with registration and conduct requirements under the Real Estate Development and Management Act 2010. We map the route for each site. The right sequence avoids redesign.

02

How has the Detailed Area Plan affected property development in Dhaka?

The Detailed Area Plan adopted in 2022 introduced zone-based controls and linked permitted floor area to factors such as road width and local infrastructure, while protecting flood flow zones, wetlands and open spaces. As a result, some sites can support less floor area than owners expected, and land values and joint venture terms have been renegotiated in places. We check the current designation and rules for a site before land is bought or a joint venture is signed, so the commercial terms reflect what can lawfully be built. Many property development disputes now stem from outdated floor area assumptions.

03

What should a landowner check before signing a joint venture agreement with a developer?

A landowner should check the developer's track record, registration, financial strength and pending disputes, and should insist on a detailed agreement covering the flat allocation, specifications, approval responsibilities, timelines, delay compensation, signing money, the scope of any power of attorney, and termination rights. The power of attorney should be limited to what the developer actually needs and should not allow sale of the landowner's share. Registration of the documents is important. We act for landowners in negotiating these terms and checking the developer before the land is committed. Signing in haste is the most common and expensive mistake landowners make.

04

Our developer is years late in handing over flats in Dhaka. What can we do now?

Start by reviewing the agreement for delay compensation, termination rights and dispute resolution, and collecting evidence of payments, correspondence and construction progress. The Real Estate Development and Management Act 2010 provides remedies for buyers and landowners, and civil claims for specific performance, compensation or refund may be available. Many cases settle through negotiation once the developer faces credible legal action. Where several buyers are affected, coordinated action can be more effective. We assess the options, send formal notices, and pursue proceedings or settlement depending on the client's priorities. Early, documented action usually produces the best result for buyers.

05

Can a foreign investor participate in property development in Bangladesh?

Foreign investors can participate through a Bangladesh company, joint venture or financing structure, subject to investment registration with Invest Bangladesh, foreign exchange rules and sector requirements. Direct ownership of land by foreigners is restricted and usually not practical, so structures commonly use locally incorporated companies or contractual arrangements. Repatriation of profits and capital depends on proper documentation of the inward investment. We advise on structure, approvals, land rights and exit planning for foreign investors in residential, commercial and industrial property development projects across Bangladesh. Property development by foreign investors also needs careful tax and repatriation planning.

06

What happens if a completed building deviates from its approved plan?

Deviations, such as additional floors, changed setbacks or altered use, can lead to notices, fines, sealing, refusal of occupancy, refusal of utility connections and, in serious cases, demolition orders. Buyers and lenders may also be affected because title, registration and mortgage enforcement can become complicated. Some deviations can be regularised if they fall within permitted limits, while others cannot. We review the approval and as-built position, advise on regularisation options and represent owners and developers in proceedings against enforcement actions where there are grounds to challenge them. Buyers should check the as-built position against approved drawings before purchase.

07

Why does a property development project need an occupancy certificate on completion?

An occupancy certificate confirms that the completed building has been built in accordance with its approval and is fit for use. Without it, owners may face difficulty with utility connections, insurance, mortgages, resale and enforcement, and developers may face complaints from buyers and landowners. Many buildings have been occupied without one, which creates continuing legal risk for owners and investors. We advise developers on obtaining the certificate and buyers and lenders on the risks of buildings that lack it, including contractual protections in sale and loan documents. Property development lenders increasingly insist on a clear timetable for obtaining it.

08

Can neighbours stop a property development project?

Neighbours sometimes bring civil suits for injunctions on grounds such as boundary disputes, rights of way, light and air, construction damage or alleged breach of approvals, and may complain to the development authority. Courts can grant temporary injunctions that halt construction for long periods, which damages project economics. Careful diligence, accurate boundary surveys, compliance with approvals and good construction practice reduce the risk. When a suit is filed, we respond quickly, seek to vacate unjustified injunctions and explore settlement where appropriate, while protecting the developer's legal position. Early engagement with neighbours can prevent property development disputes reaching court.

How a matter runs

From first call to resolution.

  1. 01

    Investigate the site thoroughly

    We check the title, survey records, mutation, encumbrances, litigation, acquisition notices and the plan designation, and confirm what can lawfully be built before land is bought or a joint venture is signed for the intended property development project.

  2. 02

    Structure the deal

    We draft and negotiate land purchase, joint venture, finance and investment documents, allocating approvals responsibility, timelines, delay compensation and exit rights between landowner, developer, lender and investors so that each party's responsibilities and remedies are clear from day one.

  3. 03

    Obtain approvals

    We coordinate the legal side of land use, building, environmental, fire, aviation and utility approvals with the architect and engineers, and we respond to authority queries or objections promptly so that property development work can start on schedule.

  4. 04

    Sell and hand over

    We prepare buyer documentation, support registration of deeds and transfers, obtain occupancy and close out obligations to landowners and buyers, and we handle any disputes that arise during or after completion to protect the client's reputation and future projects.

“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”

The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback

FAQ

Questions, answered.

Still unsure? Email info@trw.co with a short outline of the matter.

Is RAJUK approval needed for property development everywhere in Bangladesh?
No. RAJUK covers Dhaka and its surrounding planning area. Other cities have their own development authorities, such as those for Chattogram, Khulna and Rajshahi, and elsewhere city corporations, municipalities and other bodies handle building approvals. The applicable building code and national requirements still apply. We confirm the correct authority and rules for each site before design work begins, which avoids wasted fees and redesign. Property development in peri-urban areas often raises additional questions about local authority jurisdiction and planning status.
Do property development companies need to be registered?
Under the Real Estate Development and Management Act 2010, developers must be registered with the relevant authority to carry on real estate development business, and the Act sets duties regarding approvals, handover and dealings with buyers and landowners. Buyers and landowners should check registration and the developer's record before signing. We carry out these checks as part of our property development diligence. Unregistered developers create additional risk for buyers, landowners and lenders, so this check is always worthwhile.
Should a joint venture agreement be registered?
Registration of joint venture agreements and related powers of attorney is important for enforceability and protection against third parties, and the Registration Act framework requires registration of many land-related documents. Unregistered arrangements create uncertainty, especially if the landowner dies or sells. We prepare documents in registrable form and manage registration with the sub-registry office to give both parties legal certainty. Properly registered documents also make property development finance easier to obtain, because lenders can rely on them.
How long do property development approvals usually take in practice?
Timing varies by authority, project size and the completeness of the application, and complex projects needing environmental, fire and aviation clearances take longer. Queries, objections and changes in rules can add months. We avoid promising fixed times, but we plan the approval sequence with the architect, track progress and escalate delays appropriately so that the client can plan financing and sales realistically. Lenders and buyers ask about approval status, so a well-kept file adds value to the property development project.
Can approvals be transferred if the development land is sold?
Approvals usually relate to the land and the specific design, but a change of owner or developer generally requires notifying the authority and updating records, and some approvals may need amendment. Buyers of development sites with existing approvals should check their validity period, conditions and any deviations. We review the approval file during diligence and plan any updates needed after completion. Expired approvals may need renewal or amendment before a property development project can restart construction on site.
What taxes and fees apply to a property development project?
Costs include approval fees payable to the development authority, registration costs, stamp duty, source tax and local government taxes on land transfers, VAT on certain services and income tax on development profits. Joint ventures raise particular tax questions about the landowner's share. We work closely with tax advisers to identify the costs early so that they are reflected in feasibility and pricing. Careful planning of property development costs avoids disputes between partners about who bears each charge.
Can a buyer register a flat before the building is complete in Bangladesh?
Buyers usually sign a sale agreement during construction and receive a registered deed for the flat and its undivided share of land after completion and full payment. Registering the sale agreement can provide protection in the meantime. Buyers should check the developer's authority to sell, the landowner's position and approvals before paying substantial amounts, and should keep records of every payment. We review developer documents for buyers before any significant payment and advise on remedies if problems arise.
Can TRW help with disputes against RAJUK and other development authorities?
Yes. Where an authority refuses approval, issues notices or takes enforcement action unlawfully or without due process, we advise on administrative remedies and writ petitions in the High Court Division. We also negotiate with the authority to resolve issues where possible, because a practical solution is often faster than litigation. The Legal 500 Asia Pacific ranks the firm for dispute resolution in Bangladesh. We also regularly act for developers responding to complaints, neighbour objections and regulatory inquiries.

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