Around Tk 50,000 crore could become entangled in lawsuits and legal complications over the next two to three years if the government fails to regulate the unregulated share-based housing business, Real Estate and Housing Association of Bangladesh (REHAB) warned on Sunday.
REHAB president Ali Afzal made the warning at a press conference at the CIRDAP Auditorium in the capital, saying around 40,000 citizens have already been affected by this business model.
REHAB said various individuals and organisations are running share-based housing businesses without ensuring transparency in land ownership, project approval, construction capacity and the use of collected funds, exposing buyers to fraud, financial losses and legal risks.
Citing a recently published investigative report, REHAB said 9,823 cases over fraud allegations in land share-based housing projects are pending in courts as of September 30, 2026.
The cases involve around 40,000 buyers and nearly Tk 12,000 crore, it said.
The REHAB president said under this model, a portion or share of land is sold with a promise to build and hand over a flat of a specific size in the future.
In many cases, however, buyers are not given clear information about actual land ownership, approved design, legal right to construct, use of funds and the exact location of the flat.
As a result, even after investing money, buyers have no assurance of getting the flat on time, receiving lawful ownership or getting refunds, he added.
The association said buying a land share does not guarantee legal ownership of a specific flat.
There are also allegations that shares of the same land or building are sold to multiple people.
In many cases, funds are collected without securing required project approvals, approved designs and the legal right to build, it said.
The lack of skilled engineers, architects and professional supervision is also putting structural safety and construction quality at risk, it added.
Afzal also said accounts of land prices, share sales, fund collection and construction costs in such projects are often not transparent, raising questions over whether income tax, value-added tax (VAT), registration fees and other government revenues are being properly collected.
Meanwhile, law-abiding housing firms have to meet various obligations, including land purchase, project approvals, construction quality, safety, tax and VAT.
He claimed that these legitimate companies are facing unfair competition from those collecting money by promising cheaper flats without following the rules.
Afzal said that if 100 buildings under-construction under this model were inspected, almost every one would be found to have some kind of irregularity or violation. There are also allegations of discrepancies between approved designs and actual construction, and of violations of conditions related to approved use and construction of buildings.
The association noted that disputes among land co-owners in share-based ownership can leave construction, flat allocation, possession, deed registration and building maintenance uncertain.
Complications may also arise in future sales of land or flats, mortgaging with banks and distribution of property among heirs. Such disputes could lead to prolonged litigation, financial crises, family conflicts and social unrest, it said.
At the press conference, REHAB placed a six-point set of demands to the government.
It urged the government to stop the unregulated business model of selling land shares with promises of specific flats, or bring it under strict regulation, and to bar fund collection without verifying land ownership, registration, liabilities, approved design and legal right to construct.
It also called for independent technical and legal audits of existing share-based projects, and for investigation into allegations of multiple sales of the same land, forged deeds, fake approvals, embezzlement and fraud, with action against those responsible.
The association further demanded transparent and auditable accounts of land purchase, fund collection, construction costs and progress for every project, and the recruitment of qualified architects, engineers and professionals to supervise quality and safety at every stage of construction.
He urged that new sales and fund collection be suspended until legal review is completed for projects lacking assured ownership, construction liability, investment security and final handover.
REHAB said the housing sector is a major source of economic activity, investment, employment and revenue in Bangladesh, with more than 300 backward and forward linkage industries. The entire construction sector accounts for around 15-16 percent of the country's GDP and provides employment to nearly 5 million people.
The association said the problem of unregulated share-based housing is not merely a concern for a business body but a matter of national interest, as it involves people's lifelong savings, housing security, government revenue and the country's investment climate.
Failure to act in time could leave the state to bear the financial, social and legal costs, it warned.