Land prices in Gulshan exceeds real estate realities in developed countries

During the era of fallen Awami League government led by ousted prime minister Sheikh Hasina, AL ministers routinely iterated that the development trajectory of Bangladesh had surpassed developed countries, referring to the high land prices existing in exclusive areas in Dhaka city.

Those statements seem not to be an exxaggration, as a recent episode in the country’s real estate market has revealed the information to be resembling the truth.

According to media reports, City Bank is buying 20-katha of land in the capital’s Gulshan Avenue costing Tk345 crore, with per katha land price slated at Tk17-Tk18 crore. The staggering amount compels the readers to compare the market price of the land with that of developed cities like New York in the United States and London in the United Kingdom, only to be astonished with the fact that land prices in certain parts of Dhaka are now mirroring prices in these cities.   

According to sources, City Bank plans to build a 28-storey headquarters on 40 kathas of land in Gulshan. The bank already owns 20 kathas and has decided that acquiring the adjacent 20 kathas—at a price few thought necessary—was the logical next step.

That decision comes with a price tag of Tk345 crore for the new land alone, translating to roughly Tk17–18 crore per katha. For context, market estimates suggest similar land generally sells for around Tk10 crore per katha—suggesting City Bank may be paying not just for land, but for ambition, aesthetics, and perhaps a premium sense of optimism.

To put that in perspective, prime commercial plots in central London or Manhattan don’t always reach such heights, yet here in Dhaka, City Bank is happily paying almost double the local market estimate of Tk10 crore per katha.

Perhaps the bank is taking inspiration from past statements by Awami League ministers, who have often boasted that Bangladesh is on the fast track to “development rivaling global cities”—because apparently, nothing says world-class progress like a single plot of land sold at a price that would make London and New York blush.

Experts involved in land transactions say such high-value purchases could negatively affect surrounding land and property owners by artificially inflating prices. They also question the rationale behind City Bank’s decision to pay such a premium.

Including the cost of both the existing and newly acquired land, as well as construction expenses, City Bank estimates the total investment for the project at around Tk1,200 crore. Of this amount, Tk855 crore has been allocated for constructing the 28-storey building.

The project has already received necessary approvals from RAJUK and Bangladesh Bank. The final decision to purchase the additional land and proceed with construction was approved at City Bank’s board meeting held last Wednesday, according to bank officials.

City Bank was established in 1983 by 12 prominent business figures and was listed on the stock exchange in 1986. The bank first began operating its headquarters from its own building in 2009, an eight-storey structure built on 20 kathas of land in Gulshan-2. Due to space constraints, the old building has been demolished to make way for a high-rise structure.

As a publicly listed company, City Bank disclosed the decision as price-sensitive information to stock market investors on Thursday. The disclosure reiterated that Tk345 crore would be spent on acquiring the additional 20 kathas of land, while the total cost of land acquisition and building construction would stand at Tk1,200 crore.

Bangladesh Bank granted approval for the land purchase and construction on 6 January. Following this, the bank’s board formally endorsed the plan.

RAJUK has approved a 28-storey building design, with five floors designated for parking and the remaining 23 floors allocated to the bank’s head office operations. With the increased land area, officials say there is now scope to further expand the building’s size and functionality.

City Bank Managing Director and CEO Masrur Arefin said banks around the world invest in aesthetically pleasing and iconic headquarters buildings, and City Bank aims to set a similar benchmark in Bangladesh’s banking sector.

Currently, City Bank’s head office operations are being conducted from a rented building in Gulshan. The relocation was temporary, pending the construction of the new headquarters.

According to bank data, City Bank currently employs more than 7,100 staff and operates 134 branches and 70 sub-branches nationwide.