State of Cities 2017 Housing in Dhaka

BRAC Institute of Governance and Development BRAC University State of Cities 2017 Housing in Dhaka

BRAC Institute of Governance and Development BRAC University State of Cities 2017 Research team and Contributors Housing in Dhaka The State of Cities 2017 – Housing in Dhaka is a product of an interdisciplinary team of researchers of the BRAC Institute of Governance and Development (BIGD). The team was led by Syeda Salina Aziz, BRAC Institute of Governance and Development (BIGD) Senior Research Associate, BIGD. Researchers who contributed in different chapters includes Syeda BRAC University Salina Aziz (Introduction), Nazneen Ahmed and Gazi Arafatuzzaman Markony (Policy and Institutional Dhaka, Bangladesh Framework), Syeda Salina Aziz, Kaneta Zillur and Mahbub Hasan (Adequacy of Housing), Mohammad Sirajul Islam and Md Mahan Ul Hoque (Affordability of Housing), Dr. Md. Shanawez Hossain, Iffat Jahan and Raihan Ahamed (Quality of Basic Services and Disaster Preparedness), Mohammad Sirajul Islam Copyright © BIGD, BRAC UNIVERSITY and Sumaiya Kabir Talukder (Tenant Security), Syeda Salina Aziz and Dr. Md. Shanawez Hossain ISBN: 978-984-34-3362-6 (Conclusion and Recommendations). We wish to express our appreciation for the encouragement and advice provided by Dr Sultan Hafeez Recommended Citation: BIGD, 2017. The State of Cities 2017: Housing in Dhaka. BRAC Institute of Rahman, Executive Director, BIGD. Governance and Development, BRAC University, Dhaka.

Cover: Mamun Islam and Kaneta Zillur

Layout and Production: Color Line, Ga- 188/2, Mohakhali, Dhaka 1212, Bangladesh

Price: BDT 750.00 USD 15.00

iii State of Cities 2017 Research team and Contributors Housing in Dhaka The State of Cities 2017 – Housing in Dhaka is a product of an interdisciplinary team of researchers of the BRAC Institute of Governance and Development (BIGD). The team was led by Syeda Salina Aziz, BRAC Institute of Governance and Development (BIGD) Senior Research Associate, BIGD. Researchers who contributed in different chapters includes Syeda BRAC University Salina Aziz (Introduction), Nazneen Ahmed and Gazi Arafatuzzaman Markony (Policy and Institutional Dhaka, Bangladesh Framework), Syeda Salina Aziz, Kaneta Zillur and Mahbub Hasan (Adequacy of Housing), Mohammad Sirajul Islam and Md Mahan Ul Hoque (Affordability of Housing), Dr. Md. Shanawez Hossain, Iffat Jahan and Raihan Ahamed (Quality of Basic Services and Disaster Preparedness), Mohammad Sirajul Islam Copyright © BIGD, BRAC UNIVERSITY and Sumaiya Kabir Talukder (Tenant Security), Syeda Salina Aziz and Dr. Md. Shanawez Hossain ISBN: 978-984-34-3362-6 (Conclusion and Recommendations). We wish to express our appreciation for the encouragement and advice provided by Dr Sultan Hafeez Recommended Citation: BIGD, 2017. The State of Cities 2017: Housing in Dhaka. BRAC Institute of Rahman, Executive Director, BIGD. Governance and Development, BRAC University, Dhaka.

Cover: Mamun Islam and Kaneta Zillur

Layout and Production: Color Line, Ga- 188/2, Mohakhali, Dhaka 1212, Bangladesh

Price: BDT 750.00 USD 15.00

iii Table of Contents

List of tables, figures and boxes viii List of acronyms xi Preface xiii Executive summary xv

Chapter 1: Introduction 01 1.1 Preliminaries 01 1.2 The Context 01 1.2.1 Urbanisation and the developing world 01 1.2.2 Urbanisation and socio-economic dynamics of Bangladesh 02 1.2.3 Urbanisation, growing middle class and service deficit in Dhaka 03 1.3 Methodology 05 1.4 Framework of analysis 06 1.5 Overview of the chapters 07

Chapter 2: Policy and Institutional Framework 09 2.1 Evolution of governance frameworks for urban housing 10 2.1.1 Review of institutions 11 2.2 Legal, institutional and policy frameworks for urban housing and settlements 15 2.2.1 Policies for regional development and efficient land use planning 17 2.2.2 Policies addressing the housing sector 19 2.2.3 Regulation of building standards 22 2.2.4 Regulation of private sector land development 24 2.2.5 Regulation of house rent 25 2.3 Building construction in Dhaka city: the procedural steps 25 2.4 The policies in practice - gaps and concerns 26 2.5 Conclusion 28

Chapter 3: Adequacy of Housing 29 3.1 Methodology 29 3.2 Land use pattern in Dhaka 30 3.3 Housing supply in Dhaka 34 3.3.1 Public sector suppliers of housing 34 3.3.2 Private sector suppliers of housing 35 3.3.3 Profile of Housing in Dhaka - A Tale of Two Cities 36

v Table of Contents

List of tables, figures and boxes viii List of acronyms xi Preface xiii Executive summary xv

Chapter 1: Introduction 01 1.1 Preliminaries 01 1.2 The Context 01 1.2.1 Urbanisation and the developing world 01 1.2.2 Urbanisation and socio-economic dynamics of Bangladesh 02 1.2.3 Urbanisation, growing middle class and service deficit in Dhaka 03 1.3 Methodology 05 1.4 Framework of analysis 06 1.5 Overview of the chapters 07

Chapter 2: Policy and Institutional Framework 09 2.1 Evolution of governance frameworks for urban housing 10 2.1.1 Review of institutions 11 2.2 Legal, institutional and policy frameworks for urban housing and settlements 15 2.2.1 Policies for regional development and efficient land use planning 17 2.2.2 Policies addressing the housing sector 19 2.2.3 Regulation of building standards 22 2.2.4 Regulation of private sector land development 24 2.2.5 Regulation of house rent 25 2.3 Building construction in Dhaka city: the procedural steps 25 2.4 The policies in practice - gaps and concerns 26 2.5 Conclusion 28

Chapter 3: Adequacy of Housing 29 3.1 Methodology 29 3.2 Land use pattern in Dhaka 30 3.3 Housing supply in Dhaka 34 3.3.1 Public sector suppliers of housing 34 3.3.2 Private sector suppliers of housing 35 3.3.3 Profile of Housing in Dhaka - A Tale of Two Cities 36

v 3.4 Usage of residential space in Dhaka: A demand side analysis 38 6.2.3 Formalisation of house renting: agreement document and receipt of 3.4.1 Occupancy status and residential space 39 rent payment 92 3.4.2 Provision of utilities and amenities 42 6.2.4 Advance payment and its adjustment 93 3.4.3 Adequacy: Household perception 43 6.2.5 Maintenance and change in internal accessories 94 3.5 Key findings and recommendations 43 6.2.6 Eviction and social discrimination faced by tenants 94 6.3 Protection of tenants: comparison between legal norms and Chapter 4: Affordability of Housing 45 survey findings 95 4.1 Cost of housing 47 6.4 Key findings and recommendations 99 4.1.1 Cost of housing: tenants' perspectives 47 Chapter 7: Conclusion and Recommendations 101 4.1.2 Cost of housing: owners' perspectives 53 7.1 Conclusion 101 4.1.3 Barriers to homeownership in Dhaka: views of owners and tenants 56 7.2 Recommendations 103 4.2 Housing quality and surroundings: households' preference and satisfaction 57 4.2.1 Factors behind renting or owning current house and influence of these References 105 factors on selecting the present dwelling unit 58 4.2.2 Satisfaction regarding quality of housing and surroundings 59 4.3 Key issues of housing affordability 61 4.3.1 Affordability of rental units 61 4.3.2 Homeownership: aspiration and challenges 61 4.3.3 Housing standards 63 4.4 Recommendations 64 4.4.1 Provision of low cost housing 64 4.4.2 Financing housing costs 65 4.4.3 Planned use of land 65

Chapter 5: Quality of Basic Services and Disaster Preparedness 67 5.1 Methodology 67 5.2 Evaluation of basic services 68 5.2.1 Water service 68 5.2.2 Electricity service 74 5.2.3 Gas service 77 5.2.4 Waste management 79 5.3 Disaster preparedness of the housing in Dhaka 83 5.4 Key findings and recommendations 86

Chapter 6: Tenant Security 87 6.1 Chapter focus, structure and methodology 88 6.2 Tenant security in Dhaka 88 6.2.1 Rent fixation: amounts and procedure 88 6.2.2 Revision of rents: frequency, additional amount and reasons 89

vi vii 3.4 Usage of residential space in Dhaka: A demand side analysis 38 6.2.3 Formalisation of house renting: agreement document and receipt of 3.4.1 Occupancy status and residential space 39 rent payment 92 3.4.2 Provision of utilities and amenities 42 6.2.4 Advance payment and its adjustment 93 3.4.3 Adequacy: Household perception 43 6.2.5 Maintenance and change in internal accessories 94 3.5 Key findings and recommendations 43 6.2.6 Eviction and social discrimination faced by tenants 94 6.3 Protection of tenants: comparison between legal norms and Chapter 4: Affordability of Housing 45 survey findings 95 4.1 Cost of housing 47 6.4 Key findings and recommendations 99 4.1.1 Cost of housing: tenants' perspectives 47 Chapter 7: Conclusion and Recommendations 101 4.1.2 Cost of housing: owners' perspectives 53 7.1 Conclusion 101 4.1.3 Barriers to homeownership in Dhaka: views of owners and tenants 56 7.2 Recommendations 103 4.2 Housing quality and surroundings: households' preference and satisfaction 57 4.2.1 Factors behind renting or owning current house and influence of these References 105 factors on selecting the present dwelling unit 58 4.2.2 Satisfaction regarding quality of housing and surroundings 59 4.3 Key issues of housing affordability 61 4.3.1 Affordability of rental units 61 4.3.2 Homeownership: aspiration and challenges 61 4.3.3 Housing standards 63 4.4 Recommendations 64 4.4.1 Provision of low cost housing 64 4.4.2 Financing housing costs 65 4.4.3 Planned use of land 65

Chapter 5: Quality of Basic Services and Disaster Preparedness 67 5.1 Methodology 67 5.2 Evaluation of basic services 68 5.2.1 Water service 68 5.2.2 Electricity service 74 5.2.3 Gas service 77 5.2.4 Waste management 79 5.3 Disaster preparedness of the housing in Dhaka 83 5.4 Key findings and recommendations 86

Chapter 6: Tenant Security 87 6.1 Chapter focus, structure and methodology 88 6.2 Tenant security in Dhaka 88 6.2.1 Rent fixation: amounts and procedure 88 6.2.2 Revision of rents: frequency, additional amount and reasons 89

vi vii List of Boxes, Figures and Tables

List of Boxes, Figures and Tables Figure 5.4 Getting prior notice 70 Figure 5.5 Area wise percentage of getting prior notice 71 Figure 5.6 Payment for water service 71 List of boxes Figure 5.7 Quality of the water 72 Box 2.1 Constitutional provisions related to housing 15 Figure 5.8 Initiative taken regarding water service related problems 73 Box 3.1 Govt. plans more housing projects for employees 33 Figure 5.9 Time taken to address the problem by DWASA 73 Figure 5.10 Satisfaction level regarding water service 73 List of figures Figure 5.11 Duration of access to electricity supply 74 Figure 1.1 Top 12 urban agglomerations in terms of number of population 02 Figure 5.12 Specific timing of power outage 75 Figure 1.2 Share of rural and urban population in Bangladesh 03 Figure 5.13 Getting prior notice of power outage 75 Figure 1.3 Urban and rural population growth rate in Bangladesh 03 Figure 5.14 Safety of the electricity service 75 Figure 1.4 Population in Dhaka (1961-2011) 03 Figure 5.15 Initiatives taken regarding problem 76 Figure 3.1 Land use pattern in Dhaka 32 Figure 5.16 Time taken to readdress the problem by DESCO 76 Figure 3.2 Housing delivery system in urban Bangladesh 34 Figure 5.17 Satisfaction level of electricity service 76 Figure 3.3 Trend in apartment supply (2000-2015) 35 Figure 5.18 Duration of daily gas service 77 Figure 3.4 Demand and estimated demand for housing 36 Figure 5.19 Scarcity during different seasons 77 Figure 3.5 Supply of housing unit by income group 37 Figure 5.20 Prior notice of the unavailability of gas service for a day 78 Figure 3.6 Apartment size in different areas of Dhaka 38 Figure 5.21 Safety of the gas connection 78 Figure 3.7 Types of occupancy 39 Figure 5.22 Initiative taken regarding gas problem 78 Figure 3.8 Association between income and floor space 40 Figure 5.23 Response by the initiative taken 78 Figure 3.9 Residential space by income group 41 Figure 3.10 Floor space allocation by size of house 41 Figure 5.24 Satisfaction level of gas service 79 Figure 3.11 Distribution of houses by number of bedroom 42 Figure 5.25 Door to door services for waste management 79 Figure 3.12 Perception regarding adequacy of floor space 43 Figure 5.26 Waste collection time from household 80 Figure 3.13 Rating of adequacy by size of houses 43 Figure 5.27 Area wise waste collection time 80 Figure 4.1 Tenants' opinions regarding current house rents in Dhaka 48 Figure 5.28 Regularity of waste management services 80 Figure 4.2 Reasons behind changing the rental units reported by respondents 50 Figure 5.29 Area wise regulation of waste collection 81 Figure 4.3 Problems of living in rented house reported by tenants 50 Figure 5.30 Payment for waste disposal service 81 Figure 4.4 Sources of homeownership by respondents 53 Figure 5.31 Area wise payment for waste disposal service 82 Figure 4.5 Opinions of the homeowners regarding the prices of houses 55 Figure 5.32 Satisfaction level for waste management service 82 Figure 4.6 Homeowners' adjustment strategies to meet the cost of owning house 56 Figure 5.33 Area wise satisfaction level for waste management service 83 Figure 4.7 Types of benefits of homeownership reported by owners 56 Figure 5.34 Year wise fire incidence in Dhaka City 84 Figure 4.8 Barriers to homeownership identified by tenants and owners 57 Figure 5.35 Fire escape/exit way in the building 84 Figure 4.9 Factors behind the decision of respondents to rent/own the current house 58 Figure 5.36 Having knowledge about the survival strategy during earthquake 85 Figure 4.10 Level of influence of various factors in case of renting or buying houses in Dhaka 59 Figure 5.37 Open space around the building 85 Figure 4.11 Households' satisfaction regarding quality of housing and surroundings 60 Figure 6.1 Monthly rents of tenants, fixed in the beginning 88 Figure 5.1 Sources of water 69 Figure 6.2 Rent fixation process 89 Figure 5.2 Availability of water 69 Figure 6.3 Frequency of revision of rents 89 Figure 5.3 Seasonal scarcity of water 70

viii ix List of Boxes, Figures and Tables

List of Boxes, Figures and Tables Figure 5.4 Getting prior notice 70 Figure 5.5 Area wise percentage of getting prior notice 71 Figure 5.6 Payment for water service 71 List of boxes Figure 5.7 Quality of the water 72 Box 2.1 Constitutional provisions related to housing 15 Figure 5.8 Initiative taken regarding water service related problems 73 Box 3.1 Govt. plans more housing projects for employees 33 Figure 5.9 Time taken to address the problem by DWASA 73 Figure 5.10 Satisfaction level regarding water service 73 List of figures Figure 5.11 Duration of access to electricity supply 74 Figure 1.1 Top 12 urban agglomerations in terms of number of population 02 Figure 5.12 Specific timing of power outage 75 Figure 1.2 Share of rural and urban population in Bangladesh 03 Figure 5.13 Getting prior notice of power outage 75 Figure 1.3 Urban and rural population growth rate in Bangladesh 03 Figure 5.14 Safety of the electricity service 75 Figure 1.4 Population in Dhaka (1961-2011) 03 Figure 5.15 Initiatives taken regarding problem 76 Figure 3.1 Land use pattern in Dhaka 32 Figure 5.16 Time taken to readdress the problem by DESCO 76 Figure 3.2 Housing delivery system in urban Bangladesh 34 Figure 5.17 Satisfaction level of electricity service 76 Figure 3.3 Trend in apartment supply (2000-2015) 35 Figure 5.18 Duration of daily gas service 77 Figure 3.4 Demand and estimated demand for housing 36 Figure 5.19 Scarcity during different seasons 77 Figure 3.5 Supply of housing unit by income group 37 Figure 5.20 Prior notice of the unavailability of gas service for a day 78 Figure 3.6 Apartment size in different areas of Dhaka 38 Figure 5.21 Safety of the gas connection 78 Figure 3.7 Types of occupancy 39 Figure 5.22 Initiative taken regarding gas problem 78 Figure 3.8 Association between income and floor space 40 Figure 5.23 Response by the initiative taken 78 Figure 3.9 Residential space by income group 41 Figure 3.10 Floor space allocation by size of house 41 Figure 5.24 Satisfaction level of gas service 79 Figure 3.11 Distribution of houses by number of bedroom 42 Figure 5.25 Door to door services for waste management 79 Figure 3.12 Perception regarding adequacy of floor space 43 Figure 5.26 Waste collection time from household 80 Figure 3.13 Rating of adequacy by size of houses 43 Figure 5.27 Area wise waste collection time 80 Figure 4.1 Tenants' opinions regarding current house rents in Dhaka 48 Figure 5.28 Regularity of waste management services 80 Figure 4.2 Reasons behind changing the rental units reported by respondents 50 Figure 5.29 Area wise regulation of waste collection 81 Figure 4.3 Problems of living in rented house reported by tenants 50 Figure 5.30 Payment for waste disposal service 81 Figure 4.4 Sources of homeownership by respondents 53 Figure 5.31 Area wise payment for waste disposal service 82 Figure 4.5 Opinions of the homeowners regarding the prices of houses 55 Figure 5.32 Satisfaction level for waste management service 82 Figure 4.6 Homeowners' adjustment strategies to meet the cost of owning house 56 Figure 5.33 Area wise satisfaction level for waste management service 83 Figure 4.7 Types of benefits of homeownership reported by owners 56 Figure 5.34 Year wise fire incidence in Dhaka City 84 Figure 4.8 Barriers to homeownership identified by tenants and owners 57 Figure 5.35 Fire escape/exit way in the building 84 Figure 4.9 Factors behind the decision of respondents to rent/own the current house 58 Figure 5.36 Having knowledge about the survival strategy during earthquake 85 Figure 4.10 Level of influence of various factors in case of renting or buying houses in Dhaka 59 Figure 5.37 Open space around the building 85 Figure 4.11 Households' satisfaction regarding quality of housing and surroundings 60 Figure 6.1 Monthly rents of tenants, fixed in the beginning 88 Figure 5.1 Sources of water 69 Figure 6.2 Rent fixation process 89 Figure 5.2 Availability of water 69 Figure 6.3 Frequency of revision of rents 89 Figure 5.3 Seasonal scarcity of water 70

viii ix State of Cities 2017

Figure 6.4 Additional amount of rents in each revision 90 Acronyms Figure 6.5 Relationship between frequency of rent increment and additional amount of rents 90 Figure 6.6 Differential rent range, rent increase amount and frequency percentage 91 ADP Annual Development Programme Figure 6.7 Reasons for increasing the rent 92 AHS American Housing Survey Figure 6.8 Outcome of negotiations regarding rent revision 92 BDT Bangladeshi Taka Figure 6.9 Adjustment of advance payment 93 BHBFC Bangladesh House Building Finance Corporation Figure 6.10 Maintenance and repair works of rental unit 94 BIGD BRAC Institute of Governance and Development BNBC Bangladesh National Building Code List of tables BR Bangladesh Railway Table 1.1 Socio demographic characteristics in Dhaka (1961-2011) 04 CAB Consumer Association of Bangladesh Table 1.2 Sample distribution 05 CIB Credit Information Bureau Table 2.1 Key agencies and their responsibilities for regulating the housing sector in CNG Compressed Natural Gas Dhaka city 14 DAP Detailed Area Plan Table 2.2 Policies and rules at a glance: major issues addressed 16 DCC Dhaka City Corporation Table 3.1 Area and population density in Dhaka and other megacities 31 Table 3.2 Population density and residential area per person within Dhaka 31 DESA Dhaka Electric Supply Authority Table 3.3 Frequency distribution of housing size 40 DESCO Dhaka Electric Supply Company Limited Table 3.4 Distribution of households by bedroom per person 42 DIT Dhaka Improvement Trust Table 4.1 Government's development expenditures for housing FY 2015/16 – FY 2017/18 46 DMDP Dhaka Metropolitan Development Plan Table 4.2 Comparison between rates of general inflation and rental inflation (in percent) 47 DMR Dhaka Metropolitan Region Table 4.3 Share of family income spent on house rents, utilities and transport by DNCC Dhaka North City Corporation respondents 48 DoGA Directorate of Government Accommodation Table 4.4 Practice of making adjustments to bear the rental costs of housing 49 DOHS Defense Officer Housing Society Table 4.5 Tenants' planning to buy houses in Dhaka and preferences regarding DSCC Dhaka South City Corporation house providers 51 DWASA Dhaka Water Supply and Sewerage Authority Table 4.6 Comparison in apartment price among Asian cities 52 GOB Government of Bangladesh Table 4.7 Home loan interest rates of scheduled banks and other financial institutions 54 HBRI Housing and Building Research Institute Table 4.8 Dhaka's standing vis-à-vis other South and East Asia cities 61 HQI Housing Quality Index Table 4.9 Years required to accumulate the down payment for a small sized apartment 62 Icddr,b International Centre for Diarrhoeal Disease Research, Bangladesh Table 5.1 Availability of water 70 km2 Square Kilometre Table 5.2 Access to electricity by hour 74 Table 5.3 Seasonal scarcity 77 kWh kilowatt hour Table 5.4 Preparedness against fire outbreak 84 LP Liquid petroleum 2 Table 6.1 Advance payment by tenants for the rental units 93 m Square meter Table 6.2 Comparison between formal legal provisions and practices 95 mmcfd Million Standard Cubic Feet Per Day Table 6.3 Zone-wise rate chart of city corporations and house rents 97 MoLGRDC Ministry of Local Government, Rural Development and Cooperatives MTB Mutual Trust Bank NFI Non-Banking Financial Institution NHP National Housing Policy

x xi State of Cities 2017

Figure 6.4 Additional amount of rents in each revision 90 Acronyms Figure 6.5 Relationship between frequency of rent increment and additional amount of rents 90 Figure 6.6 Differential rent range, rent increase amount and frequency percentage 91 ADP Annual Development Programme Figure 6.7 Reasons for increasing the rent 92 AHS American Housing Survey Figure 6.8 Outcome of negotiations regarding rent revision 92 BDT Bangladeshi Taka Figure 6.9 Adjustment of advance payment 93 BHBFC Bangladesh House Building Finance Corporation Figure 6.10 Maintenance and repair works of rental unit 94 BIGD BRAC Institute of Governance and Development BNBC Bangladesh National Building Code List of tables BR Bangladesh Railway Table 1.1 Socio demographic characteristics in Dhaka (1961-2011) 04 CAB Consumer Association of Bangladesh Table 1.2 Sample distribution 05 CIB Credit Information Bureau Table 2.1 Key agencies and their responsibilities for regulating the housing sector in CNG Compressed Natural Gas Dhaka city 14 DAP Detailed Area Plan Table 2.2 Policies and rules at a glance: major issues addressed 16 DCC Dhaka City Corporation Table 3.1 Area and population density in Dhaka and other megacities 31 Table 3.2 Population density and residential area per person within Dhaka 31 DESA Dhaka Electric Supply Authority Table 3.3 Frequency distribution of housing size 40 DESCO Dhaka Electric Supply Company Limited Table 3.4 Distribution of households by bedroom per person 42 DIT Dhaka Improvement Trust Table 4.1 Government's development expenditures for housing FY 2015/16 – FY 2017/18 46 DMDP Dhaka Metropolitan Development Plan Table 4.2 Comparison between rates of general inflation and rental inflation (in percent) 47 DMR Dhaka Metropolitan Region Table 4.3 Share of family income spent on house rents, utilities and transport by DNCC Dhaka North City Corporation respondents 48 DoGA Directorate of Government Accommodation Table 4.4 Practice of making adjustments to bear the rental costs of housing 49 DOHS Defense Officer Housing Society Table 4.5 Tenants' planning to buy houses in Dhaka and preferences regarding DSCC Dhaka South City Corporation house providers 51 DWASA Dhaka Water Supply and Sewerage Authority Table 4.6 Comparison in apartment price among Asian cities 52 GOB Government of Bangladesh Table 4.7 Home loan interest rates of scheduled banks and other financial institutions 54 HBRI Housing and Building Research Institute Table 4.8 Dhaka's standing vis-à-vis other South and East Asia cities 61 HQI Housing Quality Index Table 4.9 Years required to accumulate the down payment for a small sized apartment 62 Icddr,b International Centre for Diarrhoeal Disease Research, Bangladesh Table 5.1 Availability of water 70 km2 Square Kilometre Table 5.2 Access to electricity by hour 74 Table 5.3 Seasonal scarcity 77 kWh kilowatt hour Table 5.4 Preparedness against fire outbreak 84 LP Liquid petroleum 2 Table 6.1 Advance payment by tenants for the rental units 93 m Square meter Table 6.2 Comparison between formal legal provisions and practices 95 mmcfd Million Standard Cubic Feet Per Day Table 6.3 Zone-wise rate chart of city corporations and house rents 97 MoLGRDC Ministry of Local Government, Rural Development and Cooperatives MTB Mutual Trust Bank NFI Non-Banking Financial Institution NHP National Housing Policy

x xi State of Cities 2017

PPB Persons per bedroom Preface PPRC Power and Participation Research Centre PSU Primary Sampling Unit PWCSP Primary Waste Collection Service Provider Impressive evidence of growth and development of Bangladesh is often overshadowed by the rapid unplanned urbanisation that is taking place in the country. Dhaka has become the center of the PWD Public Works Department urbanisation narrative of the country. This urbanisation has led to an unprecedented surge in RAJUK Rajdhani Unnayan Kartripakkha population and an injection of a new middle class into the urban economy. While this process has REHAB Real Estate and Housing Association of Bangladesh contributed towards the steady growth rate seen over the last decade, Bangladesh, especially the SP Structure Plan capital city of Dhaka, is still facing major challenges in providing sufficient, affordable, quality housing. STS Secondary Transfer Station Migration to urban centers, like Dhaka, has been one of the biggest threats to the building of livable UAP Urban Area Plan cities. Livability has become a prioritised issue in cities around the globe and the provision of livable UDD Urban Development Directorate housing is one of the prerequisites for building a livable city. The growth of the housing market in Dhaka UN United Nations has been molded and compromised by the influx of migrants. There are several factors to be UN-HABITAT United Nations Human Settlements Programme considered here. The gap between demand and supply of housing, quality of housing, and quality of basic services all contribute to the assessment of the housing sector and overall livability.

This year's State of Cities 2017 - Housing in Dhaka by BRAC Institute of Governance and Development, is conceptualised given the above context. The analysis gives due attention to relevant international contexts, but is grounded in highlighting the national story. The anaylsis for this report is based on primary survey data and secondary data, as well interviews with relevant stakeholders. The report examines the existing governance structure of the housing sector, and provides a gap analysis of current policy; it explores the adequacy of housing in Dhaka by analysing both demand and supply side factors. The study digs deeper to understand the extent of affordability and the experience and security of tenants in the city. The report also looks into the provision of basic services like water, gas, electricity and solid waste management.

This year's report is the result of an outstanding team effort by a BIGD research team. The communications and operations team of BIGD also deserve thanks for their help and facilitation. Special thanks are due to Shreyashi Dasgupta for her review of the report. Thanks are due to Shahadat Hossain for the survey and data management, Nadir Shah and Nabila Zaman for their initial contribution to the report. We appreciate Robert Gallagher's comment on the overall structure and content of the report. The research team extend their thanks to the language editor Chiara Merritt for her solid cooperation and support. We would also like to express our deep appreciation to the Think Tank Initiative (TTI) administrated by International Development Research Centre (IDRC) for their generous support to BIGD which made the study possible.

Dr Sultan Hafeez Rahman Executive Director

xii xiii State of Cities 2017

PPB Persons per bedroom Preface PPRC Power and Participation Research Centre PSU Primary Sampling Unit PWCSP Primary Waste Collection Service Provider Impressive evidence of growth and development of Bangladesh is often overshadowed by the rapid unplanned urbanisation that is taking place in the country. Dhaka has become the center of the PWD Public Works Department urbanisation narrative of the country. This urbanisation has led to an unprecedented surge in RAJUK Rajdhani Unnayan Kartripakkha population and an injection of a new middle class into the urban economy. While this process has REHAB Real Estate and Housing Association of Bangladesh contributed towards the steady growth rate seen over the last decade, Bangladesh, especially the SP Structure Plan capital city of Dhaka, is still facing major challenges in providing sufficient, affordable, quality housing. STS Secondary Transfer Station Migration to urban centers, like Dhaka, has been one of the biggest threats to the building of livable UAP Urban Area Plan cities. Livability has become a prioritised issue in cities around the globe and the provision of livable UDD Urban Development Directorate housing is one of the prerequisites for building a livable city. The growth of the housing market in Dhaka UN United Nations has been molded and compromised by the influx of migrants. There are several factors to be UN-HABITAT United Nations Human Settlements Programme considered here. The gap between demand and supply of housing, quality of housing, and quality of basic services all contribute to the assessment of the housing sector and overall livability.

This year's State of Cities 2017 - Housing in Dhaka by BRAC Institute of Governance and Development, is conceptualised given the above context. The analysis gives due attention to relevant international contexts, but is grounded in highlighting the national story. The anaylsis for this report is based on primary survey data and secondary data, as well interviews with relevant stakeholders. The report examines the existing governance structure of the housing sector, and provides a gap analysis of current policy; it explores the adequacy of housing in Dhaka by analysing both demand and supply side factors. The study digs deeper to understand the extent of affordability and the experience and security of tenants in the city. The report also looks into the provision of basic services like water, gas, electricity and solid waste management.

This year's report is the result of an outstanding team effort by a BIGD research team. The communications and operations team of BIGD also deserve thanks for their help and facilitation. Special thanks are due to Shreyashi Dasgupta for her review of the report. Thanks are due to Shahadat Hossain for the survey and data management, Nadir Shah and Nabila Zaman for their initial contribution to the report. We appreciate Robert Gallagher's comment on the overall structure and content of the report. The research team extend their thanks to the language editor Chiara Merritt for her solid cooperation and support. We would also like to express our deep appreciation to the Think Tank Initiative (TTI) administrated by International Development Research Centre (IDRC) for their generous support to BIGD which made the study possible.

Dr Sultan Hafeez Rahman Executive Director

xii xiii Executive Summary

The State of Cities 2017 – Housing in Dhaka is the flagship report produced by BRAC Institute of Governance and Development (BIGD). The series has an overarching objective to strengthen evidence- based research in urban issues. This year's report, the 6th report of the series, examines the housing sector in Dhaka city. Given the context of rapid urbanisation in Dhaka and the subsequent pressure on housing, this report aims to highlight crucial aspects of governance of the housing sector with a specific emphasis on formal housing. Analysis for this report was done using qualitative and quantitative research methods with primary data from the SOC Housing Survey 2017, as well as secondary data from key informant interviews.

Chapter 1 sets the context and identifies the questions examined in the report, along with an introduction of the chosen framework of analysis. The chapter highlights the urbanisation trend in Bangladesh, particularly Dhaka city, and identifies some of the challenges the country is currently facing given its high urbanisation rate. Of the many challenges that the city has to face, this report identifies housing as one of the crucial ones. In this report, housing is assessed through the lenses of adequacy, affordability, quality of basic housing services and tenant security. With a swelling urban population, Dhaka lacks sufficient resources as well as policy and institutional support to provide good, decent housing to the entire city population. The increasing gap between supply and demand has meant soaring prices of housing, making it difficult for majority of the population to be able to afford good housing. This, coupled with issues of quality of basic housing services, disaster preparedness and tenancy rights makes housing a major policy challenge in the country.

Chapter 2 reviews the existing housing policies and institutional framework. The analysis makes it clear that there are adequate policies to regulate the housing sector. However, implementation of these policies is what hinders the healthy growth of the housing sector. Violation of building construction codes, breaching of tenant security, discrepancy in availing land use clearance and building permits are some of the unfortunate results of poor enforcement of regulations. Institutional strengthening, introduction of robust financing to facilitate real estate developers and putting a ceiling on land and house ownership are some recommendations to improve housing sector governance.

Chapter 3 examines the adequacy of housing in Dhaka City considering both the supply and demand side perspectives. The analysis focuses on urban land use planning, housing provision and the housing sector growth over the years. It also provides a micro level analysis based on survey data on housing space allocation and utilisation patterns. Analysis of secondary data suggests that improper utilisation of land and land usage pattern are major threats to urban life in Dhaka. It is also evident that the housing market has experienced two distinct patterns of development. One path of this development has produced the more affluent areas of the city with a concentration of formal registered real estate developers, who are better compliant to rules and regulations. The other path has produced spontaneously developed residential areas with a high concentration of informal and small scale builders and characterised by inferior building standards, substandard infrastructure and limited connectivity. The survey data shows that overcrowding is a bigger threat for relatively lower income families in the city; 55 percent of the surveyed households live in houses smaller than 1000 ft2. The distribution of space is also highly unequal - for housing units that are 550 ft2 or less, the average per capita floor space is as low as 100 ft2, whereas, the per capita floor space is as high as 285 ft2 in those units that are 1200 ft2 or more. Similar results are seen when overcrowding is measured in terms of

xv Executive Summary

The State of Cities 2017 – Housing in Dhaka is the flagship report produced by BRAC Institute of Governance and Development (BIGD). The series has an overarching objective to strengthen evidence- based research in urban issues. This year's report, the 6th report of the series, examines the housing sector in Dhaka city. Given the context of rapid urbanisation in Dhaka and the subsequent pressure on housing, this report aims to highlight crucial aspects of governance of the housing sector with a specific emphasis on formal housing. Analysis for this report was done using qualitative and quantitative research methods with primary data from the SOC Housing Survey 2017, as well as secondary data from key informant interviews.

Chapter 1 sets the context and identifies the questions examined in the report, along with an introduction of the chosen framework of analysis. The chapter highlights the urbanisation trend in Bangladesh, particularly Dhaka city, and identifies some of the challenges the country is currently facing given its high urbanisation rate. Of the many challenges that the city has to face, this report identifies housing as one of the crucial ones. In this report, housing is assessed through the lenses of adequacy, affordability, quality of basic housing services and tenant security. With a swelling urban population, Dhaka lacks sufficient resources as well as policy and institutional support to provide good, decent housing to the entire city population. The increasing gap between supply and demand has meant soaring prices of housing, making it difficult for majority of the population to be able to afford good housing. This, coupled with issues of quality of basic housing services, disaster preparedness and tenancy rights makes housing a major policy challenge in the country.

Chapter 2 reviews the existing housing policies and institutional framework. The analysis makes it clear that there are adequate policies to regulate the housing sector. However, implementation of these policies is what hinders the healthy growth of the housing sector. Violation of building construction codes, breaching of tenant security, discrepancy in availing land use clearance and building permits are some of the unfortunate results of poor enforcement of regulations. Institutional strengthening, introduction of robust financing to facilitate real estate developers and putting a ceiling on land and house ownership are some recommendations to improve housing sector governance.

Chapter 3 examines the adequacy of housing in Dhaka City considering both the supply and demand side perspectives. The analysis focuses on urban land use planning, housing provision and the housing sector growth over the years. It also provides a micro level analysis based on survey data on housing space allocation and utilisation patterns. Analysis of secondary data suggests that improper utilisation of land and land usage pattern are major threats to urban life in Dhaka. It is also evident that the housing market has experienced two distinct patterns of development. One path of this development has produced the more affluent areas of the city with a concentration of formal registered real estate developers, who are better compliant to rules and regulations. The other path has produced spontaneously developed residential areas with a high concentration of informal and small scale builders and characterised by inferior building standards, substandard infrastructure and limited connectivity. The survey data shows that overcrowding is a bigger threat for relatively lower income families in the city; 55 percent of the surveyed households live in houses smaller than 1000 ft2. The distribution of space is also highly unequal - for housing units that are 550 ft2 or less, the average per capita floor space is as low as 100 ft2, whereas, the per capita floor space is as high as 285 ft2 in those units that are 1200 ft2 or more. Similar results are seen when overcrowding is measured in terms of

xv State of Cities 2017

number of persons per bedroom. There are several ways to combat these issues. One way is to ensure proper utilisation of public land, which requires long term planning and commitment from the

1 CHAPTER government. RAJUK should have better regulatory control to make sure that building standards are met in all residential areas in the city. At the same time, policy measures are necessary to persuade established real estate companies to help reduce disparities between neighbourhoods by investing in the less developed areas of the city. INTRODUCTION Chapter 4 examines the aspect of affordability of housing in Dhaka. In addition to the key question of whether housing in Dhaka is affordable or not, the analysis in this chapter looks into the aspirations of and challenges faced by the people in the city in regards to the quality of their housing. Analysis of the survey data as well as key informant interviews show that lack of affordability constitutes a serious concern in the lives of the people. Around 77 percent of the surveyed household have to pay a rent amount that exceeds the standard affordability threshold. The findings also show that more than two- thirds of the surveyed tenants do not aspire to own a house in the city. Insufficient savings, followed by high prices of land and housing units, limited access to bank loans and high interest rates are reported 1.1 Preliminaries as major barriers to such aspirations about purchasing property. Notably, the survey showed that people trade off housing quality with proximity to work, due to the undue burden of traffic congestion. The world is becoming increasingly urbanised and for the first time in history, half of the world's The survey findings also suggest that people are generally not dissatisfied with their housing and living population live in cities. Development agencies have started to prioritise city centric agendas of urban conditions. This is an unexpected finding and is likely explained by the fact that people are subject to governance in order to promote and support economic growth and emphasis on the need for high costs of living, poor income and being habituated to crowdedness, and therefore, set standard of infrastructure and economic competitiveness are becoming increasingly important. To strike a balance 'liveability' far below global standards. Higher provision of low cost housing, greater access to housing between economic growth and quality of life, concepts like liveability are gaining more importance in finance and better utilisation of urban land are some key ways to make housing more affordable for recent discussion. The Economic Intelligence Unit (EIU) has taken the concept of liveability further and people in Dhaka. developed a liveability ranking of the world's cities. In order to rank the cities around the world, the EIU considers the availability of goods and services, low personal risk, and effective infrastructure. Out of Chapter 5 encompasses the performance of four basic housing services - water, electricity, gas and 140 cities that EIU surveyed, Dhaka ranked among one of the least liveable cities for seven years in a waste management and assesses the disaster preparedness of housing units in Dhaka based on row. This brings to the fore the importance of better urban governance in cities, which is critical to available survey data. The analysis in this chapter uses four broad lenses including accessibility, foster agglomeration and deal with externalities of urbanisation, which include overcrowding, crime reliability, responsiveness and safety to assess the service quality. It also explores the disaster and pollution. Since 2011, BRAC Institute of Governance and Development (BIGD) has prioritised urban preparedness of the housing surveyed in light of two specific disasters: fire outbreak and earthquake. governance as one of its major research areas and has published an entire research series dedicated to The findings suggest that while access to service may not be a severe problem in formal households, urban issues. The very objective of this 'State of Cities' research series has been to promote research reliability of the service is a bigger concern. The survey also finds that there are serious concerns about and analysis on urban issues based on innovative, rigorous, empirical research. This State of Cities: the responsiveness of relevant authorities to complaints about service quality. It is essential that the Housing in Dhaka report is the sixth report in the State of Cities series. The first three reports focused on respective service providers improve and maintain service quality, as well improve redressal measures. an overall understanding of the urban governance dimensions of three cities including Dhaka, Narayanganj and Chittagong. Reports four and five, however, made a conscious effort to shift its focus Chapter 6 analyses tenant security in Dhaka by examining the process of house renting, advance from overarching governance issues to specific issues related to governance and liveability of cities. In payments, rent fixation and revision, changes in internal accessories, and eviction. The findings suggest the course of this research, the last two reports dealt with two of the most important aspects of that the interest of tenants is very poorly protected due to poor implementation of the Rent Control liveability: solid waste management and traffic congestion of Dhaka. As a continuation of previous Act, 1991. Given the gap between the supply and demand of housing in Dhaka, landlords have an series, this sixth report attempts to examine liveability by studying Dhaka's housing sector. These three opportunity to frequently increase the cost of their rental units. This severely affects the middle and reports – solid waste management, traffic congestion and housing – are pieces of a single puzzle which lower-middle income households who live on fixed incomes. Furthermore, the informal nature of the the Institute wants to construct over a period of time which will contribute towards the Institute's long- agreement for renting a unit weakens the position of the tenants to seek formal restitution. Greater term aspirations to develop a domestic liveability index for Dhaka. tenant security can be achieved through the formalisation of the rental agreement, with appropriate payment receipt of the rent and advance payments. Raising the awareness of the Premises Rent 1.2 The context Control Act, 1991, can also aid in safeguarding tenant security. Simultaneously, allocating rent controllers at the ward level can be an efficient way to deal with tenancy issues, and assuring greater 1.2.1 Urbanisation and the developing world accountability of landlords and tenants. In recent decades, the world has experienced unprecedented urbanisation and with this, it is faced with new and emerging challenges. Urbanisation has been described as the most significant

xvi 01 State of Cities 2017 number of persons per bedroom. There are several ways to combat these issues. One way is to ensure proper utilisation of public land, which requires long term planning and commitment from the

1 CHAPTER government. RAJUK should have better regulatory control to make sure that building standards are met in all residential areas in the city. At the same time, policy measures are necessary to persuade established real estate companies to help reduce disparities between neighbourhoods by investing in the less developed areas of the city. INTRODUCTION Chapter 4 examines the aspect of affordability of housing in Dhaka. In addition to the key question of whether housing in Dhaka is affordable or not, the analysis in this chapter looks into the aspirations of and challenges faced by the people in the city in regards to the quality of their housing. Analysis of the survey data as well as key informant interviews show that lack of affordability constitutes a serious concern in the lives of the people. Around 77 percent of the surveyed household have to pay a rent amount that exceeds the standard affordability threshold. The findings also show that more than two- thirds of the surveyed tenants do not aspire to own a house in the city. Insufficient savings, followed by high prices of land and housing units, limited access to bank loans and high interest rates are reported 1.1 Preliminaries as major barriers to such aspirations about purchasing property. Notably, the survey showed that people trade off housing quality with proximity to work, due to the undue burden of traffic congestion. The world is becoming increasingly urbanised and for the first time in history, half of the world's The survey findings also suggest that people are generally not dissatisfied with their housing and living population live in cities. Development agencies have started to prioritise city centric agendas of urban conditions. This is an unexpected finding and is likely explained by the fact that people are subject to governance in order to promote and support economic growth and emphasis on the need for high costs of living, poor income and being habituated to crowdedness, and therefore, set standard of infrastructure and economic competitiveness are becoming increasingly important. To strike a balance 'liveability' far below global standards. Higher provision of low cost housing, greater access to housing between economic growth and quality of life, concepts like liveability are gaining more importance in finance and better utilisation of urban land are some key ways to make housing more affordable for recent discussion. The Economic Intelligence Unit (EIU) has taken the concept of liveability further and people in Dhaka. developed a liveability ranking of the world's cities. In order to rank the cities around the world, the EIU considers the availability of goods and services, low personal risk, and effective infrastructure. Out of Chapter 5 encompasses the performance of four basic housing services - water, electricity, gas and 140 cities that EIU surveyed, Dhaka ranked among one of the least liveable cities for seven years in a waste management and assesses the disaster preparedness of housing units in Dhaka based on row. This brings to the fore the importance of better urban governance in cities, which is critical to available survey data. The analysis in this chapter uses four broad lenses including accessibility, foster agglomeration and deal with externalities of urbanisation, which include overcrowding, crime reliability, responsiveness and safety to assess the service quality. It also explores the disaster and pollution. Since 2011, BRAC Institute of Governance and Development (BIGD) has prioritised urban preparedness of the housing surveyed in light of two specific disasters: fire outbreak and earthquake. governance as one of its major research areas and has published an entire research series dedicated to The findings suggest that while access to service may not be a severe problem in formal households, urban issues. The very objective of this 'State of Cities' research series has been to promote research reliability of the service is a bigger concern. The survey also finds that there are serious concerns about and analysis on urban issues based on innovative, rigorous, empirical research. This State of Cities: the responsiveness of relevant authorities to complaints about service quality. It is essential that the Housing in Dhaka report is the sixth report in the State of Cities series. The first three reports focused on respective service providers improve and maintain service quality, as well improve redressal measures. an overall understanding of the urban governance dimensions of three cities including Dhaka, Narayanganj and Chittagong. Reports four and five, however, made a conscious effort to shift its focus Chapter 6 analyses tenant security in Dhaka by examining the process of house renting, advance from overarching governance issues to specific issues related to governance and liveability of cities. In payments, rent fixation and revision, changes in internal accessories, and eviction. The findings suggest the course of this research, the last two reports dealt with two of the most important aspects of that the interest of tenants is very poorly protected due to poor implementation of the Rent Control liveability: solid waste management and traffic congestion of Dhaka. As a continuation of previous Act, 1991. Given the gap between the supply and demand of housing in Dhaka, landlords have an series, this sixth report attempts to examine liveability by studying Dhaka's housing sector. These three opportunity to frequently increase the cost of their rental units. This severely affects the middle and reports – solid waste management, traffic congestion and housing – are pieces of a single puzzle which lower-middle income households who live on fixed incomes. Furthermore, the informal nature of the the Institute wants to construct over a period of time which will contribute towards the Institute's long- agreement for renting a unit weakens the position of the tenants to seek formal restitution. Greater term aspirations to develop a domestic liveability index for Dhaka. tenant security can be achieved through the formalisation of the rental agreement, with appropriate payment receipt of the rent and advance payments. Raising the awareness of the Premises Rent 1.2 The context Control Act, 1991, can also aid in safeguarding tenant security. Simultaneously, allocating rent controllers at the ward level can be an efficient way to deal with tenancy issues, and assuring greater 1.2.1 Urbanisation and the developing world accountability of landlords and tenants. In recent decades, the world has experienced unprecedented urbanisation and with this, it is faced with new and emerging challenges. Urbanisation has been described as the most significant

xvi 01 State of Cities 2017 Introduction

phenomena of the 21st century (UN-Habitat 2016), and the bulk of this change is happening in Figure 1.2: Share of rural and urban population in Figure 1.3: Urban and rural population growth developing countries. Annually, as many as 66 million people migrate to urban areas in developing Bangladesh rate in Bangladesh countries (World Bank 2014). 120000 14 Urban population Figure 1.1: Top 12 urban agglomerations in terms of number of population Rural population t) growth (% annual) 100000 12 Urban population cen Tokyo 1 1 1 10 Rural population Delhi 80000 12 2 2 e (per

t growth (% annual) a Shanghai 20 3 3 tion 8 Mexico City 4 4 10 60000 6

San Paulo opula

5 5 11 owth r Mumbai P 40000 6 6 4 4 Osaka 2 7 13 Beijing 23 8 5 20000 2 New York 3 9 14 Annual gr Cairo 11 10 8 0 0 Dhaka 24 11 6 Karachi 22 12 7 -2 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 0 5 10 15 20 25 0 2 4 6 8 10 12 14 0 2 4 6 8 10 12 14 16 Year Year 1990 2010 2030 (Projected) Source: United Nations 2014 Source: World Bank 2016 Source: World Bank 2016

The urbanisation that developing countries, particularly in Asia, Latin America, and Africa, are 1.2.3 Urbanisation, growing middle class and service deficit in Dhaka experiencing is substantially different from the urbanisation story that unfolded in developed parts of As the capital of Bangladesh, Dhaka lies at the centre of the urbanisation process. Over the years, it the world (Brockerhoff 2000, World Population n.d.). The fastest forming urban agglomerations in Asia has grown into a megacity with a population of over 14 million. The Dhaka City Corporation (DCC) and Africa are growing at an average annual rate of 2.4 percent (United Nations 2014), when cities area has expanded from 34 km2 to nearly 143 km2. Dhaka's urban primacy is not a 'pre-given feature growing at a rate of only one percent are considered to be manageable (World Population n.d). of urbanisation in Bangladesh'; rather it is largely attributed to Bangladesh's centralised Evidence suggests that urbanisation takes place during the early stages of a country's development, administrative structure (IGS 2012). It attracts huge political attention and gets the highest priority often before the country reaches middle-income status (World Bank 2008). Therefore, a swelling in resource allocation, resulting in a concentration of economic activities. Dhaka has the highest rate population, like that in Bangladesh, puts intense pressure on urban infrastructure and delivery of basic of rural-urban migration and at present it houses 44 percent of the total urban population of services. This it because developing countries often lack the necessary resources, planning and institutional framework to deal with such pressures. Bangladesh.

Housing remains a pressing issue in rapidly growing cities around the world, more so because housing Figure 1.4: Population in Dhaka (1961-2011) supply is not adjustable in the short run. At present, around 330 million urban households worldwide 8000000 live in substandard housing or are financially stretched and 200 million households in developing Population in DCC countries are living in slums (Woetzel et al 2014). The current housing crisis accelerated over the last 20 years due to the lack of attention placed on housing as part of the developing agenda (UN-Habitat 6000000 2016). At the same time, in many countries around the world government austerity in terms of provision of housing subsidies has further fuelled the housing crisis. 4000000

1.2.2 Urbanisation and socio-economic dynamics of Bangladesh 2000000 Urbanisation is a more recent phenomenon in Bangladesh and 65 per cent of the population still lives in rural areas (World Bank 2016). The annual urban growth grew faster after the 1980s. In the last 50 0 years, at least 30 percent of the rural population migrated to urban areas, mainly to the capital city. 1961 1974 1981 1991 2001 2011

Given the current rate of urbanisation and the population projection for 2050, the landscape will Source: BBS 1998, 2008, 2012 cited in Dewan and Corner 2014 change drastically in the next two decades when the country will have more urban than rural population.

02 03 State of Cities 2017 Introduction phenomena of the 21st century (UN-Habitat 2016), and the bulk of this change is happening in Figure 1.2: Share of rural and urban population in Figure 1.3: Urban and rural population growth developing countries. Annually, as many as 66 million people migrate to urban areas in developing Bangladesh rate in Bangladesh countries (World Bank 2014). 120000 14 Urban population Figure 1.1: Top 12 urban agglomerations in terms of number of population Rural population t) growth (% annual) 100000 12 Urban population cen Tokyo 1 1 1 10 Rural population Delhi 80000 12 2 2 e (per

t growth (% annual) a Shanghai 20 3 3 tion 8 Mexico City 4 4 10 60000 6

San Paulo opula

5 5 11 owth r Mumbai P 40000 6 6 4 4 Osaka 2 7 13 Beijing 23 8 5 20000 2 New York 3 9 14 Annual gr Cairo 11 10 8 0 0 Dhaka 24 11 6 Karachi 22 12 7 -2 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 0 5 10 15 20 25 0 2 4 6 8 10 12 14 0 2 4 6 8 10 12 14 16 Year Year 1990 2010 2030 (Projected) Source: United Nations 2014 Source: World Bank 2016 Source: World Bank 2016

The urbanisation that developing countries, particularly in Asia, Latin America, and Africa, are 1.2.3 Urbanisation, growing middle class and service deficit in Dhaka experiencing is substantially different from the urbanisation story that unfolded in developed parts of As the capital of Bangladesh, Dhaka lies at the centre of the urbanisation process. Over the years, it the world (Brockerhoff 2000, World Population n.d.). The fastest forming urban agglomerations in Asia has grown into a megacity with a population of over 14 million. The Dhaka City Corporation (DCC) and Africa are growing at an average annual rate of 2.4 percent (United Nations 2014), when cities area has expanded from 34 km2 to nearly 143 km2. Dhaka's urban primacy is not a 'pre-given feature growing at a rate of only one percent are considered to be manageable (World Population n.d). of urbanisation in Bangladesh'; rather it is largely attributed to Bangladesh's centralised Evidence suggests that urbanisation takes place during the early stages of a country's development, administrative structure (IGS 2012). It attracts huge political attention and gets the highest priority often before the country reaches middle-income status (World Bank 2008). Therefore, a swelling in resource allocation, resulting in a concentration of economic activities. Dhaka has the highest rate population, like that in Bangladesh, puts intense pressure on urban infrastructure and delivery of basic of rural-urban migration and at present it houses 44 percent of the total urban population of services. This it because developing countries often lack the necessary resources, planning and institutional framework to deal with such pressures. Bangladesh.

Housing remains a pressing issue in rapidly growing cities around the world, more so because housing Figure 1.4: Population in Dhaka (1961-2011) supply is not adjustable in the short run. At present, around 330 million urban households worldwide 8000000 live in substandard housing or are financially stretched and 200 million households in developing Population in DCC countries are living in slums (Woetzel et al 2014). The current housing crisis accelerated over the last 20 years due to the lack of attention placed on housing as part of the developing agenda (UN-Habitat 6000000 2016). At the same time, in many countries around the world government austerity in terms of provision of housing subsidies has further fuelled the housing crisis. 4000000

1.2.2 Urbanisation and socio-economic dynamics of Bangladesh 2000000 Urbanisation is a more recent phenomenon in Bangladesh and 65 per cent of the population still lives in rural areas (World Bank 2016). The annual urban growth grew faster after the 1980s. In the last 50 0 years, at least 30 percent of the rural population migrated to urban areas, mainly to the capital city. 1961 1974 1981 1991 2001 2011

Given the current rate of urbanisation and the population projection for 2050, the landscape will Source: BBS 1998, 2008, 2012 cited in Dewan and Corner 2014 change drastically in the next two decades when the country will have more urban than rural population.

02 03 State of Cities 2017 Introduction

Table 1.1: Socio demographic characteristics in Dhaka (1961-2011) RAJUK. The housing projects are developed with inadequate and unsatisfactory facilities. which include narrow roads inconsistent with standard widths, little open space for social activities, limited Total household Density (Km2) Area (Km2)1 area for children's playgrounds and poor waste management (Alam and Morshed 2013). On top of that, 1961 61983 10840 34.00138 tenancy rights in Dhaka are also not well established. 1974 197361 38979 36.00038 In recent literature, debates and discussions about housing in Dhaka largely centre on the urban poor, 1981 367513 18755 132.0027 with a strong focus on the slum dwelling. While acknowledging the fact that the housing crisis has the 1991 574807 23475 153.902 most severe consequences for the poor, this study finds that it is also necessary to understand the 2001 1109514 34629 153.8394 housing situation from the perspective of the emerging middle class. Given this motivation, the State of 2011 1580672 49182 143.001 Cities 2017 report attempts to analyse formal housing in Dhaka, which in this report includes housing in the Dhaka City Corporation areas that have holding numbers and are subject to property taxes. The As a result of the wide scale rural to urban migration, a large number of people in Dhaka live in extreme analysis excludes public housing provided by the government to public servants as well low income poverty. However, due to employment opportunities provided in the ready-made garments (RMG) private housing in the form of slums and squats. sector along with the presence of informal employment opportunities, Dhaka has successfully improved its economic status. Its contribution to national income is as high as 38 per cent and the 1.3 Methodology average per capita income is the highest among other cities. Moreover, lower-middle-income groups To understand the housing condition in Dhaka, mixed-method research has been conducted, constitute 47 per cent of total residents (PPRC 2016 cited in The Bangladesh Chronicle 2016). A recent combining qualitative investigation and quantitative survey techniques. In addition to that, the report study by BCG group reported that Bangladesh is one of the biggest emerging markets where the uses data from secondary sources, including the Government of Bangladesh, United Nations, and number of middle-class consumers is increasing at a fast rate; 80 per cent of this group live in Dhaka and other NGOs. The primary data source for this report was collected through a survey conducted in four Chittagong (Munir et al 2015). areas of Dhaka city. The geographical area of this study includes both the Dhaka North and Dhaka South Against the backdrop of this rapid and continuing urbanisation in Dhaka, meeting the basic demands of City Corporations. The total sample of the survey is 400 households. The sample size was calculated citizens in terms of infrastructure and service delivery remains a major challenge. Furthermore, with an using standard statistical formula with 95 per cent CL and with the permissible margin of error of 5 per increasing share of middle-income people among the dwellers, along with the quantity, quality of the cent. Thus, taking 50 percent as P value (which yields the maximum sample size) the sample size has provision of housing is important to the dwellers. In the context of growing urbanisation, housing is one been calculated as 384. For the sake of convenience, this figure was round up to 400 households. of the key challenges that the city faces. Given the lack of land area and improper management of said area, housing supply is limited compared to demand. The city accommodates more than 4,000 slums Four areas from the two city corporations were selected purposively and the samples were distributed (RAJUK 2016); the formal housing provided by Dhaka is also largely inadequate compared to the equally between the two city corporations. The distribution is as follows: demand. Each year in the city, approximately 25,000 housing units are supplied when 0.12 million new Table 1.2: Sample distribution houses are needed (MTB 2017). The price of land is excessive and middle-income groups can hardly afford the rent in city. About 56 per cent of the city dwellers have no land ownership in Dhaka, with this City corporation Area Samples figure rising to 70 per cent if the slum and squat populations are included (RAJUK 2016). Dhaka South City Corporation Old Dhaka 100

Housing provision is largely dependent on private providers. Government supplies only 7 percent of Rampura 100 the total housing supply, while private developers supply the rest. Further analysis of the private sector Dhaka North City Corporation Mirpur 100 housing supply shows that it is highly skewed and 53 percent of the total private housing supply comes Badda 100 from the informal sector. Additionally, the provision of housing is alleged to be highly discriminatory as private sector real estate companies focus on luxury housing projects, thereby neglecting the needs of The households were selected randomly from each location. A detailed list of mahallas2 was prepared the middle and lower middle-income classes. At the same time, high dependence on private provision, for each of the four selected areas. Slums and squat settlements were excluded from the list. Five along with land shortage and increased price of building materials has fuelled the price. The prospect of mahallas were selected randomly from each area as the Primary Sampling Units (PSUs); 20 PSUs were being able to buy a house in Dhaka appears to be the poorest amongst South Asian cities, as the price- selected in total for this survey. In each PSU, 20 households were randomly selected for the interviews. income ratio here is 5:1 or more (Rahman 2011). As the objective was to include only the 'registered, formal' housing, only those housing units that have a holding number were included. The household head or spouse was selected for the interview. In case Quality of services associated with housing is also a concern in Dhaka City. As the bulk of the supply one family member failed to respond to all the questions, any other members aware of the issues were comes from informal providers, there is a lack of compliance with the regulations and standards set by allowed to respond to the queries.

1. The estimates of DCC's land area were calculated from density and population figures. 2. a group of houses which act as social unit

04 05 State of Cities 2017 Introduction

Table 1.1: Socio demographic characteristics in Dhaka (1961-2011) RAJUK. The housing projects are developed with inadequate and unsatisfactory facilities. which include narrow roads inconsistent with standard widths, little open space for social activities, limited Total household Density (Km2) Area (Km2)1 area for children's playgrounds and poor waste management (Alam and Morshed 2013). On top of that, 1961 61983 10840 34.00138 tenancy rights in Dhaka are also not well established. 1974 197361 38979 36.00038 In recent literature, debates and discussions about housing in Dhaka largely centre on the urban poor, 1981 367513 18755 132.0027 with a strong focus on the slum dwelling. While acknowledging the fact that the housing crisis has the 1991 574807 23475 153.902 most severe consequences for the poor, this study finds that it is also necessary to understand the 2001 1109514 34629 153.8394 housing situation from the perspective of the emerging middle class. Given this motivation, the State of 2011 1580672 49182 143.001 Cities 2017 report attempts to analyse formal housing in Dhaka, which in this report includes housing in the Dhaka City Corporation areas that have holding numbers and are subject to property taxes. The As a result of the wide scale rural to urban migration, a large number of people in Dhaka live in extreme analysis excludes public housing provided by the government to public servants as well low income poverty. However, due to employment opportunities provided in the ready-made garments (RMG) private housing in the form of slums and squats. sector along with the presence of informal employment opportunities, Dhaka has successfully improved its economic status. Its contribution to national income is as high as 38 per cent and the 1.3 Methodology average per capita income is the highest among other cities. Moreover, lower-middle-income groups To understand the housing condition in Dhaka, mixed-method research has been conducted, constitute 47 per cent of total residents (PPRC 2016 cited in The Bangladesh Chronicle 2016). A recent combining qualitative investigation and quantitative survey techniques. In addition to that, the report study by BCG group reported that Bangladesh is one of the biggest emerging markets where the uses data from secondary sources, including the Government of Bangladesh, United Nations, and number of middle-class consumers is increasing at a fast rate; 80 per cent of this group live in Dhaka and other NGOs. The primary data source for this report was collected through a survey conducted in four Chittagong (Munir et al 2015). areas of Dhaka city. The geographical area of this study includes both the Dhaka North and Dhaka South Against the backdrop of this rapid and continuing urbanisation in Dhaka, meeting the basic demands of City Corporations. The total sample of the survey is 400 households. The sample size was calculated citizens in terms of infrastructure and service delivery remains a major challenge. Furthermore, with an using standard statistical formula with 95 per cent CL and with the permissible margin of error of 5 per increasing share of middle-income people among the dwellers, along with the quantity, quality of the cent. Thus, taking 50 percent as P value (which yields the maximum sample size) the sample size has provision of housing is important to the dwellers. In the context of growing urbanisation, housing is one been calculated as 384. For the sake of convenience, this figure was round up to 400 households. of the key challenges that the city faces. Given the lack of land area and improper management of said area, housing supply is limited compared to demand. The city accommodates more than 4,000 slums Four areas from the two city corporations were selected purposively and the samples were distributed (RAJUK 2016); the formal housing provided by Dhaka is also largely inadequate compared to the equally between the two city corporations. The distribution is as follows: demand. Each year in the city, approximately 25,000 housing units are supplied when 0.12 million new Table 1.2: Sample distribution houses are needed (MTB 2017). The price of land is excessive and middle-income groups can hardly afford the rent in city. About 56 per cent of the city dwellers have no land ownership in Dhaka, with this City corporation Area Samples figure rising to 70 per cent if the slum and squat populations are included (RAJUK 2016). Dhaka South City Corporation Old Dhaka 100

Housing provision is largely dependent on private providers. Government supplies only 7 percent of Rampura 100 the total housing supply, while private developers supply the rest. Further analysis of the private sector Dhaka North City Corporation Mirpur 100 housing supply shows that it is highly skewed and 53 percent of the total private housing supply comes Badda 100 from the informal sector. Additionally, the provision of housing is alleged to be highly discriminatory as private sector real estate companies focus on luxury housing projects, thereby neglecting the needs of The households were selected randomly from each location. A detailed list of mahallas2 was prepared the middle and lower middle-income classes. At the same time, high dependence on private provision, for each of the four selected areas. Slums and squat settlements were excluded from the list. Five along with land shortage and increased price of building materials has fuelled the price. The prospect of mahallas were selected randomly from each area as the Primary Sampling Units (PSUs); 20 PSUs were being able to buy a house in Dhaka appears to be the poorest amongst South Asian cities, as the price- selected in total for this survey. In each PSU, 20 households were randomly selected for the interviews. income ratio here is 5:1 or more (Rahman 2011). As the objective was to include only the 'registered, formal' housing, only those housing units that have a holding number were included. The household head or spouse was selected for the interview. In case Quality of services associated with housing is also a concern in Dhaka City. As the bulk of the supply one family member failed to respond to all the questions, any other members aware of the issues were comes from informal providers, there is a lack of compliance with the regulations and standards set by allowed to respond to the queries.

1. The estimates of DCC's land area were calculated from density and population figures. 2. a group of houses which act as social unit

04 05 State of Cities 2017 Introduction

1.4 Framework of analysis addition, Charles Leung and Chi Ho Tang (2015) considered three key questions to assess Hong Kong's housing situation: whether housing is adequate to meet the demand, whether they are Assessment of housing as a service is a comparatively new concept that is still evolving. While some of affordable and whether it is possible for the government to reduce the volatility of the housing the assessment criteria, like affordability, have been used in past studies, new dimensions are also market. being added to the assessment framework. Newer concepts like sustainability and liveability are increasingly being used in contemporary research. To develop a framework of analysis for this report, Keeping these three studies in focus, this report uses a modified framework that contextually serves several sources were consulted. The primary source is the framework used by the New Zealand better for Bangladesh. The assessment incorporates four key issues: adequacy, affordability, quality government (Habitat for Humanity New Zealand 2017). The New Zealand framework uses a holistic set of services and tenure security. Additionally, the report also provides an analyisis of the existing of indicators: affordability, sustainability, habitability and security (tenure security). Affordability looks governance structure of the sector. The analyses of all chapters of this report focus on two key at the ability of a household to rent or purchase a house in their preferable location, whereas themes: housing sector governance and housing equity. Bearing in mind the argument made by sustainability takes a look at whether the housing fulfils their present needs and ensures access to Konvitz (2011) that housing sector challenges are not self-correcting, and that serious government employment, education, and infrastructure. Habitability looks at the physical condition of the housing intervention is necessary, the chapters focus on the existing governance scenario and identifies unit, including the availability of basic amenities, and tenure security looks at tenancy agreements. This areas for improvement. In addition to understanding the overall context of equity, the report also model also includes factors like non-discrimination and freedom from crowding. presents a disaggregated analysis based on income groups, localities and gender whenever applicable. With a narrower focus, the American Housing Survey (AHS) looks at the physical provision of housing units, referred to as physical adequacy. This framework assesses the extent to which housing units 1.5 Overview of the chapters meet the standard of 'a decent home and a suitable living environment' (HUD 2013). The AHS mainly looks at the condition3 of housing amenities and the structural conditions of a housing unit. In Chapter two looks at policy and institutional arrangements applicable to Dhaka. The chapter takes a critical approach to analyse the existing governance framework of the housing sector in Dhaka. It

Whether there is enough house to examines the key policies relevant to housing, the legal instruments and codes, which broadly meet the need of city dwellers? Whether house determines the land use, land development, building standards, housing finance and rent control in hold can afford Governance Whether size of the houses are Dhaka. It also looks at the existing institutional framework assigned to service delivery and critically Adequacy house in preferred Policy and Institutional adequate enough to location analyses its role in ensuring the mandated policy objective. Overall, the chapter provides a gap accomodate the dwellers? framework, how this is governed, identify analysis of policy and practice and suggests a few key recommendations of how this gap can be Affordiblity areas of improvement and suggest reduced. recommendation Chapter three titled 'adequacy of housing' looks into the physical provision of housing in Dhaka. Based on the institutional analysis provided in the previous chapter, this chapter expands the discussion on planning and condition of housing in Dhaka and specifically looks at issues of land management, private Quality Equity and public sector housing provision and compares the demand-supply gap. At the same time, it focuses Whether it produces on the demand side analysis and provides an assessment of the housing space allocation and utilisation Condition of the basic the same result for all services and disasters Tenue by formal households in Dhaka. In order to do that, the chapter also provides a disaggregated analysis Tenancy condition income preparedness security and rights groups/localities/ based on income group to assess how equitable the housing provision is for city dwellers. gender Chapter four titled 'affordability of housing' discusses one of the major frustrations facing the city dwellers in a nuanced way. By looking at the survey data and key informant interviews, the chapter aims to examine the broad question of Dhaka's housing affordable to its dwellers. In addition to the traditional income-expenditure assessment, the chapter also studies the aspiration and challenges people face with regard to housing quality and how much of it they can avail. 3. 1.Unit does not have hot and cold running water. 2. Unit does not have a bathtub or shower. 3. Unit does not have a flush toilet. 4. Unit shares plumbing facilities. 5. Unit was cold for 24 hours or more and more than two breakdowns of the The next chapter on 'service quality and disaster preparedness' critically investigates the quality of heating equipment have occurred that lasted longer than 6 hours. 6. Electricity is not used. 7. Unit has exposed wiring, not every room has working electrical plugs, and the fuses have blown more than twice. 8. Unit has five or six of the following utility services in housing, which includes four key services: water, electricity, gas and waste structural conditions: a. Unit has had outside water leaks in the past 12 months. b. Unit has had inside water leaks in the management. It tries to assess the services by looking at four important criteria: whether the past 12 months. c. Unit has holes in the floor. d. Unit has open cracks wider than a dime. e. Unit has an area of peeling paint services are accessible, whether the services are reliable, whether the providers are responsive and larger than 8 by 11 inches. f. Rats have been seen recently in the unit.

06 07 State of Cities 2017 Introduction

1.4 Framework of analysis addition, Charles Leung and Chi Ho Tang (2015) considered three key questions to assess Hong Kong's housing situation: whether housing is adequate to meet the demand, whether they are Assessment of housing as a service is a comparatively new concept that is still evolving. While some of affordable and whether it is possible for the government to reduce the volatility of the housing the assessment criteria, like affordability, have been used in past studies, new dimensions are also market. being added to the assessment framework. Newer concepts like sustainability and liveability are increasingly being used in contemporary research. To develop a framework of analysis for this report, Keeping these three studies in focus, this report uses a modified framework that contextually serves several sources were consulted. The primary source is the framework used by the New Zealand better for Bangladesh. The assessment incorporates four key issues: adequacy, affordability, quality government (Habitat for Humanity New Zealand 2017). The New Zealand framework uses a holistic set of services and tenure security. Additionally, the report also provides an analyisis of the existing of indicators: affordability, sustainability, habitability and security (tenure security). Affordability looks governance structure of the sector. The analyses of all chapters of this report focus on two key at the ability of a household to rent or purchase a house in their preferable location, whereas themes: housing sector governance and housing equity. Bearing in mind the argument made by sustainability takes a look at whether the housing fulfils their present needs and ensures access to Konvitz (2011) that housing sector challenges are not self-correcting, and that serious government employment, education, and infrastructure. Habitability looks at the physical condition of the housing intervention is necessary, the chapters focus on the existing governance scenario and identifies unit, including the availability of basic amenities, and tenure security looks at tenancy agreements. This areas for improvement. In addition to understanding the overall context of equity, the report also model also includes factors like non-discrimination and freedom from crowding. presents a disaggregated analysis based on income groups, localities and gender whenever applicable. With a narrower focus, the American Housing Survey (AHS) looks at the physical provision of housing units, referred to as physical adequacy. This framework assesses the extent to which housing units 1.5 Overview of the chapters meet the standard of 'a decent home and a suitable living environment' (HUD 2013). The AHS mainly looks at the condition3 of housing amenities and the structural conditions of a housing unit. In Chapter two looks at policy and institutional arrangements applicable to Dhaka. The chapter takes a critical approach to analyse the existing governance framework of the housing sector in Dhaka. It

Whether there is enough house to examines the key policies relevant to housing, the legal instruments and codes, which broadly meet the need of city dwellers? Whether house determines the land use, land development, building standards, housing finance and rent control in hold can afford Governance Whether size of the houses are Dhaka. It also looks at the existing institutional framework assigned to service delivery and critically Adequacy house in preferred Policy and Institutional adequate enough to location analyses its role in ensuring the mandated policy objective. Overall, the chapter provides a gap accomodate the dwellers? framework, how this is governed, identify analysis of policy and practice and suggests a few key recommendations of how this gap can be Affordiblity areas of improvement and suggest reduced. recommendation Chapter three titled 'adequacy of housing' looks into the physical provision of housing in Dhaka. Based on the institutional analysis provided in the previous chapter, this chapter expands the discussion on planning and condition of housing in Dhaka and specifically looks at issues of land management, private Quality Equity and public sector housing provision and compares the demand-supply gap. At the same time, it focuses Whether it produces on the demand side analysis and provides an assessment of the housing space allocation and utilisation Condition of the basic the same result for all services and disasters Tenue by formal households in Dhaka. In order to do that, the chapter also provides a disaggregated analysis Tenancy condition income preparedness security and rights groups/localities/ based on income group to assess how equitable the housing provision is for city dwellers. gender Chapter four titled 'affordability of housing' discusses one of the major frustrations facing the city dwellers in a nuanced way. By looking at the survey data and key informant interviews, the chapter aims to examine the broad question of Dhaka's housing affordable to its dwellers. In addition to the traditional income-expenditure assessment, the chapter also studies the aspiration and challenges people face with regard to housing quality and how much of it they can avail. 3. 1.Unit does not have hot and cold running water. 2. Unit does not have a bathtub or shower. 3. Unit does not have a flush toilet. 4. Unit shares plumbing facilities. 5. Unit was cold for 24 hours or more and more than two breakdowns of the The next chapter on 'service quality and disaster preparedness' critically investigates the quality of heating equipment have occurred that lasted longer than 6 hours. 6. Electricity is not used. 7. Unit has exposed wiring, not every room has working electrical plugs, and the fuses have blown more than twice. 8. Unit has five or six of the following utility services in housing, which includes four key services: water, electricity, gas and waste structural conditions: a. Unit has had outside water leaks in the past 12 months. b. Unit has had inside water leaks in the management. It tries to assess the services by looking at four important criteria: whether the past 12 months. c. Unit has holes in the floor. d. Unit has open cracks wider than a dime. e. Unit has an area of peeling paint services are accessible, whether the services are reliable, whether the providers are responsive and larger than 8 by 11 inches. f. Rats have been seen recently in the unit.

06 07 State of Cities 2017

whether the provision is safe. In the context of recent earthquakes and fire outbreaks in Dhaka, this chapter also takes a look at the disaster preparedness of housing in these two areas. The chapter

2 CHAPTER disaggregates the findings based on locality and aims to present a discussion of the quality variants based on that.

The final chapter on 'tenant security' is focused on the contemporary issue of tenants' rights and potential violations to these rights. The chapter uses a key piece of legal documentation 'Premises POLICY AND INSTITUTIONAL FRAMEWORK Rent Control Act 1991' as a basis of analysis and it aims to assess the gap between the legal norms presented in this act and the practices in rented houses in Dhaka city. The chapter includes specific discussions on renting procedures and advance payment mechanisms, rent fixation and revision issues, the maintenance and repairing condition and payment. It also explores the issue of discrimination to access housing and eviction practices from the perspective of the tenants in Dhaka.

With 32 percent of the country's urban population (United Nations 2016), the capital city Dhaka is expected to accommodate 20 million inhabitants by the year 2020 (World Bank 2007). The grim reality, however, is that the Economist Intelligence Unit 2015 liveability index ranked Dhaka 139 out of 140 cities, preceding only Damascus (World Bank 2015). Given this context, the first question that comes to mind is whether the country is prepared to respond to this urban transition and be a symbol of the much-hyped inclusive development. It is all the more relevant to ask this question in the face of haphazard growth that has overtaken Dhaka in recent decades, which has manifested in over-crowded housing and proliferation of slums and squats; deterioration in the environmental conditions; inadequate supply of clean water; incidence of diseases; over-loading in public transports and increase in traffic congestion; road accidents; and crimes and social tensions. Apparently, Dhaka city has become a paradox. On one hand, its growth prospects are shared between the formal and privileged block that has access to resources and services. On the other hand, there is the larger and resource- deficient informal sector.

One of the most pressing issues of urbanisation is housing. The backlash of this unplanned growth is felt the most in the provision of shelter and public services in the housing sector, which is struggling to meet the gap between demand and supply. To address the housing issues of the urban population, different policies and laws have been promulgated from time to time. Against this backdrop, this calls for a review of the country's urban development and housing policies to examine if the accommodation needs of city dwellers are amply incorporated within the city planning and development processes. Accordingly, this chapter attempts to gauge the legislative strength of Bangladesh in matters of urban housing, land tenure and urban infrastructure. The overarching objective is to describe the functional arrangements under which urban areas provide housing and grant citizens their due rights to productive living. It looks at what has happened in the housing sector during pre and post-liberation years. To achieve the objective, content analysis took place as an employed research tool. Relevant documents and institutions have been reviewed and summed up as the following structure:

08 09 State of Cities 2017 whether the provision is safe. In the context of recent earthquakes and fire outbreaks in Dhaka, this chapter also takes a look at the disaster preparedness of housing in these two areas. The chapter

2 CHAPTER disaggregates the findings based on locality and aims to present a discussion of the quality variants based on that.

The final chapter on 'tenant security' is focused on the contemporary issue of tenants' rights and potential violations to these rights. The chapter uses a key piece of legal documentation 'Premises POLICY AND INSTITUTIONAL FRAMEWORK Rent Control Act 1991' as a basis of analysis and it aims to assess the gap between the legal norms presented in this act and the practices in rented houses in Dhaka city. The chapter includes specific discussions on renting procedures and advance payment mechanisms, rent fixation and revision issues, the maintenance and repairing condition and payment. It also explores the issue of discrimination to access housing and eviction practices from the perspective of the tenants in Dhaka.

With 32 percent of the country's urban population (United Nations 2016), the capital city Dhaka is expected to accommodate 20 million inhabitants by the year 2020 (World Bank 2007). The grim reality, however, is that the Economist Intelligence Unit 2015 liveability index ranked Dhaka 139 out of 140 cities, preceding only Damascus (World Bank 2015). Given this context, the first question that comes to mind is whether the country is prepared to respond to this urban transition and be a symbol of the much-hyped inclusive development. It is all the more relevant to ask this question in the face of haphazard growth that has overtaken Dhaka in recent decades, which has manifested in over-crowded housing and proliferation of slums and squats; deterioration in the environmental conditions; inadequate supply of clean water; incidence of diseases; over-loading in public transports and increase in traffic congestion; road accidents; and crimes and social tensions. Apparently, Dhaka city has become a paradox. On one hand, its growth prospects are shared between the formal and privileged block that has access to resources and services. On the other hand, there is the larger and resource- deficient informal sector.

One of the most pressing issues of urbanisation is housing. The backlash of this unplanned growth is felt the most in the provision of shelter and public services in the housing sector, which is struggling to meet the gap between demand and supply. To address the housing issues of the urban population, different policies and laws have been promulgated from time to time. Against this backdrop, this calls for a review of the country's urban development and housing policies to examine if the accommodation needs of city dwellers are amply incorporated within the city planning and development processes. Accordingly, this chapter attempts to gauge the legislative strength of Bangladesh in matters of urban housing, land tenure and urban infrastructure. The overarching objective is to describe the functional arrangements under which urban areas provide housing and grant citizens their due rights to productive living. It looks at what has happened in the housing sector during pre and post-liberation years. To achieve the objective, content analysis took place as an employed research tool. Relevant documents and institutions have been reviewed and summed up as the following structure:

08 09 State of Cities 2017 Policy and Institutional Framework

Classification Title of the reviewed documents/institutions and expansion of Dhaka and Narayanganj cities (Sixth Five-Year Plan 2011-2015). In 1960, a Master Plan was developed for Dhaka city. Constitution ! The Constitution of the People's Republic of Bangladesh ! National Environmental Policy 1992 As Bangladesh began its journey as an independent nation in 1971, Dhaka emerged as a primate city attracting rural-to-urban migration for a variety of reasons: lack of work in the agricultural sector to ! National Land Use Policy 2001 absorb surplus labour, natural disasters, and relatively more economic opportunities in cities. ! Policies National Urban Sector Policy 2011 However, there was no revision of the 1960 Master Plan or any other measures to control the ! National Land Policy 2016 (Draft) increasing urbanisation and land-use changes happening in the 1970s and 80s. Eventually during the ! National Housing Policy 2017 1990s, some policy and institutional reforms were taken to address urban development in major cities of Bangladesh. To implement the policies and laws, a number of government agencies were set up over ! Seventh Five Year Plan (2016-20) Plans and the decades, a chronological review of which is provided below. ! National Sustainable Development Strategy 2010-2021 Strategies ! Detailed Area Plan (DAP) 2.1.1 Review of institutions ! Building Construction Act 1952 Rajdhani Unnayan Kartripakkha (RAJUK) ! The Town Improvement Act 1953 RAJUK was established on 30 April 1987 by replacing Dhaka Improvement Trust (DIT). DIT was Acts ! Premises Rent Control Act 1991 established during East Pakistan in 1956 and was assigned the task of developing and executing a Master Plan for Dhaka. The Master Plan, completed in 1960, foresaw the need to expand the city for ! Real Estate Development and Management Act 2010 residential development to accommodate a growing population, which included slum dwellers. In ! Private Housing Project Land Development Rules 2004 brief, a large number of government initiatives were undertaken to accommodate refugees as well as Rules and Codes ! The Dhaka Metropolitan Building (Construction, Development, Protection and to guide development activities in the decade of 1950-60 and DIT was entrusted with the responsibility Removal) Rules 2008 of overseeing these. ! National Housing Authority (NHA) The present RAJUK is the authority for planning, developing and controlling issues related to housing ! Rajdhani Unnayan Kartripakkha (RAJUK) (private, commercial and others). RAJUK provides guidance on project design, planning, multi sector investment programmes and implementation of existing policies and programmes of different ! Dhaka North City Corporation (DNCC) agencies. At the same time, the organisation is one of the lead "construction actors" in the Institutions ! Dhaka South City Corporation (DSCC) development process of Dhaka, vested with the responsibility of constructing roads, box- ! Bangladesh House Building Finance Corporation (BHBFC) culverts/culverts and bridges and also development, excavation and filling of land. Under the planning ! Housing and Building Research Institute (HBRI) activities, RAJUK also performs the task of project preparation, study, programming, scheduling and ! Urban Development Directorate (UDD) relevant tasks. The Town Improvement Act 1953 and the East Bengal Building Construction Act 1952 ! are the two principal sets of legislation that advise and authorise RAJUK to regulate and design the Institutions State-owned Commercial Banks capital's physical development. For the purpose of monitoring, RAJUK authorised Development ! Providing Private Commercial Banks Control Sections supported by Building Construction (BC) Committees to provide approval of the Housing Loans ! Foreign Commercial Banks building plans and exercise the powers. In addition, the organisation being an active member of regional projects and bodies (RAJUK n.d.) takes part in events to share information relevant to housing The chapter summarises the institutional set-up related to housing in Dhaka city and attempts to both at home and abroad. identify issues in institutional and legal frameworks related to urban housing. Finally, this chapter Bangladesh House Building Finance Corporation (BHBFC) assists in facilitating urban policy actions, which could potentially ensure sustainable economic growth Bangladesh House Building Finance Corporation is the specialised public sector financial body and livability in Dhaka. dedicated to the housing sector in the country. It was founded in 1952 and re-established in 1973 after the Liberation War of Bangladesh. The principal target of this organization is to provide financial 2.1 Evolution of governance framework for urban housing support for housing purposes. Though there are banks and non-banking financial institutions to The partition in 1947 heralded a new chapter of political importance of Dhaka as a provincial capital of provide such services, BHBFC still remains one of the major sources for financial support. Being East Pakistan. With the arrival of a large number of Muslim migrants from India, significant investment headquartered in Dhaka, the organization is comprised of three directorates, 11 divisions, 14 zonal in infrastructure had to be made in Dhaka to address the accommodation needs of the migrant offices, 15 regional offices and a camp office. population. This necessitated the promulgation of the Building Construction Act 1952 to prevent Five types of long-term and one type of short-term loan can be mentioned: (a) general loans for haphazard construction of buildings and the Town Improvement Act 1953 to regulate development construction of single or multi-storeyed residential houses on land/plots owned by a single person or

10 11 State of Cities 2017 Policy and Institutional Framework

Classification Title of the reviewed documents/institutions and expansion of Dhaka and Narayanganj cities (Sixth Five-Year Plan 2011-2015). In 1960, a Master Plan was developed for Dhaka city. Constitution ! The Constitution of the People's Republic of Bangladesh ! National Environmental Policy 1992 As Bangladesh began its journey as an independent nation in 1971, Dhaka emerged as a primate city attracting rural-to-urban migration for a variety of reasons: lack of work in the agricultural sector to ! National Land Use Policy 2001 absorb surplus labour, natural disasters, and relatively more economic opportunities in cities. ! Policies National Urban Sector Policy 2011 However, there was no revision of the 1960 Master Plan or any other measures to control the ! National Land Policy 2016 (Draft) increasing urbanisation and land-use changes happening in the 1970s and 80s. Eventually during the ! National Housing Policy 2017 1990s, some policy and institutional reforms were taken to address urban development in major cities of Bangladesh. To implement the policies and laws, a number of government agencies were set up over ! Seventh Five Year Plan (2016-20) Plans and the decades, a chronological review of which is provided below. ! National Sustainable Development Strategy 2010-2021 Strategies ! Detailed Area Plan (DAP) 2.1.1 Review of institutions ! Building Construction Act 1952 Rajdhani Unnayan Kartripakkha (RAJUK) ! The Town Improvement Act 1953 RAJUK was established on 30 April 1987 by replacing Dhaka Improvement Trust (DIT). DIT was Acts ! Premises Rent Control Act 1991 established during East Pakistan in 1956 and was assigned the task of developing and executing a Master Plan for Dhaka. The Master Plan, completed in 1960, foresaw the need to expand the city for ! Real Estate Development and Management Act 2010 residential development to accommodate a growing population, which included slum dwellers. In ! Private Housing Project Land Development Rules 2004 brief, a large number of government initiatives were undertaken to accommodate refugees as well as Rules and Codes ! The Dhaka Metropolitan Building (Construction, Development, Protection and to guide development activities in the decade of 1950-60 and DIT was entrusted with the responsibility Removal) Rules 2008 of overseeing these. ! National Housing Authority (NHA) The present RAJUK is the authority for planning, developing and controlling issues related to housing ! Rajdhani Unnayan Kartripakkha (RAJUK) (private, commercial and others). RAJUK provides guidance on project design, planning, multi sector investment programmes and implementation of existing policies and programmes of different ! Dhaka North City Corporation (DNCC) agencies. At the same time, the organisation is one of the lead "construction actors" in the Institutions ! Dhaka South City Corporation (DSCC) development process of Dhaka, vested with the responsibility of constructing roads, box- ! Bangladesh House Building Finance Corporation (BHBFC) culverts/culverts and bridges and also development, excavation and filling of land. Under the planning ! Housing and Building Research Institute (HBRI) activities, RAJUK also performs the task of project preparation, study, programming, scheduling and ! Urban Development Directorate (UDD) relevant tasks. The Town Improvement Act 1953 and the East Bengal Building Construction Act 1952 ! are the two principal sets of legislation that advise and authorise RAJUK to regulate and design the Institutions State-owned Commercial Banks capital's physical development. For the purpose of monitoring, RAJUK authorised Development ! Providing Private Commercial Banks Control Sections supported by Building Construction (BC) Committees to provide approval of the Housing Loans ! Foreign Commercial Banks building plans and exercise the powers. In addition, the organisation being an active member of regional projects and bodies (RAJUK n.d.) takes part in events to share information relevant to housing The chapter summarises the institutional set-up related to housing in Dhaka city and attempts to both at home and abroad. identify issues in institutional and legal frameworks related to urban housing. Finally, this chapter Bangladesh House Building Finance Corporation (BHBFC) assists in facilitating urban policy actions, which could potentially ensure sustainable economic growth Bangladesh House Building Finance Corporation is the specialised public sector financial body and livability in Dhaka. dedicated to the housing sector in the country. It was founded in 1952 and re-established in 1973 after the Liberation War of Bangladesh. The principal target of this organization is to provide financial 2.1 Evolution of governance framework for urban housing support for housing purposes. Though there are banks and non-banking financial institutions to The partition in 1947 heralded a new chapter of political importance of Dhaka as a provincial capital of provide such services, BHBFC still remains one of the major sources for financial support. Being East Pakistan. With the arrival of a large number of Muslim migrants from India, significant investment headquartered in Dhaka, the organization is comprised of three directorates, 11 divisions, 14 zonal in infrastructure had to be made in Dhaka to address the accommodation needs of the migrant offices, 15 regional offices and a camp office. population. This necessitated the promulgation of the Building Construction Act 1952 to prevent Five types of long-term and one type of short-term loan can be mentioned: (a) general loans for haphazard construction of buildings and the Town Improvement Act 1953 to regulate development construction of single or multi-storeyed residential houses on land/plots owned by a single person or

10 11 State of Cities 2017 Policy and Institutional Framework

jointly by a married couple; (b) group loans for the construction of flats by a group of borrowers on a Housing and Building Research Institute (HBRI) plot owned jointly; (c) apartment loans for purchasing under-construction apartments in Dhaka and HBRI was established in 1973 as an autonomous research institute under the Ministry of Housing and Chittagong Metropolitan areas; (d) loans for constructing semi-pucca houses in district and selected Public Works. It runs by the allocation of government grants from the revenue fund. Since its inception, Upazila headquarters; (e) adjustment loans for completing under-construction houses; (f) short-term all of the institute's divisions rendered useful contributions in research programmes in the field of loan facility for nearly-completed construction work of houses (BHBFC n.d.). housing problems. Other relevant activities like consultancy, laboratory testing of soil and building Dhaka North City Corporation (DNCC) and Dhaka South City Corporation (DSCC) materials, planning of building activities are also done by HBRI. After the liberation of Bangladesh, Dhaka was divided into 50 wards and election of Ward The Institute has a total of 153 personnel including 33 qualified research personnel in four major Commissioners was held in 1977 with the introduction of Pourashava Ordinance 1977. Ward divisions: Structural Engineering and Construction Division, Building Materials Division, Soil Mechanics Commissioners elected one of their members as the chairman of the municipality. In 1978, Dhaka and Foundation, Engineering Division and Housing Division (HBRI n.d.). Municipality was awarded the status of corporation and the existing chairman became the mayor of Some of the major objectives of HBRI are as follow: the corporation. The corporation maintained its statute with the introduction of Dhaka Municipal ! Promote technical and scientific studies and research on construction and settlement issues; Corporation Ordinance 1983, repealing the application of Pourashava Ordinance 1977. ! Study the availability, development and utilization of both commonly used and indigenous The first democratic election of the city corporation in Dhaka was held in 1994 when the inhabitants got building materials; their first elected city mayor. Subsequently, Dhaka City Corporation was divided into Dhaka South City ! Encourage adoption of quality control measures in building construction; Corporation (DSCC) and Dhaka North City Corporation (DNCC). ! Initiate actions for improvement of technology, planning and designing; Both city corporations are assigned with a vast range of activities in which tasks and services related to ! Conduct research in collaboration with the National Council for Science and Technology and the housing of city inhabitants constitute a significant portion. These services include management of other research institutes; holding numbers, holding tax services, mutation of holding titles, and providing No Objection ! Arrange training for the research personnel of relevant sectors, consultation and advisory Certificates (NOC) for permitting construction of multi-storeyed buildings. City corporations are also services; assigned authorities to construct and repair roads, provide trade licenses, birth certificates and other ! services for city dwellers (DNCC n.d.). Produce technical and research reports, bulletins and reports on work done by HBRI. National Housing Authority Urban Development Directorate (UDD) To tackle the pressure on services and infrastructure created by the migrant population after the UDD was created in 1965 under the administrative control of Works, Power and Irrigation Department partition in 1947, the then East Pakistan government formed a housing wing. The Housing and of the then East Pakistan government. It was formed based on the necessity for a regional and central Settlement Directorate was formed in 1958 under the then Ministry of Works, Power and Irrigation to unit for physical planning. This organisation is mainly responsible for planning and playing advisory roles regarding urban issues. However, the UDD's intervention excludes areas covered by the town oversee matters of urban housing and settlements. development authorities of Dhaka, Chittagong, Rajshahi and Khulna. Functions allocated to the The Housing and Settlement Directorate and Deputy Commissioner Settlement were both abolished directorate were enhanced in 1983 by the then Martial Law Committee on Organisational set up. and the present National Housing Authority was established in 2001 (National Housing Authority n.d.) Though this government institution does not directly deal with the housing sector of Dhaka city, it still following the provisions of the National Housing Authority Act 2000. The National Housing Authority is carries importance in the sectoral development of the country (UDD n.d.). the principal sector organization established with the aim to address the housing crisis of the country, The followings are major responsibilities carried out by UDD: particularly for the poor, the low-income and the middle-income groups. The major objectives of the ! Advise the government on matters of policy related to urbanisation, land use and land agency include the following: development; ! Ensure housing for all with particular emphasis on the disadvantaged, destitute and the low ! Prepare and coordinate regional plans, master plans and detailed layout and site plans for the and middle-income groups of people; existing and new urban centres, excluding the areas covered by the present town development ! Make suitable land available for housing at affordable prices; authorities of Dhaka, Chittagong, Khulna and Rajshahi; ! Develop mechanisms to discourage formation of slums and squatter settlements, ! Undertake socio-economic research and collection of data for determination of location and unauthorised constructions and encroachments; pattern of future urban development; ! Mobilise resources for housing through personal savings and financial institutions; ! Prepare programmes for urban development for execution by the sectoral agencies, secure ! Develop institutional and legal frameworks for facilitating housing; approval of those from the national council and assist the agencies in selection of sites for implementation of those programmes; ! Providing encouragement to universities, research institutions and research centres to ! undertake research on housing. Act as a counterpart organization and focal point of the government for all internationally aided physical planning and human settlement programmes in the country;

12 13 State of Cities 2017 Policy and Institutional Framework jointly by a married couple; (b) group loans for the construction of flats by a group of borrowers on a Housing and Building Research Institute (HBRI) plot owned jointly; (c) apartment loans for purchasing under-construction apartments in Dhaka and HBRI was established in 1973 as an autonomous research institute under the Ministry of Housing and Chittagong Metropolitan areas; (d) loans for constructing semi-pucca houses in district and selected Public Works. It runs by the allocation of government grants from the revenue fund. Since its inception, Upazila headquarters; (e) adjustment loans for completing under-construction houses; (f) short-term all of the institute's divisions rendered useful contributions in research programmes in the field of loan facility for nearly-completed construction work of houses (BHBFC n.d.). housing problems. Other relevant activities like consultancy, laboratory testing of soil and building Dhaka North City Corporation (DNCC) and Dhaka South City Corporation (DSCC) materials, planning of building activities are also done by HBRI. After the liberation of Bangladesh, Dhaka was divided into 50 wards and election of Ward The Institute has a total of 153 personnel including 33 qualified research personnel in four major Commissioners was held in 1977 with the introduction of Pourashava Ordinance 1977. Ward divisions: Structural Engineering and Construction Division, Building Materials Division, Soil Mechanics Commissioners elected one of their members as the chairman of the municipality. In 1978, Dhaka and Foundation, Engineering Division and Housing Division (HBRI n.d.). Municipality was awarded the status of corporation and the existing chairman became the mayor of Some of the major objectives of HBRI are as follow: the corporation. The corporation maintained its statute with the introduction of Dhaka Municipal ! Promote technical and scientific studies and research on construction and settlement issues; Corporation Ordinance 1983, repealing the application of Pourashava Ordinance 1977. ! Study the availability, development and utilization of both commonly used and indigenous The first democratic election of the city corporation in Dhaka was held in 1994 when the inhabitants got building materials; their first elected city mayor. Subsequently, Dhaka City Corporation was divided into Dhaka South City ! Encourage adoption of quality control measures in building construction; Corporation (DSCC) and Dhaka North City Corporation (DNCC). ! Initiate actions for improvement of technology, planning and designing; Both city corporations are assigned with a vast range of activities in which tasks and services related to ! Conduct research in collaboration with the National Council for Science and Technology and the housing of city inhabitants constitute a significant portion. These services include management of other research institutes; holding numbers, holding tax services, mutation of holding titles, and providing No Objection ! Arrange training for the research personnel of relevant sectors, consultation and advisory Certificates (NOC) for permitting construction of multi-storeyed buildings. City corporations are also services; assigned authorities to construct and repair roads, provide trade licenses, birth certificates and other ! services for city dwellers (DNCC n.d.). Produce technical and research reports, bulletins and reports on work done by HBRI. National Housing Authority Urban Development Directorate (UDD) To tackle the pressure on services and infrastructure created by the migrant population after the UDD was created in 1965 under the administrative control of Works, Power and Irrigation Department partition in 1947, the then East Pakistan government formed a housing wing. The Housing and of the then East Pakistan government. It was formed based on the necessity for a regional and central Settlement Directorate was formed in 1958 under the then Ministry of Works, Power and Irrigation to unit for physical planning. This organisation is mainly responsible for planning and playing advisory roles regarding urban issues. However, the UDD's intervention excludes areas covered by the town oversee matters of urban housing and settlements. development authorities of Dhaka, Chittagong, Rajshahi and Khulna. Functions allocated to the The Housing and Settlement Directorate and Deputy Commissioner Settlement were both abolished directorate were enhanced in 1983 by the then Martial Law Committee on Organisational set up. and the present National Housing Authority was established in 2001 (National Housing Authority n.d.) Though this government institution does not directly deal with the housing sector of Dhaka city, it still following the provisions of the National Housing Authority Act 2000. The National Housing Authority is carries importance in the sectoral development of the country (UDD n.d.). the principal sector organization established with the aim to address the housing crisis of the country, The followings are major responsibilities carried out by UDD: particularly for the poor, the low-income and the middle-income groups. The major objectives of the ! Advise the government on matters of policy related to urbanisation, land use and land agency include the following: development; ! Ensure housing for all with particular emphasis on the disadvantaged, destitute and the low ! Prepare and coordinate regional plans, master plans and detailed layout and site plans for the and middle-income groups of people; existing and new urban centres, excluding the areas covered by the present town development ! Make suitable land available for housing at affordable prices; authorities of Dhaka, Chittagong, Khulna and Rajshahi; ! Develop mechanisms to discourage formation of slums and squatter settlements, ! Undertake socio-economic research and collection of data for determination of location and unauthorised constructions and encroachments; pattern of future urban development; ! Mobilise resources for housing through personal savings and financial institutions; ! Prepare programmes for urban development for execution by the sectoral agencies, secure ! Develop institutional and legal frameworks for facilitating housing; approval of those from the national council and assist the agencies in selection of sites for implementation of those programmes; ! Providing encouragement to universities, research institutions and research centres to ! undertake research on housing. Act as a counterpart organization and focal point of the government for all internationally aided physical planning and human settlement programmes in the country;

12 13 State of Cities 2017 Policy and Institutional Framework

! Organise seminars and workshops to create better physical planning awareness and to Sl Name of Name of Type of Key responsibilities disseminate information through regular publication of the research and planning materials agencies Act/Ordinance/Rules authority on urbanisation and human settlement planning and development; followed ! Conduct in-service training for the officers and staff of organisations involved in spatial 3a Dhaka North Local Government (City Regulatory, ! Issuance of No Objection Certificate of multi- planning and development; City Corporation) Act 2009 planning, storeyed (10+storeyed) buildings; ! Corporation approval ! Identification and notifying owners of risky Advise the existing urban development authorities on their operations. and 3b Dhaka South buildings; inspection Of the institutes mentioned above, the key three players in the housing sector and their responsibilities City ! Issuance of erection/re-erection of a building or are summarised in Table 2.1. Corporation any plot of land covered by Master Plan; ! Development of Master Plan for city Table 2.1: Key agencies and their responsibilities for regulating the housing sector in Dhaka city beautification; ! Sl Name of Name of Type of Key responsibilities Restrictions, regulations and prohibitions with agencies Act/Ordinance/Rules authority regard to the development of sites, construction followed and reconstruction of buildings within the city. 1 Rajdhani Building Construction Regulatory, ! Formulation of Dhaka Metropolitan Development Unnayan Act 1952 planning, Plan consisting of three tiers: Structure Plan, Kartripakkha Town Improvement Act approval, Urban Area Plan and Detailed Area Plan; 2.2 Legal, institutional and policy frameworks for urban housing (RAJUK) 1953 monitoring ! Land use planning and zoning; and and settlements Dhaka Improvement ! Development of planned housing areas within inspection Trust Act 1969 the city; The right to housing is one of the human rights guaranteed under the Universal Declaration of Human Land Development Rules ! Development of satellite towns; Rights (UDHR), International Covenant on Economic, Social and Cultural Rights (ICESCR), The for Private Housing 2004 ! Construction of roads, bridges, culverts, International Convention on the Rights of the Child (CRC) and The International Convention on the The Dhaka Metropolitan recreational spaces, markets etc.; Elimination of all forms of Discrimination Against Women (CEDAW). Building (Construction, ! Planning for better traffic circulation; Development, ! Undertaking city beautification project and As the apex body of law, The Constitution of the People's Republic of Bangladesh guarantees that the Protection and Removal) rehabilitation projects for the destitute. basic necessities of life will be the fundamental responsibility of the State (Box 2.1). Rules 2008 ! 2 National Town Improvement Act Planning, Ensuring housing for all with particular Box 2.1: Constitutional provisions related to housing Housing 1953 approval, emphasis on the disadvantaged, destitute, less Authority Natural Water Body regulatory poor and the low and middle-income groups of Article 15: It shall be a fundamental responsibility of the State to attain, through planned people; Protection and economic growth, a constant increase of productive forces and a steady improvement in the Preservation of Open ! Making available suitable land for housing at material and cultural standard of living of the people, with a view to securing to its citizens – space and Playground affordable price; ! Act 2000 Developing mechanisms to discharge formation (a) the provision of the basic necessities of life, including food, clothing, shelter, education and of slums and squat settlements, unauthorized Land Development Rules medical care. for Private Housing 2004 constructions and encroachments; ! The Dhaka Metropolitan Mobilisation of resources for housing through Building (Construction, personal savings and financial institutions; Other than the Constitution, there are numerous policies, legislation and plans that have direct or Development, ! Developing institutional and legal framework for indirect bearing on the housing sector. This sub-section will provide an overview of all the principal Protection and Removal) facilitating housing; policies clustered according to the functions that they are meant to serve, a compilation of which is Rules 2008 ! Providing encouragement to universities, presented in Table 2.2 below. Real Estate research institutions and research centres for Development and research on housing; Management Act 2010 ! Issuance of various permits such as those required for mutation, land transfer mortgage, demolishing and reconstruction, joint construction of building on multiple plots; ! Allotment of flats, plots etc.

14 15 State of Cities 2017 Policy and Institutional Framework

! Organise seminars and workshops to create better physical planning awareness and to Sl Name of Name of Type of Key responsibilities disseminate information through regular publication of the research and planning materials agencies Act/Ordinance/Rules authority on urbanisation and human settlement planning and development; followed ! Conduct in-service training for the officers and staff of organisations involved in spatial 3a Dhaka North Local Government (City Regulatory, ! Issuance of No Objection Certificate of multi- planning and development; City Corporation) Act 2009 planning, storeyed (10+storeyed) buildings; ! Corporation approval ! Identification and notifying owners of risky Advise the existing urban development authorities on their operations. and 3b Dhaka South buildings; inspection Of the institutes mentioned above, the key three players in the housing sector and their responsibilities City ! Issuance of erection/re-erection of a building or are summarised in Table 2.1. Corporation any plot of land covered by Master Plan; ! Development of Master Plan for city Table 2.1: Key agencies and their responsibilities for regulating the housing sector in Dhaka city beautification; ! Sl Name of Name of Type of Key responsibilities Restrictions, regulations and prohibitions with agencies Act/Ordinance/Rules authority regard to the development of sites, construction followed and reconstruction of buildings within the city. 1 Rajdhani Building Construction Regulatory, ! Formulation of Dhaka Metropolitan Development Unnayan Act 1952 planning, Plan consisting of three tiers: Structure Plan, Kartripakkha Town Improvement Act approval, Urban Area Plan and Detailed Area Plan; 2.2 Legal, institutional and policy frameworks for urban housing (RAJUK) 1953 monitoring ! Land use planning and zoning; and and settlements Dhaka Improvement ! Development of planned housing areas within inspection Trust Act 1969 the city; The right to housing is one of the human rights guaranteed under the Universal Declaration of Human Land Development Rules ! Development of satellite towns; Rights (UDHR), International Covenant on Economic, Social and Cultural Rights (ICESCR), The for Private Housing 2004 ! Construction of roads, bridges, culverts, International Convention on the Rights of the Child (CRC) and The International Convention on the The Dhaka Metropolitan recreational spaces, markets etc.; Elimination of all forms of Discrimination Against Women (CEDAW). Building (Construction, ! Planning for better traffic circulation; Development, ! Undertaking city beautification project and As the apex body of law, The Constitution of the People's Republic of Bangladesh guarantees that the Protection and Removal) rehabilitation projects for the destitute. basic necessities of life will be the fundamental responsibility of the State (Box 2.1). Rules 2008 ! 2 National Town Improvement Act Planning, Ensuring housing for all with particular Box 2.1: Constitutional provisions related to housing Housing 1953 approval, emphasis on the disadvantaged, destitute, less Authority Natural Water Body regulatory poor and the low and middle-income groups of Article 15: It shall be a fundamental responsibility of the State to attain, through planned people; Protection and economic growth, a constant increase of productive forces and a steady improvement in the Preservation of Open ! Making available suitable land for housing at material and cultural standard of living of the people, with a view to securing to its citizens – space and Playground affordable price; ! Act 2000 Developing mechanisms to discharge formation (a) the provision of the basic necessities of life, including food, clothing, shelter, education and of slums and squat settlements, unauthorized Land Development Rules medical care. for Private Housing 2004 constructions and encroachments; ! The Dhaka Metropolitan Mobilisation of resources for housing through Building (Construction, personal savings and financial institutions; Other than the Constitution, there are numerous policies, legislation and plans that have direct or Development, ! Developing institutional and legal framework for indirect bearing on the housing sector. This sub-section will provide an overview of all the principal Protection and Removal) facilitating housing; policies clustered according to the functions that they are meant to serve, a compilation of which is Rules 2008 ! Providing encouragement to universities, presented in Table 2.2 below. Real Estate research institutions and research centres for Development and research on housing; Management Act 2010 ! Issuance of various permits such as those required for mutation, land transfer mortgage, demolishing and reconstruction, joint construction of building on multiple plots; ! Allotment of flats, plots etc.

14 15 State of Cities 2017 Policy and Institutional Framework

2.2.1 Policies for regional development and efficient land use planning Ö Ö Ö The Town Improvement Act 1953 Global

relevance Recognising the need for a planned approach to urban development, the Town Improvement Act 1953 was developed with the purpose of 'development, improvement and expansion of the Dhaka and Narayanganj and certain areas in their vicinity by opening up congested areas, laying out or altering Ö Ö streets, providing open spaces for purposes of ventilation or recreation, demolishing or constructing PPP/NGO

involvement buildings, acquiring land for the said purposes and for the re-housing of persons displaced by the execution of improvement schemes.' The Act led to the creation of the Dhaka Improvement Trust (presently RAJUK) to prepare land-use Ö Ö Ö Ö Ö Ö

plans, oversee their implementation, and thus ensure controlled growth of Dhaka city. By doing so, the sustainability

Environmental Act envisaged the development of a healthy urban environment free from congestion and overcrowding. Ö Ö Ö Ö Ö Ö Ö Ö

Multi- Five-Year Plans sectoral planning The five-year plans are the country's principal tool to guide the overall development process and

Ö coordinate the actions of different government agencies. These plans operate within the longer-term Rent control Perspective Plan 2010-2021 of Bangladesh and are prepared by the Planning Commission under the Ministry of Planning of Bangladesh. The five-year plans integrate the development priorities of Ö Ö Ö Ö Ö different sectors. Different agencies and ministries of the government are consulted for this purpose. for

Guidance For instance, in the Sixth Five-Year Plan (2011-2015), the government had expressed interest in construction 'exploring' public-private partnerships (PPPs) and involvement of NGOs in housing programmes, while also improving land registration system to secure 'ownership and tenure rights, ensure more efficient Ö Ö Ö Ö Ö Ö land transfers, facilitate public control of land markets and lead to improved land use and land management.' The housing sector set a number of sectoral objectives and activities, which included a Regulating stakeholders review of land related regulatory policies to identify issues and propose reforms; development of low- cost housing for the low and middle income groups; updating the Building Code; and a review of essed Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö existing policies to enable a favourable environment for the private sector by addressing issues related growth Planning for urban to land pricing, taxation, mortgage, among other things. Further, the Sixth Five-Year Plan also emphasised developing a competitive real estate market by 'restructuring' the House Building Finance Ö Ö Ö Corporation and generating housing finance in the private sector for low-income households. Access to service The Seventh Five-Year Plan (2016-2020) captures the performance of the previous Plan. Accordingly, y t i l i

b the housing sector showed progress in a few aspects, while still lagging behind in the rest of the issues. i s Ö n For example, RAJUK could carry out the planned review of Dhaka Metropolitan Development Plan o State p

s (DMDP) 1995-2015, Detailed Area Plan (DAP) 2010-2015, Strategic Transport Plan (STP), 2006, Dhaka re Urban Transport Network Development Study, 2010 (DHUTS), Revised Dhaka Structure Plan 2016- t 2 t a glance: Major issues addr

9 2035 under RDP (Regional Development Planning), Annual Development Programmeme (ADP), Dhaka 9 ft) 1 a

y Water Supply and Sewerage Authority (DWASA) Drainage Master Plan. However, the 'lessons learnt' c i or l elopmen o drawn from the review have fallen short of adding fresh insights and resound the issues that already t and olicy 2011 v P

t Act 1953 l an Building

a exist in scholarship: lack of coordination among public service providers, failure to implement these t ol Act 1991 or P olicy 2001 n olicy 2017 tr Issues addressed oject 2004 e t Rules f t

emen plans, no timely revisions of these plans, and lack of resources. m opolit olicy 2016 (Dr elopmen n ov tional Building tr v o truction Act 1952 t Con ainable De tion) Act 2009 r t Act 2010 t i

olicies and rules a Reaffirming that the government will play the roles of regulator and facilitator as opposed to being a a v ea Plan en n ft 2015) e De ernmen a Me elopmen t E a provider, the Seventh Five-Year Plan, like its predecessor, emphasises improving legal and regulatory

v a l t emen a ear Plan e Housing Pr n own Impr frameworks, which would in turn remove procedural bottlenecks and create competitive land and t titution egy 2010-2021 o t a ailed Ar i al Gov e-Y a tional Land P tional Housing P tional Land Use P tional Urban Sect tional Sus t t

emises R housing markets. The Plan also mentions improving access to housing finance for the low and middle- a eal Es Na Na Cons Na Rules and Policies The T Na Loc (City Corpor R Land De Priv Manag Pr Rules 2008 Building Cons Bangladesh Na Code (Dr The Dhak De N Fiv Na Str able 2.2: P T

16 17 State of Cities 2017 Policy and Institutional Framework

2.2.1 Policies for regional development and efficient land use planning Ö Ö Ö The Town Improvement Act 1953 Global relevance Recognising the need for a planned approach to urban development, the Town Improvement Act 1953 was developed with the purpose of 'development, improvement and expansion of the Dhaka and Narayanganj and certain areas in their vicinity by opening up congested areas, laying out or altering Ö Ö streets, providing open spaces for purposes of ventilation or recreation, demolishing or constructing PPP/NGO involvement buildings, acquiring land for the said purposes and for the re-housing of persons displaced by the execution of improvement schemes.' The Act led to the creation of the Dhaka Improvement Trust (presently RAJUK) to prepare land-use Ö Ö Ö Ö Ö Ö

plans, oversee their implementation, and thus ensure controlled growth of Dhaka city. By doing so, the sustainability

Environmental Act envisaged the development of a healthy urban environment free from congestion and overcrowding. Ö Ö Ö Ö Ö Ö Ö Ö

Multi- Five-Year Plans sectoral planning The five-year plans are the country's principal tool to guide the overall development process and

Ö coordinate the actions of different government agencies. These plans operate within the longer-term Rent control Perspective Plan 2010-2021 of Bangladesh and are prepared by the Planning Commission under the Ministry of Planning of Bangladesh. The five-year plans integrate the development priorities of Ö Ö Ö Ö Ö different sectors. Different agencies and ministries of the government are consulted for this purpose. for

Guidance For instance, in the Sixth Five-Year Plan (2011-2015), the government had expressed interest in construction 'exploring' public-private partnerships (PPPs) and involvement of NGOs in housing programmes, while also improving land registration system to secure 'ownership and tenure rights, ensure more efficient Ö Ö Ö Ö Ö Ö land transfers, facilitate public control of land markets and lead to improved land use and land management.' The housing sector set a number of sectoral objectives and activities, which included a Regulating stakeholders review of land related regulatory policies to identify issues and propose reforms; development of low- cost housing for the low and middle income groups; updating the Building Code; and a review of essed Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö Ö existing policies to enable a favourable environment for the private sector by addressing issues related growth Planning for urban to land pricing, taxation, mortgage, among other things. Further, the Sixth Five-Year Plan also emphasised developing a competitive real estate market by 'restructuring' the House Building Finance Ö Ö Ö Corporation and generating housing finance in the private sector for low-income households. Access to service The Seventh Five-Year Plan (2016-2020) captures the performance of the previous Plan. Accordingly, y t i l i

b the housing sector showed progress in a few aspects, while still lagging behind in the rest of the issues. i s Ö n For example, RAJUK could carry out the planned review of Dhaka Metropolitan Development Plan o State p s (DMDP) 1995-2015, Detailed Area Plan (DAP) 2010-2015, Strategic Transport Plan (STP), 2006, Dhaka re Urban Transport Network Development Study, 2010 (DHUTS), Revised Dhaka Structure Plan 2016- t 2 t a glance: Major issues addr

9 2035 under RDP (Regional Development Planning), Annual Development Programmeme (ADP), Dhaka 9 ft) 1 a

y Water Supply and Sewerage Authority (DWASA) Drainage Master Plan. However, the 'lessons learnt' c i or l elopmen o drawn from the review have fallen short of adding fresh insights and resound the issues that already t and olicy 2011 v P t Act 1953 l an Building a exist in scholarship: lack of coordination among public service providers, failure to implement these t ol Act 1991 or P olicy 2001 n olicy 2017 tr Issues addressed oject 2004 e t Rules f t

emen plans, no timely revisions of these plans, and lack of resources. m opolit olicy 2016 (Dr elopmen n ov tional Building tr v o truction Act 1952 t Con ainable De tion) Act 2009 r t Act 2010 t i

olicies and rules a Reaffirming that the government will play the roles of regulator and facilitator as opposed to being a a v ea Plan en n ft 2015) e De ernmen a Me elopmen t E a provider, the Seventh Five-Year Plan, like its predecessor, emphasises improving legal and regulatory v a l t emen a ear Plan e Housing Pr n own Impr frameworks, which would in turn remove procedural bottlenecks and create competitive land and t titution egy 2010-2021 o t a ailed Ar i al Gov e-Y a tional Land P tional Housing P tional Land Use P tional Urban Sect tional Sus t t emises R housing markets. The Plan also mentions improving access to housing finance for the low and middle- a eal Es Na Na Cons Na Rules and Policies The T Na Loc (City Corpor R Land De Priv Manag Pr Rules 2008 Building Cons Bangladesh Na Code (Dr The Dhak De N Fiv Na Str able 2.2: P T

16 17 State of Cities 2017 Policy and Institutional Framework

income groups and encourages the building material industries to use 'environmentally sound, National Land Policy 2016 (Draft) affordable and accessible building technologies'. Of particular interest is the government's intention to Bangladesh National Land Policy 2016 is a very recent initiative by the government to guide the careful make housing affordable by developing a 'comprehensive strategy' that would explore solutions to development and management of land. The policy sets objectives to provide citizens access to land, housing finance, for example, by strengthening the mortgage system and expanding National Savings promote equitable and efficient land allocation and land use planning system, promote efficient land Certificate (NSS) portfolios as long-term resources for housing. administration and management system and promote land tenure security for all citizens. In its policy Besides projecting goals for the entire urban sector, the Seventh Five-Year Plan also sets sub-sectoral framework part, the policy includes land tenure classifications, land use planning by sectors, land use in goals for the agencies involved in the housing sector. The National Housing Authority aims to provide rural areas, unplanned development issues, conversion of agricultural land, environmental 'housing for all including the shelter-less.' The strategic targets of RAJUK, on the other hand, sustainability, land acquisition, land holding ceiling, survey and settlement, registration, distribution encompass a wider range of activities, of which the ones relevant to the housing sector are the and record maintenance, human rights and constitutional issues. construction of apartment buildings; construction of a regional development plan for Dhaka city; more Urban and Regional Planning Act 2017 effective regulatory functioning and management of the current housing crisis in Dhaka by expanding Earlier this year, the government approved the draft Urban and Regional Planning Act 2017, (Dhaka township to the proposed Savar Model Town and Eastern Baridhara Model Town. Tribune 2017) which was developed by the Urban Development Directorate with the objective to The Seventh Five-Year Plan also acknowledges the connection between low quality housing and urban prevent misuse of land by restricting land owners from constructing buildings haphazardly. It poverty. To that end it proposed interventions such as designating special zones as well as introducing particularly addresses the issue of conversion of wetland and agricultural lands for construction work. rental housing to support low-income settlements. An advisory council, to be headed by the minister for Housing and Public Works, will oversee the implementation of this Act. In view of this limited funding, the Seventh Five-Year Plan consists of ambitious targets for the urban sector in general and housing in particular. Although no measurable parameter was mentioned against 2.2.2 Policies addressing the housing sector these targets, thereby rendering them obscure, nonetheless it can be expected that the individual National Housing Policy 2017 ministries and agencies would construct relevant indicators in their annual work plans to measure progress against these targets. In 1988, the United Nations (UN) adopted the 'Global Strategy for Shelter to the Year 2000', which was an international policy framework to address worldwide housing challenges. The UN Conference on Detailed Area Plan (DAP) Environment and Development held in Rio de Janeiro in 1992 recommended governments formulate To facilitate implementation of the provisions of previous plans, namely the Dhaka Metropolitan national settlement plans to advance the goals of this strategy. In response to this requirement and to Development Plan (DMDP) of 1995, Structure Plan (SP) and Urban Area Plan (UAP), RAJUK prepared meet aid conditionality, Bangladesh developed the National Housing Policy in 1993 and later revised it the Detailed Area Plan (DAP), which extends development planning at the ward level. It provides more in 1999 (Rahman 2012). Yet another draft was initiated in 2008 by the Ministry of Housing and Public detailed planning proposals for specific sub-areas compliant with the Structure Plan and the Urban Works but it was never approved. The National Housing Policy of 1993 was updated and amended to Area Plan. The basic purpose of DAP was to provide infrastructure and services through systemic match the emerging national and international contexts and a fresh version has been introduced by the planning, create a congenial environment to promote economic activities, improve drainage system name National Housing Policy 2017 by the same ministry. and create service centres to enable urban growth. The DAP incorporates various urban strategies, The National Housing Policy of 2017 reaffirms the role of the government as a facilitator. The policy policies and development programmes and also provides planning, guideline techniques, planning addresses the following key areas: planning, land, financing, infrastructure, building construction rules and development control procedures. material and technology, human resources development, and rental and social housing. National Land Use Policy 2001 Filled with lofty objectives, the policy aims to provide affordable, sustainable and equitable housing In accordance with the increasing population of the country, it was a basic requirement to formulate a and work places for all citizens and ensure that they avail the residential, utility and citizen services at a policy regarding use of land. This resulted in the National Land Use Policy 2001. The policy includes its minimum cost. It aims to link its provisions with the larger aims of international laws and treaties as well major objectives to protect agricultural land from substantial decrease, start a zoning system for better 1 2 as the constitutional provision. It promises appropriate housing and basic services and facilities for all use of land, control unplanned urbanisation, best use of char lands , preserve Khas lands, prevent land through the involvement of public-private partnerships (PPPs), cooperatives, NGOs, voluntary pollution, construct multi-storeyed buildings to ensure use of lower volume of land for organisations, individuals and groups. It also raises the point of easing the process of land acquisition accommodation etc. Section six of the policy exclusively states land use for housing purposes in both by making land administration, revenue collection, land surveying, land transfer and land registration rural and urban areas. It aims to balance between urban construction and demand of housing while system modern and convenient. keeping environmental sustainability into consideration. It mentions preventing unauthorized acquisition of land and construction of settlements, discouraging rural-urban migration and easing the subsequent pressure on urban housing by creating employment and housing facilities in the rural areas, among other things. It speaks of setting up 'urban land banks'

1. River islands on Khas land. The 2017 policy recognises the lack of financing in the housing sector and also the fact 2. Fallow/unused lands that it could not encourage private sector's investment to develop housing for the low-income groups.

18 19 State of Cities 2017 Policy and Institutional Framework income groups and encourages the building material industries to use 'environmentally sound, National Land Policy 2016 (Draft) affordable and accessible building technologies'. Of particular interest is the government's intention to Bangladesh National Land Policy 2016 is a very recent initiative by the government to guide the careful make housing affordable by developing a 'comprehensive strategy' that would explore solutions to development and management of land. The policy sets objectives to provide citizens access to land, housing finance, for example, by strengthening the mortgage system and expanding National Savings promote equitable and efficient land allocation and land use planning system, promote efficient land Certificate (NSS) portfolios as long-term resources for housing. administration and management system and promote land tenure security for all citizens. In its policy Besides projecting goals for the entire urban sector, the Seventh Five-Year Plan also sets sub-sectoral framework part, the policy includes land tenure classifications, land use planning by sectors, land use in goals for the agencies involved in the housing sector. The National Housing Authority aims to provide rural areas, unplanned development issues, conversion of agricultural land, environmental 'housing for all including the shelter-less.' The strategic targets of RAJUK, on the other hand, sustainability, land acquisition, land holding ceiling, survey and settlement, registration, distribution encompass a wider range of activities, of which the ones relevant to the housing sector are the and record maintenance, human rights and constitutional issues. construction of apartment buildings; construction of a regional development plan for Dhaka city; more Urban and Regional Planning Act 2017 effective regulatory functioning and management of the current housing crisis in Dhaka by expanding Earlier this year, the government approved the draft Urban and Regional Planning Act 2017, (Dhaka township to the proposed Savar Model Town and Eastern Baridhara Model Town. Tribune 2017) which was developed by the Urban Development Directorate with the objective to The Seventh Five-Year Plan also acknowledges the connection between low quality housing and urban prevent misuse of land by restricting land owners from constructing buildings haphazardly. It poverty. To that end it proposed interventions such as designating special zones as well as introducing particularly addresses the issue of conversion of wetland and agricultural lands for construction work. rental housing to support low-income settlements. An advisory council, to be headed by the minister for Housing and Public Works, will oversee the implementation of this Act. In view of this limited funding, the Seventh Five-Year Plan consists of ambitious targets for the urban sector in general and housing in particular. Although no measurable parameter was mentioned against 2.2.2 Policies addressing the housing sector these targets, thereby rendering them obscure, nonetheless it can be expected that the individual National Housing Policy 2017 ministries and agencies would construct relevant indicators in their annual work plans to measure progress against these targets. In 1988, the United Nations (UN) adopted the 'Global Strategy for Shelter to the Year 2000', which was an international policy framework to address worldwide housing challenges. The UN Conference on Detailed Area Plan (DAP) Environment and Development held in Rio de Janeiro in 1992 recommended governments formulate To facilitate implementation of the provisions of previous plans, namely the Dhaka Metropolitan national settlement plans to advance the goals of this strategy. In response to this requirement and to Development Plan (DMDP) of 1995, Structure Plan (SP) and Urban Area Plan (UAP), RAJUK prepared meet aid conditionality, Bangladesh developed the National Housing Policy in 1993 and later revised it the Detailed Area Plan (DAP), which extends development planning at the ward level. It provides more in 1999 (Rahman 2012). Yet another draft was initiated in 2008 by the Ministry of Housing and Public detailed planning proposals for specific sub-areas compliant with the Structure Plan and the Urban Works but it was never approved. The National Housing Policy of 1993 was updated and amended to Area Plan. The basic purpose of DAP was to provide infrastructure and services through systemic match the emerging national and international contexts and a fresh version has been introduced by the planning, create a congenial environment to promote economic activities, improve drainage system name National Housing Policy 2017 by the same ministry. and create service centres to enable urban growth. The DAP incorporates various urban strategies, The National Housing Policy of 2017 reaffirms the role of the government as a facilitator. The policy policies and development programmes and also provides planning, guideline techniques, planning addresses the following key areas: planning, land, financing, infrastructure, building construction rules and development control procedures. material and technology, human resources development, and rental and social housing. National Land Use Policy 2001 Filled with lofty objectives, the policy aims to provide affordable, sustainable and equitable housing In accordance with the increasing population of the country, it was a basic requirement to formulate a and work places for all citizens and ensure that they avail the residential, utility and citizen services at a policy regarding use of land. This resulted in the National Land Use Policy 2001. The policy includes its minimum cost. It aims to link its provisions with the larger aims of international laws and treaties as well major objectives to protect agricultural land from substantial decrease, start a zoning system for better 1 2 as the constitutional provision. It promises appropriate housing and basic services and facilities for all use of land, control unplanned urbanisation, best use of char lands , preserve Khas lands, prevent land through the involvement of public-private partnerships (PPPs), cooperatives, NGOs, voluntary pollution, construct multi-storeyed buildings to ensure use of lower volume of land for organisations, individuals and groups. It also raises the point of easing the process of land acquisition accommodation etc. Section six of the policy exclusively states land use for housing purposes in both by making land administration, revenue collection, land surveying, land transfer and land registration rural and urban areas. It aims to balance between urban construction and demand of housing while system modern and convenient. keeping environmental sustainability into consideration. It mentions preventing unauthorized acquisition of land and construction of settlements, discouraging rural-urban migration and easing the subsequent pressure on urban housing by creating employment and housing facilities in the rural areas, among other things. It speaks of setting up 'urban land banks'

1. River islands on Khas land. The 2017 policy recognises the lack of financing in the housing sector and also the fact 2. Fallow/unused lands that it could not encourage private sector's investment to develop housing for the low-income groups.

18 19 State of Cities 2017 Policy and Institutional Framework

It consists of fresh additions as well as repetitions of promises made in the earlier version. For instance, Although rich in content, the policy's implementation has been inadequate particularly because of it repeats the target to establish a 'housing finance programme' for low-income people to create a fund insufficient funding. Resource allocation for the Department of Environment occupies little space in for providing housing loans. As in the last version, it speaks of encouraging insurance, commercial and the development budget (Aminuzzaman 2010). Therefore, the Department suffers from a shortage of cooperative banks and financial institutes to increase their financing in the housing sector. In addition, human and physical resources required to carry out the tasks of this policy as well as other it mentions establishing 'long-term agreement savings' project to encourage savings and earn long- environmental laws. This explains the reason why contrary to the specified sectoral objectives of the term housing loan and earning mortgage-backed securities. policy, integrating environmental considerations in urban planning and housing is still a far cry. Moreover, instead of being preserved, water bodies have been filled up haphazardly causing an acute However, the policy is not focused on cities alone and proposes interventions for the housing problems drainage crisis in Dhaka city. of the whole country, and it promises more than it can deliver. For instance, past activities of the government agencies show that government efforts in the housing sector have been largely National Urban Sector Policy 2011 inadequate in matters of resource allocation, reforms and initiatives. The only aspect of the National This policy was formulated by the Local Government Division of the Ministry of Local Government, Housing Policy of 1993, as well as the five-year plans where the government has consistently produced Rural Development and Cooperatives in 2011. With a view to ensuring regionally balanced results is in constructing public buildings for government offices and employees (Rahman 2010). urbanisation through decentralised development and hierarchically structured urban system, the National Environmental Policy 1992 policy sets its objectives in the areas of economic development, employment generation, reduction of Besides being a natural disaster-prone delta, Bangladesh has been facing challenges of over population inequality and poverty eradication, optimum utilisation of land resources and meeting increased and rapid urbanisation for decades and the ultimate result is environmental degradation. To address demand for housing and urban services, preservation of the urban environment, particularly water these issues, the Department of Environment, Ministry of Environment and Forests formulated the bodies, strengthening local governments through appropriate powers, involvement of stakeholders in National Environmental Policy in 1992. The overarching objective of the policy is to ensure ecological a participatory manner in both decision making and implementation processes, ensuring social justice balance and development through environmental conservation. Simultaneously, it aims to control and inclusion through considering particular needs for disadvantaged portion of the population, polluting and environmentally degrading activities, build protection against natural disasters and protection of heritage, formulation of strategies and agreements and ensuring good governance. ensure sustainable and environmentally sound use of all natural resources. As there is regional imbalance in the pattern of urbanisation in the country, the policy includes The policy addresses 15 development sectors, among which are housing and urbanisation. The goals provisions for adequate structural and utility services, better transportation system, open spaces, and specific to this sector as outlined in the policy are as follows: provision for rural-urban linkage to have a state standard urbanisation. The policy also cares about ! strengthening positive aspects of urbanisation and dealing with its negative consequences. To achieve Environmental considerations in all planning and research related to urbanisation and such targets, participatory governance and decentralised urban governance is planned. To sum up, the housing; National Urban Sector Policy has its overall goal to provide a secured and liveable life for inhabitants of ! Gradual extension of environment-friendly facilities in existing urban and rural residential urban areas of the country (Planning Commission 2015). areas; National Sustainable Development Strategy 2010-2021 ! Regulation of housing and urbanisation, which adversely affect local and overall environment; The National Sustainable Development Strategy (NSDS) 2010-2021 was formed due to Bangladesh's ! Placing emphasis on the role of water bodies for urban beautification. need to balance economic growth with environmental sustainability. It reflects Bangladesh's The National Environment Policy 1992 assigned the Ministry of Environment and Forests with the willingness to fulfil its commitment to the international sustainable development agenda. Supporting responsibility of the former's implementation and proposed forming a National Environment Council Bangladesh's ambition to become a middle-income country by 2020, the NSDS's implementation under the chairmanship of the Prime Minister. This council was proposed to provide overall guidance period runs parallel with the Perspective Plan of Bangladesh 2010-2021 and is consistent with other for the policy's implementation. In order to control environmental degradation and promote sectoral plans and policies. The Planning Commission is entrusted with the responsibility to integrate conservation, the policy also mentioned formulating new legislation where required and reviewing, NSDS with the national development planning process. The execution of NSDS will be monitored and updating, and making necessary amendments to the existing ones to keep them aligned with the evaluated by the Sustainable Development Monitoring Council. The NSDS addresses challenges and provisions of international treaties, conventions and protocols. To facilitate the implementation of the proposes counter strategies of five priority areas, including urban environment. The urban housing policy and encourage coordination of various sectors, there is also an action plan outlining and sector has been addressed under the broad theme of urban environment. distributing the tasks among various government agencies. In the area of urban environment, NSDS acknowledges that a 'large demand-supply gap in housing' has Since its promulgation, there has been progress in some areas. For instance, the Environment led to 'uncontrolled and unplanned expansion of urban settlements' in large metropolitan cities, Conservation Act 1995 was adopted for the conservation and improvement of environmental particularly Dhaka. Highlighting welfare and sustainability issues, NSDS further acknowledges the standards and controlling the pollution of environment. In addition, a national level council on widespread non-compliance of government rules in the housing sector and the subsequent crisis environment was formed, which is chaired by the head of government. incurred in the provision of utility services. These include electricity, water, sanitation and sewerage, on one hand and loss of wetland, open space, public recreational spots and greenery, on the other

20 21 State of Cities 2017 Policy and Institutional Framework

It consists of fresh additions as well as repetitions of promises made in the earlier version. For instance, Although rich in content, the policy's implementation has been inadequate particularly because of it repeats the target to establish a 'housing finance programme' for low-income people to create a fund insufficient funding. Resource allocation for the Department of Environment occupies little space in for providing housing loans. As in the last version, it speaks of encouraging insurance, commercial and the development budget (Aminuzzaman 2010). Therefore, the Department suffers from a shortage of cooperative banks and financial institutes to increase their financing in the housing sector. In addition, human and physical resources required to carry out the tasks of this policy as well as other it mentions establishing 'long-term agreement savings' project to encourage savings and earn long- environmental laws. This explains the reason why contrary to the specified sectoral objectives of the term housing loan and earning mortgage-backed securities. policy, integrating environmental considerations in urban planning and housing is still a far cry. Moreover, instead of being preserved, water bodies have been filled up haphazardly causing an acute However, the policy is not focused on cities alone and proposes interventions for the housing problems drainage crisis in Dhaka city. of the whole country, and it promises more than it can deliver. For instance, past activities of the government agencies show that government efforts in the housing sector have been largely National Urban Sector Policy 2011 inadequate in matters of resource allocation, reforms and initiatives. The only aspect of the National This policy was formulated by the Local Government Division of the Ministry of Local Government, Housing Policy of 1993, as well as the five-year plans where the government has consistently produced Rural Development and Cooperatives in 2011. With a view to ensuring regionally balanced results is in constructing public buildings for government offices and employees (Rahman 2010). urbanisation through decentralised development and hierarchically structured urban system, the National Environmental Policy 1992 policy sets its objectives in the areas of economic development, employment generation, reduction of Besides being a natural disaster-prone delta, Bangladesh has been facing challenges of over population inequality and poverty eradication, optimum utilisation of land resources and meeting increased and rapid urbanisation for decades and the ultimate result is environmental degradation. To address demand for housing and urban services, preservation of the urban environment, particularly water these issues, the Department of Environment, Ministry of Environment and Forests formulated the bodies, strengthening local governments through appropriate powers, involvement of stakeholders in National Environmental Policy in 1992. The overarching objective of the policy is to ensure ecological a participatory manner in both decision making and implementation processes, ensuring social justice balance and development through environmental conservation. Simultaneously, it aims to control and inclusion through considering particular needs for disadvantaged portion of the population, polluting and environmentally degrading activities, build protection against natural disasters and protection of heritage, formulation of strategies and agreements and ensuring good governance. ensure sustainable and environmentally sound use of all natural resources. As there is regional imbalance in the pattern of urbanisation in the country, the policy includes The policy addresses 15 development sectors, among which are housing and urbanisation. The goals provisions for adequate structural and utility services, better transportation system, open spaces, and specific to this sector as outlined in the policy are as follows: provision for rural-urban linkage to have a state standard urbanisation. The policy also cares about ! strengthening positive aspects of urbanisation and dealing with its negative consequences. To achieve Environmental considerations in all planning and research related to urbanisation and such targets, participatory governance and decentralised urban governance is planned. To sum up, the housing; National Urban Sector Policy has its overall goal to provide a secured and liveable life for inhabitants of ! Gradual extension of environment-friendly facilities in existing urban and rural residential urban areas of the country (Planning Commission 2015). areas; National Sustainable Development Strategy 2010-2021 ! Regulation of housing and urbanisation, which adversely affect local and overall environment; The National Sustainable Development Strategy (NSDS) 2010-2021 was formed due to Bangladesh's ! Placing emphasis on the role of water bodies for urban beautification. need to balance economic growth with environmental sustainability. It reflects Bangladesh's The National Environment Policy 1992 assigned the Ministry of Environment and Forests with the willingness to fulfil its commitment to the international sustainable development agenda. Supporting responsibility of the former's implementation and proposed forming a National Environment Council Bangladesh's ambition to become a middle-income country by 2020, the NSDS's implementation under the chairmanship of the Prime Minister. This council was proposed to provide overall guidance period runs parallel with the Perspective Plan of Bangladesh 2010-2021 and is consistent with other for the policy's implementation. In order to control environmental degradation and promote sectoral plans and policies. The Planning Commission is entrusted with the responsibility to integrate conservation, the policy also mentioned formulating new legislation where required and reviewing, NSDS with the national development planning process. The execution of NSDS will be monitored and updating, and making necessary amendments to the existing ones to keep them aligned with the evaluated by the Sustainable Development Monitoring Council. The NSDS addresses challenges and provisions of international treaties, conventions and protocols. To facilitate the implementation of the proposes counter strategies of five priority areas, including urban environment. The urban housing policy and encourage coordination of various sectors, there is also an action plan outlining and sector has been addressed under the broad theme of urban environment. distributing the tasks among various government agencies. In the area of urban environment, NSDS acknowledges that a 'large demand-supply gap in housing' has Since its promulgation, there has been progress in some areas. For instance, the Environment led to 'uncontrolled and unplanned expansion of urban settlements' in large metropolitan cities, Conservation Act 1995 was adopted for the conservation and improvement of environmental particularly Dhaka. Highlighting welfare and sustainability issues, NSDS further acknowledges the standards and controlling the pollution of environment. In addition, a national level council on widespread non-compliance of government rules in the housing sector and the subsequent crisis environment was formed, which is chaired by the head of government. incurred in the provision of utility services. These include electricity, water, sanitation and sewerage, on one hand and loss of wetland, open space, public recreational spots and greenery, on the other

20 21 State of Cities 2017 Policy and Institutional Framework

hand. For instance, it mentions the breach of National House Building Codes during building The land-use clearance is not required for projects developed by the Ministry of Housing and Public construction and the consequences that follow: lack of ventilation, insufficient parking space and Works or by any other private entity following the Private Housing Land Development Rules 2004. The drainage system to withstand heavy rainfall, among other things. requirements vary for residential buildings which contain more than 40 units, environmentally sensitive industries, projects which are going to be constructed in close proximity of historical or The strategies that were proposed to counter these housing issues include an improved public heritage sites, landscape of natural beauty, hilly areas, river-side or along national highways. Under commuting system and creation of satellite towns to ease pressure on large cities, land zoning and these rules, the authority retains the right to inspect the construction work of any building or project to compliance with the Bangladesh National Building Code to ensure 'privacy, comfort, daylight and air check if it is being constructed according to the approved design and specifications or not. To facilitate circulation along with electricity consumption and heat generation of buildings.' They also include the implementation of these rules, the government, through gazette notification, can form one or protection of flood flow zones, wetlands and natural ecosystems in and around cities and promoting more committees, such as building construction committee, special project approval committee, the concept of green building. urban development committee and so on. In short, the Building (Construction, Development, Conservation and Removal) Rules 2008 are meant to guide the engineering and architectural works of 2.2.3 Regulation of building standards buildings to ensure optimum quality of living. They also contain provisions for adopting necessary Building Construction Act 1952 safety measures in and around any site being considered for development. The principal legislation overseeing the quality of housing construction is the Building Construction Act Local Government (City Corporation) Act 2009 1952. It sets out elaborate instructions to regulate the construction of buildings according to In matters of town planning, the Local Government (City Corporation) Act 2009 requires city engineering standards and in conformance with the land utilisation instructions indicated in the Dhaka corporations to prepare a master plan and assigns it the responsibility of development, expansion and city's Master Plan. Section 18 of the Building Construction Act 1952 empowers the government to improvement of any area within the city, including control over the construction, reconstruction and make rules, while Section 18 A (1) mentions the formulation of the Bangladesh National Building Code maintenance of buildings, public markets, etc. City corporations are required to identify risky buildings to facilitate the full execution of the Act. In this regard, the Act outlines the following areas in which the and notify their owners to repair those. If owners of such buildings fail to abide by the instructions of Building Code is required to provide guidance, as cited from the original text: the notice, corporations may take the necessary steps themselves and the cost incurred thereon will be (a) 'General building requirements, control and regulation; deemed to be tax levied on the owner or occupier of the building under this Act. If a building is in a dangerous condition, or otherwise unfit for human habitation, corporations may prohibit the (b) Fire protection; occupation of such buildings until it has been suitably repaired to the satisfaction of the corporations. (c) Building materials; The Bangladesh National Building Code (draft 2015) (d) Structural design; The Bangladesh National Building Code (BNBC) was developed in 1993 through the initiative of the (e) Construction practices and safety; Planning Commission with approval from the Executive Committee of the National Economic Council. (f) Building services; The Code came into effect in 2006 through a gazette notification of the government of Bangladesh. It is a set of standards formulated to facilitate implementation of the Building Construction Act 1952 to (g) Alteration, addition to and change of use of existing building; provide safe and healthy shelter by governing the design, construction and materials of both building (h) Sign and outdoor display; and non-building structures. RAJUK is the central government agency responsible for monitoring the (I) Matters relating to administration and enforcement of the above matters.' application of this code during building construction. The Dhaka Metropolitan Building (Construction, Development, Protection and Removal) Rules 2008 The draft National Building Code of 2015 replaces the Code of 2006 and defines buildings as 'structures Formed under Section 18 of the Bangladesh Construction Act 1952, these rules succeed the Building that enclose a space and are used for various occupancies.' Besides specifying the minimum design requirements for utilities such as electrical, mechanical, and sanitary, it addresses disaster-resistant Construction Rules of 1996 and they are applicable to the areas that fall within the boundary of the mechanisms and safeguards for buildings, including those against fire and earthquake. It also describes Master Plan, Dhaka Metropolitan Development Plan (1995-2015), Structure Plan, Urban Area Plan, building-use based on the type of occupancy. Ideally, builders should conform to these rules for Detailed Area Plan or any other plan formulated under the Town Improvement Act 1953. constructing buildings in the areas that fall within the jurisdiction of the Code. Government agencies, The procedure for getting approval for building design and occupancy in the form of Building Permit on the other hand, will enforce and monitor the application of the Code. The Building Code of 1993 and Occupancy Certificate is specified in the Building Construction Rules 2008. The rules require a mentions that the building construction standards are to be revised every five years to accommodate detailed design and layout plan for water, gas and electricity supplies, ventilation, sanitation, drainage, the latest mechanisms and technology. To evaluate the effectiveness of the Code, suggestions and and other necessary services. It also specifies the requirements for obtaining land-use clearance where observations will be collected from practitioners based on their experience applying the Code. applicable, seeking the technical expertise of relevant professionals. The rules also set compulsory However, the 2015 version of the Code relaxes the conditions on maximum building heights. This is engineering details to be followed, for example, leaving mandatory open space around the building, likely to increase the growth of high-rise buildings, thereby increasing the population density of already minimum parking requirements according to occupancy types, emergency exits, fire safety measures, dense areas. Also, it is to be noted that there is no separate department to monitor the application of among other things. the Code.

22 23 State of Cities 2017 Policy and Institutional Framework hand. For instance, it mentions the breach of National House Building Codes during building The land-use clearance is not required for projects developed by the Ministry of Housing and Public construction and the consequences that follow: lack of ventilation, insufficient parking space and Works or by any other private entity following the Private Housing Land Development Rules 2004. The drainage system to withstand heavy rainfall, among other things. requirements vary for residential buildings which contain more than 40 units, environmentally sensitive industries, projects which are going to be constructed in close proximity of historical or The strategies that were proposed to counter these housing issues include an improved public heritage sites, landscape of natural beauty, hilly areas, river-side or along national highways. Under commuting system and creation of satellite towns to ease pressure on large cities, land zoning and these rules, the authority retains the right to inspect the construction work of any building or project to compliance with the Bangladesh National Building Code to ensure 'privacy, comfort, daylight and air check if it is being constructed according to the approved design and specifications or not. To facilitate circulation along with electricity consumption and heat generation of buildings.' They also include the implementation of these rules, the government, through gazette notification, can form one or protection of flood flow zones, wetlands and natural ecosystems in and around cities and promoting more committees, such as building construction committee, special project approval committee, the concept of green building. urban development committee and so on. In short, the Building (Construction, Development, Conservation and Removal) Rules 2008 are meant to guide the engineering and architectural works of 2.2.3 Regulation of building standards buildings to ensure optimum quality of living. They also contain provisions for adopting necessary Building Construction Act 1952 safety measures in and around any site being considered for development. The principal legislation overseeing the quality of housing construction is the Building Construction Act Local Government (City Corporation) Act 2009 1952. It sets out elaborate instructions to regulate the construction of buildings according to In matters of town planning, the Local Government (City Corporation) Act 2009 requires city engineering standards and in conformance with the land utilisation instructions indicated in the Dhaka corporations to prepare a master plan and assigns it the responsibility of development, expansion and city's Master Plan. Section 18 of the Building Construction Act 1952 empowers the government to improvement of any area within the city, including control over the construction, reconstruction and make rules, while Section 18 A (1) mentions the formulation of the Bangladesh National Building Code maintenance of buildings, public markets, etc. City corporations are required to identify risky buildings to facilitate the full execution of the Act. In this regard, the Act outlines the following areas in which the and notify their owners to repair those. If owners of such buildings fail to abide by the instructions of Building Code is required to provide guidance, as cited from the original text: the notice, corporations may take the necessary steps themselves and the cost incurred thereon will be (a) 'General building requirements, control and regulation; deemed to be tax levied on the owner or occupier of the building under this Act. If a building is in a dangerous condition, or otherwise unfit for human habitation, corporations may prohibit the (b) Fire protection; occupation of such buildings until it has been suitably repaired to the satisfaction of the corporations. (c) Building materials; The Bangladesh National Building Code (draft 2015) (d) Structural design; The Bangladesh National Building Code (BNBC) was developed in 1993 through the initiative of the (e) Construction practices and safety; Planning Commission with approval from the Executive Committee of the National Economic Council. (f) Building services; The Code came into effect in 2006 through a gazette notification of the government of Bangladesh. It is a set of standards formulated to facilitate implementation of the Building Construction Act 1952 to (g) Alteration, addition to and change of use of existing building; provide safe and healthy shelter by governing the design, construction and materials of both building (h) Sign and outdoor display; and non-building structures. RAJUK is the central government agency responsible for monitoring the (I) Matters relating to administration and enforcement of the above matters.' application of this code during building construction. The Dhaka Metropolitan Building (Construction, Development, Protection and Removal) Rules 2008 The draft National Building Code of 2015 replaces the Code of 2006 and defines buildings as 'structures Formed under Section 18 of the Bangladesh Construction Act 1952, these rules succeed the Building that enclose a space and are used for various occupancies.' Besides specifying the minimum design requirements for utilities such as electrical, mechanical, and sanitary, it addresses disaster-resistant Construction Rules of 1996 and they are applicable to the areas that fall within the boundary of the mechanisms and safeguards for buildings, including those against fire and earthquake. It also describes Master Plan, Dhaka Metropolitan Development Plan (1995-2015), Structure Plan, Urban Area Plan, building-use based on the type of occupancy. Ideally, builders should conform to these rules for Detailed Area Plan or any other plan formulated under the Town Improvement Act 1953. constructing buildings in the areas that fall within the jurisdiction of the Code. Government agencies, The procedure for getting approval for building design and occupancy in the form of Building Permit on the other hand, will enforce and monitor the application of the Code. The Building Code of 1993 and Occupancy Certificate is specified in the Building Construction Rules 2008. The rules require a mentions that the building construction standards are to be revised every five years to accommodate detailed design and layout plan for water, gas and electricity supplies, ventilation, sanitation, drainage, the latest mechanisms and technology. To evaluate the effectiveness of the Code, suggestions and and other necessary services. It also specifies the requirements for obtaining land-use clearance where observations will be collected from practitioners based on their experience applying the Code. applicable, seeking the technical expertise of relevant professionals. The rules also set compulsory However, the 2015 version of the Code relaxes the conditions on maximum building heights. This is engineering details to be followed, for example, leaving mandatory open space around the building, likely to increase the growth of high-rise buildings, thereby increasing the population density of already minimum parking requirements according to occupancy types, emergency exits, fire safety measures, dense areas. Also, it is to be noted that there is no separate department to monitor the application of among other things. the Code.

22 23 State of Cities 2017 Policy and Institutional Framework

2.2.4 Regulation of private sector land development 2.2.5 Regulation of house rent Real Estate Development and Management Act 2010 Premises Rent Control Act 1991 As already specified in the five-year plan and National Housing Policy, the government has largely Premises Rent Control Act 1991 came into force on 27 March 1989. Though it is a legal document withdrawn from its role of a 'provider' and is instead leaning more towards a 'facilitator' of housing and supposed to be in action, currently application of this Act is ignored. The Act contains significant issues shelter, depending on the market to perform the former's function. As a result, the housing market of related to the house renting process including restriction on the increase of rent, appointment of the today's Dhaka city is dominated by the private sector, which is making ample contribution to the controller, hearing of certain applications, controller's notice to the landlords and tenants, power to national economy. For example, according to the Real Estate and Housing Association of Bangladesh enter and inspect premises, increase of rent on account of payment of taxes or for improvements by (REHAB), the real estate sector, along with its linkage industries of iron rod, cement, brick, sand, landlords, receipts for paid rents, refund of irrecoverable rent, distress warrant in certain cases, deposit ceramic tile, sanitary ware, paint and others, contributed around 12 per cent to the national GDP in of rent by the tenants in certain circumstances, and so on. The Act also mentions the responsibilities 2014 (Seraj 2016). and penalties with regard to violence and legal issues, such as duties and powers of controller, penalty for recovering rent in excess of the standard rent, penalty for disturbance of easements, penalty for Against this backdrop, the Real Estate Development and Management Act 2010 was formed to regulate providing incorrect information of landlords, penalty for failure to grant receipts, and authority's the real estate sector and provides a set of requirements for private developers for construction of power to make rule, respond to appeals and conduct review of house rent issues. residential buildings, land acquisition, registration and transfer. The Act requires private residential land developers to get their real estate designs approved, corrected, renewed or reapproved, and puts 2.3 Building construction in Dhaka city: The procedural steps emphasis on ensuring that the structural designs allow sufficient ventilation and utility services, such as supplies water, gas, electricity, sanitation, telephone and other services. It explains the process of As discussed before, RAJUK is the authority to approve any building construction in Dhaka city and as reaching an agreement between a landowner and real estate developer, and mortgage matters. The the first step for building purpose, land owner(s) need to take the 'land use clearance' from RAJUK. Act also makes it mandatory for developers to construct projects within the regulatory frameworks of Usually, planned residential areas already have the approval because they are included in the RAJUK the Land Development Policy 2004, Private Residential Land Development Rules 2004 and Dhaka master plan. For areas not covered by the master plan, compliance with environmental clearance is Metropolitan Building (Construction, Development, Protection and Removal) Rules 2008, and also obligatory. In case of buildings that are more than six storeyed, RAJUK demands prior clearance specifies the disciplinary measures in case of violation of these legal provisions. certificates from the organisations: Department of Environment, Dhaka Electric Supply Authority (DESA), DWASA, TITAS Gas, Dhaka Metropolitan Police (Traffic), City Corporation, and Civil Aviation Land Development Rules for Private Housing Project 2004 Authority Bangladesh. After a series of checks and clarifications, the application is referred to the This set of rules was formulated based on the Town Improvement Act 1953 and The Building Building Construction Committee in RAJUK for approval or rejection. The provisions of Building Construction Act 1952. They are applicable for areas included in the master plans that are constructed Construction Act 1952 clearly defined that the plans should be forwarded for clearance or approval under the Town Improvement Act 1953. These rules contain a total of six chapters laying out within 45 days and if there is any objection to the plan, notification must be provided within 30 days instructions to resolve private housing issues, such as registration of entrepreneurs, requirement for after submission for approval (TIB 2007). layouts to avail permits for private housing projects, renewal of permits and responsible committees Process for obtaining permission for building construction is as follows: that deal with private housing issues. The rules describe the registration process of the entrepreneurs, be they individual or company, Land use Application for Checks and Approval or interested in developing private land for housing purposes. The interested party is required to register clearance permission clarifications rejection to the authority by submitting documents like trade license, TIN number, VAT registration number, among other things. The authority arranges an investigation within 45 days of submitting papers and permits the housing project if the applicant fulfils all conditions, otherwise permission to develop the While starting the construction work by any individual or firm, the authority (RAJUK) must be informed land will be denied. In its second chapter, the Act mentions regulations for registration of project layout 15 days earlier. If there is any change (e.g. change in experts, architect, engineer or important skilled design and the process of collecting fees. Other mandates and issues addressed in the Act include personnel), the authority must be informed in detail. The authority is to visit the project during prescribed time frame for project implementation, guidelines for utility services such as waste construction and check if implementation is being done properly or not. In this step, the authority is collection and environmental management plan, having 'No-Encumbrance Certificate' from concerned supposed to provide consent to continue implementation or postpone construction if it deviates from office, required volume of land for the project, gross density of the project area, space standards for the permitted specification. The construction party reports to the authority after completion of the community facilities, among other things. The Act also has provisions regarding renewal of permission project. or amendment of permission in case of late implementation or completion of the project. Process for the implementation of construction work: Entrepreneurs or responsible parties are supposed to consult and inform the authorities in such cases. Lastly, the Act requires the formation of committees as per necessity, post-implementation reporting, Informing RAJUK Visit by RAJUK Checks and Approve or submitting yearly reports (until five years from date of completion) and other relevant monitoring before during clarifications postpone matters. implementation implementation

24 25 State of Cities 2017 Policy and Institutional Framework

2.2.4 Regulation of private sector land development 2.2.5 Regulation of house rent Real Estate Development and Management Act 2010 Premises Rent Control Act 1991 As already specified in the five-year plan and National Housing Policy, the government has largely Premises Rent Control Act 1991 came into force on 27 March 1989. Though it is a legal document withdrawn from its role of a 'provider' and is instead leaning more towards a 'facilitator' of housing and supposed to be in action, currently application of this Act is ignored. The Act contains significant issues shelter, depending on the market to perform the former's function. As a result, the housing market of related to the house renting process including restriction on the increase of rent, appointment of the today's Dhaka city is dominated by the private sector, which is making ample contribution to the controller, hearing of certain applications, controller's notice to the landlords and tenants, power to national economy. For example, according to the Real Estate and Housing Association of Bangladesh enter and inspect premises, increase of rent on account of payment of taxes or for improvements by (REHAB), the real estate sector, along with its linkage industries of iron rod, cement, brick, sand, landlords, receipts for paid rents, refund of irrecoverable rent, distress warrant in certain cases, deposit ceramic tile, sanitary ware, paint and others, contributed around 12 per cent to the national GDP in of rent by the tenants in certain circumstances, and so on. The Act also mentions the responsibilities 2014 (Seraj 2016). and penalties with regard to violence and legal issues, such as duties and powers of controller, penalty for recovering rent in excess of the standard rent, penalty for disturbance of easements, penalty for Against this backdrop, the Real Estate Development and Management Act 2010 was formed to regulate providing incorrect information of landlords, penalty for failure to grant receipts, and authority's the real estate sector and provides a set of requirements for private developers for construction of power to make rule, respond to appeals and conduct review of house rent issues. residential buildings, land acquisition, registration and transfer. The Act requires private residential land developers to get their real estate designs approved, corrected, renewed or reapproved, and puts 2.3 Building construction in Dhaka city: The procedural steps emphasis on ensuring that the structural designs allow sufficient ventilation and utility services, such as supplies water, gas, electricity, sanitation, telephone and other services. It explains the process of As discussed before, RAJUK is the authority to approve any building construction in Dhaka city and as reaching an agreement between a landowner and real estate developer, and mortgage matters. The the first step for building purpose, land owner(s) need to take the 'land use clearance' from RAJUK. Act also makes it mandatory for developers to construct projects within the regulatory frameworks of Usually, planned residential areas already have the approval because they are included in the RAJUK the Land Development Policy 2004, Private Residential Land Development Rules 2004 and Dhaka master plan. For areas not covered by the master plan, compliance with environmental clearance is Metropolitan Building (Construction, Development, Protection and Removal) Rules 2008, and also obligatory. In case of buildings that are more than six storeyed, RAJUK demands prior clearance specifies the disciplinary measures in case of violation of these legal provisions. certificates from the organisations: Department of Environment, Dhaka Electric Supply Authority (DESA), DWASA, TITAS Gas, Dhaka Metropolitan Police (Traffic), City Corporation, and Civil Aviation Land Development Rules for Private Housing Project 2004 Authority Bangladesh. After a series of checks and clarifications, the application is referred to the This set of rules was formulated based on the Town Improvement Act 1953 and The Building Building Construction Committee in RAJUK for approval or rejection. The provisions of Building Construction Act 1952. They are applicable for areas included in the master plans that are constructed Construction Act 1952 clearly defined that the plans should be forwarded for clearance or approval under the Town Improvement Act 1953. These rules contain a total of six chapters laying out within 45 days and if there is any objection to the plan, notification must be provided within 30 days instructions to resolve private housing issues, such as registration of entrepreneurs, requirement for after submission for approval (TIB 2007). layouts to avail permits for private housing projects, renewal of permits and responsible committees Process for obtaining permission for building construction is as follows: that deal with private housing issues. The rules describe the registration process of the entrepreneurs, be they individual or company, Land use Application for Checks and Approval or interested in developing private land for housing purposes. The interested party is required to register clearance permission clarifications rejection to the authority by submitting documents like trade license, TIN number, VAT registration number, among other things. The authority arranges an investigation within 45 days of submitting papers and permits the housing project if the applicant fulfils all conditions, otherwise permission to develop the While starting the construction work by any individual or firm, the authority (RAJUK) must be informed land will be denied. In its second chapter, the Act mentions regulations for registration of project layout 15 days earlier. If there is any change (e.g. change in experts, architect, engineer or important skilled design and the process of collecting fees. Other mandates and issues addressed in the Act include personnel), the authority must be informed in detail. The authority is to visit the project during prescribed time frame for project implementation, guidelines for utility services such as waste construction and check if implementation is being done properly or not. In this step, the authority is collection and environmental management plan, having 'No-Encumbrance Certificate' from concerned supposed to provide consent to continue implementation or postpone construction if it deviates from office, required volume of land for the project, gross density of the project area, space standards for the permitted specification. The construction party reports to the authority after completion of the community facilities, among other things. The Act also has provisions regarding renewal of permission project. or amendment of permission in case of late implementation or completion of the project. Process for the implementation of construction work: Entrepreneurs or responsible parties are supposed to consult and inform the authorities in such cases. Lastly, the Act requires the formation of committees as per necessity, post-implementation reporting, Informing RAJUK Visit by RAJUK Checks and Approve or submitting yearly reports (until five years from date of completion) and other relevant monitoring before during clarifications postpone matters. implementation implementation

24 25 State of Cities 2017 Policy and Institutional Framework

2.4 The policies in practice - Gaps and concerns In 2015, the High Court (The Daily Star 2015) delivered a writ petition to form a seven-member commission to investigate tenants' grievances, settle disputes between landlords and tenants and also A review of the legal and institutional frameworks of the housing sector in Bangladesh shows to fix rent ceilings based on areas. It also directed the police to investigate tenant complaints and numerous laws, polices, plans and strategies that address the issues of urban development and ordered forming a separate authority to control house rent in cities. housing as demonstrated in Table 2.1. Likewise, a number of actors are also involved, ranging from real estate developers, individual developers to central and local government agencies. Some key issues It is evident from the High Court directive that there is no enforcement of the House Rent Control Act that emerged from this review are discussed below. 1991 to prevent landlords from raising rents arbitrarily. As a result, tenants have little choice in selecting their abode and have to compromise on quality to adjust with their means. Shortage of low-cost housing in Dhaka The urban housing delivery system in Dhaka is divided into two main groups: (i) the formal sector Insufficient housing finance comprising public agencies and private real estate developers and (ii) the informal sector comprising The present formal housing finance system is insufficient and selective in the sense that it targets owners of private land who construct their own residences after procuring land. As manifested in the higher income households. Although the state-owned BHBFC provides government-subsidised National Housing Policy 2017, a shift in the government's approach – from enabler to facilitator – has housing loans, its priority clients are civil servants. Besides, the procedure for obtaining loans from significantly curtailed the public sector's contribution to housing supply. The volume of existing public BHBFC is lengthy and driven by political interests (Sarker et al. 2011). Nevertheless, it has recently housing programmes is small compared to housing demand and the government is yet to form a 'land- decreased its interest rate for Dhaka and Chittagong from 10-12 per cent to 8.5-9.5 per cent to make its

bank' with Khas land to meet the mass housing needs. housing loan more competitive (Dhaka Tribune 2017). The interest rate on housing loans of state- owned commercial banks ranges between 10 and 14 per cent, while that of private commercial banks is This has allowed the private sector to emerge as the largest housing supplier. The REHAB currently has between 9 and 15 per cent (The Daily Star 2016). more than 1,000 real estate companies as registered members (Seraj 2012 as cited in IFC 2016). However, private housing developers do not target low-income households. Furthermore, as land is Besides the state-owned BHBFC, other sources of housing finance currently available in Bangladesh are increasingly getting scarce compared to the existing demand in Dhaka, the majority of housing is being public and private commercial banks, employee loans, and life insurance policies, while households developed as joint venture projects between real estate developers and individual land owners who that cannot gain access to credit rely on their own savings and contributions from informal sources are interested to convert their old residences into apartments. such as friends and relatives. Lack of compliance of building standards However, in the absence of the government's direct control over land prices, there have been Over the years, there have been numerous incidents of casualty as a result of buildings that collapsed, exorbitant hikes in land prices and construction materials in Dhaka over the period 2000-2010 (IFC tilted or caught fire. In April 2005, a nine-storeyed factory building hosting Spectrum Sweater 2016). As a result, despite the reduced interest rates on housing loans, the cost of finished apartments Industries Ltd. and Shahriar Fabrics collapsed killing more than 20 people and trapping hundreds has risen, thereby limiting buyers' purchasing capacity. others in the debris. In 2006, a five-storeyed building complex of Phoenix Textile in Tejgaon industrial In addition, there is a scarcity of finance available for developers, for which they acquire land through area collapsed killing 21 people and injuring more than 50. A new storey was being added to the equity. On top of that, construction loans come with high interest rates for which private developers building when the disaster happened. In June 2010, a five-storeyed residential building in Begunbari find it of little value. Also, the construction loan liability is subsequently transferred from developers to tumbled over three tin-shed houses killing 23 people. Within a couple of days in the same month, a buyers when the latter pays in instalments to finance the construction, before taking final possession of disastrous fire broke out in Nimtoli and spread fast across surrounding buildings and shops, killing more the complete apartment. The burden of interest falls on buyers, thereby diminishing their purchasing than 120 people. Then again the 2013 Rana Plaza tragedy is a poignant reminder of absence of capacity and directing developers' attention to upper-class buyers who can afford to bear the high regulatory measures, non-compliance of regulations related to land-use planning and building project costs (IFC 2016). construction. The owner of the building had obtained permission to construct a six-storey building but later extended it by three more floors, violating building construction code (The Daily Star 2016). The National Housing Policy 2017 has mentioned a number of reform measures to improve prospects for housing finance, such as by bringing private real estate companies to formal capital market and These examples clearly show that the real issue is not so much about the revision or amendment of the encouraging capital accumulation through public share, implementing and expanding smaller building codes but rather more about the implementation of these codes by respective authorities. apartment construction for middle and low income groups, creating land-banks, and preventing 'land No rent control speculation' by imposing taxes on unused land, among other things. However, it is too early to tell how Although there is a legislation to safeguard the interests of tenants, in reality its application is almost much the policy will be able to make good on its promises. non-existent. Consequently, house rents are fixed and increased annually according to the wishes of Centralised administration with weak coordination the landlords. Bangladesh is yet to achieve a functional decentralised administration. Although local government institutes exist both at urban and rural levels, they are not institutionally, legally and financially strong

26 27 State of Cities 2017 Policy and Institutional Framework

2.4 The policies in practice - Gaps and concerns In 2015, the High Court (The Daily Star 2015) delivered a writ petition to form a seven-member commission to investigate tenants' grievances, settle disputes between landlords and tenants and also A review of the legal and institutional frameworks of the housing sector in Bangladesh shows to fix rent ceilings based on areas. It also directed the police to investigate tenant complaints and numerous laws, polices, plans and strategies that address the issues of urban development and ordered forming a separate authority to control house rent in cities. housing as demonstrated in Table 2.1. Likewise, a number of actors are also involved, ranging from real estate developers, individual developers to central and local government agencies. Some key issues It is evident from the High Court directive that there is no enforcement of the House Rent Control Act that emerged from this review are discussed below. 1991 to prevent landlords from raising rents arbitrarily. As a result, tenants have little choice in selecting their abode and have to compromise on quality to adjust with their means. Shortage of low-cost housing in Dhaka The urban housing delivery system in Dhaka is divided into two main groups: (i) the formal sector Insufficient housing finance comprising public agencies and private real estate developers and (ii) the informal sector comprising The present formal housing finance system is insufficient and selective in the sense that it targets owners of private land who construct their own residences after procuring land. As manifested in the higher income households. Although the state-owned BHBFC provides government-subsidised National Housing Policy 2017, a shift in the government's approach – from enabler to facilitator – has housing loans, its priority clients are civil servants. Besides, the procedure for obtaining loans from significantly curtailed the public sector's contribution to housing supply. The volume of existing public BHBFC is lengthy and driven by political interests (Sarker et al. 2011). Nevertheless, it has recently housing programmes is small compared to housing demand and the government is yet to form a 'land- decreased its interest rate for Dhaka and Chittagong from 10-12 per cent to 8.5-9.5 per cent to make its bank' with Khas land to meet the mass housing needs. housing loan more competitive (Dhaka Tribune 2017). The interest rate on housing loans of state- owned commercial banks ranges between 10 and 14 per cent, while that of private commercial banks is This has allowed the private sector to emerge as the largest housing supplier. The REHAB currently has between 9 and 15 per cent (The Daily Star 2016). more than 1,000 real estate companies as registered members (Seraj 2012 as cited in IFC 2016). However, private housing developers do not target low-income households. Furthermore, as land is Besides the state-owned BHBFC, other sources of housing finance currently available in Bangladesh are increasingly getting scarce compared to the existing demand in Dhaka, the majority of housing is being public and private commercial banks, employee loans, and life insurance policies, while households developed as joint venture projects between real estate developers and individual land owners who that cannot gain access to credit rely on their own savings and contributions from informal sources are interested to convert their old residences into apartments. such as friends and relatives. Lack of compliance of building standards However, in the absence of the government's direct control over land prices, there have been Over the years, there have been numerous incidents of casualty as a result of buildings that collapsed, exorbitant hikes in land prices and construction materials in Dhaka over the period 2000-2010 (IFC tilted or caught fire. In April 2005, a nine-storeyed factory building hosting Spectrum Sweater 2016). As a result, despite the reduced interest rates on housing loans, the cost of finished apartments Industries Ltd. and Shahriar Fabrics collapsed killing more than 20 people and trapping hundreds has risen, thereby limiting buyers' purchasing capacity. others in the debris. In 2006, a five-storeyed building complex of Phoenix Textile in Tejgaon industrial In addition, there is a scarcity of finance available for developers, for which they acquire land through area collapsed killing 21 people and injuring more than 50. A new storey was being added to the equity. On top of that, construction loans come with high interest rates for which private developers building when the disaster happened. In June 2010, a five-storeyed residential building in Begunbari find it of little value. Also, the construction loan liability is subsequently transferred from developers to tumbled over three tin-shed houses killing 23 people. Within a couple of days in the same month, a buyers when the latter pays in instalments to finance the construction, before taking final possession of disastrous fire broke out in Nimtoli and spread fast across surrounding buildings and shops, killing more the complete apartment. The burden of interest falls on buyers, thereby diminishing their purchasing than 120 people. Then again the 2013 Rana Plaza tragedy is a poignant reminder of absence of capacity and directing developers' attention to upper-class buyers who can afford to bear the high regulatory measures, non-compliance of regulations related to land-use planning and building project costs (IFC 2016). construction. The owner of the building had obtained permission to construct a six-storey building but later extended it by three more floors, violating building construction code (The Daily Star 2016). The National Housing Policy 2017 has mentioned a number of reform measures to improve prospects for housing finance, such as by bringing private real estate companies to formal capital market and These examples clearly show that the real issue is not so much about the revision or amendment of the encouraging capital accumulation through public share, implementing and expanding smaller building codes but rather more about the implementation of these codes by respective authorities. apartment construction for middle and low income groups, creating land-banks, and preventing 'land No rent control speculation' by imposing taxes on unused land, among other things. However, it is too early to tell how Although there is a legislation to safeguard the interests of tenants, in reality its application is almost much the policy will be able to make good on its promises. non-existent. Consequently, house rents are fixed and increased annually according to the wishes of Centralised administration with weak coordination the landlords. Bangladesh is yet to achieve a functional decentralised administration. Although local government institutes exist both at urban and rural levels, they are not institutionally, legally and financially strong

26 27 enough to undertake pro-poor programmes of their own and instead rely on central government grants (Aminuzzaman 2013). In this context, lack of enterprises and employment opportunities in rural

3 CHAPTER areas, combined with assets lost to natural disasters from time to time, compel people to move to cities. Consequently, the rural-to-urban migration has put pressure on urban infrastructure, including housing. Furthermore, there are multiple players in Dhaka's development, which results in issues of weak ADEQUACY OF HOUSING coordination and overlapping functions. For instance, master plans are developed by both RAJUK and city corporations, without mutual consultation. Then again, National Housing Authority, Dhaka City Corporations and RAJUK are all responsible for undertaking housing development projects in Dhaka and each has its own set of rules to allocate flats or plots. 2.5 Conclusion This chapter has shown that urban housing has been sufficiently addressed in the contents of In 2017, discussions on housing focus heavily on livability and sustainability, and building green and legislation, but their enforcement is beset with irregularities. Urban housing on the supply side is energy efficient housing. While there has been a worldwide trend towards building sustainable cities, characterised by a number of factors, the most common of which are scarcity of buildable land for low- Bangladesh, along with many other countries in South Asia, is still struggling to ensure adequate cost housing projects, poor emphasis on the importance of developing satellite towns and secondary housing for its citizens. The issue of housing adequacy manifests itself differently in developed nations cities to discourage Dhaka-bound migration, failure of national agencies to set up land-banks and compared to in developing nations. In case of a developing country such as Bangladesh, housing deliver urban land plots for the majority, insufficient finance for real estate developers to undertake shortage can be seen through both homelessness and overcrowding. In these countries, the problem is low-cost housing projects, lack of monitoring of building construction codes, multiplicity of less of livability and more of the actual physical adequacy of housing. This reality is only magnified in the urban areas of Bangladesh like Dhaka City. Dhaka is not only the most densely populated city in the organisations for city development and lack of coordination therein and no regulation of residential world with annual increasing density figures, the growth of the city has also been highly unplanned and housing rent. These issues, if left unresolved further, would trigger irreversible crisis in matters of unmanaged, resulting in severely poor living standards for the people in the city. This, coupled with housing tenure, basic services and overall quality of life, which in turn affects the productivity of people land scarcity, has meant soaring prices of housing, be it upscale apartments or slum quarters. There is and growth prospects of the entire country. of course no one solution to the housing problem. A holistic agenda will have to address adequacy of While the government of Bangladesh has taken some commendable steps, such as digitisation of land housing for the people of all the varying income groups living in the city. records, the pending necessary reforms need to be accelerated to keep pace with Dhaka's urban Currently, the Dhaka North and South City Corporations have 12,218 hectares of residential area, growth rate. which includes 4500 slums and low-income settlements, with nearly 10 million people residing in the two city corporations (RAJUK 2016). In the absence of a well-established housing market, providing housing to this large and growing population has become a major challenge for the country. Given this backdrop, this chapter aims to look at the adequacy of housing in Dhaka, assessing both the demand and supply side factors. Specifically, the chapter looks into macro issues like land use planning and condition of housing provision in Dhaka in the supply side. The demand side analysis brings into a more micro perspective to that as this focuses on housing space allocation and utilisation pattern based on household data. The chapter is organised as follows: section one introduces the issue of housing in the context of Bangladesh followed by section two on definition, data and method. Section three presents the land use pattern of Dhaka city. Section four presents the analysis on housing supply of Dhaka followed by section five on occupancy status and residency pattern in Dhaka based on demand side data. Section five presents the conclusion and recommendations. 3.1 Methodology The analysis for this chapter utilises a mixed research methodology. The quantitative analysis is complemented by the qualitative information collected through interviews and review of literature.

1. Rajuk (2016) mentions that the number of slums in Dhaka City is 4500. It was not specified if the area includes only the DCC area on the broader DMR area.

29 enough to undertake pro-poor programmes of their own and instead rely on central government grants (Aminuzzaman 2013). In this context, lack of enterprises and employment opportunities in rural

3 CHAPTER areas, combined with assets lost to natural disasters from time to time, compel people to move to cities. Consequently, the rural-to-urban migration has put pressure on urban infrastructure, including housing. Furthermore, there are multiple players in Dhaka's development, which results in issues of weak ADEQUACY OF HOUSING coordination and overlapping functions. For instance, master plans are developed by both RAJUK and city corporations, without mutual consultation. Then again, National Housing Authority, Dhaka City Corporations and RAJUK are all responsible for undertaking housing development projects in Dhaka and each has its own set of rules to allocate flats or plots. 2.5 Conclusion This chapter has shown that urban housing has been sufficiently addressed in the contents of In 2017, discussions on housing focus heavily on livability and sustainability, and building green and legislation, but their enforcement is beset with irregularities. Urban housing on the supply side is energy efficient housing. While there has been a worldwide trend towards building sustainable cities, characterised by a number of factors, the most common of which are scarcity of buildable land for low- Bangladesh, along with many other countries in South Asia, is still struggling to ensure adequate cost housing projects, poor emphasis on the importance of developing satellite towns and secondary housing for its citizens. The issue of housing adequacy manifests itself differently in developed nations cities to discourage Dhaka-bound migration, failure of national agencies to set up land-banks and compared to in developing nations. In case of a developing country such as Bangladesh, housing deliver urban land plots for the majority, insufficient finance for real estate developers to undertake shortage can be seen through both homelessness and overcrowding. In these countries, the problem is low-cost housing projects, lack of monitoring of building construction codes, multiplicity of less of livability and more of the actual physical adequacy of housing. This reality is only magnified in the urban areas of Bangladesh like Dhaka City. Dhaka is not only the most densely populated city in the organisations for city development and lack of coordination therein and no regulation of residential world with annual increasing density figures, the growth of the city has also been highly unplanned and housing rent. These issues, if left unresolved further, would trigger irreversible crisis in matters of unmanaged, resulting in severely poor living standards for the people in the city. This, coupled with housing tenure, basic services and overall quality of life, which in turn affects the productivity of people land scarcity, has meant soaring prices of housing, be it upscale apartments or slum quarters. There is and growth prospects of the entire country. of course no one solution to the housing problem. A holistic agenda will have to address adequacy of While the government of Bangladesh has taken some commendable steps, such as digitisation of land housing for the people of all the varying income groups living in the city. records, the pending necessary reforms need to be accelerated to keep pace with Dhaka's urban Currently, the Dhaka North and South City Corporations have 12,218 hectares of residential area, growth rate. which includes 4500 slums and low-income settlements, with nearly 10 million people residing in the two city corporations (RAJUK 2016). In the absence of a well-established housing market, providing housing to this large and growing population has become a major challenge for the country. Given this backdrop, this chapter aims to look at the adequacy of housing in Dhaka, assessing both the demand and supply side factors. Specifically, the chapter looks into macro issues like land use planning and condition of housing provision in Dhaka in the supply side. The demand side analysis brings into a more micro perspective to that as this focuses on housing space allocation and utilisation pattern based on household data. The chapter is organised as follows: section one introduces the issue of housing in the context of Bangladesh followed by section two on definition, data and method. Section three presents the land use pattern of Dhaka city. Section four presents the analysis on housing supply of Dhaka followed by section five on occupancy status and residency pattern in Dhaka based on demand side data. Section five presents the conclusion and recommendations. 3.1 Methodology The analysis for this chapter utilises a mixed research methodology. The quantitative analysis is complemented by the qualitative information collected through interviews and review of literature.

1. Rajuk (2016) mentions that the number of slums in Dhaka City is 4500. It was not specified if the area includes only the DCC area on the broader DMR area.

29 State of Cities 2017 Adequacy of Housing

The quantitative analysis is done using the primary data collected as a part of the State of Cities (SOC) Table 3.1: Area and population density in Dhaka and other megacities Housing Survey 2017. Rajdhani Unnayan Kartripakkha2 (RAJUK) and Real Estate & Housing Association of Bangladesh (REHAB) have been two major sources of secondary data related to land use and Dhaka Dhaka (DNCC Mumbai Tokyo Shanghai Delhi housing. Additionally, interviews with policy makers, planners and academics were conducted to get a (DMR) and DSCC) comprehensive view about housing in Dhaka City. Area (km2) 559 122 546 8547 3,497 1943 Defining housing adequacy Population 30,980 79,900 30,900 4,300 6,000 11,500 The right to adequate housing is considered a basic human right. The United Nations Committee on Density 2 Economic, Social and Cultural Rights states that the right to adequate housing is the right to live (person/ km ) somewhere in security, peace and dignity. The Committee uses freedom, entitlement, adequacy and Average area 32.3 12.5 32.3 230.2 167.6 87.4 security to define adequate housing. They argue that adequate housing is more than just 'four walls per person (m2) and a roof' and that it should be affordable, habitable, and provide good infrastructure and tenure Source (for Mumbai, Tokyo, Shanghai and Delhi): Newgeography 2012 security and access to services and recreational facilities. Similar definitions are used in the New Source for Dhaka: RDP Survey, RAJUK 2016 Zealand housing assessment, which uses six interrelated dimensions including affordability, sustainability, habitability, and tenure security, freedom from crowding and freedom from discrimination (Habitat for Humanity 2017). In the American Housing Survey (Eggers and Moumen In the DNCC and DSCC, majority of the land is used as residential areas for the nearly 10 million people 2 2013), adequacy is narrowed down only to assess the physical adequacy of housing units in ensuring residing in the city. As seen in Table 3.2, this covers an area of about 122 km , indicating an average 2 2 the provision of basic amenities and services. In this chapter, adequacy is defined largely in terms of the population density of 79,900 person/km and an average residential space of 12.5 m per person.4 In physical adequacy of housing units, i.e. the physical space of housing units given family size and income contrast, the average density outside the central Dhaka region (existing the two city corporations) is level. This is supplemented using other variables to assess the adequacy of services and utilities within merely 17,400 and the average residential space of about 57.4 m2 per person. This shows a severely households. high population density within the central region, with pockets within DNCC and DSCC, such as Old Dhaka, Korail, having even higher density figures. 3.2 Land use pattern in Dhaka How is the urban land space being used? This is an important question to ask when talking about urban Table 3.2: Population density and residential area per person within Dhaka planning. This is even more important for a land scarce and densely populated city like Dhaka. Dhaka Metropolitan Dhaka North and South Other Regions in Therefore, understanding the land use in Dhaka is essential in constructing an effective and holistic Region (DMR) City Corporation (DNCC DMR urban plan that incorporates the needs of everyone in the income spectrum. With the large, annual and DSCC) influx of migrants into the city, it is even more important to understand and efficiently manage the use of land. Current management structure of land use not only influences the general standard of living in Average Population Dhaka, but also has significant implications in terms of planning for future growth. Density (p/km2) 31,000 79,900 17,400 In comparison to other megacities in Asia, Dhaka ranks at the very top in terms of population density. Average residential area 32.3 12.5 57.4 Table 3.1 provides density values for both the greater Dhaka area (referred to as Dhaka Metropolitan per person (m2) 3 Region (DMR)) as well as the Dhaka central area. In neighboring India, cities such as Mumbai and Delhi, Source: RDP Survey, RAJUK 2016 have far lower density figures compared to the nearly 80,000 people per square kilometer living in Dhaka City. The population density in the Dhaka North and South City Corporation is nearly 2.5 times The major cause of land scarcity in Dhaka stems from its topographical setting. Surrounded by low more than the average density in Mumbai, which is regarded as one of the most densely populated cities in the world. The stark difference becomes even more pronounced when looking at the average lying, flood prone areas, historically the development pattern in Dhaka followed a north to south area per person in the different cities. While all these cities hold massive populations, the average area pattern, unlike the more circular development pattern seen in many other cities around the world. per person is tremendously low in the Dhaka North City Corporation (DNCC) and Dhaka South City Over the years, the residential areas in Dhaka City have primarily grown along the Dhaka-Mymensingh Corporation (DSCC) area, at only 12.5 m2 per person. While the figures for Mumbai and DMR are similar, Highway, and towards Savar in the western side of the city. The eastern side has remained relatively both Mumbai and Delhi have significantly higher values when compared to the average area per untapped as residential area, serving mostly as agricultural land. The development that has occurred person in the central Dhaka region. so far in that region has mostly lead to informal residential zones.

2. Capital Development Authority 4. Residential area per person is calculated as part of this research, based on the secondary data from the draft Dhaka Structure Plan 3. DMR includes the Dhaka Central Region (North City Corporation and South City Corporation) and the shrouding urban 2016 – 2035. Residential space is also referred to as floor space in other sections of this chapter. settlements like Narayanganj, Tongi, Gazipur, Savar, Rupganj and Karaniganj (RAJUK 2016).

30 31 State of Cities 2017 Adequacy of Housing

The quantitative analysis is done using the primary data collected as a part of the State of Cities (SOC) Table 3.1: Area and population density in Dhaka and other megacities Housing Survey 2017. Rajdhani Unnayan Kartripakkha2 (RAJUK) and Real Estate & Housing Association of Bangladesh (REHAB) have been two major sources of secondary data related to land use and Dhaka Dhaka (DNCC Mumbai Tokyo Shanghai Delhi housing. Additionally, interviews with policy makers, planners and academics were conducted to get a (DMR) and DSCC) comprehensive view about housing in Dhaka City. Area (km2) 559 122 546 8547 3,497 1943 Defining housing adequacy Population 30,980 79,900 30,900 4,300 6,000 11,500 The right to adequate housing is considered a basic human right. The United Nations Committee on Density 2 Economic, Social and Cultural Rights states that the right to adequate housing is the right to live (person/ km ) somewhere in security, peace and dignity. The Committee uses freedom, entitlement, adequacy and Average area 32.3 12.5 32.3 230.2 167.6 87.4 security to define adequate housing. They argue that adequate housing is more than just 'four walls per person (m2) and a roof' and that it should be affordable, habitable, and provide good infrastructure and tenure Source (for Mumbai, Tokyo, Shanghai and Delhi): Newgeography 2012 security and access to services and recreational facilities. Similar definitions are used in the New Source for Dhaka: RDP Survey, RAJUK 2016 Zealand housing assessment, which uses six interrelated dimensions including affordability, sustainability, habitability, and tenure security, freedom from crowding and freedom from discrimination (Habitat for Humanity 2017). In the American Housing Survey (Eggers and Moumen In the DNCC and DSCC, majority of the land is used as residential areas for the nearly 10 million people 2 2013), adequacy is narrowed down only to assess the physical adequacy of housing units in ensuring residing in the city. As seen in Table 3.2, this covers an area of about 122 km , indicating an average 2 2 the provision of basic amenities and services. In this chapter, adequacy is defined largely in terms of the population density of 79,900 person/km and an average residential space of 12.5 m per person.4 In physical adequacy of housing units, i.e. the physical space of housing units given family size and income contrast, the average density outside the central Dhaka region (existing the two city corporations) is level. This is supplemented using other variables to assess the adequacy of services and utilities within merely 17,400 and the average residential space of about 57.4 m2 per person. This shows a severely households. high population density within the central region, with pockets within DNCC and DSCC, such as Old Dhaka, Korail, having even higher density figures. 3.2 Land use pattern in Dhaka How is the urban land space being used? This is an important question to ask when talking about urban Table 3.2: Population density and residential area per person within Dhaka planning. This is even more important for a land scarce and densely populated city like Dhaka. Dhaka Metropolitan Dhaka North and South Other Regions in Therefore, understanding the land use in Dhaka is essential in constructing an effective and holistic Region (DMR) City Corporation (DNCC DMR urban plan that incorporates the needs of everyone in the income spectrum. With the large, annual and DSCC) influx of migrants into the city, it is even more important to understand and efficiently manage the use of land. Current management structure of land use not only influences the general standard of living in Average Population Dhaka, but also has significant implications in terms of planning for future growth. Density (p/km2) 31,000 79,900 17,400 In comparison to other megacities in Asia, Dhaka ranks at the very top in terms of population density. Average residential area 32.3 12.5 57.4 Table 3.1 provides density values for both the greater Dhaka area (referred to as Dhaka Metropolitan per person (m2) 3 Region (DMR)) as well as the Dhaka central area. In neighboring India, cities such as Mumbai and Delhi, Source: RDP Survey, RAJUK 2016 have far lower density figures compared to the nearly 80,000 people per square kilometer living in Dhaka City. The population density in the Dhaka North and South City Corporation is nearly 2.5 times The major cause of land scarcity in Dhaka stems from its topographical setting. Surrounded by low more than the average density in Mumbai, which is regarded as one of the most densely populated cities in the world. The stark difference becomes even more pronounced when looking at the average lying, flood prone areas, historically the development pattern in Dhaka followed a north to south area per person in the different cities. While all these cities hold massive populations, the average area pattern, unlike the more circular development pattern seen in many other cities around the world. per person is tremendously low in the Dhaka North City Corporation (DNCC) and Dhaka South City Over the years, the residential areas in Dhaka City have primarily grown along the Dhaka-Mymensingh Corporation (DSCC) area, at only 12.5 m2 per person. While the figures for Mumbai and DMR are similar, Highway, and towards Savar in the western side of the city. The eastern side has remained relatively both Mumbai and Delhi have significantly higher values when compared to the average area per untapped as residential area, serving mostly as agricultural land. The development that has occurred person in the central Dhaka region. so far in that region has mostly lead to informal residential zones.

2. Capital Development Authority 4. Residential area per person is calculated as part of this research, based on the secondary data from the draft Dhaka Structure Plan 3. DMR includes the Dhaka Central Region (North City Corporation and South City Corporation) and the shrouding urban 2016 – 2035. Residential space is also referred to as floor space in other sections of this chapter. settlements like Narayanganj, Tongi, Gazipur, Savar, Rupganj and Karaniganj (RAJUK 2016).

30 31 State of Cities 2017 Adequacy of Housing

In addition to the physical inadequacy of land, land management has also been a major problem in reasons identified above (World Bank 2007). At the same time, a significant portion of the land owned Dhaka, due to governance failures, planning and administrative deficits. The existing land use pattern by different public agencies is subject to illegal ownership. Of the 62,192 acres of land under the in the Dhaka City Corporations is summarised in Figure 3.1. As shown in the figure, 41 percent of the ownership of Bangladesh Railway (BR), 2500 acres (4 percent approximately) of land are illegally total land is used as residential area. Beyond the residential areas, the remaining land in the city is used appropriated (Bangladesh Railway 2007 cited in Nahiduzzaman 2012). In Dhaka, the share of illegally for agriculture, roads and railways, commercial and industrial space, etc. appropriated railway is around 15 percent (Siddique et al 2005).

Figure 3.1: Land use pattern in Dhaka Encroachment of khas land has also been a major problem in the city. For instance, out of 15 hectares of khas (government land)5 land in Dhaka, only 430 hectares is free of occupation (World Bank 2007). Land Use Category In addition to the unused land, the space occupied by public housing projects raises concerns about the Agriculture proper distribution of land. There are about 13,000 existing dwelling units in Dhaka for public Commercial area employees (The Independent 2015). These public houses are characterised by provision for markedly Water bodies Industrial area liberal per capita residential space compared to other housing in the city. Many question the economic Road/Railways Mixed use area viability of these public housing schemes, especially because these housing units are offered at Public facilities exceptionally low rents, making it difficult to cover the high maintenance costs (Rahman 2009, Hoek- Recreational area Smit 1998 cited in Nahiduzzaman 2012) Mixed use area Residential area Public facilities Restricted area Box 3.1 Govt plans more housing projects for employees Road/Railways Commercial area Agriculture Recreational area Water bodies 5 September, 2015 The Independent

Industrial area The government is planning to ensure housing facilities for public servants in a bigger way during its present tenure to remove their longstanding accommodation crisis, reports UNB. According to the Ministry of Housing and Public Works, the government is constructing 448 apartments for the employees of the Bangladesh Parliament Secretariat at Sher-e-Bangla Nagar, 10-storey residential Restricted area buildings for government employees at abandoned land property in Segunbagicha and Mohammadpur Residential area areas and a 20-storey residential building for Judges of the Supreme Court in the city. Besides, some 38,244 plots will be developed and 70,377 apartments constructed across the country under various projects. The government also has a plan to build apartments for officers and judges at government residential colonies in Azimpur and Motijheel areas and 28 apartments for ministers at Bailey Road. As per the data provided by the Ministry of Housing and Public Works, there are only 24,000 government residences in the country against around 1.3 million public servants. The rest of the houses are in the district and upazila towns. Source: RAJUK 2016 Of those, around 15,000 houses in Dhaka and Chittagong cities. There are about 13,000 houses in Dhaka against 200,000 public servants. RAJUK recognises that a significant share of the land in Dhaka is underutilised (RAJUK 2016). This The Directorate of Government Accommodation (DoGA) only maintains the houses in Dhaka and unutilised land area is mostly public land, which is either illegally occupied, or kept unused for lengthy Chittagong cities. periods and is said to be reserved for future development. The rest of the houses are maintained by the district administrations and executive engineers of local Various government agencies have a significant portion of public land of Dhaka under their occupancy, the Public Works Department offices. a significant portion of which remains unutilised. In one of his studies, Barkat (2004) showed that public offices, including the Bangladesh Railway (BR), the Bangladesh Jute Mills Corporation, the Bangladesh Textiles Mills Corporation, the Port Authority etc., used the already scarce land of Dhaka mainly for their own housing projects, storehouses and corridors. In addition to that, they occupy huge portions of land for future development. On an average, 20 percent of inner city land remains unused for the 5. Khas land is government owned land. This applies not only to agricultural land, but also to other assets, such as non-agricultural land (urban, municipal, forest etc) and water bodies (river, haor, baor, beel etc.).

32 33 State of Cities 2017 Adequacy of Housing

In addition to the physical inadequacy of land, land management has also been a major problem in reasons identified above (World Bank 2007). At the same time, a significant portion of the land owned Dhaka, due to governance failures, planning and administrative deficits. The existing land use pattern by different public agencies is subject to illegal ownership. Of the 62,192 acres of land under the in the Dhaka City Corporations is summarised in Figure 3.1. As shown in the figure, 41 percent of the ownership of Bangladesh Railway (BR), 2500 acres (4 percent approximately) of land are illegally total land is used as residential area. Beyond the residential areas, the remaining land in the city is used appropriated (Bangladesh Railway 2007 cited in Nahiduzzaman 2012). In Dhaka, the share of illegally for agriculture, roads and railways, commercial and industrial space, etc. appropriated railway is around 15 percent (Siddique et al 2005).

Figure 3.1: Land use pattern in Dhaka Encroachment of khas land has also been a major problem in the city. For instance, out of 15 hectares of khas (government land)5 land in Dhaka, only 430 hectares is free of occupation (World Bank 2007). Land Use Category In addition to the unused land, the space occupied by public housing projects raises concerns about the Agriculture proper distribution of land. There are about 13,000 existing dwelling units in Dhaka for public Commercial area employees (The Independent 2015). These public houses are characterised by provision for markedly Water bodies Industrial area liberal per capita residential space compared to other housing in the city. Many question the economic Road/Railways Mixed use area viability of these public housing schemes, especially because these housing units are offered at Public facilities exceptionally low rents, making it difficult to cover the high maintenance costs (Rahman 2009, Hoek- Recreational area Smit 1998 cited in Nahiduzzaman 2012) Mixed use area Residential area Public facilities Restricted area Box 3.1 Govt plans more housing projects for employees Road/Railways Commercial area Agriculture Recreational area Water bodies 5 September, 2015 The Independent

Industrial area The government is planning to ensure housing facilities for public servants in a bigger way during its present tenure to remove their longstanding accommodation crisis, reports UNB. According to the Ministry of Housing and Public Works, the government is constructing 448 apartments for the employees of the Bangladesh Parliament Secretariat at Sher-e-Bangla Nagar, 10-storey residential Restricted area buildings for government employees at abandoned land property in Segunbagicha and Mohammadpur Residential area areas and a 20-storey residential building for Judges of the Supreme Court in the city. Besides, some 38,244 plots will be developed and 70,377 apartments constructed across the country under various projects. The government also has a plan to build apartments for officers and judges at government residential colonies in Azimpur and Motijheel areas and 28 apartments for ministers at Bailey Road. As per the data provided by the Ministry of Housing and Public Works, there are only 24,000 government residences in the country against around 1.3 million public servants. The rest of the houses are in the district and upazila towns. Source: RAJUK 2016 Of those, around 15,000 houses in Dhaka and Chittagong cities. There are about 13,000 houses in Dhaka against 200,000 public servants. RAJUK recognises that a significant share of the land in Dhaka is underutilised (RAJUK 2016). This The Directorate of Government Accommodation (DoGA) only maintains the houses in Dhaka and unutilised land area is mostly public land, which is either illegally occupied, or kept unused for lengthy Chittagong cities. periods and is said to be reserved for future development. The rest of the houses are maintained by the district administrations and executive engineers of local Various government agencies have a significant portion of public land of Dhaka under their occupancy, the Public Works Department offices. a significant portion of which remains unutilised. In one of his studies, Barkat (2004) showed that public offices, including the Bangladesh Railway (BR), the Bangladesh Jute Mills Corporation, the Bangladesh Textiles Mills Corporation, the Port Authority etc., used the already scarce land of Dhaka mainly for their own housing projects, storehouses and corridors. In addition to that, they occupy huge portions of land for future development. On an average, 20 percent of inner city land remains unused for the 5. Khas land is government owned land. This applies not only to agricultural land, but also to other assets, such as non-agricultural land (urban, municipal, forest etc) and water bodies (river, haor, baor, beel etc.).

32 33 State of Cities 2017 Adequacy of Housing

3.3 Housing supply in Dhaka In recent years, RAJUK has shifted from its primary role as a development and monitoring authority and delved into the supply of housing in the private sector. RAJUK currently implements planning and The Dhaka housing sector includes both formal and informal actors. The formal sector includes construction of apartments in Dhaka city, in addition to the development of plots. During the 1960s, government or public housing, cooperative housing such as the Mohammadia Housing Society, and RAJUK invested greatly in the development of planned residential areas such as Dhanmondi, Gulshan, private housing developed by registered developers (both corporate and individual), who acquire the Uttara, Banani, etc., mostly to high-income buyers (Farzana 2004). Sources at private sector necessary permission to build on their own land (Ahmad 2012, Islam 2004). The informal sector, in organisations have protested this role adjustment, arguing that the involvement of RAJUK in the contrast, includes housing developed by small, private developers who operate illegally, without any private sector supply side of housing is undermining the accountability process. approval from RAJUK, and by individual developers who build properties through procurement of land and through extension, as well as those who renovate or convert their house into apartments without 3.3.2 Private sector suppliers of housing any legal permit. This sector also includes slum housing and squatter settlements. Figure 3.2 provides a Private real estate developers are the primary contributors to the housing supply in Dhaka. According visual overview of the two sectors. to RAJUK, the private sector develops nearly 93 percent of housing units in the city. Significant portions Figure 3.2: Housing delivery system in urban Bangladesh of that 93 percent are individual developers who execute mostly smaller housing projects across the city. However, this is a conservative estimate and in reality, the numbers of individually developed apartments are likely to be much higher. Formal sector Inormal sector Figure 3.3: Trend in apartment supply (2000-2015)

Public Housing Private informal sub-system 20000 Cooperative housing 18000 Slum sub-system Housing Units Private formal subsystem 16000

Individual formal system Squatter housing 14000 ts 12000

Source: Ahmad 2012, Islam 2004 10000

8000 Both public and private sectors support provision of formal housing in Dhaka. Actors on the public Number of Apartmen 6000 sector side provide public and cooperative housing, which constitutes a very limited portion (about 7 percent) of the total housing in Dhaka, as reported by RAJUK. Therefore, the housing sector depends 4000 heavily on private real estate developers, both at the individual and corporate levels. The following sections provide brief overviews of the various public and private actors who contribute in supplying 2000 housing to the people living in Dhaka City. 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 3.3.1 Public sector suppliers of housing Year In Dhaka, the public sector supply of housing is predominantly to the public servants of the government. Among the suppliers, RAJUK is the single most prominent player, supplying 75 percent of Source: REHAB 2012, RAJUK 2015 the total public sector housing. The Public Works Department (PWD) of the Government constructs The growth of the organised real estate sector started slowly at first, accelerated with time. In 1980, many of the other housing units by the public sector for government employees. Other providers when the emergence of the real estate sector was still in its initial stage, there were only 10 active include the Defense Officer Housing Society (DOHS), which has built several housing estates developers in the country. By the end of the decade, there were more than 40 developers in the market. throughout the city, including in Mirpur, Mohakhali, Banani and Baridhara for members of the In 1991, the Real Estate and Housing Association of Bangladesh (REHAB) was formed with only 11 real Bangladesh Army, Bangladesh Navy and Bangladesh Air Force. estate developers joining as registered members. Over the next two decades, REHAB grew in size with Apart from RAJUK and DOHS, the National Housing Authority (NHA) also holds responsibility for more developers becoming members of the association. In 2017, there are over 1500 real estate development of housing units, including residential plots and apartments, and has jurisdiction over the developers in the market, 1191 of which are registered members of REHAB. The real estate market entire country. Other suppliers include the DNCC and DSCC, Roads and Highways, Power Development provides majority of the annual supply of housing units. In 2015, private real estate developers Board and Dhaka WASA who mostly build housing units for their respective institutions. provided 17,000 of the 25,000 housing units built in Dhaka during that year.

34 35 State of Cities 2017 Adequacy of Housing

3.3 Housing supply in Dhaka In recent years, RAJUK has shifted from its primary role as a development and monitoring authority and delved into the supply of housing in the private sector. RAJUK currently implements planning and The Dhaka housing sector includes both formal and informal actors. The formal sector includes construction of apartments in Dhaka city, in addition to the development of plots. During the 1960s, government or public housing, cooperative housing such as the Mohammadia Housing Society, and RAJUK invested greatly in the development of planned residential areas such as Dhanmondi, Gulshan, private housing developed by registered developers (both corporate and individual), who acquire the Uttara, Banani, etc., mostly to high-income buyers (Farzana 2004). Sources at private sector necessary permission to build on their own land (Ahmad 2012, Islam 2004). The informal sector, in organisations have protested this role adjustment, arguing that the involvement of RAJUK in the contrast, includes housing developed by small, private developers who operate illegally, without any private sector supply side of housing is undermining the accountability process. approval from RAJUK, and by individual developers who build properties through procurement of land and through extension, as well as those who renovate or convert their house into apartments without 3.3.2 Private sector suppliers of housing any legal permit. This sector also includes slum housing and squatter settlements. Figure 3.2 provides a Private real estate developers are the primary contributors to the housing supply in Dhaka. According visual overview of the two sectors. to RAJUK, the private sector develops nearly 93 percent of housing units in the city. Significant portions Figure 3.2: Housing delivery system in urban Bangladesh of that 93 percent are individual developers who execute mostly smaller housing projects across the city. However, this is a conservative estimate and in reality, the numbers of individually developed apartments are likely to be much higher. Formal sector Inormal sector Figure 3.3: Trend in apartment supply (2000-2015)

Public Housing Private informal sub-system 20000 Cooperative housing 18000 Slum sub-system Housing Units Private formal subsystem 16000

Individual formal system Squatter housing 14000 ts 12000

Source: Ahmad 2012, Islam 2004 10000

8000 Both public and private sectors support provision of formal housing in Dhaka. Actors on the public Number of Apartmen 6000 sector side provide public and cooperative housing, which constitutes a very limited portion (about 7 percent) of the total housing in Dhaka, as reported by RAJUK. Therefore, the housing sector depends 4000 heavily on private real estate developers, both at the individual and corporate levels. The following sections provide brief overviews of the various public and private actors who contribute in supplying 2000 housing to the people living in Dhaka City. 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 3.3.1 Public sector suppliers of housing Year In Dhaka, the public sector supply of housing is predominantly to the public servants of the government. Among the suppliers, RAJUK is the single most prominent player, supplying 75 percent of Source: REHAB 2012, RAJUK 2015 the total public sector housing. The Public Works Department (PWD) of the Government constructs The growth of the organised real estate sector started slowly at first, accelerated with time. In 1980, many of the other housing units by the public sector for government employees. Other providers when the emergence of the real estate sector was still in its initial stage, there were only 10 active include the Defense Officer Housing Society (DOHS), which has built several housing estates developers in the country. By the end of the decade, there were more than 40 developers in the market. throughout the city, including in Mirpur, Mohakhali, Banani and Baridhara for members of the In 1991, the Real Estate and Housing Association of Bangladesh (REHAB) was formed with only 11 real Bangladesh Army, Bangladesh Navy and Bangladesh Air Force. estate developers joining as registered members. Over the next two decades, REHAB grew in size with Apart from RAJUK and DOHS, the National Housing Authority (NHA) also holds responsibility for more developers becoming members of the association. In 2017, there are over 1500 real estate development of housing units, including residential plots and apartments, and has jurisdiction over the developers in the market, 1191 of which are registered members of REHAB. The real estate market entire country. Other suppliers include the DNCC and DSCC, Roads and Highways, Power Development provides majority of the annual supply of housing units. In 2015, private real estate developers Board and Dhaka WASA who mostly build housing units for their respective institutions. provided 17,000 of the 25,000 housing units built in Dhaka during that year.

34 35 State of Cities 2017 Adequacy of Housing

Figure 3.3 displays how the contribution of the real estate market has changed over the last 15 years. Figure 3.5: Supply of housing unit by income group While the market grew sluggishly at the beginning of the 21st century, the growth rate has been very high in the last decade. One exception is evident in 2013, when the supply saw a sharp decline to below Income group / Size of housing unit 14,000 housing units. This sudden drop is best explained by the political unrest and turmoil that Lower middle & High income group middle income group Middle income group burdened the country at that time (Daily Star 2014). REHAB reported a 75 percent drop in the development of new housing units in 2013 from 2012 (REHAB 2012). Developers even reported that 40% many completed properties were sitting idle due to the lack of buyers and the stagnant market environment. 30% Size of housing unit Even though the real estate market has been growing, the graph above is misleading of the degree of its 750-950

t supply 20% 1050-1400

success. Analysis of the size of demand for housing demonstrates the severe mismatch between e demand and supply of housing. In 2015, the population of the Dhaka North and South City Corporation 1450-2300 Mark was 9.7 million. Out of that nearly 10 million people, 6,247,800 were estimated to live in formal 10% housing, i.e. non-slum areas or low-income settlements. Given these figures, and given an average household size of 4.5, the total demand for housing in 2015 was nearly 1.4 million. This is an aggregate 0% value of residential units required to house the total population. Out of that 1.4 million, 0.46 million is 1450-2300 750-950 1050-1400 the backlog of unmet housing needs (RAJUK 2016). Additionally, given the annual rise in population of 6 around 0.6 million due to in-migration, 0.12 million housing units are required to accommodate the Source: KII under SOC 2017 increased population in the city (MTB One part of this journey has led to the development of large scale and luxury apartments, fueled by the Figure 3.4: Demand and estimated demand for housing 2017). Therefore, the total demand for big real estate developers and aimed mostly at upper middle and high-income groups. This part of housing in 2015 was 0.58 million. The Dhaka is characterised by good infrastructure, especially in terms of roads, and greater connectivity 0.8 average annual supply of housing, as and access to services. These more developed areas have historically attracted more competition 0.7 mentioned above, is merely a fraction between the real estate developers, and consequently exerted an upward pressure on the price of land 0.6 of that 0.58 million at 25,000 formal and apartment units. The other path led to the development of smaller, substandard apartments 0.5 housing units added to the city a year. developed by relatively small-scale builders, serving the need of lower income groups. The rapid 0.4 Given these figures, it means that the expansion of the informal housing market is a direct result of the massive gap between supply and 0.3 supply of housing meets less than 5 demand of housing. Apart from the availability of more sophisticated infrastructure and access to 0.2 percent of the demand, indicating a services, a major difference between these two types of development is viewed in their compliance 0.1 massive shortage in the supply of with housing regulations. A significant number of individual and small-scale developers construct their

0 housing in Dhaka. Figure 3.4 properties violating building codes and planning regulations whereas the bigger companies broadly

Demand for housing (millions) demonstrates the estimated yearly comply with the regulations (Farzana 2004). 2010 2015 2020 2025 2030 2035 housing unit backlog till 2035, when The supply of housing has long been speculated to be skewed towards the upper middle and high- Backlog of Housing Units (in millions) the housing demand backlog is income populations. Even in the 1990s and early 2000s, developers invested more resources and had expected to approach 0.7 million. higher number of properties in areas with a concentration of high income residents, such as Source: RAJUK 2016 Dhanmondi, Gulshan, Banani, Baridhara, etc (Nahiduzzaman 2012, Farzana 2004). Interviews with real 3.3.3 Profile of housing in Dhaka: A tale of two cities estate providers reveal that the profit margin of investment in high-end residential areas is much Over the years, the profile of housing in Dhaka has changed. In the early 2000s, the growing middle- higher compared to that in the relatively underdeveloped areas. This has helped to attract more income population started investing more in housing and the real estate sector responded by companies to invest in those sites. Additionally, connectivity is a major shortcoming in less developed increasing their supply. However, unmet demand of the growing urban population has remained a areas, which discourages the bigger real estate developers to invest in those areas. Not only are the persistent problem even with this increase in supply. In that course of action, the growth of privately developers more active in higher income areas, but the apartments they develop are, on average, more 2 developed housing in Dhaka also took two very distinct paths and in effect, created starkly differing than 1000 ft in size, as reflected in the 2004 statistics (Figure 3.5). This pattern is still evident in recent housing realities juxtaposed within the same urban space. There are, however, no neat boundaries years. Interviews with developers reveal that about 70 percent of real estate developments are built between these two parallelly growing and very different housing worlds. A modern tale of two cities in one with blurred boundaries has come to define the modern Dhaka story. 6. The income groups reported in the figure are based on KIIs conducted by BIGD with real estate developers.

36 37 State of Cities 2017 Adequacy of Housing

Figure 3.3 displays how the contribution of the real estate market has changed over the last 15 years. Figure 3.5: Supply of housing unit by income group While the market grew sluggishly at the beginning of the 21st century, the growth rate has been very high in the last decade. One exception is evident in 2013, when the supply saw a sharp decline to below Income group / Size of housing unit 14,000 housing units. This sudden drop is best explained by the political unrest and turmoil that Lower middle & High income group middle income group Middle income group burdened the country at that time (Daily Star 2014). REHAB reported a 75 percent drop in the development of new housing units in 2013 from 2012 (REHAB 2012). Developers even reported that 40% many completed properties were sitting idle due to the lack of buyers and the stagnant market environment. 30% Size of housing unit Even though the real estate market has been growing, the graph above is misleading of the degree of its 750-950

t supply 20% 1050-1400

success. Analysis of the size of demand for housing demonstrates the severe mismatch between e demand and supply of housing. In 2015, the population of the Dhaka North and South City Corporation 1450-2300 Mark was 9.7 million. Out of that nearly 10 million people, 6,247,800 were estimated to live in formal 10% housing, i.e. non-slum areas or low-income settlements. Given these figures, and given an average household size of 4.5, the total demand for housing in 2015 was nearly 1.4 million. This is an aggregate 0% value of residential units required to house the total population. Out of that 1.4 million, 0.46 million is 1450-2300 750-950 1050-1400 the backlog of unmet housing needs (RAJUK 2016). Additionally, given the annual rise in population of 6 around 0.6 million due to in-migration, 0.12 million housing units are required to accommodate the Source: KII under SOC 2017 increased population in the city (MTB One part of this journey has led to the development of large scale and luxury apartments, fueled by the Figure 3.4: Demand and estimated demand for housing 2017). Therefore, the total demand for big real estate developers and aimed mostly at upper middle and high-income groups. This part of housing in 2015 was 0.58 million. The Dhaka is characterised by good infrastructure, especially in terms of roads, and greater connectivity 0.8 average annual supply of housing, as and access to services. These more developed areas have historically attracted more competition 0.7 mentioned above, is merely a fraction between the real estate developers, and consequently exerted an upward pressure on the price of land 0.6 of that 0.58 million at 25,000 formal and apartment units. The other path led to the development of smaller, substandard apartments 0.5 housing units added to the city a year. developed by relatively small-scale builders, serving the need of lower income groups. The rapid 0.4 Given these figures, it means that the expansion of the informal housing market is a direct result of the massive gap between supply and 0.3 supply of housing meets less than 5 demand of housing. Apart from the availability of more sophisticated infrastructure and access to 0.2 percent of the demand, indicating a services, a major difference between these two types of development is viewed in their compliance 0.1 massive shortage in the supply of with housing regulations. A significant number of individual and small-scale developers construct their

0 housing in Dhaka. Figure 3.4 properties violating building codes and planning regulations whereas the bigger companies broadly

Demand for housing (millions) demonstrates the estimated yearly comply with the regulations (Farzana 2004). 2010 2015 2020 2025 2030 2035 housing unit backlog till 2035, when The supply of housing has long been speculated to be skewed towards the upper middle and high- Backlog of Housing Units (in millions) the housing demand backlog is income populations. Even in the 1990s and early 2000s, developers invested more resources and had expected to approach 0.7 million. higher number of properties in areas with a concentration of high income residents, such as Source: RAJUK 2016 Dhanmondi, Gulshan, Banani, Baridhara, etc (Nahiduzzaman 2012, Farzana 2004). Interviews with real 3.3.3 Profile of housing in Dhaka: A tale of two cities estate providers reveal that the profit margin of investment in high-end residential areas is much Over the years, the profile of housing in Dhaka has changed. In the early 2000s, the growing middle- higher compared to that in the relatively underdeveloped areas. This has helped to attract more income population started investing more in housing and the real estate sector responded by companies to invest in those sites. Additionally, connectivity is a major shortcoming in less developed increasing their supply. However, unmet demand of the growing urban population has remained a areas, which discourages the bigger real estate developers to invest in those areas. Not only are the persistent problem even with this increase in supply. In that course of action, the growth of privately developers more active in higher income areas, but the apartments they develop are, on average, more 2 developed housing in Dhaka also took two very distinct paths and in effect, created starkly differing than 1000 ft in size, as reflected in the 2004 statistics (Figure 3.5). This pattern is still evident in recent housing realities juxtaposed within the same urban space. There are, however, no neat boundaries years. Interviews with developers reveal that about 70 percent of real estate developments are built between these two parallelly growing and very different housing worlds. A modern tale of two cities in one with blurred boundaries has come to define the modern Dhaka story. 6. The income groups reported in the figure are based on KIIs conducted by BIGD with real estate developers.

36 37 State of Cities 2017 Adequacy of Housing

2 targeting the middle and higher income group, which include houses greater than 1050 ft . This makes Recent studies on housing have focused mostly on the aspect of affordability and there has been very it near impossible for middle and lower income families to purchase apartments in the city little analysis done to understand the usage pattern of the residential space in the urban formal (Nahiduzzaman 2012). The Bangladesh House Building Finance Corporation (BHBFC) also reports that housing sector. Therefore, using the primary data collected in the SOC Housing Survey 2017, this the demand for housing of low and lower middle-income families remains largely unmet due to the section focuses on the assessment of the adequacy of housing provision for formal housing in Dhaka, profile and cost of apartments being built. using standard measures of overcrowding and thorough assessment of the provision of basic utilities Figure 3.6: Apartment size in different areas of Dhaka and amenities. 3.4.1 Occupancy status and residential space Uttara 1980 Over the years, no significant change has been seen in the housing occupancy pattern in Dhaka. During Siddeswary 1329 the mid-1990s, the share of owner occupied houses was 31.9 percent (ADB 1996 cited in Farzana Shantinagar 1345 2004). The statistics remains similar in 2017. The SOC Housing Survey 2017 shows that among the Shyamoli 979 households living in formal residences, around 32 percent of them live in owner occupied residences Shegunbagicha 1399 and the remaining 68 percent of the residents live in rented properties. The survey also reveals that Niketon 1517 majority of the tenants do not plan to purchase any properties in Dhaka, citing the high price of Mohammadpur 1179 apartments as the main discouraging factor (see Chapter 4). Further disaggregation shows that among Moghbazar 1265 the household living in rented units, around 58 percent of the household live in rented apartments, as Mirpur 1076 opposed to the 9 percent that live in rented houses. About 21 percent of the households live in owner Lalmatia 1572 occupied apartments followed by the 10 percent that live in owner occupied houses. The data also Green Road 1254 shows that the size of the housing unit also varies based on the occupancy status of the resident. For Gulshan 4273 example, the average size of owner occupied residences is 1261 ft2, while the average size of a rented 2 Elephant Road 1388 unit is 950 ft . Dhanmondi 2045 Figure 3.7: Types of occupancy Baridhara 2066 The data from the survey demonstrates that the Banani 1873 70 average floor space7 in the surveyed areas is 60 0 500 100 1500 2000 2500 3000 3500 4000 4500 2 50 around 1050 ft . However, the data is also telling

Apartment Size (sq. ft.) t 40 of the great variation between households in cen

er 30 terms of the floor space that they occupy. Table

Source: Farzana 2004 P 20 3.3 shows the frequency distribution of 3.4 Usage of residential space in Dhaka: A demand side analysis 10 residential floor size. While the average floor 0 space is not very small, there is significant The previous sections highlight two major issues - the inadequacy of land and the inadequacy of owned owned rented rented variation in floor space with a standard deviation appropriate housing in Dhaka city. What are the possible implications of this limited supply on the house apartment house apartment of 488 ft2. More than 55 percent of the housing consumption pattern of people living in Dhaka? Literature identifies Dhaka as one of the most Types of occupancy households live in houses smaller than 1000 ft2, crowded cities in the world, which became even more apparent during the 1990s. This overcrowding with nearly 80 percent of the surveyed not only has implications for the growth of informal housing areas in Dhaka but also greatly impacts households living in houses smaller than 1400 ft2. Some of the housing units were found to be as small residential space allocation in the formal housing sector. The basic housing profile, as compiled by as 100 ft2, which are mostly one-bedroom houses with shared amenities. Only 5 percent were reported Green & Malpezzi (McDonald and McMillen 2011) shows that average per capita floor space in Dhaka 2 2 to be living in houses of 2000 ft or more. This is likely a result of the rise in the price of housing as in 1993 was only 5.2 m and 30 percent of all housing were owner occupied (McDonald and McMillen mentioned in the previous section. Discussions with real estate developers reveal that unaffordability 2011). However, Bhattacharya (2010) argues that the degree of overcrowding was far worse, given that is one of the major reasons why buyers and renters are opting for smaller housing. more than two people had to share one bedroom. Research done on urban slums reveal that around 89 percent of the urban poor of the city are living in one bedroom houses, with average floor space per person as small as 13 ft2 (Kamruzzaman and Ogura 2009). 7. Floor space is described as the total area of a residence, excluding green space and car parking, measured in square feet.

38 39 State of Cities 2017 Adequacy of Housing

2 targeting the middle and higher income group, which include houses greater than 1050 ft . This makes Recent studies on housing have focused mostly on the aspect of affordability and there has been very it near impossible for middle and lower income families to purchase apartments in the city little analysis done to understand the usage pattern of the residential space in the urban formal (Nahiduzzaman 2012). The Bangladesh House Building Finance Corporation (BHBFC) also reports that housing sector. Therefore, using the primary data collected in the SOC Housing Survey 2017, this the demand for housing of low and lower middle-income families remains largely unmet due to the section focuses on the assessment of the adequacy of housing provision for formal housing in Dhaka, profile and cost of apartments being built. using standard measures of overcrowding and thorough assessment of the provision of basic utilities Figure 3.6: Apartment size in different areas of Dhaka and amenities. 3.4.1 Occupancy status and residential space Uttara 1980 Over the years, no significant change has been seen in the housing occupancy pattern in Dhaka. During Siddeswary 1329 the mid-1990s, the share of owner occupied houses was 31.9 percent (ADB 1996 cited in Farzana Shantinagar 1345 2004). The statistics remains similar in 2017. The SOC Housing Survey 2017 shows that among the Shyamoli 979 households living in formal residences, around 32 percent of them live in owner occupied residences Shegunbagicha 1399 and the remaining 68 percent of the residents live in rented properties. The survey also reveals that Niketon 1517 majority of the tenants do not plan to purchase any properties in Dhaka, citing the high price of Mohammadpur 1179 apartments as the main discouraging factor (see Chapter 4). Further disaggregation shows that among Moghbazar 1265 the household living in rented units, around 58 percent of the household live in rented apartments, as Mirpur 1076 opposed to the 9 percent that live in rented houses. About 21 percent of the households live in owner Lalmatia 1572 occupied apartments followed by the 10 percent that live in owner occupied houses. The data also Green Road 1254 shows that the size of the housing unit also varies based on the occupancy status of the resident. For Gulshan 4273 example, the average size of owner occupied residences is 1261 ft2, while the average size of a rented 2 Elephant Road 1388 unit is 950 ft . Dhanmondi 2045 Figure 3.7: Types of occupancy Baridhara 2066 The data from the survey demonstrates that the Banani 1873 70 average floor space7 in the surveyed areas is 60 0 500 100 1500 2000 2500 3000 3500 4000 4500 2 50 around 1050 ft . However, the data is also telling

Apartment Size (sq. ft.) t 40 of the great variation between households in cen

er 30 terms of the floor space that they occupy. Table

Source: Farzana 2004 P 20 3.3 shows the frequency distribution of 3.4 Usage of residential space in Dhaka: A demand side analysis 10 residential floor size. While the average floor 0 space is not very small, there is significant The previous sections highlight two major issues - the inadequacy of land and the inadequacy of owned owned rented rented variation in floor space with a standard deviation appropriate housing in Dhaka city. What are the possible implications of this limited supply on the house apartment house apartment of 488 ft2. More than 55 percent of the housing consumption pattern of people living in Dhaka? Literature identifies Dhaka as one of the most Types of occupancy households live in houses smaller than 1000 ft2, crowded cities in the world, which became even more apparent during the 1990s. This overcrowding with nearly 80 percent of the surveyed not only has implications for the growth of informal housing areas in Dhaka but also greatly impacts households living in houses smaller than 1400 ft2. Some of the housing units were found to be as small residential space allocation in the formal housing sector. The basic housing profile, as compiled by as 100 ft2, which are mostly one-bedroom houses with shared amenities. Only 5 percent were reported Green & Malpezzi (McDonald and McMillen 2011) shows that average per capita floor space in Dhaka 2 2 to be living in houses of 2000 ft or more. This is likely a result of the rise in the price of housing as in 1993 was only 5.2 m and 30 percent of all housing were owner occupied (McDonald and McMillen mentioned in the previous section. Discussions with real estate developers reveal that unaffordability 2011). However, Bhattacharya (2010) argues that the degree of overcrowding was far worse, given that is one of the major reasons why buyers and renters are opting for smaller housing. more than two people had to share one bedroom. Research done on urban slums reveal that around 89 percent of the urban poor of the city are living in one bedroom houses, with average floor space per person as small as 13 ft2 (Kamruzzaman and Ogura 2009). 7. Floor space is described as the total area of a residence, excluding green space and car parking, measured in square feet.

38 39 State of Cities 2017 Adequacy of Housing

Table 3.3: Frequency Distribution of Housing Size average monthly income of BDT 20,000, were found to have per capita floor space of 129 ft2, which is far 2 With the given shortage in supply and a growing lower than the minimum requirement of 165 ft . This implies that overcrowding is a more urgent Square Feet n % tendency of households to select smaller residential problem for families with limited income and who live in smaller houses in the city. Upto 550 41 10.22 units, there is an increased likelihood of overcrowding Figure 3.9: Residential space by income group 551-750 68 16.96 within the city. In assessing the level of overcrowding, countries around the world use per capita floor space as 751-1000 113 28.18 a standard measure of overcrowding. The global 1600.0 1001-1200 81 20.2 standard of per capita floor space is 165 ft2 (HUD 2007). 1400.0 Compared to this global benchmark, the average per 1200+ 98 24.44 1200.0 capita floor space in the surveyed households is much higher. According to the data, the average per capita floor 1000.0 space is 213.61 ft2, given a family size of five members. This is much higher than the global minimum

z) 800.0

standard of per capita residential floor space. However, an average measure of floor space can be e (f 600.0 misleading as it ignores the distribution of residential space across different income levels and square footage of housing units. An assessment of the per capita floor space across these categories allows for 400.0 Floor siz a deeper delve into understanding the equity of residential space distribution. 200.0 Figure 3.8: Association between income and floor space 0.0

80000+ 20-40000 40-60000 60-80000 250000 below 20000 Average residential space by income group 200000 Figure 3.10: Floor space allocation by size of house Overcrowding is also measured 150000 300 globally by calculating the persons per bedroom (PPB) in a house. In order to 250

100000 ascertain the level of crowding at the z) 200 household level, the housing profile of the respondents is first considered. The 50000 150 profile shows that nearly 49 percent of the households live in two-bedroom 0

a floor space (f 100 residences, 27 percent live in three- 0 1000 2000 3000 4000 5000 apit 50 bedroom residences, 10 percent live in

c2 er c P one-bedroom residences and 11 Fitted values Monthly income 0 percent live in four bedroom

sqrft 1200+ residences (Figure 3.11). Therefore, To see how the per capita floor space allocation varies by square footage of housing, five different o 550sqrft according to the data, 2 bedroom 551-750 upt 751-1000sqrft categories of houses are considered. The results show that the variation among the different 1000-1200sqrft residences are the most prevalent categories is highly significant and conform to the presumptions that per capita floor space is strikingly per capita floor space by size of house among the respondents. low for people living in smaller houses compared to those living in larger houses. It is also not surprising to see that there is a significant positive relation between income level and floor space. The data shows that in the housing units that are 550 ft2 or less, the average per capita floor space is as low as 100 ft2, whereas, it is as high as 285 ft2 in those units that are 1200 ft2 or more. The surveyed households, with

40 41 State of Cities 2017 Adequacy of Housing

Table 3.3: Frequency Distribution of Housing Size average monthly income of BDT 20,000, were found to have per capita floor space of 129 ft2, which is far 2 With the given shortage in supply and a growing lower than the minimum requirement of 165 ft . This implies that overcrowding is a more urgent Square Feet n % tendency of households to select smaller residential problem for families with limited income and who live in smaller houses in the city. Upto 550 41 10.22 units, there is an increased likelihood of overcrowding Figure 3.9: Residential space by income group 551-750 68 16.96 within the city. In assessing the level of overcrowding, countries around the world use per capita floor space as 751-1000 113 28.18 a standard measure of overcrowding. The global 1600.0 1001-1200 81 20.2 standard of per capita floor space is 165 ft2 (HUD 2007). 1400.0 Compared to this global benchmark, the average per 1200+ 98 24.44 1200.0 capita floor space in the surveyed households is much higher. According to the data, the average per capita floor 1000.0 space is 213.61 ft2, given a family size of five members. This is much higher than the global minimum

z) 800.0

standard of per capita residential floor space. However, an average measure of floor space can be e (f 600.0 misleading as it ignores the distribution of residential space across different income levels and square footage of housing units. An assessment of the per capita floor space across these categories allows for 400.0 Floor siz a deeper delve into understanding the equity of residential space distribution. 200.0 Figure 3.8: Association between income and floor space 0.0

80000+ 20-40000 40-60000 60-80000 250000 below 20000 Average residential space by income group 200000 Figure 3.10: Floor space allocation by size of house Overcrowding is also measured 150000 300 globally by calculating the persons per bedroom (PPB) in a house. In order to 250

100000 ascertain the level of crowding at the z) 200 household level, the housing profile of the respondents is first considered. The 50000 150 profile shows that nearly 49 percent of the households live in two-bedroom 0

a floor space (f 100 residences, 27 percent live in three- 0 1000 2000 3000 4000 5000 apit 50 bedroom residences, 10 percent live in c2 er c P one-bedroom residences and 11 Fitted values Monthly income 0 percent live in four bedroom

sqrft 1200+ residences (Figure 3.11). Therefore, To see how the per capita floor space allocation varies by square footage of housing, five different o 550sqrft according to the data, 2 bedroom 551-750 upt 751-1000sqrft categories of houses are considered. The results show that the variation among the different 1000-1200sqrft residences are the most prevalent categories is highly significant and conform to the presumptions that per capita floor space is strikingly per capita floor space by size of house among the respondents. low for people living in smaller houses compared to those living in larger houses. It is also not surprising to see that there is a significant positive relation between income level and floor space. The data shows that in the housing units that are 550 ft2 or less, the average per capita floor space is as low as 100 ft2, whereas, it is as high as 285 ft2 in those units that are 1200 ft2 or more. The surveyed households, with

40 41 State of Cities 2017 Adequacy of Housing

Figure 3.11: Distribution of houses by number of bedroom 3.4.3 Adequacy: Household perception Given this housing profile, PPB is used to 3.49% An objective of this survey was to understand adequacy from the perspective of the households. As measure overcrowding in the surveyed part of the survey, the households were asked to rate the adequacy of floor space considering their 9.98% households, with the global benchmark family size and the amount of rent they pay. The result paints a positive picture of general satisfaction 10.47% set at 2 persons per bedroom. On about adequacy of housing among the respondents. Around 80 percent of the households suggested 1 bedroom average, the surveyed households have a that the size of their house is adequate given their family size. However, 20 percent of the surveyed 2 bedroom similar PPB, implying that these houses households suggested that they were seriously dissatisfied with their current living conditions, citing 3 bedroom are not overcrowded. However, further overcrowdedness as one of the major drawbacks. 27.18% 4 bedroom disaggregation by income and square 48.63% fo o t a g e o f h o u s e s h o w s t h a t Figure 3.12: Perception regarding adequacy of floor space 5+ overcrowding is a persistent problem for There were similar responses to certain income groups. Table 3.4 gives the 3.31 the question of the level of distribution of households by bedroom Not at all adequate 1.75 satisfaction, given the amount per person. of house rent. 86 percent of the 17.65 Adequacy of floor Mostly inadequate 17.71 space given the surveyed households said that Table 3.4: Distribution of households by bedroom per person amount of rent the floor space is adequate

The table demonstrates that, even though the ting 68.01 paid given the rent that they are Bedroom per person % of household Ra Mostly adequate 47.38 average PPB measure meets the global standard, paying for the housing unit. A .01-<.25 2.74 Adequacy of parts of the population who live in formal housing are 11.03 floor size given relatively smaller percentage of 0.25 4.24 subject to overcrowding, especially those with Completely adequate 33.17 family size the households (14 percent) .26-<.4 13.47 limited income. Around 35 percent of the surveyed said that they are dissatisfied households have to accommodate more than two 0 20 40 60 80 with their dwelling given the 0.4 11.97 Percent response persons per bedroom. The percentage of household level of the rent that they pay. .41-<.5 3 with at least four persons per bedroom is around 7 Figure 3.13: Rating of adequacy by size of houses 0.5 22.19 percent and the percentage of household with at 0.51-<0.75 25.68 least three persons per bedroom is 12 percent. Of all Bigger (1200+) 0.75 7.98 the surveyed households, 22 percent accommodate exactly 2 persons per bedroom. The data also shows Big (1001-1200) 0.76-<1 2.99 that a large portion (42 percent) of the surveyed Not at all adequate z) 1 3.74 Mostly inade

households with higher income levels accommodate e (f Medium Houses (751-100) 1.1 <2 1.25 less than 2 persons per bedroom. This reiterates the Mostly adequate Small house (551-750) fact that overcrowding is a bigger threat for lower Completely adequate 2 0.75 Floor siz income families in the city. Smaller house (<=550)

3.4.2 Provision of utilities and amenities 0 10 20 30 40 50 60 70 An assessment of the provision of utilities and amenities offers another angle to understand the Percent response adequacy of housing units. When asked about the provision of facilities such as dining room, kitchen and servant's quarter, the survey shows that 98 percent houses have separate kitchens and 71 percent The result makes it clear that the higher income strata do not face the same challenges when compared houses have separate dining rooms. According to the survey data, around 3 percent of the surveyed to the lower income population in the city. As expected people within the higher income bracket can houses have shared bathrooms and do not have access to separate bathrooms in their house. Around afford to allocate housing space according to their family size whereas for lower income families, 34 percent houses have 1 bathroom followed by 47 percent with 2 bathrooms and 11 percent with 3 housing space is still a major concern. bathrooms. Around 5 percent of total houses have more than 3 bathrooms. Basic utilities such as gas and electricity are provided in all the houses. Around 87 percent houses have two burners followed by 3.5 Key findings and recommendations 12 percent with 1 burner. The broader focus of this chapter is to assess the physical adequacy of land and housing in Dhaka city. In addition to the discussion on the supply side of housing, this chapter also provides a demand side analysis of housing space adequacy based on household level data from the SOC Housing Survey 2017.

42 43 State of Cities 2017 Adequacy of Housing

Figure 3.11: Distribution of houses by number of bedroom 3.4.3 Adequacy: Household perception Given this housing profile, PPB is used to 3.49% An objective of this survey was to understand adequacy from the perspective of the households. As measure overcrowding in the surveyed part of the survey, the households were asked to rate the adequacy of floor space considering their 9.98% households, with the global benchmark family size and the amount of rent they pay. The result paints a positive picture of general satisfaction 10.47% set at 2 persons per bedroom. On about adequacy of housing among the respondents. Around 80 percent of the households suggested 1 bedroom average, the surveyed households have a that the size of their house is adequate given their family size. However, 20 percent of the surveyed 2 bedroom similar PPB, implying that these houses households suggested that they were seriously dissatisfied with their current living conditions, citing 3 bedroom are not overcrowded. However, further overcrowdedness as one of the major drawbacks. 27.18% 4 bedroom disaggregation by income and square 48.63% fo o t a g e o f h o u s e s h o w s t h a t Figure 3.12: Perception regarding adequacy of floor space 5+ overcrowding is a persistent problem for There were similar responses to certain income groups. Table 3.4 gives the 3.31 the question of the level of distribution of households by bedroom Not at all adequate 1.75 satisfaction, given the amount per person. of house rent. 86 percent of the 17.65 Adequacy of floor Mostly inadequate 17.71 space given the surveyed households said that Table 3.4: Distribution of households by bedroom per person amount of rent the floor space is adequate

The table demonstrates that, even though the ting 68.01 paid given the rent that they are Bedroom per person % of household Ra Mostly adequate 47.38 average PPB measure meets the global standard, paying for the housing unit. A .01-<.25 2.74 Adequacy of parts of the population who live in formal housing are 11.03 floor size given relatively smaller percentage of 0.25 4.24 subject to overcrowding, especially those with Completely adequate 33.17 family size the households (14 percent) .26-<.4 13.47 limited income. Around 35 percent of the surveyed said that they are dissatisfied households have to accommodate more than two 0 20 40 60 80 with their dwelling given the 0.4 11.97 Percent response persons per bedroom. The percentage of household level of the rent that they pay. .41-<.5 3 with at least four persons per bedroom is around 7 Figure 3.13: Rating of adequacy by size of houses 0.5 22.19 percent and the percentage of household with at 0.51-<0.75 25.68 least three persons per bedroom is 12 percent. Of all Bigger (1200+) 0.75 7.98 the surveyed households, 22 percent accommodate exactly 2 persons per bedroom. The data also shows Big (1001-1200) 0.76-<1 2.99 that a large portion (42 percent) of the surveyed Not at all adequate z) 1 3.74 Mostly inade

households with higher income levels accommodate e (f Medium Houses (751-100) 1.1 <2 1.25 less than 2 persons per bedroom. This reiterates the Mostly adequate Small house (551-750) fact that overcrowding is a bigger threat for lower Completely adequate 2 0.75 Floor siz income families in the city. Smaller house (<=550)

3.4.2 Provision of utilities and amenities 0 10 20 30 40 50 60 70 An assessment of the provision of utilities and amenities offers another angle to understand the Percent response adequacy of housing units. When asked about the provision of facilities such as dining room, kitchen and servant's quarter, the survey shows that 98 percent houses have separate kitchens and 71 percent The result makes it clear that the higher income strata do not face the same challenges when compared houses have separate dining rooms. According to the survey data, around 3 percent of the surveyed to the lower income population in the city. As expected people within the higher income bracket can houses have shared bathrooms and do not have access to separate bathrooms in their house. Around afford to allocate housing space according to their family size whereas for lower income families, 34 percent houses have 1 bathroom followed by 47 percent with 2 bathrooms and 11 percent with 3 housing space is still a major concern. bathrooms. Around 5 percent of total houses have more than 3 bathrooms. Basic utilities such as gas and electricity are provided in all the houses. Around 87 percent houses have two burners followed by 3.5 Key findings and recommendations 12 percent with 1 burner. The broader focus of this chapter is to assess the physical adequacy of land and housing in Dhaka city. In addition to the discussion on the supply side of housing, this chapter also provides a demand side analysis of housing space adequacy based on household level data from the SOC Housing Survey 2017.

42 43 State of Cities 2017

This research reinforces the view that the city is dogged by serious overcrowding. The mapping of the city's population demonstrates that the overcrowding follows a distinct pattern. The central region of

4 CHAPTER Dhaka, which is occupied by DNCC and DSCC, is vastly more crowded compared to other areas. While the density of Dhaka Metropolitan area is comparable to that of other densely populated cities like Mumbai and Delhi, Central Dhaka is twice as densely populated as Mumbai. The analysis in this chapter shows that the average area per person in Dhaka City center can be as low as 12.5 m2. AFFORDABILITY OF HOUSING Many of the urban dilemmas of Dhaka city emanate from its topographical disadvantage and poor management of land use. At least two-third of the khas land in Dhaka is illegally occupied. Land occupied by different public agencies is also subject to underutilisation and unlawful occupancy. A large portion of public land located in prime locations within the city, is occupied by public agencies for future use or further development of their existing infrastructure. Such land occupies nearly 20 percent of the central areas of Dhaka City. Moreover, a large share of the already scarce land is allocated for luxury housing projects for public officials, which raises serious concerns about the justifiability of land distribution. Affordability is a key criterion for assessing people's access to shelter and housing quality. It varies Private real estate developers, both formal and informal, dominate the housing market in Dhaka city. based on the country's overall economic condition and socio-economic status of the people country. Even though there has been substantial growth of the housing market, a serious mismatch between the demand and supply of housing unit persists. Only a meager 5 percent of the total demand for High population growth and increased migration to cities trigger demands for housing in developing housing is met by the formal private providers, with the housing backlog at 0.58 million as of 2015. The countries, which leads to a rise in the house price beyond the reach of middle and low income people. formal providers, consisting of mainly large developers, tend to focus their investment in the affluent Due to the unaffordability of formal housing, low-income people take shelter in informal houses areas of the city and target upper and upper middle-income buyers. Due to this limited role of the (Shams et al. 2014). For example, there are 4,720 slums and squats in Dhaka City in which, an estimated formal sector, a huge informal market within the private providers has emerged in the city to address 3.4 million low-income, vulnerable people live (Koehlmoos et al. 2009; Samakal 2015). A number of the shortage in supply and provide housing for the less affluent. Analysis of these two markets makes studies were conducted on the informal housing in Dhaka; in comparison, the affordability situation of their distinctions apparent and demonstrates the urban reality of Dhaka City. This chapter discusses the middle and lower-middle income people, who live in formal houses, other than slums and squats, how these two markets supply housing that vary substantially in terms of quality and crowdedness, as remains less focused in the existing scholarship. With an aim to address this gap, the chapter examines well as in regards to infrastructure and connectivity. the housing affordability of city dwellers around the key research question 'Are housing provisions Land scarcity and the issue of inadequate housing is a reality in Dhaka. It is well understood that, to affordable to city dwellers in Dhaka?' Assessing housing affordability helps to undertake need-based address this issue, a comprehensive approach is needed involving all relevant stakeholders. To address plans and programmes to ensure housing affordability for city dwellers, especially the middle and the unequal growth arc of the different housing markets in Dhaka, RAJUK should exercise its regulatory lower-middle class who are the largest group of the urban population. control to make sure the building standards are equally met in all areas. At the same time, the government should take measures that persuade the more established real estate companies to invest Defining 'housing affordability' in less developed areas. A differentiated tax system that can offer tax breaks for real estate providers Various organisations and scholars have defined housing affordability from different lenses. In defining can be used to encourage them to invest more in middle and low-income areas. This can positively affordability, Chaplin et al. (1994) emphasised both the cost and standards of housing. Interior housing impact the housing standards in those areas, as well as reduce housing disparity and enhance the quality, immediate surroundings, and civic amenities are three important aspects of housing overall real estate market. standards. Many scholars endeavoured to define affordability based on only the housing cost. They Making a certain percentage of investment companies can make in affluent localities and luxurious argue that if the housing cost does not exceed 30 percent of a household's monthly gross income, the houses can also be explored. The policy need to be designed cautiously to avoid its further implication housing provision will be affordable to the said household (Jahan and Kalam 2012). In defining on land price. affordability, the New Zealand Government gave importance to 'area choice, reasonable price and earning opportunity of households'. They also state 'housing affordability relates to the ability of Freeing khas land from illegal ownership is a complex issue that requires more time and political households to rent or purchase housing in an area of choice at a reasonable price, the capacity of willingness to implement. In the short run, preparing an estimate of unused and underutilised land occupied under different public agencies and making more efficient use of that land can be a small step households to meet on-going housing costs, and the degree that discretionary income is available to towards improving land management. Given the gap between demand and supply of housing, such achieve an acceptable standard of living…' (Working Party on Affordability Issues 2003 cited in Mitchell superfluous occupation of land adds further fuel to the housing crisis. Proper utilisation of the urban n.d). Habitat for Humanity (2017) added long-term stay in the provided house to the definition of space can perhaps lessen the pressure on the providers of housing as well as on the urban consumers, housing affordability. Apart from cost, standards, and preferred location, Mulliner and Maliene (2015) who are faced with soaring house prices. went a step forward in defining housing affordability in terms of sustainability. Sustainable housing

44 45 State of Cities 2017

This research reinforces the view that the city is dogged by serious overcrowding. The mapping of the city's population demonstrates that the overcrowding follows a distinct pattern. The central region of

4 CHAPTER Dhaka, which is occupied by DNCC and DSCC, is vastly more crowded compared to other areas. While the density of Dhaka Metropolitan area is comparable to that of other densely populated cities like Mumbai and Delhi, Central Dhaka is twice as densely populated as Mumbai. The analysis in this chapter shows that the average area per person in Dhaka City center can be as low as 12.5 m2. AFFORDABILITY OF HOUSING Many of the urban dilemmas of Dhaka city emanate from its topographical disadvantage and poor management of land use. At least two-third of the khas land in Dhaka is illegally occupied. Land occupied by different public agencies is also subject to underutilisation and unlawful occupancy. A large portion of public land located in prime locations within the city, is occupied by public agencies for future use or further development of their existing infrastructure. Such land occupies nearly 20 percent of the central areas of Dhaka City. Moreover, a large share of the already scarce land is allocated for luxury housing projects for public officials, which raises serious concerns about the justifiability of land distribution. Affordability is a key criterion for assessing people's access to shelter and housing quality. It varies Private real estate developers, both formal and informal, dominate the housing market in Dhaka city. based on the country's overall economic condition and socio-economic status of the people country. Even though there has been substantial growth of the housing market, a serious mismatch between the demand and supply of housing unit persists. Only a meager 5 percent of the total demand for High population growth and increased migration to cities trigger demands for housing in developing housing is met by the formal private providers, with the housing backlog at 0.58 million as of 2015. The countries, which leads to a rise in the house price beyond the reach of middle and low income people. formal providers, consisting of mainly large developers, tend to focus their investment in the affluent Due to the unaffordability of formal housing, low-income people take shelter in informal houses areas of the city and target upper and upper middle-income buyers. Due to this limited role of the (Shams et al. 2014). For example, there are 4,720 slums and squats in Dhaka City in which, an estimated formal sector, a huge informal market within the private providers has emerged in the city to address 3.4 million low-income, vulnerable people live (Koehlmoos et al. 2009; Samakal 2015). A number of the shortage in supply and provide housing for the less affluent. Analysis of these two markets makes studies were conducted on the informal housing in Dhaka; in comparison, the affordability situation of their distinctions apparent and demonstrates the urban reality of Dhaka City. This chapter discusses the middle and lower-middle income people, who live in formal houses, other than slums and squats, how these two markets supply housing that vary substantially in terms of quality and crowdedness, as remains less focused in the existing scholarship. With an aim to address this gap, the chapter examines well as in regards to infrastructure and connectivity. the housing affordability of city dwellers around the key research question 'Are housing provisions Land scarcity and the issue of inadequate housing is a reality in Dhaka. It is well understood that, to affordable to city dwellers in Dhaka?' Assessing housing affordability helps to undertake need-based address this issue, a comprehensive approach is needed involving all relevant stakeholders. To address plans and programmes to ensure housing affordability for city dwellers, especially the middle and the unequal growth arc of the different housing markets in Dhaka, RAJUK should exercise its regulatory lower-middle class who are the largest group of the urban population. control to make sure the building standards are equally met in all areas. At the same time, the government should take measures that persuade the more established real estate companies to invest Defining 'housing affordability' in less developed areas. A differentiated tax system that can offer tax breaks for real estate providers Various organisations and scholars have defined housing affordability from different lenses. In defining can be used to encourage them to invest more in middle and low-income areas. This can positively affordability, Chaplin et al. (1994) emphasised both the cost and standards of housing. Interior housing impact the housing standards in those areas, as well as reduce housing disparity and enhance the quality, immediate surroundings, and civic amenities are three important aspects of housing overall real estate market. standards. Many scholars endeavoured to define affordability based on only the housing cost. They Making a certain percentage of investment companies can make in affluent localities and luxurious argue that if the housing cost does not exceed 30 percent of a household's monthly gross income, the houses can also be explored. The policy need to be designed cautiously to avoid its further implication housing provision will be affordable to the said household (Jahan and Kalam 2012). In defining on land price. affordability, the New Zealand Government gave importance to 'area choice, reasonable price and earning opportunity of households'. They also state 'housing affordability relates to the ability of Freeing khas land from illegal ownership is a complex issue that requires more time and political households to rent or purchase housing in an area of choice at a reasonable price, the capacity of willingness to implement. In the short run, preparing an estimate of unused and underutilised land occupied under different public agencies and making more efficient use of that land can be a small step households to meet on-going housing costs, and the degree that discretionary income is available to towards improving land management. Given the gap between demand and supply of housing, such achieve an acceptable standard of living…' (Working Party on Affordability Issues 2003 cited in Mitchell superfluous occupation of land adds further fuel to the housing crisis. Proper utilisation of the urban n.d). Habitat for Humanity (2017) added long-term stay in the provided house to the definition of space can perhaps lessen the pressure on the providers of housing as well as on the urban consumers, housing affordability. Apart from cost, standards, and preferred location, Mulliner and Maliene (2015) who are faced with soaring house prices. went a step forward in defining housing affordability in terms of sustainability. Sustainable housing

44 45 State of Cities 2017 Affordability of Housing

affordability entails the following: specific economic factors (the mortgage market, income and Following the introduction, the chapter presents the situation of housing affordability in three housing costs, availability of different housing tenures); social factors (quality of life and aspects of sections: cost of renting houses, cost of purchasing houses, and interior and exterior housing quality. community sustainability); and environmental factors (energy efficiency of housing). Considering the Subsequently, the chapter draws key issues from the analyses and explanations delineated in the foregoing issues, this chapter explores the following factors to explain housing affordability: previous sub-sections and finally, the chapter puts forward key recommendations for improving the housing affordability in Dhaka. ! Costs of renting or purchasing houses vis-à-vis household income ! Burden of housing costs and adjustment strategies 4.1 Cost of housing ! Interior and exterior housing standards (e.g. inside housing quality, immediate surroundings, Dhaka is positioned as the costliest among similar cities in the sub-continent, even costlier than many and civic amenities) developed countries' cities such as Montreal. Dhaka was ranked 71st in the global cost of living ! Satisfaction of households towards housing standards compared to New Delhi at 128, Kathmandu at 125, and Karachi at 132 among 133 cities (Economic Intelligence Unit Limited 2015). This assessment was done based on the analysis of the strength of Affordability in national plan and policy dollars and mainly the cost of living for expats and business travellers; nonetheless, around 70 per cent The Dhaka Structure Plan 2016 refers to affordable housing as dwellings which households with low-to- of native households could not afford to own houses in Dhaka. They live either in rented houses, moderate incomes can afford, while meeting other essential living costs. The National Housing Policy government quarters or informal houses (slums and squats). (NHP) 2016 (NHP 2016 endorsed by the Cabinet on 25 April 2016 to upgrade the previous policy According to the Consumers Association of Bangladesh (CAB), rental cost increased more than overall - approved in 1999) envisions the provision of affordable housing to low and middle income people by living costs by average 1.7 percent in the last five years (Table 4.2). Except for in 2013, inflation in rental the government. The policy further promises to make suitable land for housing at an affordable price. cost surpassed the general inflation over these years. To achieve its objectives, the NHP 2016 specifies the housing strategy such as attaching priority to housing in the national development plans, supplying serviced land at a reasonable price, and assisting Table 4.2: Comparison between rates of general inflation and rental inflation (in percent) in the creation and promotion of housing financing institutions. In the budget for Fiscal Year 2017-18, Year Inflation rate of rents (a) General inflation rate (b) Difference (a-b) the housing sector received 1.65 percent of the total development expenditures (Table 4.1). 2016 8.77 6.47 2.3 Mobilisation of resources for housing through personal savings and financial institutions is another 2015 6.33 6.38 0.05 promise of the NHP. Moreover, the National House Building Finance Corporation was established to 2014 9.76 6.82 2.94 provide home loans at affordable rates. 2013 10.91 11.0 -0.09 Table 4.1: Government's development expenditures for housing FY 2015/16 – FY 2017/18 2012 9.73 6.42 3.31 Budget FY Actual FY Budget FY Actual FY Average 9.1 7.4 1.7 2017-18 (Tk.) 2016-17 (Tk.) 2016-17 (Tk.) 2015-16 (Tk.) Source: CAB 2012, 13, 14, 15 and Independent 2017 Total development expenditures 1552.52 b 1126.33 b 1125.26 b 807.62 b Expenditures for housing 25.69 b 39.99 b 18.45 b 25.71 b Cost of housing entails the amount of rent paid by tenants for housing units and the price of purchasing an apartment. 'Social costs' related to living in rented accommodation can be another aspect of Share of housing allocations against 1.65% 3.55% 1.64% 3.18% tenants' housing costs. Housing costs can primarily be compared with household income to total development expenditures demonstrate how far the housing expenditures are affordable to the city dwellers. Further, it is worth Source: GoB 2017 examining whether the current expenditures for housing are burdensome to the households and what Chapter focus, methodology and structure strategies they undertake to cope with the housing expenditures. All these issues will be elaborated further in this section from the perspectives of tenants and owners. Subsequently, the barriers to home Taking into consideration the above definitions and the current socio-economic condition of the ownership will be discussed. country (as Bangladesh recently reached lower middle income country status), the chapter looks at the following issues to evaluate housing affordability in Dhaka: ability to afford monetary costs of renting or 4.1.1 Cost of housing: Tenants' perspectives purchasing houses and quality of interior and exterior housing standards. Evaluating these widened Proportion of household income spent for house rents aspects of affordability helps understand Dhaka's liveability. These issues of housing affordability are The 'Rent to Income Ratio' method is popularly used to measure affordability. It involves a household's explained based on survey data and opinions of key stakeholders. The survey was conducted in four monthly housing costs to household income. BIGD's State of Cities Survey 2017 demonstrates that the locations in Dhaka: Mirpur, Badda, Old Dhaka and Malibagh, which are commonly known as middle and average house rent paid by each household was Tk. 11,577.24 per month. According to 38 percent of low-income areas. The anecdotal evidence from the survey and interviews are cross-examined with the surveyed respondents, their house rents accounted for an average of around 25 percent of standard norms of housing affordability reported in published documents. respective family income (Table 4.3). The second largest number of households (36.2 percent) paid

46 47 State of Cities 2017 Affordability of Housing affordability entails the following: specific economic factors (the mortgage market, income and Following the introduction, the chapter presents the situation of housing affordability in three housing costs, availability of different housing tenures); social factors (quality of life and aspects of sections: cost of renting houses, cost of purchasing houses, and interior and exterior housing quality. community sustainability); and environmental factors (energy efficiency of housing). Considering the Subsequently, the chapter draws key issues from the analyses and explanations delineated in the foregoing issues, this chapter explores the following factors to explain housing affordability: previous sub-sections and finally, the chapter puts forward key recommendations for improving the housing affordability in Dhaka. ! Costs of renting or purchasing houses vis-à-vis household income ! Burden of housing costs and adjustment strategies 4.1 Cost of housing ! Interior and exterior housing standards (e.g. inside housing quality, immediate surroundings, Dhaka is positioned as the costliest among similar cities in the sub-continent, even costlier than many and civic amenities) developed countries' cities such as Montreal. Dhaka was ranked 71st in the global cost of living ! Satisfaction of households towards housing standards compared to New Delhi at 128, Kathmandu at 125, and Karachi at 132 among 133 cities (Economic Intelligence Unit Limited 2015). This assessment was done based on the analysis of the strength of Affordability in national plan and policy dollars and mainly the cost of living for expats and business travellers; nonetheless, around 70 per cent The Dhaka Structure Plan 2016 refers to affordable housing as dwellings which households with low-to- of native households could not afford to own houses in Dhaka. They live either in rented houses, moderate incomes can afford, while meeting other essential living costs. The National Housing Policy government quarters or informal houses (slums and squats). (NHP) 2016 (NHP 2016 endorsed by the Cabinet on 25 April 2016 to upgrade the previous policy According to the Consumers Association of Bangladesh (CAB), rental cost increased more than overall - approved in 1999) envisions the provision of affordable housing to low and middle income people by living costs by average 1.7 percent in the last five years (Table 4.2). Except for in 2013, inflation in rental the government. The policy further promises to make suitable land for housing at an affordable price. cost surpassed the general inflation over these years. To achieve its objectives, the NHP 2016 specifies the housing strategy such as attaching priority to housing in the national development plans, supplying serviced land at a reasonable price, and assisting Table 4.2: Comparison between rates of general inflation and rental inflation (in percent) in the creation and promotion of housing financing institutions. In the budget for Fiscal Year 2017-18, Year Inflation rate of rents (a) General inflation rate (b) Difference (a-b) the housing sector received 1.65 percent of the total development expenditures (Table 4.1). 2016 8.77 6.47 2.3 Mobilisation of resources for housing through personal savings and financial institutions is another 2015 6.33 6.38 0.05 promise of the NHP. Moreover, the National House Building Finance Corporation was established to 2014 9.76 6.82 2.94 provide home loans at affordable rates. 2013 10.91 11.0 -0.09 Table 4.1: Government's development expenditures for housing FY 2015/16 – FY 2017/18 2012 9.73 6.42 3.31 Budget FY Actual FY Budget FY Actual FY Average 9.1 7.4 1.7 2017-18 (Tk.) 2016-17 (Tk.) 2016-17 (Tk.) 2015-16 (Tk.) Source: CAB 2012, 13, 14, 15 and Independent 2017 Total development expenditures 1552.52 b 1126.33 b 1125.26 b 807.62 b Expenditures for housing 25.69 b 39.99 b 18.45 b 25.71 b Cost of housing entails the amount of rent paid by tenants for housing units and the price of purchasing an apartment. 'Social costs' related to living in rented accommodation can be another aspect of Share of housing allocations against 1.65% 3.55% 1.64% 3.18% tenants' housing costs. Housing costs can primarily be compared with household income to total development expenditures demonstrate how far the housing expenditures are affordable to the city dwellers. Further, it is worth Source: GoB 2017 examining whether the current expenditures for housing are burdensome to the households and what Chapter focus, methodology and structure strategies they undertake to cope with the housing expenditures. All these issues will be elaborated further in this section from the perspectives of tenants and owners. Subsequently, the barriers to home Taking into consideration the above definitions and the current socio-economic condition of the ownership will be discussed. country (as Bangladesh recently reached lower middle income country status), the chapter looks at the following issues to evaluate housing affordability in Dhaka: ability to afford monetary costs of renting or 4.1.1 Cost of housing: Tenants' perspectives purchasing houses and quality of interior and exterior housing standards. Evaluating these widened Proportion of household income spent for house rents aspects of affordability helps understand Dhaka's liveability. These issues of housing affordability are The 'Rent to Income Ratio' method is popularly used to measure affordability. It involves a household's explained based on survey data and opinions of key stakeholders. The survey was conducted in four monthly housing costs to household income. BIGD's State of Cities Survey 2017 demonstrates that the locations in Dhaka: Mirpur, Badda, Old Dhaka and Malibagh, which are commonly known as middle and average house rent paid by each household was Tk. 11,577.24 per month. According to 38 percent of low-income areas. The anecdotal evidence from the survey and interviews are cross-examined with the surveyed respondents, their house rents accounted for an average of around 25 percent of standard norms of housing affordability reported in published documents. respective family income (Table 4.3). The second largest number of households (36.2 percent) paid

46 47 State of Cities 2017 Affordability of Housing

house rents on average of 35 percent of the respective household income. Around eight percent of unaffordable to around 17 percent of lower middle-income families and 7 percent of middle-income tenants reported house rents of 45 percent of household income. group (ibid.). Thus, acquiring decent housing appears to be a significant challenge for lower and middle-income people, especially families with single earning members (Independent 2017). Table 4.3: Share of family income spent on house rents, utilities and transport by respondents Tenants' strategies to cope with housing expenditures: Restructuring household expenditures and Tenants Average share of Average share of Rent and Share of household Rent utilities (in %) household income household income utilities income spent and transport changing housing units spent for house spent for utilities [a+b] for transport costs [a+b+c] Due to expensive house rents, more than half of the surveyed households said that they had to make rents (in %) [a] (in %) [b] (in %) [c] adjustments to their daily expenditures to bear the rent of the dwelling unit (Table 4.4). Among them, 17.7 15.6 7.6 23.2 5.5 28.7 approximately 89 percent of households reduced expenses for clothing, entertainment and casual 38 25.1 7.6 32.7 5.6 38.3 expenses, followed by approximately 55 percent reducing food expenses. Around a quarter of the 36.2 34.7 6.2 40.9 6.6 47.5 households made compromises on children's educational expenses. 8.1 45.1 6.0 51.1 7.1 58.2 Table 4.4: Practice of making adjustments to bear the rental costs of housing

Source: BIGD's State of Cities Survey 2017 Did you need Percentage of Types of adjustments Percentage of Housing is deemed affordable if the rental or mortgage costs including utilities account for less than 30 to make any surveyed surveyed adjustment? respondents respondents percent of a household's monthly income (Cohen, Wardrip and Williams 2010 cited at Jahan and Kalam 2012). Some scholars evaluate affordability based on spending less than 45 percent of households' Reduction in clothing, entertainment and casual 89.2 income for housing and transport combined (Litman 2017). Table 4.3 demonstrates that added to Reduction in food expenses 54.7 utilities costs, approximately 18 percent of Dhaka's tenant households spend an average of around 23 Yes 51.1 Reduction in educational expenses 22.3 percent of household income, which falls within the affordable threshold. Housing costs of the vast Exploring for additional income 20.1 majority of households (82 percent) exceed the standard affordable boundary. Sharing rental unit 14.4 However, if the transportation threshold is accepted as criterion, approximately 56 percent of the Others 1.4 surveyed households bear the costs of housing within an affordable limit. This indicates that Dhaka's transportation cost is far lower than the standard expenditure bracket for transport. Alternatively, No 48.9 people tend to live close to workplaces in order to lessen the transportation costs and save travel time. Based on this transportation principle, 44 percent of the tenants pay very high costs and this is much Further consequences of unaffordable house rents can be understood through the examination of lower than rent plus utilities criteria. tenants' duration living in the same house. Even though the rental units were reported as expensive to Households' assessment of current house rents three-fourth of households, the city dwellers did not appear to be interested in changing houses frequently. Twenty-three per cent of the respondents changed their housing units three and more The amount of money paid for house rents is reported to be 'moderately expensive' or 'very expensive' to approximately 75 percent of the respondents. Only about 25 percent of city dwellers said that their times in the last 10 years. Approximately, 56 percent of the tenants changed their housing units once or house rents were 'just right'. Figure 4.1 shows respondents' opinions regarding rental costs. twice and around 21 percent did not change their rental units at all during the same period. Figure 4.1: Tenants' opinions regarding current house rents in Dhaka The respondents were categorically asked about the reasons behind changing housing units. Among 79 percent of the respondents who changed their rental units at least once in the last 10 years, In addition, housing unaffordability as approximately 46 percent tenants changed their rental units because of increases in rent. Moreover, an issue has been highlighted in other there were other reasons behind changing houses. Approximately 47 percent reported 'fewer facilities 15.8 studies. According to Jahan and Kalam 24.6 compared to rent price' as the reason behind changing the rental unit. In addition, change of job Very (2012 cited in Dhaka Structure Plan expensive location triggered 46.7 percent of households to change houses. Convenience of children's schooling 2016), over 78 percent of the lower- and aspirations to live in better houses were reported by some respondents as reasons behind Moderately middle-income group, around 71 changing housing units. Figure 4.2 shows the details. expensive percent of the middle-income group, and 52 percent of upper middle- Just right income families cannot afford housing 59.6 in the current market price of housing. More specifically, housing was severely

48 49 State of Cities 2017 Affordability of Housing house rents on average of 35 percent of the respective household income. Around eight percent of unaffordable to around 17 percent of lower middle-income families and 7 percent of middle-income tenants reported house rents of 45 percent of household income. group (ibid.). Thus, acquiring decent housing appears to be a significant challenge for lower and middle-income people, especially families with single earning members (Independent 2017). Table 4.3: Share of family income spent on house rents, utilities and transport by respondents Tenants' strategies to cope with housing expenditures: Restructuring household expenditures and Tenants Average share of Average share of Rent and Share of household Rent utilities (in %) household income household income utilities income spent and transport changing housing units spent for house spent for utilities [a+b] for transport costs [a+b+c] Due to expensive house rents, more than half of the surveyed households said that they had to make rents (in %) [a] (in %) [b] (in %) [c] adjustments to their daily expenditures to bear the rent of the dwelling unit (Table 4.4). Among them, 17.7 15.6 7.6 23.2 5.5 28.7 approximately 89 percent of households reduced expenses for clothing, entertainment and casual 38 25.1 7.6 32.7 5.6 38.3 expenses, followed by approximately 55 percent reducing food expenses. Around a quarter of the 36.2 34.7 6.2 40.9 6.6 47.5 households made compromises on children's educational expenses. 8.1 45.1 6.0 51.1 7.1 58.2 Table 4.4: Practice of making adjustments to bear the rental costs of housing

Source: BIGD's State of Cities Survey 2017 Did you need Percentage of Types of adjustments Percentage of Housing is deemed affordable if the rental or mortgage costs including utilities account for less than 30 to make any surveyed surveyed adjustment? respondents respondents percent of a household's monthly income (Cohen, Wardrip and Williams 2010 cited at Jahan and Kalam 2012). Some scholars evaluate affordability based on spending less than 45 percent of households' Reduction in clothing, entertainment and casual 89.2 income for housing and transport combined (Litman 2017). Table 4.3 demonstrates that added to Reduction in food expenses 54.7 utilities costs, approximately 18 percent of Dhaka's tenant households spend an average of around 23 Yes 51.1 Reduction in educational expenses 22.3 percent of household income, which falls within the affordable threshold. Housing costs of the vast Exploring for additional income 20.1 majority of households (82 percent) exceed the standard affordable boundary. Sharing rental unit 14.4 However, if the transportation threshold is accepted as criterion, approximately 56 percent of the Others 1.4 surveyed households bear the costs of housing within an affordable limit. This indicates that Dhaka's transportation cost is far lower than the standard expenditure bracket for transport. Alternatively, No 48.9 people tend to live close to workplaces in order to lessen the transportation costs and save travel time. Based on this transportation principle, 44 percent of the tenants pay very high costs and this is much Further consequences of unaffordable house rents can be understood through the examination of lower than rent plus utilities criteria. tenants' duration living in the same house. Even though the rental units were reported as expensive to Households' assessment of current house rents three-fourth of households, the city dwellers did not appear to be interested in changing houses frequently. Twenty-three per cent of the respondents changed their housing units three and more The amount of money paid for house rents is reported to be 'moderately expensive' or 'very expensive' to approximately 75 percent of the respondents. Only about 25 percent of city dwellers said that their times in the last 10 years. Approximately, 56 percent of the tenants changed their housing units once or house rents were 'just right'. Figure 4.1 shows respondents' opinions regarding rental costs. twice and around 21 percent did not change their rental units at all during the same period. Figure 4.1: Tenants' opinions regarding current house rents in Dhaka The respondents were categorically asked about the reasons behind changing housing units. Among 79 percent of the respondents who changed their rental units at least once in the last 10 years, In addition, housing unaffordability as approximately 46 percent tenants changed their rental units because of increases in rent. Moreover, an issue has been highlighted in other there were other reasons behind changing houses. Approximately 47 percent reported 'fewer facilities 15.8 studies. According to Jahan and Kalam 24.6 compared to rent price' as the reason behind changing the rental unit. In addition, change of job Very (2012 cited in Dhaka Structure Plan expensive location triggered 46.7 percent of households to change houses. Convenience of children's schooling 2016), over 78 percent of the lower- and aspirations to live in better houses were reported by some respondents as reasons behind Moderately middle-income group, around 71 changing housing units. Figure 4.2 shows the details. expensive percent of the middle-income group, and 52 percent of upper middle- Just right income families cannot afford housing 59.6 in the current market price of housing. More specifically, housing was severely

48 49 State of Cities 2017 Affordability of Housing

Figure 4.2: Reasons behind changing the rental units reported by respondents willing to buy a house, approximately 56 percent respondents emphasised a 'cheap house' to fulfil their dreams. They did not care about the provider of the house or location when buying a house. However, Others 0.9 planned houses developed by private providers were reported to be more favourable than government Absence of public transport nearby 1.4 housing projects to the prospective homeowners. Table 4.5 shows tenants' opinions regarding house Respondents in % Absence of enough open space … 2.3 purchase in Dhaka. Absence of healthcare facilities … 5.6 Table 4.5: Tenants' planning to buy houses in Dhaka and preferences regarding house providers Relatives/friends not living nearby 10.2 Did you plan to Percentage of Types of housing unit Percentage of Poor infrastructural condition 10.2 buy a housing surveyed surveyed Absence of good neighbourhood 11.2 unit in Dhaka? respondents respondents Lack of security 12.6 No 68.4 Behaviour of house owner 17.2 Government housing projects 9.3 To live in a better house 22.4 Yes 31.6 Planned housing developed by private sector 34.9 Convenience of children's schooling 23.3 Whoever provides cheap housing 22.3 Rent increase 45.7 Change of job location 46.7 There can be certain reasons behind households' preference towards privately developed houses over Less facilities compared to rent price 47.1 the public sector. Supply of houses comes first. RAJUK is responsible for developing land and houses in Dhaka. Its housing development activities are concentrated in certain locations as opposed to the 0 10 20 30 40 50 presence of the private sector everywhere in the city. Furthermore, the BIGD survey (Figure 4.9) reveals that the majority of city dwellers stay close to their workplace. The prospective buyers may not have Social costs of living in rented house government houses in their preferred locations, forcing them to access private realtor's projects. It was revealed that approximately 61 percent of the surveyed households reported that they had no Secondly, RAJUK mainly caters to the needs of certain privileged groups such as civil and military problem living in a rented house. However, 'hazards of changing house' were cited as a problem by bureaucrats, political executives, etc. In contrast, the private sector develops houses for all groups from approximately 23 percent of the tenant households. The details are illustrated in Figure 4.3. high-incomes to the lower middle-income groups. Thirdly, although RAJUK opens its houses to all in a Figure 4.3: Problems of living in rented house reported by tenants few locations, its lengthy process of hand-over costs the buyers financially. Buyers' booking money and total payment stay with the government for a longer period. On the contrary, buyers can start living in 70 61.02 Respondents in % privately developed apartments by making down payments and repaying the remaining in instalments 60 or utilising bank loans. 50 The majority's unwillingness to buy a house in Dhaka is due to the high price of apartments and land. 40 Currently, at least Tk. 6 million is needed to buy a 1,200 square feet apartment in Dhaka, which is 23.5 almost equivalent to a lifetime's savings for a family. Apartments in prime locations in the city cost 30 20.22 14.7 14.3 more than Tk. 10 million (Independent 2017). In the five-day Winter REHAB fair in December 2016, a 20 total of 520 apartments and 145 plots of land were sold, worth the market price of Tk. 4.16 billion 10 0.36 and Tk. 720 million respectively. The average price of these apartments and plots was Tk. 8 million

0 and 5 million respectively. In this fair, the per square foot price for an apartment ranged between Tk. No problem Hazards of Owner's Lack of Lack of Others 5,800 (US$ 72.5, Tk. 80 = US$ 1) to Tk. 20,000 (US$ 250), depending on apartment location in the city changing behaviour security social status (ibid.). Nonetheless, the average apartment price in Dhaka is cheaper than many Asian cities (Table house 4.6). Tenants' plans to purchase houses The tenants were asked about their intention to become homeowners in Dhaka. More than two-thirds of the surveyed tenants said that they did not have a plan to own a house in the city. Of those who were

50 51 State of Cities 2017 Affordability of Housing

Figure 4.2: Reasons behind changing the rental units reported by respondents willing to buy a house, approximately 56 percent respondents emphasised a 'cheap house' to fulfil their dreams. They did not care about the provider of the house or location when buying a house. However, Others 0.9 planned houses developed by private providers were reported to be more favourable than government Absence of public transport nearby 1.4 housing projects to the prospective homeowners. Table 4.5 shows tenants' opinions regarding house Respondents in % Absence of enough open space … 2.3 purchase in Dhaka. Absence of healthcare facilities … 5.6 Table 4.5: Tenants' planning to buy houses in Dhaka and preferences regarding house providers Relatives/friends not living nearby 10.2 Did you plan to Percentage of Types of housing unit Percentage of Poor infrastructural condition 10.2 buy a housing surveyed surveyed Absence of good neighbourhood 11.2 unit in Dhaka? respondents respondents Lack of security 12.6 No 68.4 Behaviour of house owner 17.2 Government housing projects 9.3 To live in a better house 22.4 Yes 31.6 Planned housing developed by private sector 34.9 Convenience of children's schooling 23.3 Whoever provides cheap housing 22.3 Rent increase 45.7 Change of job location 46.7 There can be certain reasons behind households' preference towards privately developed houses over Less facilities compared to rent price 47.1 the public sector. Supply of houses comes first. RAJUK is responsible for developing land and houses in Dhaka. Its housing development activities are concentrated in certain locations as opposed to the 0 10 20 30 40 50 presence of the private sector everywhere in the city. Furthermore, the BIGD survey (Figure 4.9) reveals that the majority of city dwellers stay close to their workplace. The prospective buyers may not have Social costs of living in rented house government houses in their preferred locations, forcing them to access private realtor's projects. It was revealed that approximately 61 percent of the surveyed households reported that they had no Secondly, RAJUK mainly caters to the needs of certain privileged groups such as civil and military problem living in a rented house. However, 'hazards of changing house' were cited as a problem by bureaucrats, political executives, etc. In contrast, the private sector develops houses for all groups from approximately 23 percent of the tenant households. The details are illustrated in Figure 4.3. high-incomes to the lower middle-income groups. Thirdly, although RAJUK opens its houses to all in a Figure 4.3: Problems of living in rented house reported by tenants few locations, its lengthy process of hand-over costs the buyers financially. Buyers' booking money and total payment stay with the government for a longer period. On the contrary, buyers can start living in 70 61.02 Respondents in % privately developed apartments by making down payments and repaying the remaining in instalments 60 or utilising bank loans. 50 The majority's unwillingness to buy a house in Dhaka is due to the high price of apartments and land. 40 Currently, at least Tk. 6 million is needed to buy a 1,200 square feet apartment in Dhaka, which is 23.5 almost equivalent to a lifetime's savings for a family. Apartments in prime locations in the city cost 30 20.22 14.7 14.3 more than Tk. 10 million (Independent 2017). In the five-day Winter REHAB fair in December 2016, a 20 total of 520 apartments and 145 plots of land were sold, worth the market price of Tk. 4.16 billion 10 0.36 and Tk. 720 million respectively. The average price of these apartments and plots was Tk. 8 million

0 and 5 million respectively. In this fair, the per square foot price for an apartment ranged between Tk. No problem Hazards of Owner's Lack of Lack of Others 5,800 (US$ 72.5, Tk. 80 = US$ 1) to Tk. 20,000 (US$ 250), depending on apartment location in the city changing behaviour security social status (ibid.). Nonetheless, the average apartment price in Dhaka is cheaper than many Asian cities (Table house 4.6). Tenants' plans to purchase houses The tenants were asked about their intention to become homeowners in Dhaka. More than two-thirds of the surveyed tenants said that they did not have a plan to own a house in the city. Of those who were

50 51 State of Cities 2017 Affordability of Housing

Table 4.6: Comparison in apartment price among Asian cities affordable small and medium sized apartments for middle-income buyers in less expensive locations such as Mohammadpur and Mirpur (Independent 2017). Name of cities Average price (per sq. ft. in US$) Jakarta, Indonesia 268.5 4.1.2 Cost of housing: Owners' perspectives Bangkok, Thailand 367.3 As stated earlier, Bangladesh's National Housing Policy 2016 envisaged the provision of affordable housing for the low and middle-income category. The previous sub-section demonstrates unaffordable Metro Manila, The Philippines 367.3 housing options for the majority of tenants. This sub-section examines the extent of affordability of Mumbai, India 1442.8 homeownership based on the experiences of existing homeowners. New Delhi, India 311.3 Sources of homeownership Bangalore, India 111.5 One hundred twenty nine respondents out of 401 interviewed identified as homeowners. Dhaka, Bangladesh 72.5 – 250 Approximately 61 percent of homeowners bought respective housing units with personal or family Source: Global Property Guide 2017 savings, followed by approximately 38 percent obtaining homeownership through inheritance. It was also observed that commercial bank loans for purchasing property were utilised by a small number of House and land prices have increased rapidly in Dhaka. According to the owner of a real estate agency, homeowners (only 11 percent). Figure 4.4 demonstrates the sources of homeownership. the price of property increased 5-6 times during the period of 2005-2014 in Dhanmondi (one of the most affluent residential areas in Dhaka). If an apartment was sold for Tk. 6.45 million in Dhanmondi in Figure 4.4: Sources of homeownership by respondents 2005, it rose to Tk. 32-38 million by 2014 (The Financial Times 2014). A real estate businessman said while per square foot was Tk. 2,000 in 2003 in Dhanmondi it increased to Tk. 10,000 on average in Others 2017.1 Moreover, he built houses at the rate of Tk. 1,200 per sq. ft. in 2003 in Dhaka's peripheral areas 2.3 Owners in % such as Mohammadpur, whereas the rate has now reached Tk. 8,000 per sq. ft. Loan from employer 3.1 Excessive costs of apartments forced prospective homebuyers out of the housing market, creating a recession in the real estate market. For example, the number of unsold apartments increased from Commercial bank loans 10.8 3,000 in 2011 to 13,000 in 2014. In this context, the market played its due role in overcoming the recession. In order to boost consumers' demand, apartment price has decreased by 25-30 percent since 2012, which attracted consumers back to the real estate market. For instance, in the last four Family loans 12.4 years, per square foot apartment price came down from Tk. 4,000-7,000 to Tk. 3,000-5,000 in Mirpur, from Tk. 12,000-20,000 to Tk. 7,000-10,000 in Dhanmondi, and from Tk. 20,000 to Tk. 12,000 in Inheritance 37.9 Gulshan (Samakal 2016a). Personal/family savings Furthermore, because of high inflation in apartment prices over the years, the prospective 61.2 homeowners readjusted their demands by settling for smaller apartments. While the average size of an apartment for the higher income groups was 2,500 sq. ft. or more, it came down to 1,600-2,300 sq. ft. 0 10 20 30 40 50 60 70 Previously, apartments of this size were built for the middle class. Similar to the high income groups, the middle class now look for 1,050-1,450 sq. ft. housing units, which were previously bought by the Furthermore, 15 percent of homeowners took loans from employers and extended families to buy a lower middle class. Presently, this group can avail of 750-1,000 sq. ft. According to a senior official of house; in total, 26 percent of households utilised these three types of loans for their homeownership. REHAB, over the last couple of years, the growth in the housing sector occurred in opposite directions: Among the homeowners who were required to pay loan instalments, approximately 67 percent of the average price of apartments increased on the one hand and the number of buyers decreased on the them had to spend 20-30 percent of their respective family income monthly. Around 13 percent of other hand. owners paid more than 45 percent of their family income and 31-45 percent and less than 20 percent of Demand readjustment in apartment size vis-à-vis apartment price was also observed in the five-day the family income were paid by roughly 13 percent and 7 percent of the homeowners respectively. Winter REHAB fair in December 2016. The buyers showed interest mostly in small and medium size High interest rates, short-term repayment periods and existing eligibility criteria are generally argued apartments. According to the managers of Eastern Housing Ltd. and Credence Housing, the prospective to be unfavourable to households with regard to availing commercial bank loans.2 There are buyers were interested in the affordable small and medium sized apartments. To address this demand, several real estate companies targeted these two categories of buyers and built several new and 2. Home loans differ depending on the nature of home purchase and construction. Types of home loans include home purchase loans for buying a new home, land purchase loans for buying property for either investment or construction purposes, home construction loans for a home construction on already owned land, home improvement loans to start a home repair or renovation project, and home loans transfer, which are to transfer an existing home loan to a new lender account to capitalise 1. In-depth interviews were conducted by the BIGD team with two real estate businessmen on July 16, 2017 lower interest rates offered by different banks.

52 53 State of Cities 2017 Affordability of Housing

Table 4.6: Comparison in apartment price among Asian cities affordable small and medium sized apartments for middle-income buyers in less expensive locations such as Mohammadpur and Mirpur (Independent 2017). Name of cities Average price (per sq. ft. in US$) Jakarta, Indonesia 268.5 4.1.2 Cost of housing: Owners' perspectives Bangkok, Thailand 367.3 As stated earlier, Bangladesh's National Housing Policy 2016 envisaged the provision of affordable housing for the low and middle-income category. The previous sub-section demonstrates unaffordable Metro Manila, The Philippines 367.3 housing options for the majority of tenants. This sub-section examines the extent of affordability of Mumbai, India 1442.8 homeownership based on the experiences of existing homeowners. New Delhi, India 311.3 Sources of homeownership Bangalore, India 111.5 One hundred twenty nine respondents out of 401 interviewed identified as homeowners. Dhaka, Bangladesh 72.5 – 250 Approximately 61 percent of homeowners bought respective housing units with personal or family Source: Global Property Guide 2017 savings, followed by approximately 38 percent obtaining homeownership through inheritance. It was also observed that commercial bank loans for purchasing property were utilised by a small number of House and land prices have increased rapidly in Dhaka. According to the owner of a real estate agency, homeowners (only 11 percent). Figure 4.4 demonstrates the sources of homeownership. the price of property increased 5-6 times during the period of 2005-2014 in Dhanmondi (one of the most affluent residential areas in Dhaka). If an apartment was sold for Tk. 6.45 million in Dhanmondi in Figure 4.4: Sources of homeownership by respondents 2005, it rose to Tk. 32-38 million by 2014 (The Financial Times 2014). A real estate businessman said while per square foot was Tk. 2,000 in 2003 in Dhanmondi it increased to Tk. 10,000 on average in Others 2017.1 Moreover, he built houses at the rate of Tk. 1,200 per sq. ft. in 2003 in Dhaka's peripheral areas 2.3 Owners in % such as Mohammadpur, whereas the rate has now reached Tk. 8,000 per sq. ft. Loan from employer 3.1 Excessive costs of apartments forced prospective homebuyers out of the housing market, creating a recession in the real estate market. For example, the number of unsold apartments increased from Commercial bank loans 10.8 3,000 in 2011 to 13,000 in 2014. In this context, the market played its due role in overcoming the recession. In order to boost consumers' demand, apartment price has decreased by 25-30 percent since 2012, which attracted consumers back to the real estate market. For instance, in the last four Family loans 12.4 years, per square foot apartment price came down from Tk. 4,000-7,000 to Tk. 3,000-5,000 in Mirpur, from Tk. 12,000-20,000 to Tk. 7,000-10,000 in Dhanmondi, and from Tk. 20,000 to Tk. 12,000 in Inheritance 37.9 Gulshan (Samakal 2016a). Personal/family savings Furthermore, because of high inflation in apartment prices over the years, the prospective 61.2 homeowners readjusted their demands by settling for smaller apartments. While the average size of an apartment for the higher income groups was 2,500 sq. ft. or more, it came down to 1,600-2,300 sq. ft. 0 10 20 30 40 50 60 70 Previously, apartments of this size were built for the middle class. Similar to the high income groups, the middle class now look for 1,050-1,450 sq. ft. housing units, which were previously bought by the Furthermore, 15 percent of homeowners took loans from employers and extended families to buy a lower middle class. Presently, this group can avail of 750-1,000 sq. ft. According to a senior official of house; in total, 26 percent of households utilised these three types of loans for their homeownership. REHAB, over the last couple of years, the growth in the housing sector occurred in opposite directions: Among the homeowners who were required to pay loan instalments, approximately 67 percent of the average price of apartments increased on the one hand and the number of buyers decreased on the them had to spend 20-30 percent of their respective family income monthly. Around 13 percent of other hand. owners paid more than 45 percent of their family income and 31-45 percent and less than 20 percent of Demand readjustment in apartment size vis-à-vis apartment price was also observed in the five-day the family income were paid by roughly 13 percent and 7 percent of the homeowners respectively. Winter REHAB fair in December 2016. The buyers showed interest mostly in small and medium size High interest rates, short-term repayment periods and existing eligibility criteria are generally argued apartments. According to the managers of Eastern Housing Ltd. and Credence Housing, the prospective to be unfavourable to households with regard to availing commercial bank loans.2 There are buyers were interested in the affordable small and medium sized apartments. To address this demand, several real estate companies targeted these two categories of buyers and built several new and 2. Home loans differ depending on the nature of home purchase and construction. Types of home loans include home purchase loans for buying a new home, land purchase loans for buying property for either investment or construction purposes, home construction loans for a home construction on already owned land, home improvement loans to start a home repair or renovation project, and home loans transfer, which are to transfer an existing home loan to a new lender account to capitalise 1. In-depth interviews were conducted by the BIGD team with two real estate businessmen on July 16, 2017 lower interest rates offered by different banks.

52 53 State of Cities 2017 Affordability of Housing

insufficient government housing loans given to buyers at low interest rates for a long-term. Moreover, finance the housing loans and a committee is working in this regard. The provision of house loans for since 2009 Bangladesh Bank's re-financing activities have been discontinued (Samakal 2016b). Until government employees was introduced in 1982 through a process in which a government employee February 2016, an average of approximately 14 percent interest rate was usually charged for home or could take the amount equitable to 48 months basic pay (i.e. Tk. 120,000) and it was repayable with property loans by commercial banks and non-banking financial institutions (NFIs). The interest rates of interest in 48 instalments. Since then, salary scales of government employees had been revised 11 home loans were cut down by 2-3 percent in February 2016 (Financial Express 2016). This reduction in times; but the housing loan facilities were not changed in line with salary modifications. interest rates for home loans was triggered by adequate liquidity with banks, technical advantages of investment in property over other modes of investment (e.g. lower provisioning, safer investment Because of the revised lending interest rates, the sale of ready apartments and plots increased by area), and impact of cuts in policy rates in the monetary policy announced between January-June 2016 around 30 percent and 10 percent respectively (Samakal 2016a). While the number of unsold (ibid.). Prior to this revision, the state-owned House Building Finance Corporation (HBFC) was the apartments was around 22,000 in the beginning of 2016, the number came down to 12,000 in 2017. cheapest provider of home loans with lending rates of 12 percent for Dhaka and 10 per cent for other Apart from lower lending rates, reduction in bank savings rate, revitalised share market and reduction districts (ibid). in apartment price seemed to encourage the middle class to buy apartments and plots. Currently, six state-owned commercial banks, 39 private commercial banks, five foreign banks, and 22 Despite the reduction in interest rates, home loans are still costlier than in other countries. In NFIs provide home loans at the rate of 8 to 17.75 percent for 15-20 years and a single loan amount developed countries, the interest rate for housing loans is between 3 and 4 percent and the banks covers 70 percent of the apartment value (Samakal 2016c). In addition, interest rates of home loans provide up to 95 percent of the total amount of house purchase. In India the rate is around 4-5 percent vary based on the salaried and non-salaried professionals. Further, some banks offer low interest rates (Kaler Kantho 2016). In addition, while the duration of the loan repayment period is 15-25 years in for loans owed to other banks by borrowers. Table 4.7 demonstrates changes in interest rates for home Bangladesh, this period is 30 years in developed countries. Due to longer loan repayment periods, the loans over the years. instalment amount appears to be on par with rent value. Given this scenario, an individual can buy an apartment as soon as they start earning in these countries. Table 4.7: Home loan interest rates of scheduled banks and other financial institutions Opinion regarding house prices Type of financial January 2017 January 2015 January 2013 institutions (per annum) (per annum) (per annum) It is stated that the price of houses were moderately or extremely expensive for approximately 56 per cent of the homeowners, compared to less than 1 percent who reported the price as cheap. However, a No. of Lowest Highest No. of Lowest Highest No. of Lowest Highest significant number of the homeowners (43.4 percent) considered their housing price as 'just right'. banks (%) (%) banks (%) (%) banks (%) (%) Figure 4.5 demonstrates the opinions of the homeowners regarding house price. State-owned 6 10 14 6 15 16 6 4 17 commercial banks Figure 4.5: Opinions of the homeowners regarding the prices of houses Private commercial 39 8 17 38 10.5 19.5 22 11 18.5 Compared to the homeowners banks (55.8 percent), more tenants 0.8 Foreign banks 5 8 17.75 7 9 18 6 11 18 14.7 (75.4 percent) as seen in the Non-banking financial 22 9 18 Data not available previous section deemed the institutions (NFIs) Very expensive cost of housing in Dhaka expensive. It was further Source: Bangladesh Bank, 2013, 2015, 2017 revealed that while 51 percent of Moderately 43.4 Apart from interest rates, various types of fees are charged for availing bank loans. Prior to approval of a expensive tenants had made adjustments loan, fees are imposed for application, The Credit Information Bureau (CIB)3 checks, gives a legal to their daily expenditures to opinion and valuation. The post-approval charges include the processing fee. Just right bear the rent of the dwelling unit, 24 percent of homeowners did Similar to the revision of interest rates by commercial banks and non-banking financial institutions, the the same to meet the cost of government has endeavoured to enhance homeownership of government employees by lending 41.1 Cheap homeownership. Those who increased amounts of money at lower interest rates. The present interest rate of 10 percent is proposed w e r e r e q u i r e d t o m a ke to be reduced to 5 percent. In addition, the government plans to increase the loan ceiling to Tk. 1-5 adjustments in family expenses, million from the maximum of Tk. 120,000 at present (Samakal 2017). This loan is proposed to be given approximately 87 percent of the from the government's own fund. Government employees' pension fund is considered to be utilised to homeowners made a cut in clothing, entertainment and casual expenses in order to bear the cost of house purchase (Figure 4.6). This follows involvement of family members in additional income generating activities as an 3. Bangladesh Bank's Credit Information Bureau (CIB) is responsible, among others, for collection, processing and maintaining an adjustment strategy. updated database of credit related information supplied by participants and institutions which extend credit i.e. banks (Act.14, 1991), Financial Institutions (Act.27, 1993), HBFC (Presidential Order 7, 1973), ICB (ICB Order 40, 1976).

54 55 State of Cities 2017 Affordability of Housing insufficient government housing loans given to buyers at low interest rates for a long-term. Moreover, finance the housing loans and a committee is working in this regard. The provision of house loans for since 2009 Bangladesh Bank's re-financing activities have been discontinued (Samakal 2016b). Until government employees was introduced in 1982 through a process in which a government employee February 2016, an average of approximately 14 percent interest rate was usually charged for home or could take the amount equitable to 48 months basic pay (i.e. Tk. 120,000) and it was repayable with property loans by commercial banks and non-banking financial institutions (NFIs). The interest rates of interest in 48 instalments. Since then, salary scales of government employees had been revised 11 home loans were cut down by 2-3 percent in February 2016 (Financial Express 2016). This reduction in times; but the housing loan facilities were not changed in line with salary modifications. interest rates for home loans was triggered by adequate liquidity with banks, technical advantages of investment in property over other modes of investment (e.g. lower provisioning, safer investment Because of the revised lending interest rates, the sale of ready apartments and plots increased by area), and impact of cuts in policy rates in the monetary policy announced between January-June 2016 around 30 percent and 10 percent respectively (Samakal 2016a). While the number of unsold (ibid.). Prior to this revision, the state-owned House Building Finance Corporation (HBFC) was the apartments was around 22,000 in the beginning of 2016, the number came down to 12,000 in 2017. cheapest provider of home loans with lending rates of 12 percent for Dhaka and 10 per cent for other Apart from lower lending rates, reduction in bank savings rate, revitalised share market and reduction districts (ibid). in apartment price seemed to encourage the middle class to buy apartments and plots. Currently, six state-owned commercial banks, 39 private commercial banks, five foreign banks, and 22 Despite the reduction in interest rates, home loans are still costlier than in other countries. In NFIs provide home loans at the rate of 8 to 17.75 percent for 15-20 years and a single loan amount developed countries, the interest rate for housing loans is between 3 and 4 percent and the banks covers 70 percent of the apartment value (Samakal 2016c). In addition, interest rates of home loans provide up to 95 percent of the total amount of house purchase. In India the rate is around 4-5 percent vary based on the salaried and non-salaried professionals. Further, some banks offer low interest rates (Kaler Kantho 2016). In addition, while the duration of the loan repayment period is 15-25 years in for loans owed to other banks by borrowers. Table 4.7 demonstrates changes in interest rates for home Bangladesh, this period is 30 years in developed countries. Due to longer loan repayment periods, the loans over the years. instalment amount appears to be on par with rent value. Given this scenario, an individual can buy an apartment as soon as they start earning in these countries. Table 4.7: Home loan interest rates of scheduled banks and other financial institutions Opinion regarding house prices Type of financial January 2017 January 2015 January 2013 institutions (per annum) (per annum) (per annum) It is stated that the price of houses were moderately or extremely expensive for approximately 56 per cent of the homeowners, compared to less than 1 percent who reported the price as cheap. However, a No. of Lowest Highest No. of Lowest Highest No. of Lowest Highest significant number of the homeowners (43.4 percent) considered their housing price as 'just right'. banks (%) (%) banks (%) (%) banks (%) (%) Figure 4.5 demonstrates the opinions of the homeowners regarding house price. State-owned 6 10 14 6 15 16 6 4 17 commercial banks Figure 4.5: Opinions of the homeowners regarding the prices of houses Private commercial 39 8 17 38 10.5 19.5 22 11 18.5 Compared to the homeowners banks (55.8 percent), more tenants 0.8 Foreign banks 5 8 17.75 7 9 18 6 11 18 14.7 (75.4 percent) as seen in the Non-banking financial 22 9 18 Data not available previous section deemed the institutions (NFIs) Very expensive cost of housing in Dhaka expensive. It was further Source: Bangladesh Bank, 2013, 2015, 2017 revealed that while 51 percent of Moderately 43.4 Apart from interest rates, various types of fees are charged for availing bank loans. Prior to approval of a expensive tenants had made adjustments loan, fees are imposed for application, The Credit Information Bureau (CIB)3 checks, gives a legal to their daily expenditures to opinion and valuation. The post-approval charges include the processing fee. Just right bear the rent of the dwelling unit, 24 percent of homeowners did Similar to the revision of interest rates by commercial banks and non-banking financial institutions, the the same to meet the cost of government has endeavoured to enhance homeownership of government employees by lending 41.1 Cheap homeownership. Those who increased amounts of money at lower interest rates. The present interest rate of 10 percent is proposed w e r e r e q u i r e d t o m a ke to be reduced to 5 percent. In addition, the government plans to increase the loan ceiling to Tk. 1-5 adjustments in family expenses, million from the maximum of Tk. 120,000 at present (Samakal 2017). This loan is proposed to be given approximately 87 percent of the from the government's own fund. Government employees' pension fund is considered to be utilised to homeowners made a cut in clothing, entertainment and casual expenses in order to bear the cost of house purchase (Figure 4.6). This follows involvement of family members in additional income generating activities as an 3. Bangladesh Bank's Credit Information Bureau (CIB) is responsible, among others, for collection, processing and maintaining an adjustment strategy. updated database of credit related information supplied by participants and institutions which extend credit i.e. banks (Act.14, 1991), Financial Institutions (Act.27, 1993), HBFC (Presidential Order 7, 1973), ICB (ICB Order 40, 1976).

54 55 State of Cities 2017 Affordability of Housing

Figure 4.6: Homeowners' adjustment strategies to meet the cost of owning house deemed as barriers by around 29 percent of households. As shown in Figure 4.4, homeowners barely utilised commercial banks loans while buying houses (10.8 percent). The sequence of problems to homeownership appears similar for both tenants and homeowners. Reduction in educational expenses 9.7 Nonetheless, some variations were observed in reporting barriers amongst the two categories (Figure 4.8). More tenants than homeowners perceived high prices of apartments and lack of savings as the major challenges to buy homes in the city. In contrast, based on their practical experience, more Reduction in food expenses 41.9 homeowners thought that insufficient access to bank loans, high interest rates and land price were the most important barriers to homeownership.

Exploring for additional income 71 Figure 4.8: Barriers to homeownership identified by tenants and owners

90.0 Reduction in clothing, 87.1 entertainment and casual 80.0 Owners in % 0 20 40 60 80 100 70.0 Tenants in % Homeowners making adjustment in % 60.0

Benefits of homeownership 50.0 Security was reported as the prime benefit of homeownership by more than three-fourth of the homeowners (77.5 percent). Further, approximately 65 percent and 61 percent of homeowners cited 40.0 'no hazards in changing house' and improved 'social status' as benefits of homeownership respectively. 30.0 However, roughly one-tenth of the homeowners did not mention any noticeable benefits from homeownership at all. Figure 4.7 shows the types of benefits the homeowners enjoy from house 20.0 ownership. 10.0 Figure 4.7: Types of benefits of homeownership reported by owners 0.0 77.5 Savings Land price Apartment Back interest Bank loan Registration Others 80 price 65.1 Homeowners in % rate access costs 60.5

60 In addition to the above barriers, realtors blame a hike in tax rate and registration fees for the slowdown in the housing market. Land registration fees increased from Tk. 250 to Tk. 2,000 per square 40 metre in 2010 for both residential and commercial properties in Dhaka and Chittagong (Daily Star 2012). Realtors argue that such a hike in fees deprive the government eventually in obtaining revenues. 10.9 20 For example, due to the increase in tax rates and fees, around 16,000 apartments remained 0.8 unregistered in 2010-11, which deprived the government of around Tk. 10 billion in revenues (ibid.). 0 Furthermore, 15 percent tax on realtors' gains is another reason behind the high price of apartments as Security No hazard of Social status No benefits No need to it triggers them to impose higher prices to ensure net profit (Kaler Kantho 2017). changing give house house rents 4.2 Housing quality and surroundings: Households' preference and satisfaction 4.1.3 Barriers to homeownership in Dhaka: Views of owners and tenants The previous section has dealt with financial affordability of housing; this section examines city Insufficient savings were reported as the main barrier to homeownership by the four-fifth of the total dwellers' ability to afford interior and exterior housing quality. Housing quality varies based on socio- households surveyed. Furthermore, high prices of land and apartments were cited by approximately economic conditions of the city dwellers and geographical locations within the city. While the wealthier 63 percent and 58 percent of the households respectively. Access to bank loans and interest rates were people emphasise formal housing provisions, the lower income groups rely on informal housing.

56 57 State of Cities 2017 Affordability of Housing

Figure 4.6: Homeowners' adjustment strategies to meet the cost of owning house deemed as barriers by around 29 percent of households. As shown in Figure 4.4, homeowners barely utilised commercial banks loans while buying houses (10.8 percent). The sequence of problems to homeownership appears similar for both tenants and homeowners. Reduction in educational expenses 9.7 Nonetheless, some variations were observed in reporting barriers amongst the two categories (Figure 4.8). More tenants than homeowners perceived high prices of apartments and lack of savings as the major challenges to buy homes in the city. In contrast, based on their practical experience, more Reduction in food expenses 41.9 homeowners thought that insufficient access to bank loans, high interest rates and land price were the most important barriers to homeownership.

Exploring for additional income 71 Figure 4.8: Barriers to homeownership identified by tenants and owners

90.0 Reduction in clothing, 87.1 entertainment and casual 80.0 Owners in % 0 20 40 60 80 100 70.0 Tenants in % Homeowners making adjustment in % 60.0

Benefits of homeownership 50.0 Security was reported as the prime benefit of homeownership by more than three-fourth of the homeowners (77.5 percent). Further, approximately 65 percent and 61 percent of homeowners cited 40.0 'no hazards in changing house' and improved 'social status' as benefits of homeownership respectively. 30.0 However, roughly one-tenth of the homeowners did not mention any noticeable benefits from homeownership at all. Figure 4.7 shows the types of benefits the homeowners enjoy from house 20.0 ownership. 10.0 Figure 4.7: Types of benefits of homeownership reported by owners 0.0 77.5 Savings Land price Apartment Back interest Bank loan Registration Others 80 price 65.1 Homeowners in % rate access costs 60.5

60 In addition to the above barriers, realtors blame a hike in tax rate and registration fees for the slowdown in the housing market. Land registration fees increased from Tk. 250 to Tk. 2,000 per square 40 metre in 2010 for both residential and commercial properties in Dhaka and Chittagong (Daily Star 2012). Realtors argue that such a hike in fees deprive the government eventually in obtaining revenues. 10.9 20 For example, due to the increase in tax rates and fees, around 16,000 apartments remained 0.8 unregistered in 2010-11, which deprived the government of around Tk. 10 billion in revenues (ibid.). 0 Furthermore, 15 percent tax on realtors' gains is another reason behind the high price of apartments as Security No hazard of Social status No benefits No need to it triggers them to impose higher prices to ensure net profit (Kaler Kantho 2017). changing give house house rents 4.2 Housing quality and surroundings: Households' preference and satisfaction 4.1.3 Barriers to homeownership in Dhaka: Views of owners and tenants The previous section has dealt with financial affordability of housing; this section examines city Insufficient savings were reported as the main barrier to homeownership by the four-fifth of the total dwellers' ability to afford interior and exterior housing quality. Housing quality varies based on socio- households surveyed. Furthermore, high prices of land and apartments were cited by approximately economic conditions of the city dwellers and geographical locations within the city. While the wealthier 63 percent and 58 percent of the households respectively. Access to bank loans and interest rates were people emphasise formal housing provisions, the lower income groups rely on informal housing.

56 57 State of Cities 2017 Affordability of Housing

Likewise, affluent people reside in areas (e.g. Gulshan, Dhanmondi) that ensure quality of In Dhaka, the housing selection process is characterised by the need to address basic housing needs. neighbourhood, physical communications as well as spacious interiors in contrast to Old Dhaka's People's choice of housing is strongly driven by whether they can live close to family and friends and by traditional norms and lifestyle. In normative terms, housing quality can be referred to as the level of proximity to workplace. Less emphasis is put on whether the housing unit has high quality interior and acceptability of dwelling units and their associated immediate residential environment. Fiadzo et al. in-house amenities and on closeness of parks and open space. This paints a vivid image of the reality of (2001) formulated a Housing Quality Index (HQI) by combining a composite of nine items, including people's housing choices, which are grounded in acquiring necessities and not on superfluous type of lighting fuel used, distance to nearest public transportation, distance to nearest hospital, demands. distance to secondary school, type of cooking material used, type of wall material in the dwelling unit, main source of water, distance to nearest market and distance to nearest water source. In this The respondents were asked to measure the extent of influence of the cited factors on their decision to subsection, various aspects of housing quality (except utilities which will be discussed in Chapter 5: rent or purchase their current house. It was revealed that 'proximity to work' influenced approximately Quality of Basic Services and Disaster Preparedness), level of influence of these aspects on selection of 84 per cent of respondents very much, followed by households' inclination to live in a familiar housing units by the households, and their satisfaction with housing quality are presented. environment and having quality schools nearby. Although 'cost of housing' was cited by the second 4.2.1 Factors behind renting or owning current house and influence of these factors largest number of respondents as the factor for selecting their current dwelling unit, it was the most on selecting the present dwelling unit influential factor to around 34 percent of households. Details are given in Figure 4.10. It was found that the decision to rent or own the current house was triggered mostly by the proximity to Figure 4.10: Level of influence of various factors in case of renting or buying houses in Dhaka work or job opportunities (around 58 percent of respondents), followed by the cost of renting or buying 120 the house (41 percent of respondents). The respondents also prioritised living in close proximity to relatives or friends, good schools, and neighbourhoods while choosing the location of the house. In 100 contrast, interior living conditions of the apartment, open spaces around the house, and civic 80 entertaining centres such as parks and restaurants appeared to be least important to the respondents. 60 Details are given in Figure 4.9. 40 A little 20 Figure 4.9: Factors behind the decision of respondents to rent/own the current house Somewhat 0 Very much ety es 60 ation tr Saf eloper orkplace acilities es/friends e f t of housing ar ound house 50 tiv ansport yout of house s & open space Cos ela Neighbourhood La Nearby w Owner/dev 40 Nearby quality schools Nearby r Open space ar Nearby shopping cen 30 Nearby healthc Nearby park Long time living in sameNearby place public tr 20

10 It can be argued that higher emphasis on choosing a housing unit based on its proximity to workplace is mainly triggered by traffic congestion. Dhaka is reported to have slowed down from 21.2kph in 2004 to 0 s 6.8 kph in 2015 (BIGD 2016); an up-trip from Abdullahpur to Sayedabad via Badda would take 2.5-3 ety es ation tr Saf eloper Other orkplace acilities hours to travel 21 km distance on a normal working day, which is supposed to be 35-45 minutes in the es/friends e f t of housingtiv ansport ar ound house Bus Rapid Transit system (Rahman 2016). In order to save time, 98 per cent of the city dwellers make s & open space Cos ela Neighbourhood Nearby w Owner/dev ondition of house two trips in a day to attend the workplace and return home and the majority (56 percent) finish daily Nearby quality schools Nearby r Open space ar Nearby shopping cen trips within 10 km (BIGD 2016). Nearby healthc Nearby park Nearby public tr Long time living in same placeInside living c 4.2.2 Satisfaction regarding quality of housing and surroundings The respondents were found to be highly satisfied with their relationship with landlords, safety, nearby Figure 4.9 reveals that roughly 9 percent of households paid attention to the living conditions within public transportation, quality schools and inside living conditions as opposed to their dissatisfaction the house when they rented or bought a house. This can be corroborated with per capita space in Dhaka. 'Chapter 3: Adequacy of Housing' highlights that per capita space was 12.5 m2 in DSCC and DNCC around quality of infrastructure and access to parks and open space. Specifically, around 55 percent of areas and 32.3 m2 in Dhaka Metropolitan area compared to 87.4 m2 in Delhi, 33.2 m2 in Mumbai and the surveyed households said that they were either a little satisfied or dissatisfied with the present 230.2 m2 in Tokyo. However, the respondents prioritised the neighbourhood over the inside living access to parks and open space, followed by quality of infrastructure (48.3 percent of households). conditions of the housing unit.

58 59 State of Cities 2017 Affordability of Housing

Likewise, affluent people reside in areas (e.g. Gulshan, Dhanmondi) that ensure quality of In Dhaka, the housing selection process is characterised by the need to address basic housing needs. neighbourhood, physical communications as well as spacious interiors in contrast to Old Dhaka's People's choice of housing is strongly driven by whether they can live close to family and friends and by traditional norms and lifestyle. In normative terms, housing quality can be referred to as the level of proximity to workplace. Less emphasis is put on whether the housing unit has high quality interior and acceptability of dwelling units and their associated immediate residential environment. Fiadzo et al. in-house amenities and on closeness of parks and open space. This paints a vivid image of the reality of (2001) formulated a Housing Quality Index (HQI) by combining a composite of nine items, including people's housing choices, which are grounded in acquiring necessities and not on superfluous type of lighting fuel used, distance to nearest public transportation, distance to nearest hospital, demands. distance to secondary school, type of cooking material used, type of wall material in the dwelling unit, main source of water, distance to nearest market and distance to nearest water source. In this The respondents were asked to measure the extent of influence of the cited factors on their decision to subsection, various aspects of housing quality (except utilities which will be discussed in Chapter 5: rent or purchase their current house. It was revealed that 'proximity to work' influenced approximately Quality of Basic Services and Disaster Preparedness), level of influence of these aspects on selection of 84 per cent of respondents very much, followed by households' inclination to live in a familiar housing units by the households, and their satisfaction with housing quality are presented. environment and having quality schools nearby. Although 'cost of housing' was cited by the second 4.2.1 Factors behind renting or owning current house and influence of these factors largest number of respondents as the factor for selecting their current dwelling unit, it was the most on selecting the present dwelling unit influential factor to around 34 percent of households. Details are given in Figure 4.10. It was found that the decision to rent or own the current house was triggered mostly by the proximity to Figure 4.10: Level of influence of various factors in case of renting or buying houses in Dhaka work or job opportunities (around 58 percent of respondents), followed by the cost of renting or buying 120 the house (41 percent of respondents). The respondents also prioritised living in close proximity to relatives or friends, good schools, and neighbourhoods while choosing the location of the house. In 100 contrast, interior living conditions of the apartment, open spaces around the house, and civic 80 entertaining centres such as parks and restaurants appeared to be least important to the respondents. 60 Details are given in Figure 4.9. 40 A little 20 Figure 4.9: Factors behind the decision of respondents to rent/own the current house Somewhat 0 Very much ety es 60 ation tr Saf eloper orkplace acilities es/friends e f t of housing ar ound house 50 tiv ansport yout of house s & open space Cos ela Neighbourhood La Nearby w Owner/dev 40 Nearby quality schools Nearby r Open space ar Nearby shopping cen 30 Nearby healthc Nearby park Long time living in sameNearby place public tr 20

10 It can be argued that higher emphasis on choosing a housing unit based on its proximity to workplace is mainly triggered by traffic congestion. Dhaka is reported to have slowed down from 21.2kph in 2004 to 0 s 6.8 kph in 2015 (BIGD 2016); an up-trip from Abdullahpur to Sayedabad via Badda would take 2.5-3 ety es ation tr Saf eloper Other orkplace acilities hours to travel 21 km distance on a normal working day, which is supposed to be 35-45 minutes in the es/friends e f t of housingtiv ansport ar ound house Bus Rapid Transit system (Rahman 2016). In order to save time, 98 per cent of the city dwellers make s & open space Cos ela Neighbourhood Nearby w Owner/dev ondition of house two trips in a day to attend the workplace and return home and the majority (56 percent) finish daily Nearby quality schools Nearby r Open space ar Nearby shopping cen trips within 10 km (BIGD 2016). Nearby healthc Nearby park Nearby public tr Long time living in same placeInside living c 4.2.2 Satisfaction regarding quality of housing and surroundings The respondents were found to be highly satisfied with their relationship with landlords, safety, nearby Figure 4.9 reveals that roughly 9 percent of households paid attention to the living conditions within public transportation, quality schools and inside living conditions as opposed to their dissatisfaction the house when they rented or bought a house. This can be corroborated with per capita space in Dhaka. 'Chapter 3: Adequacy of Housing' highlights that per capita space was 12.5 m2 in DSCC and DNCC around quality of infrastructure and access to parks and open space. Specifically, around 55 percent of areas and 32.3 m2 in Dhaka Metropolitan area compared to 87.4 m2 in Delhi, 33.2 m2 in Mumbai and the surveyed households said that they were either a little satisfied or dissatisfied with the present 230.2 m2 in Tokyo. However, the respondents prioritised the neighbourhood over the inside living access to parks and open space, followed by quality of infrastructure (48.3 percent of households). conditions of the housing unit.

58 59 State of Cities 2017 Affordability of Housing

Dissatisfaction was also expressed regarding civic amenities (47.4 percent), quality of environment Table 4.8: Dhaka's standing vis-à-vis other South and East Asian cities (41.4 percent), and level of crowding (36.9 percent). Inadequate provision of physical and social City Overall Overall Stability Healthcare Culture & Education Infrastructure amenities was reported widely in public media (Daily Star 2009). On the contrary, the highest number rank rating (100 = environment of respondents (88.2 percent) expressed high or somewhat satisfaction about their relationship with ideal, 1 = landlords, followed by safety (86.3 percent). Satisfaction levels of the respondents about various intolerable) aspects of dwelling are illustrated in Figure 4.11. Dhaka 139 38.7 50.0 29.2 43.3 41.7 26.8 Karachi 134 40.9 20.0 45.8 38.7 66.7 51.8 Figure 4.11: Households' satisfaction regarding quality of housing and surroundings Colombo 128 49.6 55.0 41.7 42.1 66.7 51.8 Kathmandu 124 51.0 65.0 37.5 52.8 58.3 41.1 Nearby healthcare facilities Hanoi 118 54.2 55.0 54.2 53.7 58.3 51.8 Nearby public transportation Jakarta 116 54.6 50.0 45.8 59.3 66.7 57.1 Nearby shopping centres, restaurants, etc. Mumbai 115 56.9 60.0 54.2 56.3 66.7 51.8 Nearby quality school New Delhi 110 58.9 55.0 58.3 56.9 75.0 58.9 Safety Shanghai 78 73.2 75.0 66.7 74.3 75.0 75.0 Civic amenities Kuala Lumpur 73 75.2 80.0 62.5 69.7 91.7 80.4 Access to parks & open space Beijing 69 76.2 80.0 66.7 69.4 83.3 85.7 Quality of environment Average (11 cities) 57.2 58.6 51.1 56.0 68.2 57.5 Quality of infrastructure Source: The Economist Intelligence Unit Limited 2015 Level of crowding Neighbourhood 4.3 Key issues of housing affordability Relationship with landlord (renters only) The housing provisions in rent or ownership seem to be unaffordable to the majority of households in Aesthetic view of house Dhaka. The city dwellers have made their existing living units affordable by compromising housing Inside living conditions standards and day-to-day household expenditures. Based on the foregoing analyses and households' opinions regarding housing affordability, this section infers the key issues. Current dwelling

0 20 40 60 80 100 4.3.1 Affordability of rental units Very much Somewhat A little Not at all The existing rental costs for housing units exceeded the standard affordable threshold in case of four- fifth of the tenants. The majority of tenants reported rental cost as expensive. This financial burden triggered tenants to reduce expenses for food, children's education and other consumptions. It can be The majority of the households were satisfied with their current dwelling and level of crowding argued that these adjustment strategies result in affecting proper food intake, quality education and although Dhaka is ranked as the most densely populated mega city (Research Initiative for Social Equity shrinking social life of city dwellers. Conversely, costs for basic consumptions and compulsory Society 2015) and the second least liveable city in the world (EIU 2016). In comparison with other cities, expenditures of many tenants for extended families force them to spend less on housing. As a result, Dhaka's ranking at the bottom cannot be denied (Table 4.8). It further demonstrates that Dhaka scored people live in sub-standard housing units. The lower per capita housing space (12.5 m2 in DSCC and poorly in all aspects of liveability compared to the average score of these 11 South and East Asian cities. DNCC areas and 32.3 m2 in Dhaka Metropolitan area compared to 87.4 m2 in Delhi, 33.2 m2 in Mumbai Specifically, Dhaka's performance is much poorer in healthcare and infrastructure. In these two and 230.2 m2 in Tokyo) is the example of households dwelling in crowded houses in Dhaka. Therefore, aspects Dhaka gained 29.2 and 26.8 while the average score is 51.1 and 57.5, meaning Dhaka's housing affordability should be assessed based on the combination of basic consumption and standard achievement is approximately half of the regional average. People's low aspirations may be argued as of housing (interior and exterior). the reason behind their positive assessment of urban dwelling. 4.3.2 Homeownership: Aspiration and challenges Homeownership is the desired solution for the tenants. It will provide them relief from bearing recurrent rental costs. However, acquiring decent housing seems to be the main challenge for lower and middle-income people, especially families with single earning members. The majority of

60 61 State of Cities 2017 Affordability of Housing

Dissatisfaction was also expressed regarding civic amenities (47.4 percent), quality of environment Table 4.8: Dhaka's standing vis-à-vis other South and East Asian cities (41.4 percent), and level of crowding (36.9 percent). Inadequate provision of physical and social City Overall Overall Stability Healthcare Culture & Education Infrastructure amenities was reported widely in public media (Daily Star 2009). On the contrary, the highest number rank rating (100 = environment of respondents (88.2 percent) expressed high or somewhat satisfaction about their relationship with ideal, 1 = landlords, followed by safety (86.3 percent). Satisfaction levels of the respondents about various intolerable) aspects of dwelling are illustrated in Figure 4.11. Dhaka 139 38.7 50.0 29.2 43.3 41.7 26.8 Karachi 134 40.9 20.0 45.8 38.7 66.7 51.8 Figure 4.11: Households' satisfaction regarding quality of housing and surroundings Colombo 128 49.6 55.0 41.7 42.1 66.7 51.8 Kathmandu 124 51.0 65.0 37.5 52.8 58.3 41.1 Nearby healthcare facilities Hanoi 118 54.2 55.0 54.2 53.7 58.3 51.8 Nearby public transportation Jakarta 116 54.6 50.0 45.8 59.3 66.7 57.1 Nearby shopping centres, restaurants, etc. Mumbai 115 56.9 60.0 54.2 56.3 66.7 51.8 Nearby quality school New Delhi 110 58.9 55.0 58.3 56.9 75.0 58.9 Safety Shanghai 78 73.2 75.0 66.7 74.3 75.0 75.0 Civic amenities Kuala Lumpur 73 75.2 80.0 62.5 69.7 91.7 80.4 Access to parks & open space Beijing 69 76.2 80.0 66.7 69.4 83.3 85.7 Quality of environment Average (11 cities) 57.2 58.6 51.1 56.0 68.2 57.5 Quality of infrastructure Source: The Economist Intelligence Unit Limited 2015 Level of crowding Neighbourhood 4.3 Key issues of housing affordability Relationship with landlord (renters only) The housing provisions in rent or ownership seem to be unaffordable to the majority of households in Aesthetic view of house Dhaka. The city dwellers have made their existing living units affordable by compromising housing Inside living conditions standards and day-to-day household expenditures. Based on the foregoing analyses and households' opinions regarding housing affordability, this section infers the key issues. Current dwelling

0 20 40 60 80 100 4.3.1 Affordability of rental units Very much Somewhat A little Not at all The existing rental costs for housing units exceeded the standard affordable threshold in case of four- fifth of the tenants. The majority of tenants reported rental cost as expensive. This financial burden triggered tenants to reduce expenses for food, children's education and other consumptions. It can be The majority of the households were satisfied with their current dwelling and level of crowding argued that these adjustment strategies result in affecting proper food intake, quality education and although Dhaka is ranked as the most densely populated mega city (Research Initiative for Social Equity shrinking social life of city dwellers. Conversely, costs for basic consumptions and compulsory Society 2015) and the second least liveable city in the world (EIU 2016). In comparison with other cities, expenditures of many tenants for extended families force them to spend less on housing. As a result, Dhaka's ranking at the bottom cannot be denied (Table 4.8). It further demonstrates that Dhaka scored people live in sub-standard housing units. The lower per capita housing space (12.5 m2 in DSCC and poorly in all aspects of liveability compared to the average score of these 11 South and East Asian cities. DNCC areas and 32.3 m2 in Dhaka Metropolitan area compared to 87.4 m2 in Delhi, 33.2 m2 in Mumbai Specifically, Dhaka's performance is much poorer in healthcare and infrastructure. In these two and 230.2 m2 in Tokyo) is the example of households dwelling in crowded houses in Dhaka. Therefore, aspects Dhaka gained 29.2 and 26.8 while the average score is 51.1 and 57.5, meaning Dhaka's housing affordability should be assessed based on the combination of basic consumption and standard achievement is approximately half of the regional average. People's low aspirations may be argued as of housing (interior and exterior). the reason behind their positive assessment of urban dwelling. 4.3.2 Homeownership: Aspiration and challenges Homeownership is the desired solution for the tenants. It will provide them relief from bearing recurrent rental costs. However, acquiring decent housing seems to be the main challenge for lower and middle-income people, especially families with single earning members. The majority of

60 61 State of Cities 2017 Affordability of Housing

homeowners either bought respective housing units with personal or family savings or obtained Financing homeownership homeownership through inheritance. The conventional bank loans for owning houses were seldom Finance is the key factor in housing affordability. If the urban dwellers have to buy a home with personal utilised (only 11 percent of surveyed homeowners used bank loans for buying houses). savings as seen in the preceding section, many households will remain out of homeownership. An Both tenants and homeowners who were surveyed overwhelmingly identified 'insufficient savings' as apartment price may require household's lifetime savings. It is near to impossible to afford an the major barrier to homeownership. High prices of land and apartments, access to bank loans and apartment in Dhaka for a person who is just beginning their career. Due to inadequate savings, the interest rates were the other important barriers. On the contrary, the realtors identified the hike in tax dream of the middle class to become homeowners will remain unfulfilled. Furthermore, middle class rate and registration fees for the slow-down in the housing market. Per square metre land registration families tend to buy home in cash, which allows them to enjoy discounts. Moreover, they prefer the fee was raised by 700 percent for both residential and commercial spaces in Dhaka and Chittagong in ready-to-move apartments because they will immediately be relieved from bearing rental cost; instead 2010 (Daily Star 2012). At present, tax at source, VAT, income tax and various fees altogether add up to they will pay loan instalments and in the meantime enjoy homeownership. 14 percent of the apartment price (Samakal 2016d). Buying apartments in instalments is a burden to the aspiring homeowners; under construction or to be In the five-day Winter REHAB Fair organised in December 2016, the average price of apartments and constructed apartments require 2-3 years for the builders to hand over the apartment to the buyers. In plots was Tk. 8 million and 5 million respectively and per sq. ft. price for an apartment ranged between this case, the buyer has to bear rental costs and instalment of home buying simultaneously, which is Tk. 5,800 to Tk. 20,000, depending on apartment location in the city. If an apartment sale price is Tk. 8 burdensome for fixed income people. On the other hand, ready-to-move apartments are sold in cash million, the tax will account for Tk. 1.12 million (14 percent of the apartment value). While the buyer is generally. In such cases, financing the house buying is needed to ensure homeownership of a getting a physical structure by paying Tk. 8 million, they will not get something visible in exchange for prospective buyer. Realtors prefer selling apartments in cash as well. It gives them certainty in profit Tk. 1.12 million. Hence, the prospective buyers seem to be demotivated to buy apartments. and helps them repay bank loans. Accordingly, government's plan to mobilise more resources is set to backfire. Furthermore, the costs Role of public sector in housing provision required to purchase a house are equivalent to the savings of a lifetime for many families. Hence, more than two-thirds of the surveyed tenants did not aspire to own a house in the city. This means that they If house selling is solely left to the market, the private providers may have discretion to fix such a price will be dwelling in rented house as long as they live in Dhaka. for selling house in which only higher income groups will be able to own a home. The lower and middle income households will remain tenants as long as they live in the city (Table 4.5). As highlighted, the Potential homeowners in Dhaka majority do not have plans to buy a home in Dhaka. As a result of high demand for rental houses, the The lowest size of housing units built by realtors can be 750 square feet. At the rate of Tk. 5,800 per rent of apartments will be so high that the average middle income people cannot bear the cost, and square foot, the cost of this apartment will be Tk. 4.35 million. The prospective buyer may be entitled to then they will rent a house by compromising housing standards. Entry of the public sector in housing obtaining maximum credit facilities of Tk. 3.045 million (70 per cent of apartment value). In addition, market can help the lower middle income people to fulfil the latter's dream of homeownership and tax and registration fees account for Tk. 0.609 million; implying that the buyer will be required to pay check arbitrary hike in the realtors' apartment selling price. Reasonable apartment price will allow Tk. 1.914 million. It is reported in BIGD's State of Cities Survey that 57.5 percent of the households do more people to achieve homeownership in the city. not save anything. These people will be left out of homeownership in future unless they can afford to make savings and/or the government provides them housing at a cost equal to their existing rent. The National Housing policy 2016 envisioned the provision of affordable housing for low and middle- Extrapolating the reported amount of household savings, Table 4.9 shows the required years to income people by the government. In reality, no concrete initiatives have been taken by the accumulate the down payment for a small sized apartment by potential homeowners. Only 12 percent government to address the housing problems of the low and middle income groups; rather, RAJUK of households will be able to accumulate the amount equal to a down-payment amount for buying a emphasised developing plots or making apartments for certain privileged groups including house in Dhaka within less than 20 years at the rate of existing savings. government officials, ministers, MPs and high income groups. The government has undertaken at least 21 housing projects in last eight years to feed the need of these groups (Samakal, 2016e). Table 4.9: Years required to accumulate the down payment for a small sized apartment Implementation of the policy imperatives seemed not to have been paid much attention by the Households Existing amount of Average savings Years needed to accumulate government. Government's failure to provide affordable land and housing to the growing population (percent) savings (Tk.) in a year the down payment of Tk. 1.914 has caused a huge backlog and takeover of housing delivery system by the informal sector. More than in a month million for buying an apartment 35 per cent of Dhaka's population live in slums and squat settlements. This signifies the epitome of 57.5 0 0 Left out of homeownership government's failure to address housing problems in Dhaka City (Daily Star 2009). 6.8 Up to Tk. 1,000 9,689 197.5 4.3.3 Housing standards 11.5 1,001 – 2,000 22,278 85.9 In order to cope with the increasing trends in apartment price, prospective homeowners have modified 12.2 2,001-5,000 48,735 39.3 their purchasing pattern. Homeowners are opting for smaller housing units to compensate for the 6.5 5,001- 10,000 110,769 17.3 rising prices. The highest demand for small and medium size apartments, shown by the prospective 5.5 More than 10,000 312,000 6.1 buyers in the five-day Winter REHAB fair in December 2016 is evidence of demand readjustment in apartment size vis-à-vis apartment price. Also, few households paid attention to indoor living

62 63 State of Cities 2017 Affordability of Housing homeowners either bought respective housing units with personal or family savings or obtained Financing homeownership homeownership through inheritance. The conventional bank loans for owning houses were seldom Finance is the key factor in housing affordability. If the urban dwellers have to buy a home with personal utilised (only 11 percent of surveyed homeowners used bank loans for buying houses). savings as seen in the preceding section, many households will remain out of homeownership. An Both tenants and homeowners who were surveyed overwhelmingly identified 'insufficient savings' as apartment price may require household's lifetime savings. It is near to impossible to afford an the major barrier to homeownership. High prices of land and apartments, access to bank loans and apartment in Dhaka for a person who is just beginning their career. Due to inadequate savings, the interest rates were the other important barriers. On the contrary, the realtors identified the hike in tax dream of the middle class to become homeowners will remain unfulfilled. Furthermore, middle class rate and registration fees for the slow-down in the housing market. Per square metre land registration families tend to buy home in cash, which allows them to enjoy discounts. Moreover, they prefer the fee was raised by 700 percent for both residential and commercial spaces in Dhaka and Chittagong in ready-to-move apartments because they will immediately be relieved from bearing rental cost; instead 2010 (Daily Star 2012). At present, tax at source, VAT, income tax and various fees altogether add up to they will pay loan instalments and in the meantime enjoy homeownership. 14 percent of the apartment price (Samakal 2016d). Buying apartments in instalments is a burden to the aspiring homeowners; under construction or to be In the five-day Winter REHAB Fair organised in December 2016, the average price of apartments and constructed apartments require 2-3 years for the builders to hand over the apartment to the buyers. In plots was Tk. 8 million and 5 million respectively and per sq. ft. price for an apartment ranged between this case, the buyer has to bear rental costs and instalment of home buying simultaneously, which is Tk. 5,800 to Tk. 20,000, depending on apartment location in the city. If an apartment sale price is Tk. 8 burdensome for fixed income people. On the other hand, ready-to-move apartments are sold in cash million, the tax will account for Tk. 1.12 million (14 percent of the apartment value). While the buyer is generally. In such cases, financing the house buying is needed to ensure homeownership of a getting a physical structure by paying Tk. 8 million, they will not get something visible in exchange for prospective buyer. Realtors prefer selling apartments in cash as well. It gives them certainty in profit Tk. 1.12 million. Hence, the prospective buyers seem to be demotivated to buy apartments. and helps them repay bank loans. Accordingly, government's plan to mobilise more resources is set to backfire. Furthermore, the costs Role of public sector in housing provision required to purchase a house are equivalent to the savings of a lifetime for many families. Hence, more than two-thirds of the surveyed tenants did not aspire to own a house in the city. This means that they If house selling is solely left to the market, the private providers may have discretion to fix such a price will be dwelling in rented house as long as they live in Dhaka. for selling house in which only higher income groups will be able to own a home. The lower and middle income households will remain tenants as long as they live in the city (Table 4.5). As highlighted, the Potential homeowners in Dhaka majority do not have plans to buy a home in Dhaka. As a result of high demand for rental houses, the The lowest size of housing units built by realtors can be 750 square feet. At the rate of Tk. 5,800 per rent of apartments will be so high that the average middle income people cannot bear the cost, and square foot, the cost of this apartment will be Tk. 4.35 million. The prospective buyer may be entitled to then they will rent a house by compromising housing standards. Entry of the public sector in housing obtaining maximum credit facilities of Tk. 3.045 million (70 per cent of apartment value). In addition, market can help the lower middle income people to fulfil the latter's dream of homeownership and tax and registration fees account for Tk. 0.609 million; implying that the buyer will be required to pay check arbitrary hike in the realtors' apartment selling price. Reasonable apartment price will allow Tk. 1.914 million. It is reported in BIGD's State of Cities Survey that 57.5 percent of the households do more people to achieve homeownership in the city. not save anything. These people will be left out of homeownership in future unless they can afford to make savings and/or the government provides them housing at a cost equal to their existing rent. The National Housing policy 2016 envisioned the provision of affordable housing for low and middle- Extrapolating the reported amount of household savings, Table 4.9 shows the required years to income people by the government. In reality, no concrete initiatives have been taken by the accumulate the down payment for a small sized apartment by potential homeowners. Only 12 percent government to address the housing problems of the low and middle income groups; rather, RAJUK of households will be able to accumulate the amount equal to a down-payment amount for buying a emphasised developing plots or making apartments for certain privileged groups including house in Dhaka within less than 20 years at the rate of existing savings. government officials, ministers, MPs and high income groups. The government has undertaken at least 21 housing projects in last eight years to feed the need of these groups (Samakal, 2016e). Table 4.9: Years required to accumulate the down payment for a small sized apartment Implementation of the policy imperatives seemed not to have been paid much attention by the Households Existing amount of Average savings Years needed to accumulate government. Government's failure to provide affordable land and housing to the growing population (percent) savings (Tk.) in a year the down payment of Tk. 1.914 has caused a huge backlog and takeover of housing delivery system by the informal sector. More than in a month million for buying an apartment 35 per cent of Dhaka's population live in slums and squat settlements. This signifies the epitome of 57.5 0 0 Left out of homeownership government's failure to address housing problems in Dhaka City (Daily Star 2009). 6.8 Up to Tk. 1,000 9,689 197.5 4.3.3 Housing standards 11.5 1,001 – 2,000 22,278 85.9 In order to cope with the increasing trends in apartment price, prospective homeowners have modified 12.2 2,001-5,000 48,735 39.3 their purchasing pattern. Homeowners are opting for smaller housing units to compensate for the 6.5 5,001- 10,000 110,769 17.3 rising prices. The highest demand for small and medium size apartments, shown by the prospective 5.5 More than 10,000 312,000 6.1 buyers in the five-day Winter REHAB fair in December 2016 is evidence of demand readjustment in apartment size vis-à-vis apartment price. Also, few households paid attention to indoor living

62 63 State of Cities 2017 Affordability of Housing

conditions when they rented or bought a house (Figure 4.9). These modified demands for apartment For tenants, there should be institutional mechanisms (to be highlighted in Chapter 6: Tenant Security) size result in crowdedness within the housing units. to control rents and reduce associated rental costs (e.g. advance rent, repairs, etc). Furthermore, the In comparison with interior housing standards, the city dwellers considered neighbourhood more government can consider introduction of housing benefits (welfare payments) scheme for low income important. While choosing the location of the house, the surveyed households considered the people to help them pay their rents. proximity to work or job opportunities, rental cost or apartment price, relatives or friends, and quality 4.4.2 Financing housing costs schools. Nonetheless, the other outside housing standards such as open space around the house, and Financing the housing cost should be widened and made easier for prospective homeowners. Home civic entertaining centres such as parks and restaurants did not appear to be important to the majority of households (Figure 4.9). This implies that the city dwellers prefer daily, inevitable needs to outside loans at affordable rates may fill in the gap created by the difference between personal savings and qualities while choosing a housing unit. Their overwhelming determination to rent or buy a house in apartment price. Currently, various commercial banks and NBFIs offer home loans at 8-10 percent close proximity to the workplace was triggered by traffic gridlock, forcing 98 per cent of city dwellers to interest rates for maximum 25 years and these loans account for maximum 70 percent of apartment make two trips in a day (i.e. attending and returning from the workplace). Because of limited price. The ceiling of cost coverage of loans should be increased from 70 percent to 90-95 percent of the movement, city dwellers' social lives are bound to be constrained. total apartment price and the repayment period should be made much longer. Interest rates of loans need to be explored to trim down further. If instalments of home loans are made equivalent to the Despite poor state of internal and external housing standards, city dwellers were satisfied with their current rental costs, many people will be interested to become homeowners. current dwelling and level of crowding, even though Dhaka is poorly ranked in the liveability index (second least liveable city among 140 cities). This divergence tells us that city dwellers' perceptions Furthermore, the government can finance its commercial banks to provide home loans at lower regarding liveability are far away from standard definitions of liveability. High costs of living, poor interest rates (5-6 percent). The Minister for Public Works asked for an increase loan repayment period income, inability to afford standard housing, and habit of living in crowdedness have caused for 30 years and a reduction to the interest rate to 4-5 per cent (Samakal 2016b). It is very difficult for acceptance of current dwellings as norm. However, this positive assessment and narrow definition of the buyers to default on a bank loan as the house lies with the bank as guarantee. Therefore, home liveability prevents city dwellers from raising their voice against mismanagement of the city, which will loans are a less risky loan product given high loan defaulting culture in Bangladesh. Government has eventually lead to poor ranking of the city. The situation is aggravated due to the lack of proactive taken initiatives to give low interest rate loans (at 5 percent) for its employees; such facilities need to be initiatives by government agencies. In absence of proper zoning of housing and land zoning, the city has extended to low and lower middle income people. Thus far, government initiatives are nearly absent in grown without adequate urban facilities for dwelling. the provision of low interest rates. Realtors' demand for rescheduling Tk. 200 billion funds and Because of high demand for low cost rental housing, individual landowners tend to deviate from providing home loan from this fund at single digit to lower and middle income people is worth building good quality houses. Further, they use the available land as much as possible to build by consideration by the government. Between 2007 and 2009, loans were given at 9 percent interest rates deviating norms set by RAJUK. Living in such sub-standard homes will result in Dhaka ranking poorly in from Bangladesh Bank's fund. Government can offer incentives to the realtors for low cost liveability indices. Should the government feed this high demand and enforce regulations, it will lead to housing/apartments for low and lower middle-income people. planned utilisation of urban land, which will eventually accommodate more people at a higher standard. 4.4.3 Planned use of land Government can set minimum floors for construction depending on the nature of the land. Leaving Individual self-initiatives to ensure housing in the context of government's failure triggers housing housing development to individual landowners can cause wastage of land. The landowners cannot costs further. The housing sector flourishes in an unplanned manner resulting in inefficient land use on afford to build high-rise; in this case the developer can fill in the gap. Rise in land/apartment price was the one hand and on the other hand high costs involved in the construction of houses have caused the caused due to concentration of developers in certain areas such as Dhanmondi, Gulshan, Uttara, etc. If homeowners to increase the rent. Further, the growth in production of the housing units is slower than the growth in demand; in the context of a mis-match between demand and supply, the rent increases the whole of Dhaka could be brought under a planned housing development, the inflation in housing affecting housing affordability. costs could be dispersed across the city. 4.4 Recommendations 4.4.1 Provision of low cost housing Low cost housing should be the goal for housing affordability. To achieve this goal, the costs to produce apartments and achieve homeownership need to be cut down to make the housing provisions more accessible for the lower and lower middle income people (who are the majority in the city). Costs can be reduced by ending the payment of signing money to the landowner and rationalising tax and registration fees.

64 65 State of Cities 2017 Affordability of Housing conditions when they rented or bought a house (Figure 4.9). These modified demands for apartment For tenants, there should be institutional mechanisms (to be highlighted in Chapter 6: Tenant Security) size result in crowdedness within the housing units. to control rents and reduce associated rental costs (e.g. advance rent, repairs, etc). Furthermore, the In comparison with interior housing standards, the city dwellers considered neighbourhood more government can consider introduction of housing benefits (welfare payments) scheme for low income important. While choosing the location of the house, the surveyed households considered the people to help them pay their rents. proximity to work or job opportunities, rental cost or apartment price, relatives or friends, and quality 4.4.2 Financing housing costs schools. Nonetheless, the other outside housing standards such as open space around the house, and Financing the housing cost should be widened and made easier for prospective homeowners. Home civic entertaining centres such as parks and restaurants did not appear to be important to the majority of households (Figure 4.9). This implies that the city dwellers prefer daily, inevitable needs to outside loans at affordable rates may fill in the gap created by the difference between personal savings and qualities while choosing a housing unit. Their overwhelming determination to rent or buy a house in apartment price. Currently, various commercial banks and NBFIs offer home loans at 8-10 percent close proximity to the workplace was triggered by traffic gridlock, forcing 98 per cent of city dwellers to interest rates for maximum 25 years and these loans account for maximum 70 percent of apartment make two trips in a day (i.e. attending and returning from the workplace). Because of limited price. The ceiling of cost coverage of loans should be increased from 70 percent to 90-95 percent of the movement, city dwellers' social lives are bound to be constrained. total apartment price and the repayment period should be made much longer. Interest rates of loans need to be explored to trim down further. If instalments of home loans are made equivalent to the Despite poor state of internal and external housing standards, city dwellers were satisfied with their current rental costs, many people will be interested to become homeowners. current dwelling and level of crowding, even though Dhaka is poorly ranked in the liveability index (second least liveable city among 140 cities). This divergence tells us that city dwellers' perceptions Furthermore, the government can finance its commercial banks to provide home loans at lower regarding liveability are far away from standard definitions of liveability. High costs of living, poor interest rates (5-6 percent). The Minister for Public Works asked for an increase loan repayment period income, inability to afford standard housing, and habit of living in crowdedness have caused for 30 years and a reduction to the interest rate to 4-5 per cent (Samakal 2016b). It is very difficult for acceptance of current dwellings as norm. However, this positive assessment and narrow definition of the buyers to default on a bank loan as the house lies with the bank as guarantee. Therefore, home liveability prevents city dwellers from raising their voice against mismanagement of the city, which will loans are a less risky loan product given high loan defaulting culture in Bangladesh. Government has eventually lead to poor ranking of the city. The situation is aggravated due to the lack of proactive taken initiatives to give low interest rate loans (at 5 percent) for its employees; such facilities need to be initiatives by government agencies. In absence of proper zoning of housing and land zoning, the city has extended to low and lower middle income people. Thus far, government initiatives are nearly absent in grown without adequate urban facilities for dwelling. the provision of low interest rates. Realtors' demand for rescheduling Tk. 200 billion funds and Because of high demand for low cost rental housing, individual landowners tend to deviate from providing home loan from this fund at single digit to lower and middle income people is worth building good quality houses. Further, they use the available land as much as possible to build by consideration by the government. Between 2007 and 2009, loans were given at 9 percent interest rates deviating norms set by RAJUK. Living in such sub-standard homes will result in Dhaka ranking poorly in from Bangladesh Bank's fund. Government can offer incentives to the realtors for low cost liveability indices. Should the government feed this high demand and enforce regulations, it will lead to housing/apartments for low and lower middle-income people. planned utilisation of urban land, which will eventually accommodate more people at a higher standard. 4.4.3 Planned use of land Government can set minimum floors for construction depending on the nature of the land. Leaving Individual self-initiatives to ensure housing in the context of government's failure triggers housing housing development to individual landowners can cause wastage of land. The landowners cannot costs further. The housing sector flourishes in an unplanned manner resulting in inefficient land use on afford to build high-rise; in this case the developer can fill in the gap. Rise in land/apartment price was the one hand and on the other hand high costs involved in the construction of houses have caused the caused due to concentration of developers in certain areas such as Dhanmondi, Gulshan, Uttara, etc. If homeowners to increase the rent. Further, the growth in production of the housing units is slower than the growth in demand; in the context of a mis-match between demand and supply, the rent increases the whole of Dhaka could be brought under a planned housing development, the inflation in housing affecting housing affordability. costs could be dispersed across the city. 4.4 Recommendations 4.4.1 Provision of low cost housing Low cost housing should be the goal for housing affordability. To achieve this goal, the costs to produce apartments and achieve homeownership need to be cut down to make the housing provisions more accessible for the lower and lower middle income people (who are the majority in the city). Costs can be reduced by ending the payment of signing money to the landowner and rationalising tax and registration fees.

64 65 5 CHAPTER QUALITY OF BASIC SERVICES AND DISASTER PREPAREDNESS

Basic utility services and infrastructure of housing are driving forces and foundations for a functional housing environment. Water, sanitation and energy services are the backbones of overall housing condition. During a special session titled 'Urban Infrastructure and Basic Services, including energy' by UN-Habitat (2016), 'understanding the linkage between availability, accessibility, affordability and adequacy of basic services for the realisation of human rights' was identified as one of the key drivers 'in the implementation of the New Urban Agenda, in the context of infrastructure and basic services'. For this reason, this chapter will focus on the basic services and infrastructure of housing in Dhaka. Because of some socio-economic reasons like change in family structure, facilities in apartment, communities etc., demand for housing has been changing in Dhaka City. Families find apartments more convenient because of the better services and security (Siraj 2016). It is clear to many that better service delivery can increase the liveability of housing. Broadly, the term 'liveability' refers to transportation, community development and resilience (Herrman and Lewis 2017). This chapter focuses on the liveability of housing in terms of the services it provides. This chapter aims to study the quality of four basic services: water, electricity, gas and waste management as well as people's satisfaction regarding these services provided to houses in Dhaka. It looks at these services from four dimensions i.e. accessibility, reliability, responsiveness and safety. This chapter also aims to look into the disaster preparedness of the housing surveyed. 5.1 Methodology For this chapter, a review of available literature and data from the State of Cities (SOC) housing survey has been analysed. The quantitative analysis is done using the primary data collected as part of the SOC housing survey 2017. The quantitative analysis is complemented by some qualitative information collected through a review of the existing literature. The focus of the chapter is to capture the demand side perception of the utility services people are getting and evaluate the performance of these services based on their feedback. The chapter contains two sections. The first section outlines the evaluation of four basic amenities, i.e. water, electricity, gas and waste management. The second section discusses disaster preparedness of housing in light of two specific potential disasters i.e. fire outbreak and earthquake.

67 5 CHAPTER QUALITY OF BASIC SERVICES AND DISASTER PREPAREDNESS

Basic utility services and infrastructure of housing are driving forces and foundations for a functional housing environment. Water, sanitation and energy services are the backbones of overall housing condition. During a special session titled 'Urban Infrastructure and Basic Services, including energy' by UN-Habitat (2016), 'understanding the linkage between availability, accessibility, affordability and adequacy of basic services for the realisation of human rights' was identified as one of the key drivers 'in the implementation of the New Urban Agenda, in the context of infrastructure and basic services'. For this reason, this chapter will focus on the basic services and infrastructure of housing in Dhaka. Because of some socio-economic reasons like change in family structure, facilities in apartment, communities etc., demand for housing has been changing in Dhaka City. Families find apartments more convenient because of the better services and security (Siraj 2016). It is clear to many that better service delivery can increase the liveability of housing. Broadly, the term 'liveability' refers to transportation, community development and resilience (Herrman and Lewis 2017). This chapter focuses on the liveability of housing in terms of the services it provides. This chapter aims to study the quality of four basic services: water, electricity, gas and waste management as well as people's satisfaction regarding these services provided to houses in Dhaka. It looks at these services from four dimensions i.e. accessibility, reliability, responsiveness and safety. This chapter also aims to look into the disaster preparedness of the housing surveyed. 5.1 Methodology For this chapter, a review of available literature and data from the State of Cities (SOC) housing survey has been analysed. The quantitative analysis is done using the primary data collected as part of the SOC housing survey 2017. The quantitative analysis is complemented by some qualitative information collected through a review of the existing literature. The focus of the chapter is to capture the demand side perception of the utility services people are getting and evaluate the performance of these services based on their feedback. The chapter contains two sections. The first section outlines the evaluation of four basic amenities, i.e. water, electricity, gas and waste management. The second section discusses disaster preparedness of housing in light of two specific potential disasters i.e. fire outbreak and earthquake.

67 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

5.2 Evaluation of basic services Star 2012, Alam 2015). This study has only focused on the residents who have access to water services and the responsiveness, safety, reliability of the water service provided by DWASA. The quality of basic amenities (water, electricity, gas and waste management) is important for residents in order to have healthy lives. According to Mahendra (2014), in order to maintain good health and Access to DWASA water service wellbeing of residents, safe, accessible and affordable water service play a great role. Likewise, access Based on the SoC housing survey, it was reported that around 89.8 percent of households used piped to efficient energy services (gas, electricity) is a pre-requisite for enhancing the quality of life. It has water supplied by DWASA for drinking purpose, while 96.5 percent of households used it for other been estimated by the World Bank that across the world, the amount of municipal waste is likely to be household purposes (Figure 5.1). Around 3 percent used piped water connected to bore wells and 5 increased by 70 percent by 2025 (cited in Mahendra 2014). In Dhaka it is projected that the amount of percent of households fetched water from a DWASA pump station for drinking purposes. The municipal waste will grow to 47,000 tonnes/day and close to 17.16 million tons per year by 2025 percentage for other uses was much lower. (Bahauddin and Uddin 2012). While it is a challenge to dispose of this huge amount of waste in developing cities, it is mandatory to do so for healthy lives of city dwellers. This section aims to look into Figure 5.1: Sources of water the quality of these services in Dhaka. 96.50% According to Parasuraman et al. (1985), people use different cues while purchasing goods than while 89.80% purchasing services as the former has 'tangible cues'. Customers evaluate the services from different points of view because of the intangible evidence of services. After some exploratory investigation, Sources of drinking water they came up with a service quality model describing ten determinants of service quality. The ten key Sources of water for household purposes categories, labelled as 'service quality determinants' are reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding, tangibles. Given the type of services that have been studied in this chapter, four categories are identified from the above ten to be relevant to these services, which are accessibility, reliability, responsiveness and security. The quality of 5.00% services like water, gas and electricity within formal housing in Dhaka will be evaluated here from the 3.00% 1.70% 1.00% 2.20% 0.80% perspective of the four determinants chosen. To begin with, the definitions of accessibility, reliability, Piped water supplied by Piped water connected to DWASA pump station Others responsiveness, and security are important because it sheds light on why these four dimensions are DWASA borewell important to evaluate these services. Access means the 'approachability and ease of contact of the services; for these services, the chapter looks into how accessible and how easily accessible the These statistics give an idea about the accessibility of water supply for households in Dhaka. It can be services are for the consumers. Responsiveness concerns the timeliness of the service and willingness seen that a good portion of households have accessibility, while a small portion of the households have of the provider to provide services. This section will evaluate how responsive and willing these service to buy water or use other sources like tube wells located in the compound, tube wells located in a providers are in terms of handling complaints and other concerns. Reliability means dependability and neighbour's house, or access the pump set by the building owner. Therefore, it could be argued that the level of performance. This section will find out how much people can depend on the service in DWASA has been doing well in terms of providing better access to water. terms of payments etc. Security means freedom from danger and risk; the section will check for physical safety of said services. These four dimensions are important for any services provided to a The surveyed households were asked to rate the availability of the water supply as per the duration. house because while access ensures a liveable condition for the dwellers, the remaining three Further, for the availability of water supply around 75.8 percent of households reported to have water emphasize the quality of services to make better housing. for 24 hours a day. 5.2.1 Water service Figure 5.2: Availability of water Some 8.8 percent reported to have water for 21 Water service is a basic public utility for houses in urban areas. Being a mega city with a growing 75.80% to 23 hours per day (Figure 5.2). This suggests population, Dhaka faces rapidly increasing pressure to provide adequate and quality water supply. This that the water supply in Dhaka seems to be section will evaluate this service from the aforementioned four angles. reliable in terms of availability. It has been estimated by UN (2017) that around 783 million people in the world do not have access to Among all four areas, old Dhaka had wider safe and clean water. In Bangladesh, 13 percent (20 million) people do not have access to safe water variety in availability of water. Around 68 (water.org 2017). According to Jahangir (2016), around 83 percent get access to piped water in Dhaka percent reported to have access to water for 24 City. 6.30% 7.10% 8.80% hours, 12 percent reported to have water for 16 2% WASA (Water Supply and Sewerage Authority) is a service-oriented autonomous commercial to 20 hours and 10 percent reported to have organisation in the public sector” whose responsibility it is to ensure water supply, sewerage disposal ≤10 11-15 16-20 21-23 24 Hours water for less than 10 hours (Table 5.1). and storm water drainage services to the mega city Dhaka (Khan 2012). Dhaka WASA (DWASA) faces Hours Hours Hours Hours many challenges to supply water and there is also an on-going debate over the quality of water (Daily

68 69 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

5.2 Evaluation of basic services Star 2012, Alam 2015). This study has only focused on the residents who have access to water services and the responsiveness, safety, reliability of the water service provided by DWASA. The quality of basic amenities (water, electricity, gas and waste management) is important for residents in order to have healthy lives. According to Mahendra (2014), in order to maintain good health and Access to DWASA water service wellbeing of residents, safe, accessible and affordable water service play a great role. Likewise, access Based on the SoC housing survey, it was reported that around 89.8 percent of households used piped to efficient energy services (gas, electricity) is a pre-requisite for enhancing the quality of life. It has water supplied by DWASA for drinking purpose, while 96.5 percent of households used it for other been estimated by the World Bank that across the world, the amount of municipal waste is likely to be household purposes (Figure 5.1). Around 3 percent used piped water connected to bore wells and 5 increased by 70 percent by 2025 (cited in Mahendra 2014). In Dhaka it is projected that the amount of percent of households fetched water from a DWASA pump station for drinking purposes. The municipal waste will grow to 47,000 tonnes/day and close to 17.16 million tons per year by 2025 percentage for other uses was much lower. (Bahauddin and Uddin 2012). While it is a challenge to dispose of this huge amount of waste in developing cities, it is mandatory to do so for healthy lives of city dwellers. This section aims to look into Figure 5.1: Sources of water the quality of these services in Dhaka. 96.50% According to Parasuraman et al. (1985), people use different cues while purchasing goods than while 89.80% purchasing services as the former has 'tangible cues'. Customers evaluate the services from different points of view because of the intangible evidence of services. After some exploratory investigation, Sources of drinking water they came up with a service quality model describing ten determinants of service quality. The ten key Sources of water for household purposes categories, labelled as 'service quality determinants' are reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding, tangibles. Given the type of services that have been studied in this chapter, four categories are identified from the above ten to be relevant to these services, which are accessibility, reliability, responsiveness and security. The quality of 5.00% services like water, gas and electricity within formal housing in Dhaka will be evaluated here from the 3.00% 1.70% 1.00% 2.20% 0.80% perspective of the four determinants chosen. To begin with, the definitions of accessibility, reliability, Piped water supplied by Piped water connected to DWASA pump station Others responsiveness, and security are important because it sheds light on why these four dimensions are DWASA borewell important to evaluate these services. Access means the 'approachability and ease of contact of the services; for these services, the chapter looks into how accessible and how easily accessible the These statistics give an idea about the accessibility of water supply for households in Dhaka. It can be services are for the consumers. Responsiveness concerns the timeliness of the service and willingness seen that a good portion of households have accessibility, while a small portion of the households have of the provider to provide services. This section will evaluate how responsive and willing these service to buy water or use other sources like tube wells located in the compound, tube wells located in a providers are in terms of handling complaints and other concerns. Reliability means dependability and neighbour's house, or access the pump set by the building owner. Therefore, it could be argued that the level of performance. This section will find out how much people can depend on the service in DWASA has been doing well in terms of providing better access to water. terms of payments etc. Security means freedom from danger and risk; the section will check for physical safety of said services. These four dimensions are important for any services provided to a The surveyed households were asked to rate the availability of the water supply as per the duration. house because while access ensures a liveable condition for the dwellers, the remaining three Further, for the availability of water supply around 75.8 percent of households reported to have water emphasize the quality of services to make better housing. for 24 hours a day. 5.2.1 Water service Figure 5.2: Availability of water Some 8.8 percent reported to have water for 21 Water service is a basic public utility for houses in urban areas. Being a mega city with a growing 75.80% to 23 hours per day (Figure 5.2). This suggests population, Dhaka faces rapidly increasing pressure to provide adequate and quality water supply. This that the water supply in Dhaka seems to be section will evaluate this service from the aforementioned four angles. reliable in terms of availability. It has been estimated by UN (2017) that around 783 million people in the world do not have access to Among all four areas, old Dhaka had wider safe and clean water. In Bangladesh, 13 percent (20 million) people do not have access to safe water variety in availability of water. Around 68 (water.org 2017). According to Jahangir (2016), around 83 percent get access to piped water in Dhaka percent reported to have access to water for 24 City. 6.30% 7.10% 8.80% hours, 12 percent reported to have water for 16 2% WASA (Water Supply and Sewerage Authority) is a service-oriented autonomous commercial to 20 hours and 10 percent reported to have organisation in the public sector” whose responsibility it is to ensure water supply, sewerage disposal ≤10 11-15 16-20 21-23 24 Hours water for less than 10 hours (Table 5.1). and storm water drainage services to the mega city Dhaka (Khan 2012). Dhaka WASA (DWASA) faces Hours Hours Hours Hours many challenges to supply water and there is also an on-going debate over the quality of water (Daily

68 69 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

Table 5.1: Availability of water Figure 5.5: Area wise percentage of getting prior notice

Availability of water Old Dhaka (%) Mirpur (%) Malibagh (%) Badda (%) ≤10 Hours 10.75 8.04 6.25 - 200 11-15 Hours 5.38 1.79 1.04 - 180 160 16-20 Hours 12.9 6.25 1.04 8.33 140 21-23 Hours 3.23 17.86 7.29 5.21 Old Dhaka (%) 120 24 Hours 67.74 66.07 84.38 86.46 100 Mirpur (%) 80 Malibagh (%) Reliability of the water supply 60 Baada (%) To measure the reliability of the water supply, the survey tried to understand people's experience 40 regarding water scarcity. 55.7 percent faced seasonal scarcity, 85.5 percent of which faced water 20 scarcity during the summer season (Figure 5.3). 0 Figure 5.3: Seasonal scarcity of water Always Most of the Sometimes Never time This proves that the water supply becomes 85.50% scarce in summer, which lowers the To further check reliability of the service, the households were asked about payments. Around 44.33 reliability of this service to customers percent reported to pay less than 500 BDT for this service, while 20 percent pay between 501 to 1,000 during this season. However, the service is BDT (Figure 5.6). 75.9 percent of households considered that the payment for the water service was reliable enough in terms of water reasonable. However, around 24 percent thought otherwise. Though the payment for water service pressure. A good 87.7 percent reported to varies, it appears to be uniform for most of the households, which makes the service reliable in terms of experience adequate water pressure. payment. 14% To further check the reliability of services, Figure 5.6: Payment for water service 0.50% households were asked if the water supply had gone off for a whole day in the last 6 44.33% Winter Summer Rainy Season months from the date of survey and if it (March-Jun) (Nov-Feb) (July-Oct) did, whether they were given notice beforehand. Around 32.5 percent responded that the water supply 28.71% sometimes went off for an entire day. However, only 45 percent received prior notice and the rest 24.8 percent never received any notice (Figure 5.4). 20.65% Figure 5.4: Getting prior notice The area wise distribution revealed that around 50 percent of the respondents Never 24.80% from Badda never received prior notice 2.27% 1.76% 2.26% during such incidents (Figure 5.5). This suggests that this area is lagging behind in Sometimes 45% £500 501-1000 1001-1500 1501-2000 >2000 Don’t know terms of reliability of the service. Not Most of the knowing beforehand that the water 24% time supply will be off for an entire day must Safety of water service negatively affect households to a great To evaluate the safety of the water supplied by DWASA, some questions related to the quality of the Always 6.20% extent. water were asked. 63 percent of households claimed that they are satisfied with the water quality. 37 percent reported to be unsatisfied with the quality, 34.4 percent of them complained about the foul smell in water and 15.7 percent complained that the water was partly muddy. However, only 4.5

70 71 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

Table 5.1: Availability of water Figure 5.5: Area wise percentage of getting prior notice

Availability of water Old Dhaka (%) Mirpur (%) Malibagh (%) Badda (%) ≤10 Hours 10.75 8.04 6.25 - 200 11-15 Hours 5.38 1.79 1.04 - 180 160 16-20 Hours 12.9 6.25 1.04 8.33 140 21-23 Hours 3.23 17.86 7.29 5.21 Old Dhaka (%) 120 24 Hours 67.74 66.07 84.38 86.46 100 Mirpur (%) 80 Malibagh (%) Reliability of the water supply 60 Baada (%) To measure the reliability of the water supply, the survey tried to understand people's experience 40 regarding water scarcity. 55.7 percent faced seasonal scarcity, 85.5 percent of which faced water 20 scarcity during the summer season (Figure 5.3). 0 Figure 5.3: Seasonal scarcity of water Always Most of the Sometimes Never time This proves that the water supply becomes 85.50% scarce in summer, which lowers the To further check reliability of the service, the households were asked about payments. Around 44.33 reliability of this service to customers percent reported to pay less than 500 BDT for this service, while 20 percent pay between 501 to 1,000 during this season. However, the service is BDT (Figure 5.6). 75.9 percent of households considered that the payment for the water service was reliable enough in terms of water reasonable. However, around 24 percent thought otherwise. Though the payment for water service pressure. A good 87.7 percent reported to varies, it appears to be uniform for most of the households, which makes the service reliable in terms of experience adequate water pressure. payment. 14% To further check the reliability of services, Figure 5.6: Payment for water service 0.50% households were asked if the water supply had gone off for a whole day in the last 6 44.33% Winter Summer Rainy Season months from the date of survey and if it (March-Jun) (Nov-Feb) (July-Oct) did, whether they were given notice beforehand. Around 32.5 percent responded that the water supply 28.71% sometimes went off for an entire day. However, only 45 percent received prior notice and the rest 24.8 percent never received any notice (Figure 5.4). 20.65% Figure 5.4: Getting prior notice The area wise distribution revealed that around 50 percent of the respondents Never 24.80% from Badda never received prior notice 2.27% 1.76% 2.26% during such incidents (Figure 5.5). This suggests that this area is lagging behind in Sometimes 45% £500 501-1000 1001-1500 1501-2000 >2000 Don’t know terms of reliability of the service. Not Most of the knowing beforehand that the water 24% time supply will be off for an entire day must Safety of water service negatively affect households to a great To evaluate the safety of the water supplied by DWASA, some questions related to the quality of the Always 6.20% extent. water were asked. 63 percent of households claimed that they are satisfied with the water quality. 37 percent reported to be unsatisfied with the quality, 34.4 percent of them complained about the foul smell in water and 15.7 percent complained that the water was partly muddy. However, only 4.5

70 71 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

percent reported to have salty or iron filled water (Figure 5.7). According to some studies, water quality Figure 5.8: Initiative taken regarding water service related problems in Dhaka is not satisfactory (Alom et al. 2016, Uddin et al. 2011). The SoC housing survey also shows that the residents are not satisfied with the smell and colour of the water. This aspect of the service still 46.10% has a long way to go to ensure safe quality. Figure 5.7: Quality of the water 27.30% 13.30% 13.30% 34.40% 32.20%

Report to DWASA Fix by oneself Fixing through known Inform flat association/ person in DWASA manager

15.70% 14% Figure 5.9: Time taken to address the problem by DWASA 7% It appears that 46.1 percent trusted 4.50% 2.20% DWASA to fix their problems. 61 percent Not at all quickly 13.60% reported that the problem got fixed Clear Partly Muddy Muddy No particular Salty/ iron No Smell Foul Smell quickly if they complained directly to (Brownish) taste DWASA, while 13 percent stated that they Colour Taste Smell Not quickly 25.40% did not have their problem fixed quickly at all (Figure 5.9). This shows that in terms of responding to consumers' problems, this The saga of unsafe water in Dhaka service provider is acting well as a little Quickly 61% About 17 million people in Dhaka are living at risk of unsafe water (Islam 2015). This problem is so more than half of the households acute in the city that the DWASA itself suggests people to drink the supplied water after boiling. reported to have their problems fixed DWASA has capacity of to supply 2.42 billion liters of water a day against the demand of 2.5 billion quickly after complaining. liters. The problem lies within the network which is used to distribute water across the city. Satisfaction level DWASA needs to repair leaks in the network for which the Asian Development Bank and World Lastly, households were asked about their satisfaction levels regarding the water service. 56.4 percent Bank financed separately in 2008. According to DWASA statistics, it can meet demand up to 78 reported that they are somewhat satisfied while only 22.7 percent reported to be very satisfied (Figure percent. However, the groundwater is depleting at a rate of 2-3meters per year in many places. 5.10). It shows that while the water supply service has been improving in Dhaka city, it is yet to be Due to this, the government took a project funded by China to supply 450 million liters of water a described as a very satisfying service. day from the Padma River by 2018. On the other hand, DWASA also reported that they had no Figure 5.10: Satisfaction level regarding water service control over 70 percent of waste disposal that admittedly goes mostly untreated into the rivers. It is important to control the sewerage system to keep the water clean. International Centre for Diarrhoeal Disease Research, Bangladesh (icddr,b) found E coli bacteria in Not at all satisfied 7.6% 63 percent of the water supplied by DWASA in a study in 2014. Poor management of water supply,

government's negligence and lack of monitoring system have impacted the health of the dwellers, A little satisfied 13.4% according to this report.

Responsiveness of the water service providers Somewhat satisfied 56.4% In response to the query of what house owners do in the case of problems faced, 46.1 percent replied that they directly report the problem to DWASA whereas 27.3 percent tried to fix the problem by Very much satisfied 22.7% themselves and 13.3 percent tried to fix the problem through some known person in DWASA (Figure 5.8).

72 73 State of Cities 2017 Quality of Basic Services and Disaster Preparedness percent reported to have salty or iron filled water (Figure 5.7). According to some studies, water quality Figure 5.8: Initiative taken regarding water service related problems in Dhaka is not satisfactory (Alom et al. 2016, Uddin et al. 2011). The SoC housing survey also shows that the residents are not satisfied with the smell and colour of the water. This aspect of the service still 46.10% has a long way to go to ensure safe quality. Figure 5.7: Quality of the water 27.30% 13.30% 13.30% 34.40% 32.20%

Report to DWASA Fix by oneself Fixing through known Inform flat association/ person in DWASA manager

15.70% 14% Figure 5.9: Time taken to address the problem by DWASA 7% It appears that 46.1 percent trusted 4.50% 2.20% DWASA to fix their problems. 61 percent Not at all quickly 13.60% reported that the problem got fixed Clear Partly Muddy Muddy No particular Salty/ iron No Smell Foul Smell quickly if they complained directly to (Brownish) taste DWASA, while 13 percent stated that they Colour Taste Smell Not quickly 25.40% did not have their problem fixed quickly at all (Figure 5.9). This shows that in terms of responding to consumers' problems, this The saga of unsafe water in Dhaka service provider is acting well as a little Quickly 61% About 17 million people in Dhaka are living at risk of unsafe water (Islam 2015). This problem is so more than half of the households acute in the city that the DWASA itself suggests people to drink the supplied water after boiling. reported to have their problems fixed DWASA has capacity of to supply 2.42 billion liters of water a day against the demand of 2.5 billion quickly after complaining. liters. The problem lies within the network which is used to distribute water across the city. Satisfaction level DWASA needs to repair leaks in the network for which the Asian Development Bank and World Lastly, households were asked about their satisfaction levels regarding the water service. 56.4 percent Bank financed separately in 2008. According to DWASA statistics, it can meet demand up to 78 reported that they are somewhat satisfied while only 22.7 percent reported to be very satisfied (Figure percent. However, the groundwater is depleting at a rate of 2-3meters per year in many places. 5.10). It shows that while the water supply service has been improving in Dhaka city, it is yet to be Due to this, the government took a project funded by China to supply 450 million liters of water a described as a very satisfying service. day from the Padma River by 2018. On the other hand, DWASA also reported that they had no Figure 5.10: Satisfaction level regarding water service control over 70 percent of waste disposal that admittedly goes mostly untreated into the rivers. It is important to control the sewerage system to keep the water clean. International Centre for Diarrhoeal Disease Research, Bangladesh (icddr,b) found E coli bacteria in Not at all satisfied 7.6% 63 percent of the water supplied by DWASA in a study in 2014. Poor management of water supply, government's negligence and lack of monitoring system have impacted the health of the dwellers, A little satisfied 13.4% according to this report.

Responsiveness of the water service providers Somewhat satisfied 56.4% In response to the query of what house owners do in the case of problems faced, 46.1 percent replied that they directly report the problem to DWASA whereas 27.3 percent tried to fix the problem by Very much satisfied 22.7% themselves and 13.3 percent tried to fix the problem through some known person in DWASA (Figure 5.8).

72 73 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

5.2.2 Electricity service Figure 5.12: Specific timing of power outage Figure 5.13: Getting prior notice of power outage

Electricity is another basic service without which modern life is very difficult. Energy security is defined 91.80% as 'the uninterrupted supply of energy from available sources at an affordable price' (IEA 2014). Never 13.60% Electricity is vital to improve the socio-economic condition of people. According to Islam and Khan (2017), the per capita energy consumption in Bangladesh is one of the lowest (311 kWh in 2014) in the world. With growing population, the demand for quality electricity supply is increasing. This section Rarely 38.20% evaluates the quality of electricity service and the satisfaction level of the consumers. Access to electricity service Sometimes 39.10%

To check the accessibility of this service, we have asked the households if they get access to 0.90% 0.60% 4.40% 2.30% uninterrupted electricity supply throughout the day. Always 9.10% Noon Afternoon Evening Night No specific Figure 5.11: Duration of access to electricity supply time Only 14.5 percent reported to have electricity 76.80% for the whole day, while 76.8 percent reported To look further into the reliability of the service, households were asked about the billing and payment to have it for 21 to 23 hours. Only 8 percent for this service. Expectedly, winter payment is lower than the summer payment. It has generally been claimed that they have electricity for only 16 to expected by people that the winter payment will be lower, which is the case in reality. This increases the 20 hours (Figure 5.11). The findings suggest reliability of the payment system. that Dhaka is yet to provide 24-hour electricity However, there is on-going concern about receiving inaccurate bills in some areas in Dhaka. Only 28 facilities. percent expressed their doubts about having an inaccurate electricity bill, which makes the service a bit unreliable. On the other hand, 50 percent of the households think the electric bill is not reasonable 14.50% If the area wise data is evaluated, it can be seen compared to the service they get. Although, recently (September 2015) the government has increased 8.70% that households in Old Dhaka is subject to the unit price of electricity. Residents of Dhaka do not seem to think the pricing is reasonable as per the longer time power outage compared to the service they receive. 16-20 21-23 24 other three areas (Table 5.2). Safety of the electricity service Figure 5.14: Safety of the electricity service Table 5.2: Access to electricity by hour To look into the safety, households Hour Badda (%) Malibag (%) Mirpur (%) Old Dhaka (%) 59.40% were asked to report about the 16-20 6.25 5.21 5.31 18.75 safety of the electricity connection 21-23 85.42 60.42 80.53 80.21 they have at their house. Almost 60 percent of households reported the 24 8.33 34.38 14.16 1.04 35.40% connection to be mostly safe and 35 percent reported it to be safe. Only Reliability of electricity service 1.2 percent reported the connection 91.8 percent reported there is no specific time for power outages, which might make household chores not being safe at all (Figure 5.14). difficult to carry out (Figure 5.12). People were asked whether in the last 6 months from the time of the Reasons the connection might not survey, if they experienced power outages for a whole day. Around 72 percent of household reported 4% be safe can be because of exposed no such incident. However, among 27.4 percent who reported to have faced such incidents, 38.2 1.20% wire, broken electricity board, not percent reported to rarely have prior notice before an all-day outage, while 39.1 percent reported to easy to access the main switch, Comple tely safe Mostly safe Mostly unsafe Not at all safe sometimes have prior notice (Figure 5.13). children can access of electric plugs and sockets etc.

74 75 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

5.2.2 Electricity service Figure 5.12: Specific timing of power outage Figure 5.13: Getting prior notice of power outage

Electricity is another basic service without which modern life is very difficult. Energy security is defined 91.80% as 'the uninterrupted supply of energy from available sources at an affordable price' (IEA 2014). Never 13.60% Electricity is vital to improve the socio-economic condition of people. According to Islam and Khan (2017), the per capita energy consumption in Bangladesh is one of the lowest (311 kWh in 2014) in the world. With growing population, the demand for quality electricity supply is increasing. This section Rarely 38.20% evaluates the quality of electricity service and the satisfaction level of the consumers. Access to electricity service Sometimes 39.10%

To check the accessibility of this service, we have asked the households if they get access to 0.90% 0.60% 4.40% 2.30% uninterrupted electricity supply throughout the day. Always 9.10% Noon Afternoon Evening Night No specific Figure 5.11: Duration of access to electricity supply time Only 14.5 percent reported to have electricity 76.80% for the whole day, while 76.8 percent reported To look further into the reliability of the service, households were asked about the billing and payment to have it for 21 to 23 hours. Only 8 percent for this service. Expectedly, winter payment is lower than the summer payment. It has generally been claimed that they have electricity for only 16 to expected by people that the winter payment will be lower, which is the case in reality. This increases the 20 hours (Figure 5.11). The findings suggest reliability of the payment system. that Dhaka is yet to provide 24-hour electricity However, there is on-going concern about receiving inaccurate bills in some areas in Dhaka. Only 28 facilities. percent expressed their doubts about having an inaccurate electricity bill, which makes the service a bit unreliable. On the other hand, 50 percent of the households think the electric bill is not reasonable 14.50% If the area wise data is evaluated, it can be seen compared to the service they get. Although, recently (September 2015) the government has increased 8.70% that households in Old Dhaka is subject to the unit price of electricity. Residents of Dhaka do not seem to think the pricing is reasonable as per the longer time power outage compared to the service they receive. 16-20 21-23 24 other three areas (Table 5.2). Safety of the electricity service Figure 5.14: Safety of the electricity service Table 5.2: Access to electricity by hour To look into the safety, households Hour Badda (%) Malibag (%) Mirpur (%) Old Dhaka (%) 59.40% were asked to report about the 16-20 6.25 5.21 5.31 18.75 safety of the electricity connection 21-23 85.42 60.42 80.53 80.21 they have at their house. Almost 60 percent of households reported the 24 8.33 34.38 14.16 1.04 35.40% connection to be mostly safe and 35 percent reported it to be safe. Only Reliability of electricity service 1.2 percent reported the connection 91.8 percent reported there is no specific time for power outages, which might make household chores not being safe at all (Figure 5.14). difficult to carry out (Figure 5.12). People were asked whether in the last 6 months from the time of the Reasons the connection might not survey, if they experienced power outages for a whole day. Around 72 percent of household reported 4% be safe can be because of exposed no such incident. However, among 27.4 percent who reported to have faced such incidents, 38.2 1.20% wire, broken electricity board, not percent reported to rarely have prior notice before an all-day outage, while 39.1 percent reported to easy to access the main switch, Comple tely safe Mostly safe Mostly unsafe Not at all safe sometimes have prior notice (Figure 5.13). children can access of electric plugs and sockets etc.

74 75 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

Responsiveness of the electricity service 5.2.3 Gas service Figure 5.15: Initiatives taken regarding problem Gas is the main source of cooking for residents in Dhaka. According to a report, Dhaka has been facing interrupted gas supply for some months (Jahan 2016). The natural gas consuming sectors are plentiful Only around 40 percent of households 40.30% in Bangladesh such as: i) Power, ii) Fertiliser, iii) Industry, iv) Captive power, v) Domestic, vi) Commercial, reported to the authority to fix the problem 33.30% and vii) Transportation (CNG) (Rahman et al. 2012). A growing urban population in Dhaka results in while 33.3 percent did it by themselves huge pressure on gas supply. (Figure 5.15). Access to gas service It seems that few people have faith that the 14% To examine the accessibility of gas to houses in Dhaka, households were asked if they have a gas 12.40% authorities will get their problems fixed. connection, LP gas or kerosene. 99 percent reported that they have a gas connection. The surveyed However, 76.9 percent of those who reported households were further asked to report about the duration of the service they get per day. problems to the authority directly (to DESCO- Dhaka Electricity Supply Company Limited) 84.3 percent reported to have gas service for 24 hours. It is also notable that about 9 percent of the Report to Fix by Fix through Inform flat DESCO oneself someone association/ claimed that their problems got fixed quickly household faces shortage of gas more than 4 hours a day (Figure 5.18). Also, 59 percent of households known in manager enough while only 3.8 percent reported to report to face seasonal scarcity of gas, while 88 percent of them face scarcity during winter season DESCO have it fixed very quickly (Figure 5.16). (Figure 5.19). Figure 5.16: Time taken to readdress the problem by DESCO Figure 5.18: Duration of daily gas service Figure 5.19: Scarcity during different seasons

84.30% 1% Not at all quickly 5.80% 11%

Not quickly 13.50% Winter Summer Quickly 76.90% 8.70% 88% 7% Rainy

Very quickly 3.80% >20 21-23 24

Satisfaction level Area wise, Old Dhaka reportedly faces the most seasonal scarcity: around 79 percent of residents reported of seasonal scarcity. In all three other areas, around half of the respondents reported to face Figure 5.17: Satisfaction level of electricity service seasonal scarcity (Table 5.3). The households were asked about Table 5.3: Seasonal scarcity 72.80% their satisfaction level with the electricity service. Only 16 percent Having seasonal scarcity Badda (%) Malibagh (%) Mirpur (%) Old Dhaka (%) reported to be very satisfied with the Yes 51.04 52.08 54.87 79.17 services, whereas around 72 percent No 48.96 47.92 45.13 20.83 reported to be somewhat satisfied with the service. It is a good outcome Some newspapers reported about the unavailability of gas especially in some specific areas. According that only 1 percent reported to be not to a Daily Star report (December 2016) the domestic use of gas increases by 20 percent during winter 16.20% 10% satisfied at all (Figure 5.17). It can be season. While Titas gas supplies only 1,750 million cubic feet per day (mmcfd), the total demand is concluded that the quality of 2,050 mmcfd. The report specifically emphasised the condition of Old Dhaka and Mirpur residents. 1% electricity service has been improving. When there is already unmet demand, increased demand in the winter season makes it harder for Titas Very much Somewhat A little Not at all Having access to 24-hour electricity gas to meet it. satisfied satisfied satisfied satisfied supply may improve the satisfaction level of the residents.

76 77 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

Responsiveness of the electricity service 5.2.3 Gas service Figure 5.15: Initiatives taken regarding problem Gas is the main source of cooking for residents in Dhaka. According to a report, Dhaka has been facing interrupted gas supply for some months (Jahan 2016). The natural gas consuming sectors are plentiful Only around 40 percent of households 40.30% in Bangladesh such as: i) Power, ii) Fertiliser, iii) Industry, iv) Captive power, v) Domestic, vi) Commercial, reported to the authority to fix the problem 33.30% and vii) Transportation (CNG) (Rahman et al. 2012). A growing urban population in Dhaka results in while 33.3 percent did it by themselves huge pressure on gas supply. (Figure 5.15). Access to gas service It seems that few people have faith that the 14% To examine the accessibility of gas to houses in Dhaka, households were asked if they have a gas 12.40% authorities will get their problems fixed. connection, LP gas or kerosene. 99 percent reported that they have a gas connection. The surveyed However, 76.9 percent of those who reported households were further asked to report about the duration of the service they get per day. problems to the authority directly (to DESCO- Dhaka Electricity Supply Company Limited) 84.3 percent reported to have gas service for 24 hours. It is also notable that about 9 percent of the Report to Fix by Fix through Inform flat DESCO oneself someone association/ claimed that their problems got fixed quickly household faces shortage of gas more than 4 hours a day (Figure 5.18). Also, 59 percent of households known in manager enough while only 3.8 percent reported to report to face seasonal scarcity of gas, while 88 percent of them face scarcity during winter season DESCO have it fixed very quickly (Figure 5.16). (Figure 5.19). Figure 5.16: Time taken to readdress the problem by DESCO Figure 5.18: Duration of daily gas service Figure 5.19: Scarcity during different seasons

84.30% 1% Not at all quickly 5.80% 11%

Not quickly 13.50% Winter Summer Quickly 76.90% 8.70% 88% 7% Rainy

Very quickly 3.80% >20 21-23 24

Satisfaction level Area wise, Old Dhaka reportedly faces the most seasonal scarcity: around 79 percent of residents reported of seasonal scarcity. In all three other areas, around half of the respondents reported to face Figure 5.17: Satisfaction level of electricity service seasonal scarcity (Table 5.3). The households were asked about Table 5.3: Seasonal scarcity 72.80% their satisfaction level with the electricity service. Only 16 percent Having seasonal scarcity Badda (%) Malibagh (%) Mirpur (%) Old Dhaka (%) reported to be very satisfied with the Yes 51.04 52.08 54.87 79.17 services, whereas around 72 percent No 48.96 47.92 45.13 20.83 reported to be somewhat satisfied with the service. It is a good outcome Some newspapers reported about the unavailability of gas especially in some specific areas. According that only 1 percent reported to be not to a Daily Star report (December 2016) the domestic use of gas increases by 20 percent during winter 16.20% 10% satisfied at all (Figure 5.17). It can be season. While Titas gas supplies only 1,750 million cubic feet per day (mmcfd), the total demand is concluded that the quality of 2,050 mmcfd. The report specifically emphasised the condition of Old Dhaka and Mirpur residents. 1% electricity service has been improving. When there is already unmet demand, increased demand in the winter season makes it harder for Titas Very much Somewhat A little Not at all Having access to 24-hour electricity gas to meet it. satisfied satisfied satisfied satisfied supply may improve the satisfaction level of the residents.

76 77 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

Reliability of the services Figure 5.24: Satisfaction level of gas service Like the other services, the reliability of the gas service has also been evaluated by asking the Satisfaction level 61.30% households about the gas connection going off. Around 61 percent of Figure 5.20: Prior notice of the unavailability of gas service for a day 31.40% households are somewhat satisfied with this service, Only about 20 percent reported that the gas 6.20% 42.60% 1% while 31 percent reported service was off for an entire day in last 6 Very much Somewhat A little Not at all to be very satisfied months, among them 42.6 percent rarely satisfied satisfied satisfied satisfied (Figure 5.24). received prior notice. Only 12.9 percent 26.70% reported to get prior notice in case of such 5.2.4 Waste management 17.80% incidents (Figure 5.20). 12.90% Waste management is an important service for the inhabitants of Dhaka City and it is also a concerning Safety of the gas service issue for proper sustainable management of the environment. Dhaka North City Corporation (DNCC) To check the safety of the service, the and Dhaka South City Corporation (DSCC) generate 6110.47 tonnes of waste per day and both city households were asked to report if there was corporations can manage only 76 percent of total waste (BIGD 2015). Among the total waste, 50.25 Always Sometimes Rarely Never any leakage in the last year from the time of percent of waste comes from households and it is mixed with organic and inorganic wastes. The the survey. majority of household waste is organic (97.15 percent), which is composed of the waste of vegetables, fish, meat, fruits etc. (ibid.). Figure 5.21: Safety of the gas connection Surprisingly, 99 percent reported not to Primary Waste Collection Service Provider (PWCSP) works to collect household waste through door- Not at all safe 1.20% have any such incident in the last year. to-door services and transport the waste from households to secondary stations. Then, city However, only 36 percent think the corporations are responsible to manage the solid waste from container sites, open waste storage Mostly unsafe 4.20% connection is safe, while 58 percent think premises and Secondary Transfer Station (STS) to disposal site (World Bank 2012, BIGD 2015). To the connection is mostly safe (Figure 5.21). understand the existing waste management system at the household level in Dhaka, this section Mostly safe 58.10% Responsiveness of the gas service tries to explore the accessibility, reliability and level of satisfaction of the city dwellers regarding providers waste management. Safe 36.40% To check the responsiveness, the Accessibility of the waste management service

households were asked whom they report Figure 5.25: Door to door services for waste management to regarding problems. About 43 percent replied that they directly reported to the authorities, while 25.6 percent fixed the problem themselves The survey found that 93 percent of respondents are currently (Figure 5.22). However, around 60 percent claimed to get their problems fixed quickly if they report to Yes No availing door-to-door services and 7 percent do not have any the government authority (Figure 5.23). door-to-door services (Figure 5.25). Existing waste collection 7% practice varies regarding time, which is a concerning issue in Figure 5.22: Initiative taken regarding gas problem Figure 5.23: Response by the initiative taken sustainable waste management systems. Waste collection from 43.40% 93% households starts in the morning and continues until night Not at all quickly 3.60% (Figure 5.26). However, according to contracts with city corporations and the City Corporation Act 2009, waste 25.60% collectors should collect waste from households between 6pm Not quickly 28.60% 16.30% 14.70% and 10pm. 48.80 percent of respondents answered that waste collectors collect their household waste at noon (12pm to 3pm). Moreover, 40.20 percent and 9.40 Quickly 60.70% percent of respondents reported that waste collection took place in the morning and afternoon respectively (Figure 5.26). Whereas, 82.8 percent of respondents think that the timing of waste Report to Fix by Fix through Inform flat Titas gas oneself someone association/ Very quickly 7.10% collection is suitable, 17.2 percent think otherwise. known in Titas manager

78 79 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

Reliability of the services Figure 5.24: Satisfaction level of gas service Like the other services, the reliability of the gas service has also been evaluated by asking the Satisfaction level 61.30% households about the gas connection going off. Around 61 percent of Figure 5.20: Prior notice of the unavailability of gas service for a day 31.40% households are somewhat satisfied with this service, Only about 20 percent reported that the gas 6.20% 42.60% 1% while 31 percent reported service was off for an entire day in last 6 Very much Somewhat A little Not at all to be very satisfied months, among them 42.6 percent rarely satisfied satisfied satisfied satisfied (Figure 5.24). received prior notice. Only 12.9 percent 26.70% reported to get prior notice in case of such 5.2.4 Waste management 17.80% incidents (Figure 5.20). 12.90% Waste management is an important service for the inhabitants of Dhaka City and it is also a concerning Safety of the gas service issue for proper sustainable management of the environment. Dhaka North City Corporation (DNCC) To check the safety of the service, the and Dhaka South City Corporation (DSCC) generate 6110.47 tonnes of waste per day and both city households were asked to report if there was corporations can manage only 76 percent of total waste (BIGD 2015). Among the total waste, 50.25 Always Sometimes Rarely Never any leakage in the last year from the time of percent of waste comes from households and it is mixed with organic and inorganic wastes. The the survey. majority of household waste is organic (97.15 percent), which is composed of the waste of vegetables, fish, meat, fruits etc. (ibid.). Figure 5.21: Safety of the gas connection Surprisingly, 99 percent reported not to Primary Waste Collection Service Provider (PWCSP) works to collect household waste through door- Not at all safe 1.20% have any such incident in the last year. to-door services and transport the waste from households to secondary stations. Then, city However, only 36 percent think the corporations are responsible to manage the solid waste from container sites, open waste storage Mostly unsafe 4.20% connection is safe, while 58 percent think premises and Secondary Transfer Station (STS) to disposal site (World Bank 2012, BIGD 2015). To the connection is mostly safe (Figure 5.21). understand the existing waste management system at the household level in Dhaka, this section Mostly safe 58.10% Responsiveness of the gas service tries to explore the accessibility, reliability and level of satisfaction of the city dwellers regarding providers waste management. Safe 36.40% To check the responsiveness, the Accessibility of the waste management service households were asked whom they report Figure 5.25: Door to door services for waste management to regarding problems. About 43 percent replied that they directly reported to the authorities, while 25.6 percent fixed the problem themselves The survey found that 93 percent of respondents are currently (Figure 5.22). However, around 60 percent claimed to get their problems fixed quickly if they report to Yes No availing door-to-door services and 7 percent do not have any the government authority (Figure 5.23). door-to-door services (Figure 5.25). Existing waste collection 7% practice varies regarding time, which is a concerning issue in Figure 5.22: Initiative taken regarding gas problem Figure 5.23: Response by the initiative taken sustainable waste management systems. Waste collection from 43.40% 93% households starts in the morning and continues until night Not at all quickly 3.60% (Figure 5.26). However, according to contracts with city corporations and the City Corporation Act 2009, waste 25.60% collectors should collect waste from households between 6pm Not quickly 28.60% 16.30% 14.70% and 10pm. 48.80 percent of respondents answered that waste collectors collect their household waste at noon (12pm to 3pm). Moreover, 40.20 percent and 9.40 Quickly 60.70% percent of respondents reported that waste collection took place in the morning and afternoon respectively (Figure 5.26). Whereas, 82.8 percent of respondents think that the timing of waste Report to Fix by Fix through Inform flat Titas gas oneself someone association/ Very quickly 7.10% collection is suitable, 17.2 percent think otherwise. known in Titas manager

78 79 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

Figure 5.26: Waste collection time from household Figure 5.29: Area wise regulation of waste collection Moreover, 53.6 percent of Night 1.30% 100% respondents from Mirpur area 90% reported that their waste Evening 0.30% 80% collection service was more or Afternoon 9.40% 70% less regular. There are some similarities observed in Old 60% Noon 48.80% Dhaka area, where about 50 50% percent of respondents Morning 40.20% 40% expressed the regularity and 11 30% percent of households reported 54.5 percent of households in the Mirpur area expressed that their waste was collected in the morning, 20% the irregularity of the door-to- while 43.8 percent reported the collection time as noon. Furthermore, 48.4 percent and 30.5 percent 10% door service (Figure 5.29). These statistics show that from Badda area said that their collection time was noon and morning respectively. About 96 percent 0% of households in Malibagh area answered that the waste collection time was morning to noon. Regular More or less Mostly Mostly regularity of this service varies Whereas, the scenario is little different in Old Dhaka, maximum waste collection time was noon (56.6 regular irregular irregular from area to area. On aggregate percent), followed by 22.5 percent in the morning and 5.6 percent at night (Figure 5.27). Badda Malibagh Mirpur Old Dhaka level, around half of the respondents mentioned Figure 5.27: Area wise waste collection time regularity of the service, area wise half of the people mentioned irregularity of the service. It can be seen that in terms of irregularity, 60 Badda area fell behind as almost 17 percent reported to have irregular service. 50 The SoC housing survey found that 7 percent of respondents do not have door-to-door collection 40 services in their household. 96.4 percent of respondents reported that they throw their waste into the 30 nearest container site in absence of a door-to-door collection service. While 3.6 percent of respondents claimed to throw their waste in the open space. There are not many container sites near 20 to each household. Even though people dump waste in containers1, it goes outside the container and 10 pollutes the environment surrounding the container. If 7 percent of people, who do not have door-to- door services, throw their waste in containers, the environment is likely to be more polluted, which is 0 Badda Malibagh Mirpur Old Dhaka the case in Dhaka. Morning Noon Afternoon Evening Night Figure 5.30: Payment for waste disposal service The survey identified that most of the Reliability of the service 50.40% respondents have door-to-door services for Figure 5.28: Regularity of waste management services waste collection. Generally they have to pay an amount for this service. The data shows During the survey, the highest number of that the payment varies largely. About 50.4 respondents (46.1 percent) reported the Mostly irregular 5.90% 19% 18.80% percent of respondents reported to pay service to be regular, while 41.8 percent termed maximum 51-100 BDT per month; followed it as more or less regular, 6.2 percent as mostly 9.40% by 50 BDT being paid by 19 percent of Mostly irregular 6.20% irregular and 5.9 percent as irregular (Figure 2.40% households (Figure 5.30). Moreover, 18.8 5.28). 45.3 percent of respondents from Badda percent of households pay 101-200 BDT for area reported that their waste collection service <50 51-100 101-200 201-300 >300 More or less regular 41.80% waste disposal through door-to-door was regular, while 37.9 percent were more or services. The City Corporation Act 2009 states less regular. In Malibagh area, the maximum Regular 46.10% number of respondents was satisfied because 1. City Corporations provide different sizes of containers (3 tonne, 5 tonne) in every ward and it is kept in a specific location based on of the regularity of the service. the availability of the land. But most of the cases, it is found in the roadside.

80 81 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

Figure 5.26: Waste collection time from household Figure 5.29: Area wise regulation of waste collection Moreover, 53.6 percent of Night 1.30% 100% respondents from Mirpur area 90% reported that their waste Evening 0.30% 80% collection service was more or Afternoon 9.40% 70% less regular. There are some similarities observed in Old 60% Noon 48.80% Dhaka area, where about 50 50% percent of respondents Morning 40.20% 40% expressed the regularity and 11 30% percent of households reported 54.5 percent of households in the Mirpur area expressed that their waste was collected in the morning, 20% the irregularity of the door-to- while 43.8 percent reported the collection time as noon. Furthermore, 48.4 percent and 30.5 percent 10% door service (Figure 5.29). These statistics show that from Badda area said that their collection time was noon and morning respectively. About 96 percent 0% of households in Malibagh area answered that the waste collection time was morning to noon. Regular More or less Mostly Mostly regularity of this service varies Whereas, the scenario is little different in Old Dhaka, maximum waste collection time was noon (56.6 regular irregular irregular from area to area. On aggregate percent), followed by 22.5 percent in the morning and 5.6 percent at night (Figure 5.27). Badda Malibagh Mirpur Old Dhaka level, around half of the respondents mentioned Figure 5.27: Area wise waste collection time regularity of the service, area wise half of the people mentioned irregularity of the service. It can be seen that in terms of irregularity, 60 Badda area fell behind as almost 17 percent reported to have irregular service. 50 The SoC housing survey found that 7 percent of respondents do not have door-to-door collection 40 services in their household. 96.4 percent of respondents reported that they throw their waste into the 30 nearest container site in absence of a door-to-door collection service. While 3.6 percent of respondents claimed to throw their waste in the open space. There are not many container sites near 20 to each household. Even though people dump waste in containers1, it goes outside the container and 10 pollutes the environment surrounding the container. If 7 percent of people, who do not have door-to- door services, throw their waste in containers, the environment is likely to be more polluted, which is 0 Badda Malibagh Mirpur Old Dhaka the case in Dhaka. Morning Noon Afternoon Evening Night Figure 5.30: Payment for waste disposal service The survey identified that most of the Reliability of the service 50.40% respondents have door-to-door services for Figure 5.28: Regularity of waste management services waste collection. Generally they have to pay an amount for this service. The data shows During the survey, the highest number of that the payment varies largely. About 50.4 respondents (46.1 percent) reported the Mostly irregular 5.90% 19% 18.80% percent of respondents reported to pay service to be regular, while 41.8 percent termed maximum 51-100 BDT per month; followed it as more or less regular, 6.2 percent as mostly 9.40% by 50 BDT being paid by 19 percent of Mostly irregular 6.20% irregular and 5.9 percent as irregular (Figure 2.40% households (Figure 5.30). Moreover, 18.8 5.28). 45.3 percent of respondents from Badda percent of households pay 101-200 BDT for area reported that their waste collection service <50 51-100 101-200 201-300 >300 More or less regular 41.80% waste disposal through door-to-door was regular, while 37.9 percent were more or services. The City Corporation Act 2009 states less regular. In Malibagh area, the maximum Regular 46.10% number of respondents was satisfied because 1. City Corporations provide different sizes of containers (3 tonne, 5 tonne) in every ward and it is kept in a specific location based on of the regularity of the service. the availability of the land. But most of the cases, it is found in the roadside.

80 81 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

that 30 BDT is supposed to be the payment for waste disposal through van service and the collection Moreover, the study also covered the spatial variation of the satisfaction level of households regarding time should be 6pm-10pm. The survey found that both payment and collection time are not executed waste management services. 38.9 percent of households in Badda reported to be somewhat satisfied, in accordance with the Act. while 36.8 percent reported to be very much satisfied. On the other hand, 14.7 percent of respondents were not at all satisfied with the existing waste management services. The scenario was completely The SoC housing survey also identified that the existing payment system differs from area to area different in Malibagh area where 49.5 percent of households were very much satisfied and 46.3 (Figure 5.31). Most of the respondents in Mirpur and Badda pay 51-100 BDT. On the other hand, 11.8 percent were somewhat satisfied. In Mirpur area, the majority of households (73.2 percent) reported percent of respondents replied that they pay more than 200 BDT, which is much higher than the that they are somewhat satisfied. Moreover, in Old Dhaka, 50.7 percent of households replied that they average rate of waste collection. About 7 percent of respondents do not know how much money they were somewhat satisfied and 32.4 percent were very much satisfied with their waste disposal services have paid for waste collection services because some apartments collect service charges, which (Figure 5.33). include waste disposal services. Figure 5.33: Area wise satisfaction level for waste management service Figure 5.31: Area wise payment for waste disposal service

200 Not at all satisfied 180 160 A little satisfied 140 120 100 Somewhat satisfied 80 60 Very much satisfied 40

20 0 50 100 150 200 250 0 <50 51-100 101-200 201-300 >300 Badda Malibagh Mirpur Old Dhaka Badda Malibagh Mirpur Old Dhaka Households are unsatisfied with waste collection services due to the following reasons Most of the PWCSPs do not collect waste regularly from households. It seems that PWCSPs collect When asked, 77.3 percent of households replied that they think the existing service charge/fee that waste 3-4 days a week and they have no fixed time for waste collection. As a result, kitchen waste they are paying for waste disposal is reasonable and 15.7 percent think it is too much. management is challenging for the households. Therefore, irregularity is the main cause of Satisfaction level dissatisfaction with the service. Figure 5.32: Satisfaction level for waste management service PWCSP starts their waste collection from morning and continues it until night. Some households informed that the timing of waste collection is not satisfactory because if they come at morning then All households in the survey were 53.35% the full day's waste is stored in the house, which spreads bad smells as well as diseases. Thus, PWCSP asked to identify their satisfaction should declare a fixed time when they will collect the waste. level regarding waste collection services. About 54 percent of 5.3 Disaster preparedness of the housing in Dhaka 31.64% respondents said they were somewhat satisfied, followed by The geographical location of Dhaka makes it vulnerable in terms of natural hazards; fire incidence, 31.64 percent of households water logging, floods etc. are common disasters in the city and occur frequently. Dhaka is often stating they were very much considered to be on the 'top of a fault buried under thick sediments', which makes it more vulnerable to satisfied. Furthermore, 8.31 a massive earthquake (Daily Star 2016). This section explores disaster preparedness knowledge among 8.31% 6.70% percent of households are a little the residents in case of fire outbreak and earthquakes. satisfied and 6.70 percent are not Firstly, fire outbreak is considered to be a hazard which has become a major issue in Dhaka. Previous at all satisfied by the waste Very much Somewhat A little satisfied Not at all incidences in residential and slum areas, shopping centres, markets, restaurants, institutions, factories satisfied satisfied satisfied collection services (Figure 5.32). etc. indicate the threat to lives as well as the economic loss of fire. The frequencies of fire incidence

82 83 State of Cities 2017 Quality of Basic Services and Disaster Preparedness that 30 BDT is supposed to be the payment for waste disposal through van service and the collection Moreover, the study also covered the spatial variation of the satisfaction level of households regarding time should be 6pm-10pm. The survey found that both payment and collection time are not executed waste management services. 38.9 percent of households in Badda reported to be somewhat satisfied, in accordance with the Act. while 36.8 percent reported to be very much satisfied. On the other hand, 14.7 percent of respondents were not at all satisfied with the existing waste management services. The scenario was completely The SoC housing survey also identified that the existing payment system differs from area to area different in Malibagh area where 49.5 percent of households were very much satisfied and 46.3 (Figure 5.31). Most of the respondents in Mirpur and Badda pay 51-100 BDT. On the other hand, 11.8 percent were somewhat satisfied. In Mirpur area, the majority of households (73.2 percent) reported percent of respondents replied that they pay more than 200 BDT, which is much higher than the that they are somewhat satisfied. Moreover, in Old Dhaka, 50.7 percent of households replied that they average rate of waste collection. About 7 percent of respondents do not know how much money they were somewhat satisfied and 32.4 percent were very much satisfied with their waste disposal services have paid for waste collection services because some apartments collect service charges, which (Figure 5.33). include waste disposal services. Figure 5.33: Area wise satisfaction level for waste management service Figure 5.31: Area wise payment for waste disposal service

200 Not at all satisfied 180 160 A little satisfied 140 120 100 Somewhat satisfied 80 60 Very much satisfied 40

20 0 50 100 150 200 250 0 <50 51-100 101-200 201-300 >300 Badda Malibagh Mirpur Old Dhaka Badda Malibagh Mirpur Old Dhaka Households are unsatisfied with waste collection services due to the following reasons Most of the PWCSPs do not collect waste regularly from households. It seems that PWCSPs collect When asked, 77.3 percent of households replied that they think the existing service charge/fee that waste 3-4 days a week and they have no fixed time for waste collection. As a result, kitchen waste they are paying for waste disposal is reasonable and 15.7 percent think it is too much. management is challenging for the households. Therefore, irregularity is the main cause of Satisfaction level dissatisfaction with the service. Figure 5.32: Satisfaction level for waste management service PWCSP starts their waste collection from morning and continues it until night. Some households informed that the timing of waste collection is not satisfactory because if they come at morning then All households in the survey were 53.35% the full day's waste is stored in the house, which spreads bad smells as well as diseases. Thus, PWCSP asked to identify their satisfaction should declare a fixed time when they will collect the waste. level regarding waste collection services. About 54 percent of 5.3 Disaster preparedness of the housing in Dhaka 31.64% respondents said they were somewhat satisfied, followed by The geographical location of Dhaka makes it vulnerable in terms of natural hazards; fire incidence, 31.64 percent of households water logging, floods etc. are common disasters in the city and occur frequently. Dhaka is often stating they were very much considered to be on the 'top of a fault buried under thick sediments', which makes it more vulnerable to satisfied. Furthermore, 8.31 a massive earthquake (Daily Star 2016). This section explores disaster preparedness knowledge among 8.31% 6.70% percent of households are a little the residents in case of fire outbreak and earthquakes. satisfied and 6.70 percent are not Firstly, fire outbreak is considered to be a hazard which has become a major issue in Dhaka. Previous at all satisfied by the waste Very much Somewhat A little satisfied Not at all incidences in residential and slum areas, shopping centres, markets, restaurants, institutions, factories satisfied satisfied satisfied collection services (Figure 5.32). etc. indicate the threat to lives as well as the economic loss of fire. The frequencies of fire incidence

82 83 State of Cities 2017 Quality of Basic Services and Disaster Preparedness

increased dramatically (Figure 5.34) during the last 10 years (Bangladesh Fire Service and Civil Defense, no specific knowledge regarding how to survive during the incidence, whereas 30 percent of 2017). Fire hazards became more complex due to dense building concentrations, narrow roads, households reported that they have knowledge and also know how to use the building's exit way flammable building materials, old (Table 5.4). Figure 5.34: Year wise fire incidence in Dhaka City water supply, electrical wires and To evaluate households' earthquake preparedness, respondents were asked if they have any chemical factories in residential 1713 1746 knowledge about how to survive during an earthquake. 77.1 percent of respondents replied that areas, as well as the lack of 1417 1469 they have knowledge to survive but 22.9 percent of respondents answered that they have no preparedness (Rahman et al. 2015). knowledge. The annual monetary loss due to fire accidents is very high in Dhaka Area wise, the respondents of Badda have more knowledge about survival strategies, followed by the compared to other urban centres in residence of Malibagh where the number was 87.5 percent and 84.4 percent respectively. 29.2 percent Bangladesh as the city has the of respondents from the Mirpur area and 33.3 percent of respondents from Old Dhaka did not know 2013 2014 2015 2016 highest concentration of economic how to survive during an earthquake (Figure 5.36). activities (Islam and Adri 2008). Figure 5.36: Having knowledge about the survival strategy during earthquake 95 percent of the respondents informed that they have no fire exit (Table 5.4) and 5 percent of respondents reported to have the facility. 120% 100% Table 5.4: Preparedness against fire outbreak 12.50% 15.60% 80% 29.20% 33.30% Preparedness of the building and dwellers Yes (%) No (%) Yes 60% Fire escape or any exit way/ door at your building 5.0 95.0 No 40% 87.50% 84.40% Any sign posted toward the exit 25.0 75.0 70.80% 66.70% Participated in fire drill organised at building in last 2 years 0.7 99.3 20% Attended the fire drill by own self or any member 0.5 0.2 0% Badda Malibagh Mirpur Old Dhaka Having any knowledge of survive during a fire, 30.2 69.8 especially know-how of using the fire exit Generally, people take shelter in open spaces during earthquakes. For this reason, the study asked the Figure 5.35: Fire escape/exit way in the building respondents if there is any open space close to their buildings. 70.8 percent of respondents replied that they have no open spaces near their buildings. Whereas, 29.2 percent of respondents answered that Area wise, 2.1 percent in Malibagh, No Yes they have open space near their building. 4.4 percent in Mirpur and 4.2 percent 95.80% Old Dhaka in Old Dhaka reported that they have Figure 5.37: Open space around the building 4.20% fire exit in their building to avoid Moreover, the study found that 50 percent 95.60% Mirpur causalities during fire outbreak Old Dhaka respondents of Badda could access the open 4.40% 5.20% 94.80% (Figure 5.35). Among those 5 percent spaces during an incident. Mirpur area ranks 97.90% Malibagh who reported to have fire exit, 25 Mirpur 39.80% 60.20% second, where 39.8 percent of respondents 2.10% percent of households reported to replied that they have open space to take 90.60% have an exit sign towards the exit Malibagh 19.80% 80.20% Badda shelter during the hazard time. Furthermore, 9.40% door, while 75 percent replied that 94.8 percent of households from Old Dhaka Badda 50.00% 50.00% they do not have any sign. said they have no open space near their Every year Bangladesh Fire Service and Civil Defence organises fire drills in different areas to prepare Yes No building, which indicates inadequacies in the residents for sudden disasters. This survey tried to capture the household level preparedness for disaster preparedness (Figure 5.37). the fire incidence. About 99.3 percent of households reported that their building had not organised any fire drill in last 2 years (Table 5.4). Lastly, the survey asked the respondents whether they have knowledge to survive during fire outbreak. About 70 percent of households answered that they have

84 85 State of Cities 2017 Quality of Basic Services and Disaster Preparedness increased dramatically (Figure 5.34) during the last 10 years (Bangladesh Fire Service and Civil Defense, no specific knowledge regarding how to survive during the incidence, whereas 30 percent of 2017). Fire hazards became more complex due to dense building concentrations, narrow roads, households reported that they have knowledge and also know how to use the building's exit way flammable building materials, old (Table 5.4). Figure 5.34: Year wise fire incidence in Dhaka City water supply, electrical wires and To evaluate households' earthquake preparedness, respondents were asked if they have any chemical factories in residential 1713 1746 knowledge about how to survive during an earthquake. 77.1 percent of respondents replied that areas, as well as the lack of 1417 1469 they have knowledge to survive but 22.9 percent of respondents answered that they have no preparedness (Rahman et al. 2015). knowledge. The annual monetary loss due to fire accidents is very high in Dhaka Area wise, the respondents of Badda have more knowledge about survival strategies, followed by the compared to other urban centres in residence of Malibagh where the number was 87.5 percent and 84.4 percent respectively. 29.2 percent Bangladesh as the city has the of respondents from the Mirpur area and 33.3 percent of respondents from Old Dhaka did not know 2013 2014 2015 2016 highest concentration of economic how to survive during an earthquake (Figure 5.36). activities (Islam and Adri 2008). Figure 5.36: Having knowledge about the survival strategy during earthquake 95 percent of the respondents informed that they have no fire exit (Table 5.4) and 5 percent of respondents reported to have the facility. 120% 100% Table 5.4: Preparedness against fire outbreak 12.50% 15.60% 80% 29.20% 33.30% Preparedness of the building and dwellers Yes (%) No (%) Yes 60% Fire escape or any exit way/ door at your building 5.0 95.0 No 40% 87.50% 84.40% Any sign posted toward the exit 25.0 75.0 70.80% 66.70% Participated in fire drill organised at building in last 2 years 0.7 99.3 20% Attended the fire drill by own self or any member 0.5 0.2 0% Badda Malibagh Mirpur Old Dhaka Having any knowledge of survive during a fire, 30.2 69.8 especially know-how of using the fire exit Generally, people take shelter in open spaces during earthquakes. For this reason, the study asked the Figure 5.35: Fire escape/exit way in the building respondents if there is any open space close to their buildings. 70.8 percent of respondents replied that they have no open spaces near their buildings. Whereas, 29.2 percent of respondents answered that Area wise, 2.1 percent in Malibagh, No Yes they have open space near their building. 4.4 percent in Mirpur and 4.2 percent 95.80% Old Dhaka in Old Dhaka reported that they have Figure 5.37: Open space around the building 4.20% fire exit in their building to avoid Moreover, the study found that 50 percent 95.60% Mirpur causalities during fire outbreak Old Dhaka respondents of Badda could access the open 4.40% 5.20% 94.80% (Figure 5.35). Among those 5 percent spaces during an incident. Mirpur area ranks 97.90% Malibagh who reported to have fire exit, 25 Mirpur 39.80% 60.20% second, where 39.8 percent of respondents 2.10% percent of households reported to replied that they have open space to take 90.60% have an exit sign towards the exit Malibagh 19.80% 80.20% Badda shelter during the hazard time. Furthermore, 9.40% door, while 75 percent replied that 94.8 percent of households from Old Dhaka Badda 50.00% 50.00% they do not have any sign. said they have no open space near their Every year Bangladesh Fire Service and Civil Defence organises fire drills in different areas to prepare Yes No building, which indicates inadequacies in the residents for sudden disasters. This survey tried to capture the household level preparedness for disaster preparedness (Figure 5.37). the fire incidence. About 99.3 percent of households reported that their building had not organised any fire drill in last 2 years (Table 5.4). Lastly, the survey asked the respondents whether they have knowledge to survive during fire outbreak. About 70 percent of households answered that they have

84 85 State of Cities 2017

5.4 Key findings and recommendations

In this chapter, four types of services: water, electricity, gas and waste management are evaluated from 6 CHAPTER the perspectives of accessibility, reliability, responsiveness and safety. The SoC housing Survey 2017 shows that the water supply service has been doing well in terms of access, however, reliability is still a major concern. However, the reliability of this service is not satisfactory, as some houses do not get prior notice if the water supply is off for a whole day. The safety with regard to the quality of water is not TENANT SECURITY good in terms of smell and colour. Responsiveness of the service is also somewhat good as almost one third of people report to DWASA regarding any problem, but the authority should gain more trust regarding fixing problems. More than half of the respondents were found to be somewhat satisfied with the water service. Therefore, DWASA needs to improve their responsiveness and safety with regard to quality of the water. In addition, electricity service has been reviewed, which appears to be quite good in terms of accessibility. However, the reliability of the service is poor as all the respondents reported to have no knowledge of specific timings of the power outages. Also, many think that pricing for the electricity Approximately three-fourth of Dhaka's households are reported to be tenants (Samakal 2015). The service is not reasonable; on the other hand, the connection is mostly safe. Not a very large number of ratio of renting households in Dhaka has increased over the years, along with the pressure of migration people have trust in the responsiveness of the service. Therefore, many attempt to fix problems to the city due to the concentration of socio-economic opportunities. More than 0.12 million housing regarding the service by themselves rather than reporting to the authority. units are needed to accommodate the annually increasing population in Dhaka (MTB 2017). It has A good number of people have access to gas service for 24 hours per day. However, more than half of already been demonstrated in Chapter 3: Adequacy of Housing that compared to the annual demand them face seasonal scarcity during the winter season, especially in old Dhaka where the number is for 0.46 million houses, roughly 25,000 houses are added every year in Dhaka. This reveals a huge more than two thirds. Also, not many people trust the authority to fix their problems. mismatch between demand and supply of houses. Furthermore, the ever-increasing population without homeownership leads to a rise in demand for rental houses. Given the gulf between the For waste management, access to door-to-door waste collection services are available to the majority availability of number of holdings and the demand for rental units, landlords have an opportunity to of households. However, reliability of the service is in question as the payment and timing for the waste charge arbitrary house rents. This is exacerbated due to poor enforcement of regulations and oversight collection are not aligned with the City Corporation Act. Moreover, in some areas the service is highly of rental issues. Eventually, the tenants face a steep increase in tenancy rents in Dhaka. The Consumers' irregular. While Badda area faces the most irregularity, Mailbag area has a more regular service. Association of Bangladesh (CAB) estimated that in Dhaka, tenancy rents increased by 412.97 percent It can be said that the basic services, which are important to ensure good housing condition in Dhaka, between 1990 and 2014 (Hasnat 2015). In this period, the highest rent inflation occurred in 1990, are in a somewhat satisfactory condition. However, it is yet to achieve complete success to ensure a which was 25 percent and the rent increased by 22 percent in 2013, which was the highest rent increase quality life through providing the best services possible to the Dhaka city dwellers. in the last ten years (ibid.). This high inflation in rent was justified by landlords on the premise of Furthermore, a house is said to be safe if it is prepared for facing disasters. The SoC housing survey inflation in price of the essential commodities, holding tax, cost of the utility services and maintenance shows that almost no houses have fire escapes. The few houses that have fire escapes do not have signs or construction materials. This rise in rents affects the middle and lower-middle class households who towards the exit way, both of which are required according to law. While less than one third of people live on fixed incomes. claimed to have knowledge about survival strategies during a fire, almost none attended a fire drill, as Apart from rents, tenants have to take care of various aspects of tenure security, which are also key there were no fire drills organised by the authority in the last two years. While many respondents elements of adequacy of a housing unit. According to the UN-HABITAT, tenure security 'guarantees claimed to have knowledge about the survival strategy during an earthquake, they do not have open legal protection against forced evictions, harassment and other threats for its occupants' (UN-HABITAT space outside the building. Specifically, almost all buildings in Old Dhaka have no open space outside 2009). The Government of Bangladesh introduced the 'Premises Rent Control Act 1991 to ensure the building. Given the recent rise in disasters, the concerned authorities should be more careful about tenant security and to mitigate the rental issues faced by the tenants. In the 1991 Act, a tenant is the disaster preparedness of the buildings. Data shows that the majority of housing in Dhaka is not described as any person by whom, or on whose account, rent is payable for any premises and also the adequately prepared for disaster, which is quite alarming. Along with improving basic service quality, the authority should look into the disaster preparedness of buildings to ensure a quality life for city person occupying the premises after the termination of a tenancy. dwellers. In line with the government's initiative, citizens' movements have been developed over recent years for the protection of the interests of tenants and their rights. In January 2016, a federation was constituted with ten organisations working in this area. The organisations included National Tenant Welfare Society, Bangladesh Tenant Rights Protection Society, Tenant Welfare Multi-purpose Cooperative Society, Tenant Council, Tenant Forum, Bangladesh Tenant Welfare Society, House Rent

86 87 State of Cities 2017

5.4 Key findings and recommendations

In this chapter, four types of services: water, electricity, gas and waste management are evaluated from 6 CHAPTER the perspectives of accessibility, reliability, responsiveness and safety. The SoC housing Survey 2017 shows that the water supply service has been doing well in terms of access, however, reliability is still a major concern. However, the reliability of this service is not satisfactory, as some houses do not get prior notice if the water supply is off for a whole day. The safety with regard to the quality of water is not TENANT SECURITY good in terms of smell and colour. Responsiveness of the service is also somewhat good as almost one third of people report to DWASA regarding any problem, but the authority should gain more trust regarding fixing problems. More than half of the respondents were found to be somewhat satisfied with the water service. Therefore, DWASA needs to improve their responsiveness and safety with regard to quality of the water. In addition, electricity service has been reviewed, which appears to be quite good in terms of accessibility. However, the reliability of the service is poor as all the respondents reported to have no knowledge of specific timings of the power outages. Also, many think that pricing for the electricity Approximately three-fourth of Dhaka's households are reported to be tenants (Samakal 2015). The service is not reasonable; on the other hand, the connection is mostly safe. Not a very large number of ratio of renting households in Dhaka has increased over the years, along with the pressure of migration people have trust in the responsiveness of the service. Therefore, many attempt to fix problems to the city due to the concentration of socio-economic opportunities. More than 0.12 million housing regarding the service by themselves rather than reporting to the authority. units are needed to accommodate the annually increasing population in Dhaka (MTB 2017). It has A good number of people have access to gas service for 24 hours per day. However, more than half of already been demonstrated in Chapter 3: Adequacy of Housing that compared to the annual demand them face seasonal scarcity during the winter season, especially in old Dhaka where the number is for 0.46 million houses, roughly 25,000 houses are added every year in Dhaka. This reveals a huge more than two thirds. Also, not many people trust the authority to fix their problems. mismatch between demand and supply of houses. Furthermore, the ever-increasing population without homeownership leads to a rise in demand for rental houses. Given the gulf between the For waste management, access to door-to-door waste collection services are available to the majority availability of number of holdings and the demand for rental units, landlords have an opportunity to of households. However, reliability of the service is in question as the payment and timing for the waste charge arbitrary house rents. This is exacerbated due to poor enforcement of regulations and oversight collection are not aligned with the City Corporation Act. Moreover, in some areas the service is highly of rental issues. Eventually, the tenants face a steep increase in tenancy rents in Dhaka. The Consumers' irregular. While Badda area faces the most irregularity, Mailbag area has a more regular service. Association of Bangladesh (CAB) estimated that in Dhaka, tenancy rents increased by 412.97 percent It can be said that the basic services, which are important to ensure good housing condition in Dhaka, between 1990 and 2014 (Hasnat 2015). In this period, the highest rent inflation occurred in 1990, are in a somewhat satisfactory condition. However, it is yet to achieve complete success to ensure a which was 25 percent and the rent increased by 22 percent in 2013, which was the highest rent increase quality life through providing the best services possible to the Dhaka city dwellers. in the last ten years (ibid.). This high inflation in rent was justified by landlords on the premise of Furthermore, a house is said to be safe if it is prepared for facing disasters. The SoC housing survey inflation in price of the essential commodities, holding tax, cost of the utility services and maintenance shows that almost no houses have fire escapes. The few houses that have fire escapes do not have signs or construction materials. This rise in rents affects the middle and lower-middle class households who towards the exit way, both of which are required according to law. While less than one third of people live on fixed incomes. claimed to have knowledge about survival strategies during a fire, almost none attended a fire drill, as Apart from rents, tenants have to take care of various aspects of tenure security, which are also key there were no fire drills organised by the authority in the last two years. While many respondents elements of adequacy of a housing unit. According to the UN-HABITAT, tenure security 'guarantees claimed to have knowledge about the survival strategy during an earthquake, they do not have open legal protection against forced evictions, harassment and other threats for its occupants' (UN-HABITAT space outside the building. Specifically, almost all buildings in Old Dhaka have no open space outside 2009). The Government of Bangladesh introduced the 'Premises Rent Control Act 1991 to ensure the building. Given the recent rise in disasters, the concerned authorities should be more careful about tenant security and to mitigate the rental issues faced by the tenants. In the 1991 Act, a tenant is the disaster preparedness of the buildings. Data shows that the majority of housing in Dhaka is not described as any person by whom, or on whose account, rent is payable for any premises and also the adequately prepared for disaster, which is quite alarming. Along with improving basic service quality, the authority should look into the disaster preparedness of buildings to ensure a quality life for city person occupying the premises after the termination of a tenancy. dwellers. In line with the government's initiative, citizens' movements have been developed over recent years for the protection of the interests of tenants and their rights. In January 2016, a federation was constituted with ten organisations working in this area. The organisations included National Tenant Welfare Society, Bangladesh Tenant Rights Protection Society, Tenant Welfare Multi-purpose Cooperative Society, Tenant Council, Tenant Forum, Bangladesh Tenant Welfare Society, House Rent

86 87 State of Cities 2017 Tenant Security

Coordination Council, Bangladesh Residential Tenant Welfare Society, Bangladesh Tenant Welfare Figure 6.2: Rent fixation process Society and Bangladesh Mess Organisation. The Federation aims to prevent unusual rises in house In the case of approximately 52 rents, stop harassment of tenants by the landlords and implement the rights of the tenants (Prothom percent of the surveyed tenants, Alo 2016a). 1.10% respective landlords fixed the Fixed by the reported amounts of rents 6.1 Chapter focus, structure and methodology landlord unilaterally. On the contrary, Since the overwhelming majority of urban households in Dhaka are tenants, it is worth examining the around 47 percent of the tenant Fixed through extent of their protection in various aspects of urban dwelling. Accordingly, this chapter examines the 47.10% 51.80% negotiation households said that house rents protection of tenants' interests in the following aspects: procedures of house renting, advance were determined through their payment, rent fixation and revision, changes in internal accessories, and eviction. It further looks at Fixed through the negotiations with respective deviations of legal norms in respect of tenant security. middlemen landlords. There were hardly any The chapter presents the existing practices of tenant security. Then it draws key issues from the involvements of middlemen in findings of the survey and compares these findings against the legal norms laid down in the Premises determining the rent price. Details Rent Control Act 1991. Finally, the chapter puts forward key recommendations to ensure more are illustrated in Figure 6.2. protected urban dwelling for tenants. 6.2.2 Revision of rents: Frequency, additional amount and reasons Tenants' current experiences regarding these aspects are drawn from the sampled survey of tenants in The rental amounts fixed in the beginning generally did undergo revisions from time to time. Sixty four locations in Dhaka: Mirpur, Badda, Rampura and Old Dhaka. Findings of the survey have been seven per cent tenants reported revision of initial rent compared to 33 percent of households that triangulated with evidence from published literature. There is a dearth of academic research on tenant experienced 'no change'. Leaving the housing unit prior to enforcement of the modified rents was one security in Dhaka; nonetheless, a few media reports are available which are utilised to expand the findings of the survey. of the principal reasons for not experiencing rise in rents. Frequency of rent revision 6.2 Tenant security in Dhaka Among the tenants who Figure 6.3: Frequency of revision of rents 6.2.1 Rent fixation: Amounts and procedure faced rent modifications When tenants rented their present dwelling units, approximately 91 percent of surveyed households' over the years, 50 percent 50% 50% rents were fixed within Tk. 16,000. Among them, around 47 percent of tenants started their tenancy with of households said that 40% the cost of Tk. 8,001-16,000 and the remaining 44 percent paid rent equal to or less than Tk. 8000. The their rent increased 30% 25.30% rents were fixed above Tk. 16,000 in the case of only 9 percent of the surveyed households (Figure 6.1). annually followed by 18.10% 20% approximately 25 percent Figure 6.1: Monthly rents of tenants, fixed in the beginning 10% 6% of households reporting 0.50% It was further revealed that the 0% that their rents were the average house rents paid by Fixed for Annually After every After every After every same for the first two first 2 years & 2 years 3 years more than tenants were approximately Tk. then annually 3 years 11,577.24 as reported in Chapter years and then increased 8.82% 4: Affordability of Housing. This annually. Rise in rents average house rent is lower than after every two years were reported by around 18 per cent tenants. Figure 6.3 presents frequency of 16001<= the average rents reported by the rent modification reported by the tenant households. ange r 46.69% CAB. According to the CAB, the 8001-16000 According to a tenant living in the eastern part of Dhaka, he experienced rent revision after two years. average rent of a two-room Rent <=8000 apartment (concrete house) was However, the year the rent was not increased, Tk. 1,000 was added to the service charge and in the 44.49% Tk. 15,395 and Tk. 17,368 in 2013 following year, the rent increased by Tk. 1,000 (Hasnat 2015). This meant that Dhaka's city dwellers had and 2014 respectively. An to bear additional payment in the form of inflation in either rent or service charge. apartment with a tin shade roof was rented at the average rate of Tk. 9,270 and Tk. 9,735 in those 0% 20% 40% 60% years (Hasnat 2015).

88 89 State of Cities 2017 Tenant Security

Coordination Council, Bangladesh Residential Tenant Welfare Society, Bangladesh Tenant Welfare Figure 6.2: Rent fixation process Society and Bangladesh Mess Organisation. The Federation aims to prevent unusual rises in house In the case of approximately 52 rents, stop harassment of tenants by the landlords and implement the rights of the tenants (Prothom percent of the surveyed tenants, Alo 2016a). 1.10% respective landlords fixed the Fixed by the reported amounts of rents 6.1 Chapter focus, structure and methodology landlord unilaterally. On the contrary, Since the overwhelming majority of urban households in Dhaka are tenants, it is worth examining the around 47 percent of the tenant Fixed through extent of their protection in various aspects of urban dwelling. Accordingly, this chapter examines the 47.10% 51.80% negotiation households said that house rents protection of tenants' interests in the following aspects: procedures of house renting, advance were determined through their payment, rent fixation and revision, changes in internal accessories, and eviction. It further looks at Fixed through the negotiations with respective deviations of legal norms in respect of tenant security. middlemen landlords. There were hardly any The chapter presents the existing practices of tenant security. Then it draws key issues from the involvements of middlemen in findings of the survey and compares these findings against the legal norms laid down in the Premises determining the rent price. Details Rent Control Act 1991. Finally, the chapter puts forward key recommendations to ensure more are illustrated in Figure 6.2. protected urban dwelling for tenants. 6.2.2 Revision of rents: Frequency, additional amount and reasons Tenants' current experiences regarding these aspects are drawn from the sampled survey of tenants in The rental amounts fixed in the beginning generally did undergo revisions from time to time. Sixty four locations in Dhaka: Mirpur, Badda, Rampura and Old Dhaka. Findings of the survey have been seven per cent tenants reported revision of initial rent compared to 33 percent of households that triangulated with evidence from published literature. There is a dearth of academic research on tenant experienced 'no change'. Leaving the housing unit prior to enforcement of the modified rents was one security in Dhaka; nonetheless, a few media reports are available which are utilised to expand the findings of the survey. of the principal reasons for not experiencing rise in rents. Frequency of rent revision 6.2 Tenant security in Dhaka Among the tenants who Figure 6.3: Frequency of revision of rents 6.2.1 Rent fixation: Amounts and procedure faced rent modifications When tenants rented their present dwelling units, approximately 91 percent of surveyed households' over the years, 50 percent 50% 50% rents were fixed within Tk. 16,000. Among them, around 47 percent of tenants started their tenancy with of households said that 40% the cost of Tk. 8,001-16,000 and the remaining 44 percent paid rent equal to or less than Tk. 8000. The their rent increased 30% 25.30% rents were fixed above Tk. 16,000 in the case of only 9 percent of the surveyed households (Figure 6.1). annually followed by 18.10% 20% approximately 25 percent Figure 6.1: Monthly rents of tenants, fixed in the beginning 10% 6% of households reporting 0.50% It was further revealed that the 0% that their rents were the average house rents paid by Fixed for Annually After every After every After every same for the first two first 2 years & 2 years 3 years more than tenants were approximately Tk. then annually 3 years 11,577.24 as reported in Chapter years and then increased 8.82% 4: Affordability of Housing. This annually. Rise in rents average house rent is lower than after every two years were reported by around 18 per cent tenants. Figure 6.3 presents frequency of 16001<= the average rents reported by the rent modification reported by the tenant households. ange r 46.69% CAB. According to the CAB, the 8001-16000 According to a tenant living in the eastern part of Dhaka, he experienced rent revision after two years. average rent of a two-room Rent <=8000 apartment (concrete house) was However, the year the rent was not increased, Tk. 1,000 was added to the service charge and in the 44.49% Tk. 15,395 and Tk. 17,368 in 2013 following year, the rent increased by Tk. 1,000 (Hasnat 2015). This meant that Dhaka's city dwellers had and 2014 respectively. An to bear additional payment in the form of inflation in either rent or service charge. apartment with a tin shade roof was rented at the average rate of Tk. 9,270 and Tk. 9,735 in those 0% 20% 40% 60% years (Hasnat 2015).

88 89 State of Cities 2017 Tenant Security

Amount added in each revision were revised annually. Thus, the longer the rent revision frequency period, the more money added to the rents through modifications. The majority of the tenants (61 percent) Figure 6.4: Additional amount of rents in each revision experienced increased amount of rents of Relationship between monthly rents, frequency of rent revision and incremental rent amount Tk. 500 or less for every revision. Between 8% Further relationship can be examined between the range of monthly rents paid by tenants, Tk. 501–1,000 and more than Tk. 1,000 frequency of rent revision and amount of rent increment. A positive relationship was observed were reported by 31 percent and 8 percent between monthly amounts of rents and that of rent increment. Higher rate of increment occurred in of respondents respectively. Figure 6.4 <=500 31% the case of higher monthly rents. Figure 6.6 shows that Tk. 500 or less was added mostly to the illustrates the additional amount of rent in 501-1000 each modification reported by the tenant monthly rent range of Tk. 8,000 or less whatever frequency the rent was revised. In contrast, not a households. However, the officials of the 61% 1001<= single tenant paying more than Tk. 16,000 monthly as rent experienced an increment of Tk. 500 or Tenant Council (Bharatia Parishad), an less. Among this highest rent-paying group whose rent was revised 'annually after first two years', all organisation working for protection of of them reported an increment between Tk. 501 and Tk. 1,000. The majority of respondents whose tenants in Dhaka, said that Tk. 1,000 – 5,000 rent was revised after every two years had to pay more than Tk. 1,000 additionally in each was added to the existing house rents every modification. Furthermore, the higher number of tenants paying monthly rent range of Tk. 8,001 – year (Prothom Alo 2014). 16,000 reported increment of Tk.501-1,000 than those paying monthly rent range of Tk. 8,000 or less. Furthermore, over the last 10 years house rents inflated at an average of about 15 percent annually (Alam 2011). The inflation rate varied based on the type of house. While complete concrete Figure 6.6: Differential rent range, rent increase amount and frequency percentage apartments' rent was increased by 13 percent in 2014, in the same year the rent inflation rate was 5 percent in the case of apartments with tin shade roofs. The slum households experienced the highest Every 2 yrs rate of rental inflation in 2014 i.e. 17 percent (Hasnat 2015). The Dhaka Tenant Development Society = Annually reported the house rents increase by 14.8 percent on average and the highest rate of rent inflation was 16001< witnessed in Mirpur and Uttara (ibid.). According to the CAB, landlords' non-compliance with existing |2 years| & annually law and norms, lack of implementation of the law and absence of any particular authority to look after Every 2 yrs

these affairs provided landlords freedom to increase rents every year (ibid.). 16000 Annually

Relationship between frequency of rent revision and additional amount of rents 8001- |2 years| & annually It was further observed that the increased amount of rent during rent revision was associated with the 3 yrs< frequency of rent modifications. Figure 6.5 shows that around 70 percent of tenants who experienced Every 3 yrs rent increment annually paid Tk. 500 or less. A similar amount was paid by approximately 48 per cent of

8000 Every 2 yrs tenants who faced annual rent <= modifications after the first two Figure 6.5: Relationship between frequency of rent increment and Annually additional amount of rents years and by roughly 52 percent |2 years| & annually <=500 501-1000 1001<= of households who had to pay 1001<= 501-1000 <=500 increased rent after every two 8.70% 3.30% years. Approximately 52 percent 18.18% 26.37% Reasons behind inflation in rents and 48 percent of the tenants 43.48% who experienced increment 30.30% It was revealed that the reasons for rent modifications remained unknown to a large number of the annually after the first two years tenants (32.1 percent). However, approximately 29 percent of the surveyed tenants reported owner's and after every two years inflation adjustment as the reason behind increase in rent. This was followed by greater demand for 70.33% respectively paid more than Tk. rental units in the said locality as reported by around 17 percent of the respondents. Impact of 47.83% 51.52% 500 as additional money in each government employees' salary revision, increase in property tax and upgrading of rental unit were revision. In comparison, this cited as the reasons for revision of the existing rents. Reasons cited by the tenants are shown in amount was paid by around 30 Fixed for first 2 years & Annually After every 2 years Figure 6.7. per cent of tenants whose rents then annually

90 91 State of Cities 2017 Tenant Security

Amount added in each revision were revised annually. Thus, the longer the rent revision frequency period, the more money added to the rents through modifications. The majority of the tenants (61 percent) Figure 6.4: Additional amount of rents in each revision experienced increased amount of rents of Relationship between monthly rents, frequency of rent revision and incremental rent amount Tk. 500 or less for every revision. Between 8% Further relationship can be examined between the range of monthly rents paid by tenants, Tk. 501–1,000 and more than Tk. 1,000 frequency of rent revision and amount of rent increment. A positive relationship was observed were reported by 31 percent and 8 percent between monthly amounts of rents and that of rent increment. Higher rate of increment occurred in of respondents respectively. Figure 6.4 <=500 31% the case of higher monthly rents. Figure 6.6 shows that Tk. 500 or less was added mostly to the illustrates the additional amount of rent in 501-1000 each modification reported by the tenant monthly rent range of Tk. 8,000 or less whatever frequency the rent was revised. In contrast, not a households. However, the officials of the 61% 1001<= single tenant paying more than Tk. 16,000 monthly as rent experienced an increment of Tk. 500 or Tenant Council (Bharatia Parishad), an less. Among this highest rent-paying group whose rent was revised 'annually after first two years', all organisation working for protection of of them reported an increment between Tk. 501 and Tk. 1,000. The majority of respondents whose tenants in Dhaka, said that Tk. 1,000 – 5,000 rent was revised after every two years had to pay more than Tk. 1,000 additionally in each was added to the existing house rents every modification. Furthermore, the higher number of tenants paying monthly rent range of Tk. 8,001 – year (Prothom Alo 2014). 16,000 reported increment of Tk.501-1,000 than those paying monthly rent range of Tk. 8,000 or less. Furthermore, over the last 10 years house rents inflated at an average of about 15 percent annually (Alam 2011). The inflation rate varied based on the type of house. While complete concrete Figure 6.6: Differential rent range, rent increase amount and frequency percentage apartments' rent was increased by 13 percent in 2014, in the same year the rent inflation rate was 5 percent in the case of apartments with tin shade roofs. The slum households experienced the highest Every 2 yrs rate of rental inflation in 2014 i.e. 17 percent (Hasnat 2015). The Dhaka Tenant Development Society = Annually reported the house rents increase by 14.8 percent on average and the highest rate of rent inflation was 16001< witnessed in Mirpur and Uttara (ibid.). According to the CAB, landlords' non-compliance with existing |2 years| & annually law and norms, lack of implementation of the law and absence of any particular authority to look after Every 2 yrs these affairs provided landlords freedom to increase rents every year (ibid.). 16000 Annually

Relationship between frequency of rent revision and additional amount of rents 8001- |2 years| & annually It was further observed that the increased amount of rent during rent revision was associated with the 3 yrs< frequency of rent modifications. Figure 6.5 shows that around 70 percent of tenants who experienced Every 3 yrs rent increment annually paid Tk. 500 or less. A similar amount was paid by approximately 48 per cent of

8000 Every 2 yrs tenants who faced annual rent <= modifications after the first two Figure 6.5: Relationship between frequency of rent increment and Annually additional amount of rents years and by roughly 52 percent |2 years| & annually <=500 501-1000 1001<= of households who had to pay 1001<= 501-1000 <=500 increased rent after every two 8.70% 3.30% years. Approximately 52 percent 18.18% 26.37% Reasons behind inflation in rents and 48 percent of the tenants 43.48% who experienced increment 30.30% It was revealed that the reasons for rent modifications remained unknown to a large number of the annually after the first two years tenants (32.1 percent). However, approximately 29 percent of the surveyed tenants reported owner's and after every two years inflation adjustment as the reason behind increase in rent. This was followed by greater demand for 70.33% respectively paid more than Tk. rental units in the said locality as reported by around 17 percent of the respondents. Impact of 47.83% 51.52% 500 as additional money in each government employees' salary revision, increase in property tax and upgrading of rental unit were revision. In comparison, this cited as the reasons for revision of the existing rents. Reasons cited by the tenants are shown in amount was paid by around 30 Fixed for first 2 years & Annually After every 2 years Figure 6.7. per cent of tenants whose rents then annually

90 91 State of Cities 2017 Tenant Security

Figure 6.7: Reasons for increasing the rent Furthermore, the tenants rarely requested a formal contract. Of those who did not receive any contract from the landlords, only six percent of them asked for formal contract papers. This highlights absence 32.05% Upgrading of rental unit of awareness regarding the formalisation procedures of renting houses. It is further argued that the 28.57% absence of formal contracts may push tenants towards vulnerable conditions, as the landlords are able Public service salary adjustment to play more discretionary roles. Moreover, in absence of a formal contract, tenants will not be entitled to address rental problems before the court or any other arbitration bodies. Increased demand for rental properties 17.37% A written contract on a non-judicial stamp can resolve most of the ambiguities around the tenancy. It Inflation adjustment secures the rights of both sides before the court. A typical contract can entail the exact amount of rent,

7.34% Increase in property tax requirement of notice before eviction and notification period, nature of inflation of rent, time gap 6.56% 7.34% between the inflation, responsibility to repair and other necessary rights and duties of the parties (The Don’t know Daily Star 2013). 0.77% Other Like the regular absence of a formal contract, most of the tenants (85 percent) did not receive any signed receipt for their rent payment from respective landlords. Further, those who did not receive any receipt, only 6.5 percent asked for it from their landlords. The Tenant Council (Bharatia Parishad) also It was widely reported in the media that house rents were increased without providing the tenants highlighted the non-delivery of receipts for rent payment by the landlords (Prothom Alo 2014a). with any kind of explanation (Alam 2011). Whenever a new budget was announced or a new year came, the rents were likely to upsurge. In support of the rent hike, owners cited issues such as hike in the 6.2.4 Advance payment and its adjustment prices of land, construction materials, utility services and burden of bank loans they took for building A security deposit from tenants is preferred by landlords to avoid loss due to departure of tenants the house (ibid.). Because of the high rent increase, many of the city dwellers shifted to areas with without formal notification. It is commonly observed that tenants' sudden departure is prevented by lower rent in the suburbs. This increased the transport time and exhaustion of the respondents. the landlord with the receipt of a fixed amount as the deposit. In reality, approximately 87 percent of Children's education was affected as well. the tenants paid a deposit amount prior to their living in a rented house. Among them, more than half of the tenants (53.6 percent) paid an Rent revision process Table 6.1: Advance payment by tenants for the rental units In the process of rent revision, the majority of the tenants (54 percent) did not participate in any sort of amount equivalent to their first negotiation with their respective landlords. Similar to the rent fixation (Figure 6.2), their respective Threshold of deposits Tenants in percent month's rent. Around 30 percent of landlords imposed the revised rents upon the tenants. One month's equivalent rent 53.6 tenants paid 2-4 months' equivalent rents in advance. Sixteen percent of Figure 6.8: Outcome of negotiations regarding rent revision Two months' equivalent rent 19.4 the surveyed tenants paid an amount The remaining 46 percent of the tenants Three months' equivalent rent 8.0 fixed by the landlord that was discussed rent revision with the Four months' equivalent rent and more 3.0 independent of the monthly rent amount. Table 6.1 shows amounts of 51.50% landlords. Approximately 52 percent Any fixed amount 16.0 advance payment by tenants. respondents reported no change in the 34.30% decisions of the landlords (Figure 6.8) as Tenants were asked about the use of this Figure 6.9: Adjustment of advance payment compared to roughly 14 percent who advance payment. Fifty seven percent of 14.10% successfully reduced the proposed the tenants said that the money received 2% amount. Moreover, approximately 34 as advance payment would be adjusted Return of the full No change percent of tenants could delay the with the last month's rents. However 41 deposit if rental unit Same amount, but effective from later date enforcement of the additional rent percent of tenants stated that the left in good condition through negotiations with their money would be returned to the tenant Reduce amount 41% Deposit will be respective landlords. if the rental unit was left in good used for last month's condition (Figure 6.9). Use of advance rental payment 6.2.3 Formalisation of house renting: Agreement document and receipt of rent money in maintenance works and/or 57% Used for payment adjustment with utility bills was barely maintenance A key aspect of tenant security is the formalisation of the procedure of renting housing units, which can reported by the tenants (only 2 percent). and electricity bill, be ensured through signing an agreement between the landlord and the tenant. However, less than The practice of advance payment made partially returned one-third of the tenants (around 27 percent) signed a formal contract while renting respective housing the tenants report their departure of the units. However, Alam (2011) reported that even if a landlord signed a rent agreement with a tenant, the rented unit with at least one month's original copies of the agreement were usually kept with the landlord. notice to the landlord.

92 93 State of Cities 2017 Tenant Security

Figure 6.7: Reasons for increasing the rent Furthermore, the tenants rarely requested a formal contract. Of those who did not receive any contract from the landlords, only six percent of them asked for formal contract papers. This highlights absence 32.05% Upgrading of rental unit of awareness regarding the formalisation procedures of renting houses. It is further argued that the 28.57% absence of formal contracts may push tenants towards vulnerable conditions, as the landlords are able Public service salary adjustment to play more discretionary roles. Moreover, in absence of a formal contract, tenants will not be entitled to address rental problems before the court or any other arbitration bodies. Increased demand for rental properties 17.37% A written contract on a non-judicial stamp can resolve most of the ambiguities around the tenancy. It Inflation adjustment secures the rights of both sides before the court. A typical contract can entail the exact amount of rent,

7.34% Increase in property tax requirement of notice before eviction and notification period, nature of inflation of rent, time gap 6.56% 7.34% between the inflation, responsibility to repair and other necessary rights and duties of the parties (The Don’t know Daily Star 2013). 0.77% Other Like the regular absence of a formal contract, most of the tenants (85 percent) did not receive any signed receipt for their rent payment from respective landlords. Further, those who did not receive any receipt, only 6.5 percent asked for it from their landlords. The Tenant Council (Bharatia Parishad) also It was widely reported in the media that house rents were increased without providing the tenants highlighted the non-delivery of receipts for rent payment by the landlords (Prothom Alo 2014a). with any kind of explanation (Alam 2011). Whenever a new budget was announced or a new year came, the rents were likely to upsurge. In support of the rent hike, owners cited issues such as hike in the 6.2.4 Advance payment and its adjustment prices of land, construction materials, utility services and burden of bank loans they took for building A security deposit from tenants is preferred by landlords to avoid loss due to departure of tenants the house (ibid.). Because of the high rent increase, many of the city dwellers shifted to areas with without formal notification. It is commonly observed that tenants' sudden departure is prevented by lower rent in the suburbs. This increased the transport time and exhaustion of the respondents. the landlord with the receipt of a fixed amount as the deposit. In reality, approximately 87 percent of Children's education was affected as well. the tenants paid a deposit amount prior to their living in a rented house. Among them, more than half of the tenants (53.6 percent) paid an Rent revision process Table 6.1: Advance payment by tenants for the rental units In the process of rent revision, the majority of the tenants (54 percent) did not participate in any sort of amount equivalent to their first negotiation with their respective landlords. Similar to the rent fixation (Figure 6.2), their respective Threshold of deposits Tenants in percent month's rent. Around 30 percent of landlords imposed the revised rents upon the tenants. One month's equivalent rent 53.6 tenants paid 2-4 months' equivalent rents in advance. Sixteen percent of Figure 6.8: Outcome of negotiations regarding rent revision Two months' equivalent rent 19.4 the surveyed tenants paid an amount The remaining 46 percent of the tenants Three months' equivalent rent 8.0 fixed by the landlord that was discussed rent revision with the Four months' equivalent rent and more 3.0 independent of the monthly rent amount. Table 6.1 shows amounts of 51.50% landlords. Approximately 52 percent Any fixed amount 16.0 advance payment by tenants. respondents reported no change in the 34.30% decisions of the landlords (Figure 6.8) as Tenants were asked about the use of this Figure 6.9: Adjustment of advance payment compared to roughly 14 percent who advance payment. Fifty seven percent of 14.10% successfully reduced the proposed the tenants said that the money received 2% amount. Moreover, approximately 34 as advance payment would be adjusted Return of the full No change percent of tenants could delay the with the last month's rents. However 41 deposit if rental unit Same amount, but effective from later date enforcement of the additional rent percent of tenants stated that the left in good condition through negotiations with their money would be returned to the tenant Reduce amount 41% Deposit will be respective landlords. if the rental unit was left in good used for last month's condition (Figure 6.9). Use of advance rental payment 6.2.3 Formalisation of house renting: Agreement document and receipt of rent money in maintenance works and/or 57% Used for payment adjustment with utility bills was barely maintenance A key aspect of tenant security is the formalisation of the procedure of renting housing units, which can reported by the tenants (only 2 percent). and electricity bill, be ensured through signing an agreement between the landlord and the tenant. However, less than The practice of advance payment made partially returned one-third of the tenants (around 27 percent) signed a formal contract while renting respective housing the tenants report their departure of the units. However, Alam (2011) reported that even if a landlord signed a rent agreement with a tenant, the rented unit with at least one month's original copies of the agreement were usually kept with the landlord. notice to the landlord.

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6.2.5 Maintenance and change in internal accessories 6.3 Protection of tenants: Comparison between legal norms and Maintaining good condition of the Figure 6.10: Maintenance and repair works of rental unit survey findings rental unit is essential for retention of As mentioned earlier, the government enacted a law titled 'Premises Rent Control Act 1991' to protect the tenant in the rented house. This the interests of tenants. The following highlights the key provisions of the Act within which tenant entails carrying out maintenance and 7% Landlord security can be ensured legally: repair works. Four modalities of maintenance and repair works were Landlord, with payment · Standard rent of any premises can be fixed at an amount per annum, equivalent to 15 percent from tenant identified by the tenants based on 26% of the market value of the premises (Section 15). who did these works and who borne 57% Tenant · Government can appoint a Controller, an Additional Controller or a Deputy Controller for any the cost. Firstly, 57 percent of the area to hear and dispose the complaints submitted by tenants and/or landlords (Section 3-6). tenants stated that necessary 10% Tenant, with adjustments · Formal contract is given emphasis for establishing tenancy (Section 18, Section 26). maintenance and repair works were with the monthly rent · done by landlords at their expense The landlords provide signed receipts for paid rent to the tenants and retain a copy for (Figure 6.10). Secondly, in contrast, 26 themselves (Section 13). percent of the surveyed tenants · The landlord can increase the house rent every 2 years (Section 16). reported that they handled the maintenance works. Thirdly, 10 percent of tenants said the landlords · Without prior approval from Assistant Judge (Controller), the landlord cannot receive any did maintenance and repair works by charging the tenants. Lastly, 7 percent of tenants did advance payment for more than one month's rent (Section 10, Section 23). maintenance and repair works and the expenses were adjusted with the monthly rents. · The necessary maintenance and repair work, such as maintenance of water supply or 6.2.6 Eviction and social discrimination faced by tenants electricity supply, drainage service maintenance and lift maintenance of the rental property can be done by the tenants by adjusting the costs from the rent with approval from the Despite the predominantly informal house renting process in Dhaka, the tenants reported that they Controller (Section 21). were hardly evicted from rental units. In the survey, only two respondents were forced to vacate their houses due to the landlord stating that they wanted to keep the house for self-use. None of the evicted Now, these legal protections can be cross-examined with the practices of tenant security reflected tenants took any action against it. Nonetheless, the tenants who declined to agree to rent revisions through the survey and explained in Section 6.2. were asked to leave the house by the landlords. Table 6.2: Comparison between formal legal provisions and practices There were few incidences of discrimination reported while renting houses. While searching for an apartment, around 7 percent of the tenants faced discrimination, primarily based on the number of Tenancy issues Premises Rent Control Act 1991 Practices (findings) family members. This finding went against the popular perception that certain groups faced Amounts of rent ! Annual rent should be up to 15 ! Average house space for tenants was discrimination based on marital status and/or origin of the districts. The unmarried individuals and the percent of the market value of the 950 sq. ft. and average house rent paid people living in Dhaka without family were commonly denied to rent in family residential buildings. premise, which is called standard by the tenants was Tk. 11,577 monthly. When a landlord agreed to rent the residential units to this group of people, the latter had to bear rent [Section 15]. ! Minimum per square foot market flat double rental costs (Prothom Alo 2016b). Incidences of denials of renting residential units to bachelors price was Tk. 5,800 in the five-day increased in the aftermath of the terrorist attack in the Holey Artisan Bakery on 1 July 2016 (Sanel winter REHAB fair in December 2016 2016). The Prothom Alo (2016b) reported increased surveillance by law enforcement agencies over (The Independent 2017); based on this bachelors' houses. As a consequence, landlords asked the bachelors to leave the houses or increased market price, rent per square foot can be the rents, which further affected the bachelors mentally and economically. Such discriminations Tk. 870 annually and Tk. 72.5 monthly. undermined certain groups' access to shelter in the city. ! Extrapolating this market price, the standard rent for average 950 sq. ft. sized Female job aspirants and single working women, in particular, faced more problems than their male house would be Tk. 68,875 per month. counterparts. Security appeared to be the main concern for these women. According to a media ! ! report, miscreants attacked a female hostel located in Mohammadpur in 2014 (Prothom Alo 2016c). Rent fixation The Controller will, on the basis of Landlords unilaterally fixed rents for 52 The Department of Women Affairs of the Ministry of Women and Children Affairs built three hostels for process an application made by the landlord percent of tenants. ! working women in Dhaka. In addition, the Jatiya Mohila Sonstha was running another hostel for or the tenant, fix the standard rent For 47 percent tenants, rents were of any premises [Section 15]. women in the city. Securing a seat in these hostels was reported to be time-consuming and in some determined through negotiations with ! landlords. cases it required having good connections with government authorities (ibid.). Generally, the Where such standard rent has not ! availability of residential facilities in these hostels was inadequate. According to a senior official of the been fixed, the rent can be agreed Involvement of middlemen to Tenant Federation, approximately 1.4 million single men and women were living in messes (ibid.). The upon between the landlord and the determine the rents occurred in 1 tenant [Section 18(6b)] percent of tenants. private sector largely catered to the housing needs of these people.

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6.2.5 Maintenance and change in internal accessories 6.3 Protection of tenants: Comparison between legal norms and Maintaining good condition of the Figure 6.10: Maintenance and repair works of rental unit survey findings rental unit is essential for retention of As mentioned earlier, the government enacted a law titled 'Premises Rent Control Act 1991' to protect the tenant in the rented house. This the interests of tenants. The following highlights the key provisions of the Act within which tenant entails carrying out maintenance and 7% Landlord security can be ensured legally: repair works. Four modalities of maintenance and repair works were Landlord, with payment · Standard rent of any premises can be fixed at an amount per annum, equivalent to 15 percent from tenant identified by the tenants based on 26% of the market value of the premises (Section 15). who did these works and who borne 57% Tenant · Government can appoint a Controller, an Additional Controller or a Deputy Controller for any the cost. Firstly, 57 percent of the area to hear and dispose the complaints submitted by tenants and/or landlords (Section 3-6). tenants stated that necessary 10% Tenant, with adjustments · Formal contract is given emphasis for establishing tenancy (Section 18, Section 26). maintenance and repair works were with the monthly rent · done by landlords at their expense The landlords provide signed receipts for paid rent to the tenants and retain a copy for (Figure 6.10). Secondly, in contrast, 26 themselves (Section 13). percent of the surveyed tenants · The landlord can increase the house rent every 2 years (Section 16). reported that they handled the maintenance works. Thirdly, 10 percent of tenants said the landlords · Without prior approval from Assistant Judge (Controller), the landlord cannot receive any did maintenance and repair works by charging the tenants. Lastly, 7 percent of tenants did advance payment for more than one month's rent (Section 10, Section 23). maintenance and repair works and the expenses were adjusted with the monthly rents. · The necessary maintenance and repair work, such as maintenance of water supply or 6.2.6 Eviction and social discrimination faced by tenants electricity supply, drainage service maintenance and lift maintenance of the rental property can be done by the tenants by adjusting the costs from the rent with approval from the Despite the predominantly informal house renting process in Dhaka, the tenants reported that they Controller (Section 21). were hardly evicted from rental units. In the survey, only two respondents were forced to vacate their houses due to the landlord stating that they wanted to keep the house for self-use. None of the evicted Now, these legal protections can be cross-examined with the practices of tenant security reflected tenants took any action against it. Nonetheless, the tenants who declined to agree to rent revisions through the survey and explained in Section 6.2. were asked to leave the house by the landlords. Table 6.2: Comparison between formal legal provisions and practices There were few incidences of discrimination reported while renting houses. While searching for an apartment, around 7 percent of the tenants faced discrimination, primarily based on the number of Tenancy issues Premises Rent Control Act 1991 Practices (findings) family members. This finding went against the popular perception that certain groups faced Amounts of rent ! Annual rent should be up to 15 ! Average house space for tenants was discrimination based on marital status and/or origin of the districts. The unmarried individuals and the percent of the market value of the 950 sq. ft. and average house rent paid people living in Dhaka without family were commonly denied to rent in family residential buildings. premise, which is called standard by the tenants was Tk. 11,577 monthly. When a landlord agreed to rent the residential units to this group of people, the latter had to bear rent [Section 15]. ! Minimum per square foot market flat double rental costs (Prothom Alo 2016b). Incidences of denials of renting residential units to bachelors price was Tk. 5,800 in the five-day increased in the aftermath of the terrorist attack in the Holey Artisan Bakery on 1 July 2016 (Sanel winter REHAB fair in December 2016 2016). The Prothom Alo (2016b) reported increased surveillance by law enforcement agencies over (The Independent 2017); based on this bachelors' houses. As a consequence, landlords asked the bachelors to leave the houses or increased market price, rent per square foot can be the rents, which further affected the bachelors mentally and economically. Such discriminations Tk. 870 annually and Tk. 72.5 monthly. undermined certain groups' access to shelter in the city. ! Extrapolating this market price, the standard rent for average 950 sq. ft. sized Female job aspirants and single working women, in particular, faced more problems than their male house would be Tk. 68,875 per month. counterparts. Security appeared to be the main concern for these women. According to a media ! ! report, miscreants attacked a female hostel located in Mohammadpur in 2014 (Prothom Alo 2016c). Rent fixation The Controller will, on the basis of Landlords unilaterally fixed rents for 52 The Department of Women Affairs of the Ministry of Women and Children Affairs built three hostels for process an application made by the landlord percent of tenants. ! working women in Dhaka. In addition, the Jatiya Mohila Sonstha was running another hostel for or the tenant, fix the standard rent For 47 percent tenants, rents were of any premises [Section 15]. women in the city. Securing a seat in these hostels was reported to be time-consuming and in some determined through negotiations with ! landlords. cases it required having good connections with government authorities (ibid.). Generally, the Where such standard rent has not ! availability of residential facilities in these hostels was inadequate. According to a senior official of the been fixed, the rent can be agreed Involvement of middlemen to Tenant Federation, approximately 1.4 million single men and women were living in messes (ibid.). The upon between the landlord and the determine the rents occurred in 1 tenant [Section 18(6b)] percent of tenants. private sector largely catered to the housing needs of these people.

94 95 State of Cities 2017 Tenant Security

Tenancy issues Premises Rent Control Act 1991 Practices (findings) It is observed that average house rent is far lower than the standard rent laid down by the Premises Rent Control Act 1991. If the legal provision (up to 15 percent of the market value of the premise) is Frequency of ! Landlords can increase the house ! Rents increased every year for 75 rent revision rent every 2 years [Section 16]. percent of tenants. followed, the standard rent for an average 950 sq. ft. sized house could be fixed at up to Tk. 68,875 per ! ! month as opposed to the current average rent of Tk. 11,577. Apart from the Act of 1991, the undivided Grounds for rent Increase of rent beyond standard Reasons for rent increase were Dhaka City Corporation formulated an area-based house rent chart called 'Rate Chart' in 2003, which increase ceiling for improvements and unknown to 32.1 percent of tenants. was revised in March 2008. However, it was not applied to the fixation of house rents. Instead, this supply of furniture by the landlord ! For 28.6 percent of tenants, the reason chart was used by the Corporation to determine the holding tax of a building (Alam 2011). [Section 8]. was owner's inflation adjustment. ! Increase of rent on account of ! Increased demand for rental unit was The Dhaka North City Corporation (DNCC) formulated differentiated 'Rate Chart' for residential, payment of taxes by the landlord, stated by 17.4 percent of tenants. commercial and industrial holdings. The rates vary based on construction time, type of structure, which is actually payable by the ! architecture of the construction, location, and conditionalities of transferring possessions. The Dhaka tenant [Section 9]. Increase in property tax payable by the landlord was for 7.3 percent of tenants. South City Corporation uses the '5-year revaluation of holding tax' survey guideline (2015-2016)' for ! Upgrading rental unit (6.6 percent). fixing the range of house rents (per sq. ft.) instead of zone-wise fixed rate chart. Table 6.3 shows the ! Public servants' salary hike (7.3 percent). differential rates of residential holdings and the range of house rents based on the rates of city corporations. Rent revision ! Standard rent will, on the basis of ! Landlords revised the rents unilaterally process an application made by the landlord for 54 percent of the tenants. Table 6.3: Zone-wise rate chart of city corporations and house rents or the tenant, be re-fixed by the Zone Zone name Rate of Rents of Rate of Rents of Rate of Rents of Controller every two years [Section no. concrete house average semi-concrete average Katcha average 16(2)]. (per sq. ft. 950 sq. ft.* (per sq. ft. 950 sq. ft.* (per sq. ft. 950 sq. ft.* in Tk.) (Tk.) in Tk.) (Tk.) in Tk.) (Tk.) Contract sign for ! Reference of tenancy agreement was ! Around 27 percent of tenants signed a establishing given to subletting [Section 18(3((a)], formal contract while renting housing Dhaka North City Corporation (DNCC) tenancy tenant's enjoyment of legal units. 1 Uttara 4-11 3,800-10,450 3-10 2,850-9,500 3-9 2,850-8,550 protection [Section 18(5)], quit of 2 Mirpur-Pallabi 5-6.5 4,750-6,175 4.5-5.5 4,275-5,225 3.5-4 3,325-3,800 tenancy by the tenant [Section 26(1)] 3 Gulshan-Banani 3.5-18 3,325-17100 2.5-10 2,375-9,500 2-7 1,900-6,650 Receipt for rent ! Landlords will provide a signed ! 85 percent of the tenants did not payment receipt for the paid rents to the receive any signed receipt for rent 4 Mirpur, Kazipara, 4.5-6 4,275-5,700 4-5 3,800-4,750 4-4.5 3,800-4,275 Gabtoli tenants and retain a copy for payment from their landlords. themselves (Section 13). ! Among them, only 6.5 percent asked for 5 Kawranbazar 4-8 3,800-7,600 3.25-6.5 3,088- 6,175 3-4 2,850-3,800 it from their landlords. Dhaka South City Corporation (DSCC) Advance ! Advance payment cannot be more ! Approximately 54 percent of tenants 1-5 All areas 6-18 5,700-17,100 5-8 4,750-7,600 3-4 2,850-3,800 payment than one month's equivalent rent paid an amount equivalent to their first *Average size of housing unit rented by households in Dhaka without the written consent of the month's rent. Source: DNCC 2015 rent controller [Section 10, Section ! Around 30 percent tenants paid 2-4 Ratio of annual rent vis-à-vis market value of the premise is much higher than in neighbouring India. 23]. months' rent in advance. The Tamil Nadu Buildings (Lease and Rent Control) Act 1960 stipulates fair rent to be nine percent of the ! ! Repair and The tenants can do the necessary Thirty-six percent of tenants paid for total cost of the building at the time of construction for residential building, which is 15 percent in maintenance maintenance and repair work of the repair and maintenance work. Bangladesh. Additional 15 percent rent was laid down for a furnished house in the Tamil Nadu works rental unit by adjusting the rent, ! Landlords paid the cost for 64 percent of legislation and 10 percent of the rent was to be added as maintenance charges; however, such subject to the approval from the tenants Controller [Section 21]. specifications are not laid down in Bangladeshi law. Eviction and ! Tenants cannot be evicted or ! Only two tenants out of 272 were forced Except for the rents, the scenario of tenant security lagged behind the legal stipulations in Dhaka. social threatened as long as they pay rent to leave the house. Despite of legal provisions, house-renting agreements were established informally and tenants did not discrimination at allowable rate [Section 18]. receive any receipt for rent payment. However, formalising the tenancy is rewarding for both tenant and government. The tenant can avail legal protection based on the formal agreement and the government can mobilise revenues by involving banks in the rent-related transactions.

96 97 State of Cities 2017 Tenant Security

Tenancy issues Premises Rent Control Act 1991 Practices (findings) It is observed that average house rent is far lower than the standard rent laid down by the Premises Rent Control Act 1991. If the legal provision (up to 15 percent of the market value of the premise) is Frequency of ! Landlords can increase the house ! Rents increased every year for 75 rent revision rent every 2 years [Section 16]. percent of tenants. followed, the standard rent for an average 950 sq. ft. sized house could be fixed at up to Tk. 68,875 per ! ! month as opposed to the current average rent of Tk. 11,577. Apart from the Act of 1991, the undivided Grounds for rent Increase of rent beyond standard Reasons for rent increase were Dhaka City Corporation formulated an area-based house rent chart called 'Rate Chart' in 2003, which increase ceiling for improvements and unknown to 32.1 percent of tenants. was revised in March 2008. However, it was not applied to the fixation of house rents. Instead, this supply of furniture by the landlord ! For 28.6 percent of tenants, the reason chart was used by the Corporation to determine the holding tax of a building (Alam 2011). [Section 8]. was owner's inflation adjustment. ! Increase of rent on account of ! Increased demand for rental unit was The Dhaka North City Corporation (DNCC) formulated differentiated 'Rate Chart' for residential, payment of taxes by the landlord, stated by 17.4 percent of tenants. commercial and industrial holdings. The rates vary based on construction time, type of structure, which is actually payable by the ! architecture of the construction, location, and conditionalities of transferring possessions. The Dhaka tenant [Section 9]. Increase in property tax payable by the landlord was for 7.3 percent of tenants. South City Corporation uses the '5-year revaluation of holding tax' survey guideline (2015-2016)' for ! Upgrading rental unit (6.6 percent). fixing the range of house rents (per sq. ft.) instead of zone-wise fixed rate chart. Table 6.3 shows the ! Public servants' salary hike (7.3 percent). differential rates of residential holdings and the range of house rents based on the rates of city corporations. Rent revision ! Standard rent will, on the basis of ! Landlords revised the rents unilaterally process an application made by the landlord for 54 percent of the tenants. Table 6.3: Zone-wise rate chart of city corporations and house rents or the tenant, be re-fixed by the Zone Zone name Rate of Rents of Rate of Rents of Rate of Rents of Controller every two years [Section no. concrete house average semi-concrete average Katcha average 16(2)]. (per sq. ft. 950 sq. ft.* (per sq. ft. 950 sq. ft.* (per sq. ft. 950 sq. ft.* in Tk.) (Tk.) in Tk.) (Tk.) in Tk.) (Tk.) Contract sign for ! Reference of tenancy agreement was ! Around 27 percent of tenants signed a establishing given to subletting [Section 18(3((a)], formal contract while renting housing Dhaka North City Corporation (DNCC) tenancy tenant's enjoyment of legal units. 1 Uttara 4-11 3,800-10,450 3-10 2,850-9,500 3-9 2,850-8,550 protection [Section 18(5)], quit of 2 Mirpur-Pallabi 5-6.5 4,750-6,175 4.5-5.5 4,275-5,225 3.5-4 3,325-3,800 tenancy by the tenant [Section 26(1)] 3 Gulshan-Banani 3.5-18 3,325-17100 2.5-10 2,375-9,500 2-7 1,900-6,650 Receipt for rent ! Landlords will provide a signed ! 85 percent of the tenants did not payment receipt for the paid rents to the receive any signed receipt for rent 4 Mirpur, Kazipara, 4.5-6 4,275-5,700 4-5 3,800-4,750 4-4.5 3,800-4,275 Gabtoli tenants and retain a copy for payment from their landlords. themselves (Section 13). ! Among them, only 6.5 percent asked for 5 Kawranbazar 4-8 3,800-7,600 3.25-6.5 3,088- 6,175 3-4 2,850-3,800 it from their landlords. Dhaka South City Corporation (DSCC) Advance ! Advance payment cannot be more ! Approximately 54 percent of tenants 1-5 All areas 6-18 5,700-17,100 5-8 4,750-7,600 3-4 2,850-3,800 payment than one month's equivalent rent paid an amount equivalent to their first *Average size of housing unit rented by households in Dhaka without the written consent of the month's rent. Source: DNCC 2015 rent controller [Section 10, Section ! Around 30 percent tenants paid 2-4 Ratio of annual rent vis-à-vis market value of the premise is much higher than in neighbouring India. 23]. months' rent in advance. The Tamil Nadu Buildings (Lease and Rent Control) Act 1960 stipulates fair rent to be nine percent of the ! ! Repair and The tenants can do the necessary Thirty-six percent of tenants paid for total cost of the building at the time of construction for residential building, which is 15 percent in maintenance maintenance and repair work of the repair and maintenance work. Bangladesh. Additional 15 percent rent was laid down for a furnished house in the Tamil Nadu works rental unit by adjusting the rent, ! Landlords paid the cost for 64 percent of legislation and 10 percent of the rent was to be added as maintenance charges; however, such subject to the approval from the tenants Controller [Section 21]. specifications are not laid down in Bangladeshi law. Eviction and ! Tenants cannot be evicted or ! Only two tenants out of 272 were forced Except for the rents, the scenario of tenant security lagged behind the legal stipulations in Dhaka. social threatened as long as they pay rent to leave the house. Despite of legal provisions, house-renting agreements were established informally and tenants did not discrimination at allowable rate [Section 18]. receive any receipt for rent payment. However, formalising the tenancy is rewarding for both tenant and government. The tenant can avail legal protection based on the formal agreement and the government can mobilise revenues by involving banks in the rent-related transactions.

96 97 State of Cities 2017 Tenant Security

Filing complaints against landlords by tenants to the Office of the Rent Controller is hardly observed. and Public Works Ministry, a civil society member, consumer rights expert, and a city Lack of awareness about the legal protection, fear of the tenants going against the landlords who are corporation official. The commission is to be formed by the Cabinet Secretary. local and considered powerful, and lengthy legal procedures can be argued to be the reason for not · The Commission will identify the existing problems through discussions with house owners filing cases to the Controller's Office. Broadly, tenants have little awareness about the Premises Rent and tenants; recommend area-wise maximum and minimum standard house rents through Control Act 1991, which resulted in poor reflection of law in tenant security. Only 15.4 percent of the mass hearing (if required) in Dhaka; and provide recommendations for updating the Premises surveyed tenants knew about the provision of rent controllers in the Dhaka City Corporations' areas. Rent Control Act 1991. Further weaknesses are embedded in the law, as it did not specify any ministry or government agency, other than the controller, for monitoring tenant security. This provides room for the whimsical · The government will amend the Premises Rent Control Act 1991 in line with recommendations behaviour by landlords. Albeit the rules are stated otherwise, landlords in Dhaka city increase house of the Commission. rent every year (reported by 50 percent of the surveyed tenants). On the contrary, due to the poor · The police will take steps regarding house rent-related complaints in all cities including Dhaka tenancy protection, the tenants either cope with interpretations of the landlords regarding security and such complaints must be resolved swiftly and security to be provided if necessary. issues or leave the house. Tenants' passive voice was reflected in few incidences of requesting a formal · The government will appoint a house rent controller at every ward for hearing and settling contract and receipt of rent payment (around 6-7 percent). issues and allegations until the commission is formed. However, some citizens' groups have argued for the protection of tenants and their rights. Examples · A separate authority is to be established for controlling rent with jurisdiction to regulate all are the Bangladesh Tenants' Federation and the Consumers Association of Bangladesh. The relevant questions. Bangladesh Tenants' Federation – a consortium of ten organisations working for the protection of tenants – put forward four points to ensure the rights of the tenants (Prothom Alo 2016a). These 6.4 Key findings and recommendations included the following: The chapter, in brief, examined various aspects of tenant security ranging from rent fixation to eviction i. Implementation of the Premises Rent Control Act 1991 from the rented housing in Dhaka based on the opinions and experiences of the tenants. Tenants' ii. Enforcement of the rents of houses, shops and offices according to the rates of the City experiences have been cross-examined with various aspects of the Premises Rent Control Act 1991. Corporations Except for rents, in most cases tenants' interests were least protected legally due to poor iii. Construction of 0.11 million apartments around Dhaka City for low income people and renting implementation of the Act. The tenants' feedback through the survey highlights that nine-tenth of out apartments to these people on the basis of monthly rent with ultimate purpose of making tenants began renting within Tk. 16,000. This opening rent has gone through annual revisions for half of them homeowners the surveyed tenants, which contradicts the legal stipulation of rent revision after every two years. The iv. Provision of rent payment through bank accounts. majority of respondents (61 percent) experienced an increment of Tk. 500 or less at each revision. The CAB put forward the following recommendations to protect the interests of tenants in Dhaka Those whose rents were revised after every two years or more, had to face a greater increment of more (Hasnat 2015): than Tk. 500 or Tk. 1,000. In addition, larger increment was positively associated with higher rents. Such revision took place without participation of the majority of tenants in the process. More · Develop a legal framework including the constitution of the separate House Rent Control conspicuously, the tenancy relationship between tenant and landlord was established and continued Authority informally. Tenants did not sign any contract (more than two-third of tenants) nor did they receive any · Play the arbitration role by the City Corporations in the resolution of disputes created receipt for rent payment (85 percent). Non-compliance with the existing laws was also observed both between tenants and landlords in the case of advance payment by tenants to the landlords as well as in the case of maintenance and · Develop a database of landlords and tenants repairing works. · Introduce mandatory Tax Identification Number for landlords Due to poor enforcement of the legal framework, tenants appear to be not entitled to any rights. More · Provide apartments to the middle class, employed tenants on long-term, lower interest rates specifically, the informalities in tenancy weaken the tenants' position to seek formal redressal and force them to comply with landlords' interpretations of tenancy. In addition, rent payment without · Establish tenant control authority at each ward in the city corporations. receipt or banking system deprived the government from collection of revenue in full. Little awareness In order to provide better protection to tenants, the High Court of Bangladesh, in response to a writ is the main reason behind non-implementation of the Premises Rent Control Act 1991. Unless the petition filed by the Human Rights and Peace for Bangladesh in April 2010, directed the government to tenants are aware and legally empowered their security cannot be ensured. undertake the following steps on 1 July 2015 (Dhaka Tribune 2015). Furthermore, the Act appears to be outdated. If the legal stipulation regarding fixed annual standard · The government will constitute a commission led by a law expert nominated by the Ministry of rent were implemented i.e. 15 percent of the market value of the residential unit, the rents of the Law, Justice and Parliamentary Affairs; and with members including a university professor who residential buildings would have been unbearable for tenants. The prices of land, property and has expertise on housing and city development, an economist, a senior official of the Housing construction costs have increased since the enactment of the law.

98 99 State of Cities 2017 Tenant Security

Filing complaints against landlords by tenants to the Office of the Rent Controller is hardly observed. and Public Works Ministry, a civil society member, consumer rights expert, and a city Lack of awareness about the legal protection, fear of the tenants going against the landlords who are corporation official. The commission is to be formed by the Cabinet Secretary. local and considered powerful, and lengthy legal procedures can be argued to be the reason for not · The Commission will identify the existing problems through discussions with house owners filing cases to the Controller's Office. Broadly, tenants have little awareness about the Premises Rent and tenants; recommend area-wise maximum and minimum standard house rents through Control Act 1991, which resulted in poor reflection of law in tenant security. Only 15.4 percent of the mass hearing (if required) in Dhaka; and provide recommendations for updating the Premises surveyed tenants knew about the provision of rent controllers in the Dhaka City Corporations' areas. Rent Control Act 1991. Further weaknesses are embedded in the law, as it did not specify any ministry or government agency, other than the controller, for monitoring tenant security. This provides room for the whimsical · The government will amend the Premises Rent Control Act 1991 in line with recommendations behaviour by landlords. Albeit the rules are stated otherwise, landlords in Dhaka city increase house of the Commission. rent every year (reported by 50 percent of the surveyed tenants). On the contrary, due to the poor · The police will take steps regarding house rent-related complaints in all cities including Dhaka tenancy protection, the tenants either cope with interpretations of the landlords regarding security and such complaints must be resolved swiftly and security to be provided if necessary. issues or leave the house. Tenants' passive voice was reflected in few incidences of requesting a formal · The government will appoint a house rent controller at every ward for hearing and settling contract and receipt of rent payment (around 6-7 percent). issues and allegations until the commission is formed. However, some citizens' groups have argued for the protection of tenants and their rights. Examples · A separate authority is to be established for controlling rent with jurisdiction to regulate all are the Bangladesh Tenants' Federation and the Consumers Association of Bangladesh. The relevant questions. Bangladesh Tenants' Federation – a consortium of ten organisations working for the protection of tenants – put forward four points to ensure the rights of the tenants (Prothom Alo 2016a). These 6.4 Key findings and recommendations included the following: The chapter, in brief, examined various aspects of tenant security ranging from rent fixation to eviction i. Implementation of the Premises Rent Control Act 1991 from the rented housing in Dhaka based on the opinions and experiences of the tenants. Tenants' ii. Enforcement of the rents of houses, shops and offices according to the rates of the City experiences have been cross-examined with various aspects of the Premises Rent Control Act 1991. Corporations Except for rents, in most cases tenants' interests were least protected legally due to poor iii. Construction of 0.11 million apartments around Dhaka City for low income people and renting implementation of the Act. The tenants' feedback through the survey highlights that nine-tenth of out apartments to these people on the basis of monthly rent with ultimate purpose of making tenants began renting within Tk. 16,000. This opening rent has gone through annual revisions for half of them homeowners the surveyed tenants, which contradicts the legal stipulation of rent revision after every two years. The iv. Provision of rent payment through bank accounts. majority of respondents (61 percent) experienced an increment of Tk. 500 or less at each revision. The CAB put forward the following recommendations to protect the interests of tenants in Dhaka Those whose rents were revised after every two years or more, had to face a greater increment of more (Hasnat 2015): than Tk. 500 or Tk. 1,000. In addition, larger increment was positively associated with higher rents. Such revision took place without participation of the majority of tenants in the process. More · Develop a legal framework including the constitution of the separate House Rent Control conspicuously, the tenancy relationship between tenant and landlord was established and continued Authority informally. Tenants did not sign any contract (more than two-third of tenants) nor did they receive any · Play the arbitration role by the City Corporations in the resolution of disputes created receipt for rent payment (85 percent). Non-compliance with the existing laws was also observed both between tenants and landlords in the case of advance payment by tenants to the landlords as well as in the case of maintenance and · Develop a database of landlords and tenants repairing works. · Introduce mandatory Tax Identification Number for landlords Due to poor enforcement of the legal framework, tenants appear to be not entitled to any rights. More · Provide apartments to the middle class, employed tenants on long-term, lower interest rates specifically, the informalities in tenancy weaken the tenants' position to seek formal redressal and force them to comply with landlords' interpretations of tenancy. In addition, rent payment without · Establish tenant control authority at each ward in the city corporations. receipt or banking system deprived the government from collection of revenue in full. Little awareness In order to provide better protection to tenants, the High Court of Bangladesh, in response to a writ is the main reason behind non-implementation of the Premises Rent Control Act 1991. Unless the petition filed by the Human Rights and Peace for Bangladesh in April 2010, directed the government to tenants are aware and legally empowered their security cannot be ensured. undertake the following steps on 1 July 2015 (Dhaka Tribune 2015). Furthermore, the Act appears to be outdated. If the legal stipulation regarding fixed annual standard · The government will constitute a commission led by a law expert nominated by the Ministry of rent were implemented i.e. 15 percent of the market value of the residential unit, the rents of the Law, Justice and Parliamentary Affairs; and with members including a university professor who residential buildings would have been unbearable for tenants. The prices of land, property and has expertise on housing and city development, an economist, a senior official of the Housing construction costs have increased since the enactment of the law.

98 99 State of Cities 2017

For better protection of tenants and landlords, the verdict of the High Court Division delivered on 1 July 2015 should be implemented fully. The following issues should be considered as well:

7 CHAPTER · Formalise the tenancy in Dhaka through mandatory signing of formal agreement and involvement of banks for rent payment. · Specify a single authority with its field controllers at each ward for addressing issues of tenancy. Detailed contacts of rent controllers should be made public and their performance CONCLUSION AND RECOMMENDATIONS needs to be monitored regularly. For instance, the Authority can produce an annual report on tenancy issues. · Fix area-wise maximum rent ceiling and update the rent chart after every five years through the constitution of a commission as directed by the High Court Division. · Popularise the rent rates among landlords and tenants and their rights that are laid down in the legal framework. For example, the rent chart of a particular area can be made accessible for everyone to view. · Update the Premises Rent Control Act 1991 by taking the practices of neighbouring countries 7.1 Conclusion and present realities into consideration. In a rapidly growing metropolis like Dhaka, reducing the gap between housing demand and supply · Bring the private sector's provision of housing for single men and women under the legal remains one of the major policy priorities for governments and policymakers. However, despite the framework in order to advance higher education and employment especially for the women. existence of a vibrant real estate market in Dhaka, high demand for housing and the constitutional commitment of shelter as a fundamental right, housing still remains one of the most vulnerable sectors in terms of both infrastructure and service facilities. Against this backdrop, the 2017 State of Cities report focuses on the different aspects of formal housing in Dhaka city. Each chapter in this report has its own analytical perspectives and contributes to understanding the different dimension of housing provision in Dhaka. The key findings of the report are as follows: 1. Acts and policies relating to the housing sector are well structured and largely sufficient. There are a large number of laws, policies, plans and strategies available in Bangladesh which address issues that have emerged as a result of rapid urbanization. The various acts and policies focus on different aspects of service delivery and address housing in particular. In addition, a large numbers of actors, including both public and private agencies, are involved in managing the sector. In spite of some shortcomings, the report notes that the policies and rules are largely adequate to govern the housing sector. 2. Weak enforcement is the key challenge facing the housing sector. The enforcement of regulatory policies remains a major challenge in the housing sector, which is largely reflected in the building standards, tenancy relationships and rent control. The report noted that informal providers – encompassing individual developers and small private providers who generally work beyond the reach of legal authorities – dominate the private housing market in Dhaka. As a result, the housing schemes provided by the informal developers usually do not comply with standard building regulations. In last several years, the lack of compliance with building standards has been reflected in several incidents including the 2013 Rana Plaza collapse. This report also shows that housing in Dhaka is not sufficiently prepared for disasters such as fire outbreak or earthquake. Moreover, the lack of enforcement is visible in tenancy contracts: even though formal tenancy contracts are mandatory by law, tenancy agreements in Dhaka are often informal and unwritten. The practice of rent revision that currently exists in Dhaka does not comply with the law in 90 percent of cases.

100 101 State of Cities 2017

For better protection of tenants and landlords, the verdict of the High Court Division delivered on 1 July 2015 should be implemented fully. The following issues should be considered as well:

7 CHAPTER · Formalise the tenancy in Dhaka through mandatory signing of formal agreement and involvement of banks for rent payment. · Specify a single authority with its field controllers at each ward for addressing issues of tenancy. Detailed contacts of rent controllers should be made public and their performance CONCLUSION AND RECOMMENDATIONS needs to be monitored regularly. For instance, the Authority can produce an annual report on tenancy issues. · Fix area-wise maximum rent ceiling and update the rent chart after every five years through the constitution of a commission as directed by the High Court Division. · Popularise the rent rates among landlords and tenants and their rights that are laid down in the legal framework. For example, the rent chart of a particular area can be made accessible for everyone to view. · Update the Premises Rent Control Act 1991 by taking the practices of neighbouring countries 7.1 Conclusion and present realities into consideration. In a rapidly growing metropolis like Dhaka, reducing the gap between housing demand and supply · Bring the private sector's provision of housing for single men and women under the legal remains one of the major policy priorities for governments and policymakers. However, despite the framework in order to advance higher education and employment especially for the women. existence of a vibrant real estate market in Dhaka, high demand for housing and the constitutional commitment of shelter as a fundamental right, housing still remains one of the most vulnerable sectors in terms of both infrastructure and service facilities. Against this backdrop, the 2017 State of Cities report focuses on the different aspects of formal housing in Dhaka city. Each chapter in this report has its own analytical perspectives and contributes to understanding the different dimension of housing provision in Dhaka. The key findings of the report are as follows: 1. Acts and policies relating to the housing sector are well structured and largely sufficient. There are a large number of laws, policies, plans and strategies available in Bangladesh which address issues that have emerged as a result of rapid urbanization. The various acts and policies focus on different aspects of service delivery and address housing in particular. In addition, a large numbers of actors, including both public and private agencies, are involved in managing the sector. In spite of some shortcomings, the report notes that the policies and rules are largely adequate to govern the housing sector. 2. Weak enforcement is the key challenge facing the housing sector. The enforcement of regulatory policies remains a major challenge in the housing sector, which is largely reflected in the building standards, tenancy relationships and rent control. The report noted that informal providers – encompassing individual developers and small private providers who generally work beyond the reach of legal authorities – dominate the private housing market in Dhaka. As a result, the housing schemes provided by the informal developers usually do not comply with standard building regulations. In last several years, the lack of compliance with building standards has been reflected in several incidents including the 2013 Rana Plaza collapse. This report also shows that housing in Dhaka is not sufficiently prepared for disasters such as fire outbreak or earthquake. Moreover, the lack of enforcement is visible in tenancy contracts: even though formal tenancy contracts are mandatory by law, tenancy agreements in Dhaka are often informal and unwritten. The practice of rent revision that currently exists in Dhaka does not comply with the law in 90 percent of cases.

100 101 State of Cities 2017 Conclusion and Recommendations

3. The public sector plays a passive role in delivering housing and little effort towards land 7.2 Recommendations management is visible. Despite the constitutional recognition of housing as a basic fundamental right and the state's commitment towards delivering it, the public sector plays a passive role in the delivery Strengthening the enforcement of existing rules and policies is the first step towards improving the of housing. The role is more of a 'facilitator' than 'enabler', which is evident in the housing statistics: 93 housing condition. It is imperative to bring all the informal, both companies and individual developers, percent of the total housing supply comes from the private providers, while only 7 percent comes from under the monitoring of RAJUK so that a common building standard can be retained throughout the the government. The government's land management efforts are also less visible and a huge portion of city. This report recommends that a separate department within RAJUK is necessary to be established Dhaka's land is subject to illegal possession (khas land). In addition to that, different public offices to monitor the application of building codes. occupy a large share of already scarce land, which remains largely unutilized and underutilized. Formalization of tenancy agreements is another crucial aspect of enforcement. It should be Furthermore, the public housing schemes designed for government officials are characterized by compulsory that all tenancy agreements are written and signed. In addition, payments should only markedly liberal per capita residential space compared to other housing in the city. be made through banks. This would minimise the issues of arbitrary rent revisions and at the same 4. Presence of a dualistic development pattern undermines quality. The report highlights that Dhaka's time would ensure better collection of tax revenue. The report suggests that designating ward-level development pattern is dualistic and largely unequal. The affluent areas attract large developers and field controllers is crucial to handle tenancy related issue. Wider public dissemination of the the building standards generally comply with the regulations and are equipped with better Premises Rent Control Act 1991 and publicising the information regarding rent controllers at ward- infrastructure and service network. In contrast, relatively new and spontaneously developed areas level can be helpful in this regard. It is also argued that steps like determination of area specific rent have a huge concentration of private informal bidders. Housing in those areas generally does not ceiling and revision of the ceiling at regular intervals is necessary to prohibit arbitrary rent comply with the standards and has less developed service networks and infrastructure. imposition. 5. Affordability is the main constraint in availing decent housing. Housing in Dhaka is quite expensive While the enforcement of existing policies is key to maintain the quality of building and ensuring the and often exceeds the standard threshold of affordability. The report reveals that more than 82 per security of the tenants, substantial effort is needed to escalate the physical provision of housing at an cent of the renters spend more than 30 percent of their monthly income on house rent. Three-fourths affordable rate. In order to achieve this, the report provides a range of recommendations, which can of the tenants perceive that renting a house or apartment in Dhaka is either moderately or very simultaneously be applied to resolve the adequacy issue. The first step to improve adequacy is to expensive. As a consequence, tenants in Dhaka need to compromise on their standard of living and are improve land management, which would require releasing land from unauthorised occupancy, forced to cut expenditures on food, education and other consumptions. efficient management of public land and planned use of land allocated for public housing. It is also high 6. An underdeveloped financial market cripples the housing market in Dhaka. Dhaka's market for time to reassess the importance of public housing schemes and to decide whether subsidised housing finance is largely underdeveloped. The report interestingly pointed out that this lack of access commercial housing can be a viable alternative to that. The efficient use of private land also needs to to housing finance has had an impact on dwellers' psyche, with the majority not viewing access to be encouraged through policy intervention. For instance, based on the nature of land and type of areas, housing finance as the 'most important' determinant of homeownership. While the existing house the government can fix a minimum floor to be constructed in each area. Reducing informality in owners reported that personal or family savings were the main source of funding, others recognised provision can be important in this regard to confirm maximum possible utilisation of a specific land. that lack of personal savings is the main barrier to owning a house. This negatively impacts peoples' Regulatory taxes can be imposed on land if it is left undeveloped for extended periods of time to aspirations of homeownership, which was highlighted by two-thirds of the renters in Dhaka stating that increase availability of developable land. they do not aspire to own house in the city. Through different financial incentives, government can encourage bigger real estate companies to 7. On average, housing space may be adequate but the distribution is unequal. Per capita housing invest in less developed parts of the city. This can reduce the disparity in provision and would ensure overcrowding is more evident and has higher implications for people living in relatively smaller houses the efficient use of land. With this, the excessive demand for land in affluent areas will go down with a and with lower monthly incomes. possible decrease in price. Further to this, to address the affordability issues, government can take 8. Access to basic utilities is ensured but reliability and quality are still a major concern. Despite the steps to reduce the land price by readjusting the pattern of agreement between realtors and unplanned urbanisation, utility provision in the surveyed formal households is sufficient to meet the landowners, and by rationalising tax and registration fees. demand. The report shows that generally, formal households are satisfied with their access to four A robust financing mechanism should be developed to assist real estate developers with project basic services including water, electricity, gas and waste disposal. Nevertheless, the report shows that finance. Financial policies of the government can be reviewed for necessary amendments to make utility services lag behind when it comes to reliability. City dwellers regularly experience power outages them more business-friendly. Housing finance can be diversified in order to assist the prospective without prior notice, waste not being collected and no water for an entire day. Sustained quality of homeowners. Home loan provision with rational interest rates, lenient conditions and longer services is yet to be achieved, particularly in the case of water supply. repayment periods will also be imperative in this context. Introducing ideas like land banking can be useful for the government to generate own funds for future housing projects.

102 103 State of Cities 2017 Conclusion and Recommendations

3. The public sector plays a passive role in delivering housing and little effort towards land 7.2 Recommendations management is visible. Despite the constitutional recognition of housing as a basic fundamental right and the state's commitment towards delivering it, the public sector plays a passive role in the delivery Strengthening the enforcement of existing rules and policies is the first step towards improving the of housing. The role is more of a 'facilitator' than 'enabler', which is evident in the housing statistics: 93 housing condition. It is imperative to bring all the informal, both companies and individual developers, percent of the total housing supply comes from the private providers, while only 7 percent comes from under the monitoring of RAJUK so that a common building standard can be retained throughout the the government. The government's land management efforts are also less visible and a huge portion of city. This report recommends that a separate department within RAJUK is necessary to be established Dhaka's land is subject to illegal possession (khas land). In addition to that, different public offices to monitor the application of building codes. occupy a large share of already scarce land, which remains largely unutilized and underutilized. Formalization of tenancy agreements is another crucial aspect of enforcement. It should be Furthermore, the public housing schemes designed for government officials are characterized by compulsory that all tenancy agreements are written and signed. In addition, payments should only markedly liberal per capita residential space compared to other housing in the city. be made through banks. This would minimise the issues of arbitrary rent revisions and at the same 4. Presence of a dualistic development pattern undermines quality. The report highlights that Dhaka's time would ensure better collection of tax revenue. The report suggests that designating ward-level development pattern is dualistic and largely unequal. The affluent areas attract large developers and field controllers is crucial to handle tenancy related issue. Wider public dissemination of the the building standards generally comply with the regulations and are equipped with better Premises Rent Control Act 1991 and publicising the information regarding rent controllers at ward- infrastructure and service network. In contrast, relatively new and spontaneously developed areas level can be helpful in this regard. It is also argued that steps like determination of area specific rent have a huge concentration of private informal bidders. Housing in those areas generally does not ceiling and revision of the ceiling at regular intervals is necessary to prohibit arbitrary rent comply with the standards and has less developed service networks and infrastructure. imposition. 5. Affordability is the main constraint in availing decent housing. Housing in Dhaka is quite expensive While the enforcement of existing policies is key to maintain the quality of building and ensuring the and often exceeds the standard threshold of affordability. The report reveals that more than 82 per security of the tenants, substantial effort is needed to escalate the physical provision of housing at an cent of the renters spend more than 30 percent of their monthly income on house rent. Three-fourths affordable rate. In order to achieve this, the report provides a range of recommendations, which can of the tenants perceive that renting a house or apartment in Dhaka is either moderately or very simultaneously be applied to resolve the adequacy issue. The first step to improve adequacy is to expensive. As a consequence, tenants in Dhaka need to compromise on their standard of living and are improve land management, which would require releasing land from unauthorised occupancy, forced to cut expenditures on food, education and other consumptions. efficient management of public land and planned use of land allocated for public housing. It is also high 6. An underdeveloped financial market cripples the housing market in Dhaka. Dhaka's market for time to reassess the importance of public housing schemes and to decide whether subsidised housing finance is largely underdeveloped. The report interestingly pointed out that this lack of access commercial housing can be a viable alternative to that. The efficient use of private land also needs to to housing finance has had an impact on dwellers' psyche, with the majority not viewing access to be encouraged through policy intervention. For instance, based on the nature of land and type of areas, housing finance as the 'most important' determinant of homeownership. While the existing house the government can fix a minimum floor to be constructed in each area. Reducing informality in owners reported that personal or family savings were the main source of funding, others recognised provision can be important in this regard to confirm maximum possible utilisation of a specific land. that lack of personal savings is the main barrier to owning a house. This negatively impacts peoples' Regulatory taxes can be imposed on land if it is left undeveloped for extended periods of time to aspirations of homeownership, which was highlighted by two-thirds of the renters in Dhaka stating that increase availability of developable land. they do not aspire to own house in the city. Through different financial incentives, government can encourage bigger real estate companies to 7. On average, housing space may be adequate but the distribution is unequal. Per capita housing invest in less developed parts of the city. This can reduce the disparity in provision and would ensure overcrowding is more evident and has higher implications for people living in relatively smaller houses the efficient use of land. With this, the excessive demand for land in affluent areas will go down with a and with lower monthly incomes. possible decrease in price. Further to this, to address the affordability issues, government can take 8. Access to basic utilities is ensured but reliability and quality are still a major concern. Despite the steps to reduce the land price by readjusting the pattern of agreement between realtors and unplanned urbanisation, utility provision in the surveyed formal households is sufficient to meet the landowners, and by rationalising tax and registration fees. demand. The report shows that generally, formal households are satisfied with their access to four A robust financing mechanism should be developed to assist real estate developers with project basic services including water, electricity, gas and waste disposal. Nevertheless, the report shows that finance. Financial policies of the government can be reviewed for necessary amendments to make utility services lag behind when it comes to reliability. City dwellers regularly experience power outages them more business-friendly. Housing finance can be diversified in order to assist the prospective without prior notice, waste not being collected and no water for an entire day. Sustained quality of homeowners. Home loan provision with rational interest rates, lenient conditions and longer services is yet to be achieved, particularly in the case of water supply. repayment periods will also be imperative in this context. Introducing ideas like land banking can be useful for the government to generate own funds for future housing projects.

102 103 Furthermore, in responding towards managing the growing demand of urban population, there is no alternative than to promote regional development policies. With a greater devolution of authority to local government institutes and building strong secondary cities with adequate infrastructure and economic opportunities, the country will be able to move forward to ensure liveability in cities. REFERENCES

Chapter -1 Alam J. A and Morshed, M., 2013. Public facilities in public and private housing projects in Dhaka, Bangladesh. Urban Policy and Research, vol. 31, issue (2). Brockerhoff, M., 2000. An urbanizing world, Population Bulletin, vol. 55 (3). Washington, DC: Population Reference Bureau. Dewan, A. and Corner, R., 2014. Introduction In: A. Dewan and R Corner (ed), Dhaka megacity: Geospatial perspectives on urbanisation, environment and health [Online]. Available from: https://books.google.com.bd/books?id=BljFBAAAQBAJ&pg=PA19&lpg=PA19&dq=BBS+dhaka+statistics&s ource=bl&ots=zhxsyP6zT8&sig=S6sWau4lC50WLM3dfwsZKV0tO9Y&hl=en&sa=X&redir_esc=y#v=onepag e&q&f=false [Accessed on 3 September 2017]. Habitat for Humanity New Zealand, 2017. The six dimensions of housing adequacy [Online]. Available at: http://www.habitat.org.nz/about/dimensions.html [Accessed on 9 June, 2017]. HUD 2013. American housing survey: housing adequacy and quality as measured by the AHS [Online]. Available from: https://www.huduser.gov/portal/publications/ahsrep/AHS_hsg_adequacy.html [Accessed 11 September 2017]. IGS, 2012. State of Cities: Urban governance in Dhaka. Institute of Governance Studies. Dhaka: BRAC University. Konvitz, J., 2011. Housing and governance, why regulatory reform is part of the problem and part of the solution [Online]. Adam Smith Research Foundation Working Papers Series 2011:06. Available from: https://www.gla.ac.uk/media/media_219983_en.pdf [Accessed 9 September 2017]. Leung, C.K. and Tang, E.C.H., 2015. Availability, affordability and volatility: The case of Hong Kong housing market. International Real Estate Review 2015, Vol. 18 (3): pp. 383 – 428. Mahmud, F., 2013. Land prices put Dhaka on par with NY or London. Dhaka Tribune, 3 May 2013. Available from: http://www.dhakatribune.com/bangladesh/2013/05/03/land-prices-put-dhaka-on-par-with-ny-or- london/ [Accessed on 3 September 2017]. MTB, 2017. Real estate market Bangladesh [Online]. Dhaka: MTB. Available at: http://www.mutualtrustbank.com/wp-content/uploads/mtbiz/2017/MTBiz%20May-2017.pdf [Accessed on 25 June, 2017]

105 Furthermore, in responding towards managing the growing demand of urban population, there is no alternative than to promote regional development policies. With a greater devolution of authority to local government institutes and building strong secondary cities with adequate infrastructure and economic opportunities, the country will be able to move forward to ensure liveability in cities. REFERENCES

Chapter -1 Alam J. A and Morshed, M., 2013. Public facilities in public and private housing projects in Dhaka, Bangladesh. Urban Policy and Research, vol. 31, issue (2). Brockerhoff, M., 2000. An urbanizing world, Population Bulletin, vol. 55 (3). Washington, DC: Population Reference Bureau. Dewan, A. and Corner, R., 2014. Introduction In: A. Dewan and R Corner (ed), Dhaka megacity: Geospatial perspectives on urbanisation, environment and health [Online]. Available from: https://books.google.com.bd/books?id=BljFBAAAQBAJ&pg=PA19&lpg=PA19&dq=BBS+dhaka+statistics&s ource=bl&ots=zhxsyP6zT8&sig=S6sWau4lC50WLM3dfwsZKV0tO9Y&hl=en&sa=X&redir_esc=y#v=onepag e&q&f=false [Accessed on 3 September 2017]. Habitat for Humanity New Zealand, 2017. The six dimensions of housing adequacy [Online]. Available at: http://www.habitat.org.nz/about/dimensions.html [Accessed on 9 June, 2017]. HUD 2013. American housing survey: housing adequacy and quality as measured by the AHS [Online]. Available from: https://www.huduser.gov/portal/publications/ahsrep/AHS_hsg_adequacy.html [Accessed 11 September 2017]. IGS, 2012. State of Cities: Urban governance in Dhaka. Institute of Governance Studies. Dhaka: BRAC University. Konvitz, J., 2011. Housing and governance, why regulatory reform is part of the problem and part of the solution [Online]. Adam Smith Research Foundation Working Papers Series 2011:06. Available from: https://www.gla.ac.uk/media/media_219983_en.pdf [Accessed 9 September 2017]. Leung, C.K. and Tang, E.C.H., 2015. Availability, affordability and volatility: The case of Hong Kong housing market. International Real Estate Review 2015, Vol. 18 (3): pp. 383 – 428. Mahmud, F., 2013. Land prices put Dhaka on par with NY or London. Dhaka Tribune, 3 May 2013. Available from: http://www.dhakatribune.com/bangladesh/2013/05/03/land-prices-put-dhaka-on-par-with-ny-or- london/ [Accessed on 3 September 2017]. MTB, 2017. Real estate market Bangladesh [Online]. Dhaka: MTB. Available at: http://www.mutualtrustbank.com/wp-content/uploads/mtbiz/2017/MTBiz%20May-2017.pdf [Accessed on 25 June, 2017]

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Munir, Z., Muehlstein, O. and Nauhbar, B. 2015. Bangladesh: the surging consumer market nobody saw Dhaka Tribune, 2017. Government house loan ceiling to be 1 crore. Dhaka Tribune, 16 March. Available coming. Available from: https://www.bcgperspectives.com/content/articles/center-customer-insight-go- online: http://www.dhakatribune.com/business/2017/03/16/govt-house-loan-ceiling-tk1cr/ [Accessed on to-market-strategy-bangladesh-surging-consumer-market/#chapter1. [Accessed on 3 September 2017]. 19 October, 2017] Rahman, H. Z., 2011. Urban Bangladesh: Challenges of transition. Power and Participation Research Centre Housing and Building Research Institute, n.d. Available at: http://www.hbri.gov.bd/objectives [Accessed on 7 (PPRC). Dhaka. October, 2017] RAJUK, 2016. Draft Dhaka Structure Plan 2016 – 2035 [Online]. Dhaka: RAJUK. Available from: International Finance Corporation, 2016. 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106 107 State of Cities 2017 References

Munir, Z., Muehlstein, O. and Nauhbar, B. 2015. Bangladesh: the surging consumer market nobody saw Dhaka Tribune, 2017. Government house loan ceiling to be 1 crore. Dhaka Tribune, 16 March. Available coming. Available from: https://www.bcgperspectives.com/content/articles/center-customer-insight-go- online: http://www.dhakatribune.com/business/2017/03/16/govt-house-loan-ceiling-tk1cr/ [Accessed on to-market-strategy-bangladesh-surging-consumer-market/#chapter1. [Accessed on 3 September 2017]. 19 October, 2017] Rahman, H. Z., 2011. Urban Bangladesh: Challenges of transition. Power and Participation Research Centre Housing and Building Research Institute, n.d. Available at: http://www.hbri.gov.bd/objectives [Accessed on 7 (PPRC). Dhaka. October, 2017] RAJUK, 2016. Draft Dhaka Structure Plan 2016 – 2035 [Online]. Dhaka: RAJUK. Available from: International Finance Corporation, 2016. Barriers constraining the low and middle income housing finance http://www.rajukdhaka.gov.bd/rajuk/image/slideshow/1.%20Draft%20Dhaka%20Structure%20Plan%20R market in Bangladesh. Dhaka: World Bank Group. eport%202016-2035(Full%20%20Volume).pdf [Accessed on 10 June 2017]. Jenkins, P. and Smith, H., 2001. The state, the market and community: An analytical framework for community The Bangladesh Chronicle, 2016. Dhaka leaves other urban areas much behind in average income. Available self-development. Urban Development and Civil Society: The Role of Communities in Sustainable Cities. from http://bangladeshchronicle.net/2016/09/dhaka-leaves-other-urban-areas-much-behind-in-average- Vol. Part 1, Ch 2, pp. 16-30. income/. [Accessed on 23 August 2017]. Kabir, A. and Parolin, B., 2012. Planning and development of Dhaka—A story of 400 Years. Proceedings of the UN Habitat, 2016. Urbanization and development, emerging futures, World Cities Report 2016 (Abridged 15th International Planning History Society Conference, 15-18 July, 2012 Sao Paulo. Sao Paulo: Edition): Key Findings and Messages. [Online]. Available from: http://wcr.unhabitat.org/wp- International Planning History Society. content/uploads/2017/02/WCR-2016_-Abridged-version-1.pdf. [Accessed on 23 August 2017]. Keivani, R. and Werna, E., 2001. Modes of housing provision in developing countries. Progress in Planning, 55, United Nations, Department of Economic and Social Affairs, Population Division. 2014. World urbanization pp 65-118. prospects: The 2014 Revision, Highlights (ST/ESA/SER.A/352). [Online]. Available from: Ministry of Housing and Public Works, 1952. Building construction act. Dhaka: Government of People's https://esa.un.org/unpd/wup/publications/files/wup2014-highlights.Pdf [Accessed on 23 August 2017]. 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Available from: http://www.worldbank.org/en/country/china/publication/urban-china-toward- Ministry of Housing and Public Works, 2017. National housing policy. Dhaka: Government of People's Republic efficientinclusive-sustainable-urbanization. [Accessed on 22 August 2017]. of Bangladesh World Bank, 2016. World development indicators. The World Bank. Available from: Ministry of Land, 2001. National land use policy. Dhaka: Government of People's Republic of Bangladesh https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=BD. [Accessed on 22 August 2017]. Ministry of Housing and Public Works, 2004. Private housing project land development rules. Dhaka: World Population, n.d. Urbanization and the megacity. [Online]. Available from: Government of People's Republic of Bangladesh http://worldpopulationhistory.org/urbanization-and-the-megacity/ [Accessed on 3 September 2017]. Ministry of Housing and Public Works, 2008. 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The Daily Star, 2009. A comprehensive housing development programme. The Daily Star,26 June Chapter - 5 [online].Available from: http://www.thedailystar.net/news-detail-94295[Accessed on 05 May 2017] Alam, H., 2015. Many Dhaka areas without drinkable water supply. The Daily Star, 03 March, p.3f. The Daily Star, 2012.Dream of owning a home is fading as prices rise. The Daily Star,13 May[online]. Available from : http://www.thedailystar.net/news-detail-233972 [Accessed on 10 May 2012] Ahmed, I., 2016. Building resilience of urban slumps in Dhaka, Bangladesh. Procedia - Social and Behavioral Sciences 218, pp.202 – 213. The Financial Express, 2016, Home loan interest rates down to a record low. The Financial Express, 06 February [online]. Available from: http://www.thefinancialexpress-bd.com/2016/02/06/14339 Alom, M.M. and Habib, M. Z., 2016. Observation of water quality and supply system in Dhaka city, [Accessed on 29 August 2017] Bangladesh. IOSR Journal of Mechanical and Civil Engineering, Volume 13( 3VI), PP. 23-27 The Financial Times, 2014. Bangladesh property: Dhaka's growing high-end market. The Finacial Times, 15 Bahauddin, K.M. and Uddin, K.H., 2012. Prospect of solid waste situation and an approach of environmental management measure (emm) model for sustainable solid waste management: case study of Dhaka City, March [online]. Available from: https://www.ft.com/content/b192f452-a558-11e3-8070-00144feab7de Journal of Environmental Science and Natural Resources, 5(1), pp. 99 – 111. [Accessed on 15 August 2017] Bangladesh Fire Service and Civil Defense, 2017. Statistics: Fire incidence [Online]. Dhaka: Bangladesh Fire The Independent, 2017.Cost of Living in Dhaka. The Independent, 3 February [online]. Available from: Service and Civil Defense. Available from: http://www.fireservice.gov.bd/site/page/18e08e09-ad74-4aa6- http://www.theindependentbd.com/home/printnews/79039 [Accessed on 10 May 2017] 9494-84d1fdc18ad3/Fire-Incident [Accessed on 25 July, 2017]. The Kaler kantha, 2016. Eight reasons for which housing sector is stagnant (Att karone stobir abason khat)Tha BIGD, 2015. Solid Waste Management in Dhaka City- Towards Decentralised Governance. Dhaka, BRAC Daily Kalar Kantho, 1 June[online]. Available from: http://www.kalerkantho.com/print-edition/first- Institute of Governance and Development, BRAC University. page/2016/06/01/364712[Accessed on 30 May 2017] Daily Star, 2016. Dhaka at risk of mega quake. The Daily Star, 13 July, p.1b The Kaler Kantho, 2017.REHAB wants BDT 20 thousand crore fund for housing sector(Abason khate bish hajar koti takar tohobil cay REHAB)The Daily Kaler Kantha, 4 April[online]. Available from: Daily Star, 2012. Poor quality of water worries city dwellers. The Daily Star, 03 March, p.2a. http://www.kalerkantho.com/print-edition/industry-business/2017/04/04/482483 [Accessed on 10 April Herrman, T. and Lewis, R., 2017. What is Livability? [Online] Eugene, USA: Sustainable Cities Institute, 2017] University of Oregon. Available from: https://sci.uoregon.edu/sites/sci1.uoregon.edu/files/sub_1_- The Samakal, 2015.Fifteen Million people of the capital didn't own a house. (Rajdhanir soya koti manusher _what_is_livability_lit_review.pdf [Accessed on 10April, 2017]. Nijoshho Basa nei).The Daily Samakal, 5 October [online].Available from: International Energy Agency, 2014. On the issue of definition of energy security, 2014 [Online]. Paris Cedex, http://esamakal.net/?archiev=yes&arch_date=05-10-2015# [Accessed on 25 May 2017] France: International Energy Agency. Available from http://www.iea.org/topics/energysecurity/ The Samakal, 2016a.Housing sector is on the way to come out from recession(Abason khate monda [Accessed on 25 November, 2014]. katche)The Daily Samakal, 18 August[online].Available from: Islam, N., 2015. Living with unsafe water in Dhaka [Online]. Dhaka: The third pole. Available from: http://bangla.samakal.net/2016/08/18/231389 [ Accessed on 25 July 2017] https://www.thethirdpole.net/2015/11/12/living-with-unsafe-water-in-dhaka/ [Accessed on 20 The Samakal, 2016b.'Long term loan repayment' facilities should be given for housing sector (Abason khate September, 2017]. dirghomeyadi rin deyar ahoban) The Daily Samakal, 03 October [online]. Available from: Islam, N.N. and Adri, N., 2008. Fire hazard management of Dhaka city: addressing issues relating to http://bangla.samakal.net/2016/10/03/240717 [Accessed on 15 July 2017] institutional capacity and public perception. Jahangirnagar Plann, 6, pp.57–67. The Samakal, 2016c. Buyers eyes on readymade plot and apartments (Ready Flat o plote kretader cokh). The Islam, S. and Khan, M. Z. R., 2017. A review of energy sector of Bangladesh. Energy Procedia, 110 pp. 611 – Daily Samakal, 23 December [online]. Available from: http://bangla.samakal.net/2016/12/23/257580 618. [Accessed on 25 July 2017] Jahan, N., 2016. Gas crisis hits Dhaka dwellers! [Online]. Dhaka: The Daily Star. Available from: The Samakal, 2016d.REHAB demands for reducing 50% of the Plot and Apartments registration fees(Plot of http://www.thedailystar.net/star-weekend/gas-crisis-hits-dhaka-dwellers-1334380 [Accessed 20 flat er registration fee ordhek namiye anar dabi REHAB er) The Daily Samakal, 17 December [online]. September, 2017]. Available from: http://www.samakal.net/2017/03/20 /12057 [Accessed on 12 May 2017] Jahangir, H., 2016. Water crisis in Dhaka City [Online]. Mirpur: Business News 24 BD. Available from: The Samakal, 2016e.Ministry expose only dreams ( Sudhu sopnoi dekhay grihayon montronaloy)The Daily http://businessnews24bd.com/water-crisis-in-dhaka-city/ [Accessed on 28 August, 2017]. Samakal, 13 June 13 [online]. Available from: http://bangla.samakal.net/2016/06/13/218285 [Accessed Khan, T. A., 2012. Dhaka water supply and sewerage authority: performance and challenges [Online]. Dhaka: on 15 May 2016] DWASA. Available from: http://app.dwasa.org.bd/admin/news/Dhaka%20WASA%20Article- The Samakal, 2017.Government offers house loan in 5 % interest rate for officials(5% sud e griho rin paben for%20BOOK.pdf [Accessed on 04 May, 2017]. sorkari kormocarira) The Daily Samakal, 23 March [online].[Accessed on 10 May 2016] Mahendra, A., 2014. Universal access to affordable housing, social services & public utilities: water & Working Party on Affordability Issues 2003. Affordability Report: A report to the Housing. Wellington: New sanitation, transport, energy, and waste management [Online]. India: World Resources Institute (WRI). Zealand Corporation. Available from: http://communitascoalition.org/pdf/Final_Urban_Services_Mahendra.pdf [Accessed on 27August, 2017].

112 113 State of Cities 2017 References

Parasuraman, A., Valarie A., Zeithaml, Leonard L. B., 1985. A conceptual model of service quality and its Prothom Alo, 2014. Baribhara briddhi bondhe shorkari proggyaponer dabi (Gazette demands stop to increase implications for future research. The Journal of Marketing, 49(4), pp. 41-50. of rent) Prothom Alo, 6 September. Available from: http://www.prothom- alo.com/bangladesh/article/311791/ [Accessed on 15 September 2017] Prud'homme, R., 2004. Infrastructure and Development. Proceedings of Annual Bank Conference on Development Economics. 3-5 May, 2004 Washington: The World Bank. Available from: Prothom Alo, 2016a. Bharateder sharthyorokkhay federation gothon (Formation of federation to protect http://siteresources.worldbank.org/DEC/Resources/84797-1251813753820/6415739- tenant's interest). Prothom Alo, 11 January. Available from: http://www.prothom- 1251814066992/remy1-12.pdf [Accessed on 21 May, 2017]. alo.com/bangladesh/article/737071/ [Accessed on 15 September 2017] Rahman, M., 2012. Analysis of natural gas consumption by the industrial sector of Bangladesh. Journal of Prothom Alo, 2016b. Evabe cholte thakle amra koi jabo ?(How will we survive the current situation?). Prothom Chemical Engineering, 27(1). Alo, 2 August. Available from: http://www.prothom-alo.com/bangladesh/article/933346 [Accessed on 15 September 2017] Rahman, M.M., Paul, S.K. and Biswas, K., 2011. Earthquake and Dhaka city -an approach to manage the impact. J. Sci. Foundation, 9(1&2), pp. 65-75. Prothom Alo, 2016c.Chhatri kormojeebi nari thakben kothay? (Where will the female students -working women live?). Prothom Alo, 11 May. Available from: http://www.prothom-alo.com/we- Rahman, N., Ansary, M. and Islam, I., 2015. GIS based mapping of vulnerability to earthquake and fire hazard are/article/854404/ [Accessed on 15 September 2017] in Dhaka city, Bangladesh, International Journal of Disaster Risk Reduction. 13, PP.291–300. Sanel, A. 2016. Bachelorder basha pete notun bhoganti (Bachelors are facing news constraints in renting Siraj, T. M., 2016. Real estate development [Online]. Dhaka: The Daily Star. Available from: house). Prothom Alo, 28 July. Available from: http://www.prothom-alo.com/bangladesh/article/928327/ http://www.thedailystar.net/supplements/25th-anniversary-special-part-2/real-estate-development- [Accessed on 21 August 2017] 210862 [Accessed on 10 April, 2017]. The Daily Star, 2008. House rent a big burden for fixed income group. The Daily Star, 13 August. Available UN, 2017. Water [Online]. New York: United Nations. Available from: http://www.un.org/en/sections/issues- from: http://www.thedailystar.net/news-detail-50153 [Accessed on 15 September 2017] depth/water/ [Accessed on 28 August, 2017]. The Daily Star, 2013. House rent hike. The Daily Star, 20 January. Available from: UN-Habitat, 2016. Urban infrastructure and basic services, including energy [Online]. Quito, Ecuador: UN- http://www.thedailystar.net/news/house-rent-hike [Accessed on 15 September 2017] Habitat. Available from http://habitat3.org/the-conference/programme/all/urban-infrastructure-and- basic-services-including-energy-2/ [Accessed on 27 August, 2017]. UN-HABITAT, 2003. Rental housing: An essential option for the urban poor in developing countries. Nirobi: UN- HABITAT, (ISBN 92-1-131518-2). Water.org, 2017: Bangladesh's water and sanitation crisis. Dhaka: Water.org. Available from https://water.org/our-impact/bangladesh/ [Accessed on 28 August, 2017]. UN-HABITAT. 2009. The right to adequate housing. Geneva: UN-HABITAT, (ISSN 1014-5567). World Bank, 2012. What a waste: a global review of solid waste management. Washington: World Bank. Urban Development Series, March 2012 (12).

Chapter - 6 Alam, H. 2011. House rent skyrockets. The Daily Star, 20 November. Available from: http://www.thedailystar.net/news-detail-210843 [Accessed on 7 June 2017] Daily Samakal. 2015. Rajdhanir soakoti manusher nijoshha basha nei (12.5 million people of Dhaka do not have own houses). Daily Samakal, 5 October, p.na. DNCC, 2015. Rate chart [online]. Dhaka: Dhaka North City Corporation (DNCC). Available from: http://www.dncc.gov.bd/site/page/8ec34899-7496-42a8-b74e- 932c55f12efb/%E0%A6%B0%E0%A7%87%E0%A6%87%E0%A6%9F- %E0%A6%9A%E0%A6%BE%E0%A6%B0%E0%A7%8D%E0%A6%9F [Accessed on 23 September 2017] Hasnat, A. 2015. Baribharay nakal bharate (Renters are harassed due to increased rent). Prothom Alo, 6 January. Available from: http://www.prothom-alo.com/economy/article/416047/ [Accessed on 15 September 2017] MTB, 2017. Real estate market Bangladesh. Dhaka: MTB, (Volume: 08, Issue: 04).

114 115 State of Cities 2017 References

Parasuraman, A., Valarie A., Zeithaml, Leonard L. B., 1985. A conceptual model of service quality and its Prothom Alo, 2014. Baribhara briddhi bondhe shorkari proggyaponer dabi (Gazette demands stop to increase implications for future research. The Journal of Marketing, 49(4), pp. 41-50. of rent) Prothom Alo, 6 September. Available from: http://www.prothom- alo.com/bangladesh/article/311791/ [Accessed on 15 September 2017] Prud'homme, R., 2004. Infrastructure and Development. Proceedings of Annual Bank Conference on Development Economics. 3-5 May, 2004 Washington: The World Bank. Available from: Prothom Alo, 2016a. Bharateder sharthyorokkhay federation gothon (Formation of federation to protect http://siteresources.worldbank.org/DEC/Resources/84797-1251813753820/6415739- tenant's interest). Prothom Alo, 11 January. Available from: http://www.prothom- 1251814066992/remy1-12.pdf [Accessed on 21 May, 2017]. alo.com/bangladesh/article/737071/ [Accessed on 15 September 2017] Rahman, M., 2012. Analysis of natural gas consumption by the industrial sector of Bangladesh. Journal of Prothom Alo, 2016b. Evabe cholte thakle amra koi jabo ?(How will we survive the current situation?). Prothom Chemical Engineering, 27(1). Alo, 2 August. Available from: http://www.prothom-alo.com/bangladesh/article/933346 [Accessed on 15 September 2017] Rahman, M.M., Paul, S.K. and Biswas, K., 2011. Earthquake and Dhaka city -an approach to manage the impact. J. Sci. Foundation, 9(1&2), pp. 65-75. Prothom Alo, 2016c.Chhatri kormojeebi nari thakben kothay? (Where will the female students -working women live?). Prothom Alo, 11 May. Available from: http://www.prothom-alo.com/we- Rahman, N., Ansary, M. and Islam, I., 2015. GIS based mapping of vulnerability to earthquake and fire hazard are/article/854404/ [Accessed on 15 September 2017] in Dhaka city, Bangladesh, International Journal of Disaster Risk Reduction. 13, PP.291–300. Sanel, A. 2016. Bachelorder basha pete notun bhoganti (Bachelors are facing news constraints in renting Siraj, T. M., 2016. Real estate development [Online]. Dhaka: The Daily Star. Available from: house). Prothom Alo, 28 July. Available from: http://www.prothom-alo.com/bangladesh/article/928327/ http://www.thedailystar.net/supplements/25th-anniversary-special-part-2/real-estate-development- [Accessed on 21 August 2017] 210862 [Accessed on 10 April, 2017]. The Daily Star, 2008. House rent a big burden for fixed income group. The Daily Star, 13 August. Available UN, 2017. Water [Online]. New York: United Nations. Available from: http://www.un.org/en/sections/issues- from: http://www.thedailystar.net/news-detail-50153 [Accessed on 15 September 2017] depth/water/ [Accessed on 28 August, 2017]. The Daily Star, 2013. House rent hike. The Daily Star, 20 January. Available from: UN-Habitat, 2016. Urban infrastructure and basic services, including energy [Online]. Quito, Ecuador: UN- http://www.thedailystar.net/news/house-rent-hike [Accessed on 15 September 2017] Habitat. Available from http://habitat3.org/the-conference/programme/all/urban-infrastructure-and- basic-services-including-energy-2/ [Accessed on 27 August, 2017]. UN-HABITAT, 2003. Rental housing: An essential option for the urban poor in developing countries. Nirobi: UN- HABITAT, (ISBN 92-1-131518-2). Water.org, 2017: Bangladesh's water and sanitation crisis. Dhaka: Water.org. Available from https://water.org/our-impact/bangladesh/ [Accessed on 28 August, 2017]. UN-HABITAT. 2009. The right to adequate housing. Geneva: UN-HABITAT, (ISSN 1014-5567). World Bank, 2012. What a waste: a global review of solid waste management. Washington: World Bank. Urban Development Series, March 2012 (12).

Chapter - 6 Alam, H. 2011. House rent skyrockets. The Daily Star, 20 November. Available from: http://www.thedailystar.net/news-detail-210843 [Accessed on 7 June 2017] Daily Samakal. 2015. Rajdhanir soakoti manusher nijoshha basha nei (12.5 million people of Dhaka do not have own houses). Daily Samakal, 5 October, p.na. DNCC, 2015. Rate chart [online]. Dhaka: Dhaka North City Corporation (DNCC). Available from: http://www.dncc.gov.bd/site/page/8ec34899-7496-42a8-b74e- 932c55f12efb/%E0%A6%B0%E0%A7%87%E0%A6%87%E0%A6%9F- %E0%A6%9A%E0%A6%BE%E0%A6%B0%E0%A7%8D%E0%A6%9F [Accessed on 23 September 2017] Hasnat, A. 2015. Baribharay nakal bharate (Renters are harassed due to increased rent). Prothom Alo, 6 January. Available from: http://www.prothom-alo.com/economy/article/416047/ [Accessed on 15 September 2017] MTB, 2017. Real estate market Bangladesh. Dhaka: MTB, (Volume: 08, Issue: 04).

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