Revised Detailed Area Plan (DAP) Sparks Controversy Over Floor Area Ratio (FAR) Arithmetic in Dhaka

Strategic Insights -

The recent revision of the Detailed Area Plan (DAP) in Dhaka has sparked controversy over the complex calculation method for determining Floor Area Ratio (FAR), raising concerns among realtors and developers that it may disrupt the development sector and housing market. While some areas have seen a significant increase in FAR, others have experienced a reduction, with four prominent zones potentially seeing a decrease in achievable FAR. The revised DAP also introduces incentives for developers, but many argue that they are insufficient to offset the challenges posed by the new house-building formula.

Key Takeaways:

  • The revised DAP introduces a more complex calculation method for determining FAR, which may result in a reduction in achievable FAR in certain areas of Dhaka.
  • Four prominent zones-Dhanmondi Residential Area, Gulshan-Banani, Satarkul, and Nasirabad-have seen a reduction in FAR under the revised plan.
  • Several areas, such as Khilkhet and Mirpur DOHS, are set to see their allowable FAR more than double, opening the door to significantly taller buildings and higher population densities.
  • Zones like Khilkhet and Mirpur DOHS have seen FIR projections rising from 2.0 to 4.4 and 2.5 to 4.8, respectively.
  • The revised DAP introduces incentives for developers, including bonus FAR for block-based developments and provision of more than the minimum open space around buildings.
  • However, many developers argue that these incentives are insufficient to offset the complex challenges posed by the new house-building formula.
  • One of the primary concerns raised by real-estate developers is the difficulty in providing adequate civic amenities on plots of land as small as 2 acres (120 katha) after surrendering 45 per cent (54 katha) for open spaces.
  • Developers have also noted that plots smaller than 15 katha with a 30-foot road will only be eligible for minimal FAR bonuses unless they are located within Transit-Oriented Development zones.
  • The FAR bonus for affordable housing has been pared down from 0.75 to 0.5, while the minimum land requirement has increased from 5 katha to 15 katha.

Statistics:

  • Allowable FAR in Khilkhet and Mirpur DOHS may increase from 2.0 to 4.4 and 2.5 to 4.8, respectively.
  • Estimated building heights in peripheral areas such as Keraniganj and Savar may double.
  • The revised DAP proposes to reserve 5.0 per cent of total floor space for affordable housing.
  • The majority of individual plots in Dhaka fall below 15 katha, making many properties ineligible for the affordable housing bonus.
  • The cost per square foot of housing may increase due to the reduction in achievable FAR.

Sources:

  • The Financial Express
  • Rajdhani Unnayan Kartripakkha (RAJUK)
  • Interviews with real-estate officials and developers.