A Gulshan plot worth a global city

During the tenure of the Sheikh Hasina-led ousted Awami League government, its ministers frequently claimed that Bangladesh’s development trajectory had overtaken that of many developed nations – often citing soaring land prices in Dhaka’s elite neighbourhoods as evidence.

Those assertions no longer appear exaggerated. A recent development in the capital’s real estate market suggests that land prices in prime areas of Dhaka are now rivaling, and in some cases surpassing, those in major global cities such as London and New York.

According to media reports, City Bank is purchasing 20 kathas of land on Gulshan Avenue for Tk345 crore, putting the price at an astonishing Tk17.25 crore per katha. The transaction has drawn widespread attention, compelling comparisons with prime commercial land prices in developed cities, like the two global cities.

Sources say City Bank plans to construct a 28-storey headquarters building on a total of 40 kathas of land in Gulshan. The bank already owns 20 kathas and has decided to expand by purchasing the neighbouring land despite the unusually high price.

Market insiders note that land in Gulshan typically sells for around Tk10 crore per katha, indicating that City Bank is paying a significant premium. Observers suggest the bank may be investing not only in land, but also in strategic positioning, architectural ambition, and long-term prestige.

To put that in perspective, prime commercial plots in central London or Manhattan do not 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 often boasted that Bangladesh is on the fast track to "development rivaling global cities".

Some experts involved in land transactions caution that such high-value purchases could artificially inflate surrounding land prices, potentially destabilising the local property market. They have also questioned the commercial rationale behind paying nearly double the prevailing market rate.

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

The project has received approvals from both Rajdhani Unnayan Kartripakkha and Bangladesh Bank. The bank’s board formally approved the land purchase and construction plan at a meeting held on Wednesday last, officials said. 

Founded in 1983 by 12 leading business figures, City Bank was listed on the stock exchange in 1986. The bank 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 since been demolished to make way for the new 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 to the land purchase and construction on 6 January. Following this, the bank’s board formally endorsed the plan.

RAJUK 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.