計画系 627 号

【カテゴリーⅠ】 日本建築学会計画系論文集 第73巻 第627号，947-954，2008年 5 月

J. Archit. Plann., AIJ, Vol. 73 No. 627, 947-954, May, 2008

HOUSING FOR THE MIDDLE INCOME GROUP

IN DHAKA, BANGLADESH
HOUSING FOR THE MIDDLE INCOME GROUP IN DHAKA, BANGLADESH
− With a focus on affordability and option −
� With a Focus on Affordability and Option �
バングラデシュのダッカにおける中所得層のための住宅
−取得可能性と選択肢を中心として−
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Md. KAMRUZZAMAN ＊ and Nobuyuki OGURA ＊＊
Md. KAMRUZZAMAN* and Nobuyuki OGURA**
エムディ カムルジャマン，小 倉 暢 之
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This study explores an approach to optimize housing cost and affordability of the lower-middle and middle-income households of Dhaka
(Bangladesh), a city that has experienced tremendous population growth and a lack of permanent housing since the 1970s. It reveals from the
study that all inputs of producing housing, particularly land cost, remain beyond the reach of these groups. With a high priced housing market,
a reduction of present cost can contribute sensibly to the affordability of the target groups. Possible modes of balancing cost reduction and
attainability of housing costs are featured through different standards of living space; service and quality are analyzed and discussed.

Keywords: Affordability, Dhaka, Housing Cost, Housing Mode, Middle Income Group.
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1. INTRODUCTION
Housing production, access, affordability and maintenance of existing housing stock in habitable condition still remain some of the most intractable
problems facing many cities of the world. In spite of national and international efforts aimed at developing appropriate shelter policies and strategies, no
effective remedy has been found to cure housing ills (UNCHS, 1995, 1996). Nowhere is this contradiction seen more vividly than in the cities of the
developing countries where population growth has exceeded their capacity and ability to provide basic shelter. Dhaka is one such city where the problems
of population growth vis a vis limited housing production are extremely apparent.
As a result of the housing production deficiencies; overcrowding, sharing and difficulty in finding rental accommodation as well as huge rents now
characterize the housing market in Dhaka. Thus basic shelter is denied to a vast majority of low and lower middle-income households. The cost of housing
is pricing more; and more middle and even high-income households are out of the housing market as well. This paper focuses on the root of housing
problems in the city of Dhaka. Based on the evidence adduced from the survey, the paper attempts to examine the factors behind the gap between housing
cost, affordability and their tradeoffs. Later it extends its analysis to quantify the households unable to afford existing housing cost and viable provisions to
optimize the imbalance. This study is an attempt to find an affordable means of acquiring suitable housing for the target group who comprises nearly half
of the city’s population.
The paper is described into four parts. The first part describes the objectives and methodology to show why and how the work is conducted. The second
part is a brief of the study area regarding the population growth and housing situation. The third part deals with the level of income-expenditure of the
study population and the cost of different housing components. The last part is an analysis to identify the principle factors that make housing beyond the
affordability of the target population and then design different modes of housing packages that can be compatible to their needs and will meet their ability
to pay. Finally, the conclusion recapitulates the main arguments.

2. RESEARCH FRAMEWORK
2.1 Aim of the Research
This study starts with the general premise that the lower-middle and middle-income households in Dhaka city are unable to house themselves suitably as
the existing housing cost is too high in comparison with their income. Thus the aim of the study is to search for a kind of housing development that would
be suitable and affordable for the majority of the city dwellers in Dhaka. The assessment is to bring about an improved use of resources which would
otherwise be used inefficiently, to be used effectively to improve the housing for the vast urban dwellers. The objectives of this study are:
- to examine the supply characteristics of the cost components and to explore the ways of making these available at an affordable price to the study group;
- to derive a range of economic housing costs by making realistic estimations of possible reductions, which could be realized through the analysis, in the
costs of all housing components.

＊
* Ph.Ph.
D.D.Candidate,
Candidate,Department
DepartmentofofCivil
Civil Engineering
Engineering &
& Architecture,
Architecture, University
Universityofofthe
theRyukyu's, 琉球大学理工学研究科
Ryukyu’s, M. Eng. 大学院生
��������������
** M. Eng. Department of Civil Engineering & Architecture, University of the Ryukyu’s, Ph. D.
Professor, ��������� ����
＊＊
Prof., Department of Civil Engineering & Architecture, University of the Ryukyu's, Ph. D. 琉球大学工学部 教授・学博

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2.2 Methodology
Dhaka is the hub of all economic, political, social and cultural activities of the country. Despite the availability of the maximum resources and
opportunities, the worst environmental and housing problems exist there. Therefore, the study focuses on Dhaka in order to better understand the issues of
housing problems. City dwellers in Dhaka can be categorized into high, middle and low income groups. Due to the greater economic ability of Higher
Income Group (HIG), a lot of housing options are available to them. Besides, HIG represents a minute part of the city dwellers. Housing, in the form of a
permanent shelter for the Lower Income Group (LIG), is consistently difficult to manage in a high price housing market like Dhaka. Thus the study deals
the lower-middle and Middle Income Group (MIG) who covers the highest segment of residential land (65%) in Dhaka and considered as the driving force
for the city’s overall development process.
The study is based on analysis of census documents and supplemented by a field survey conducted in October, 2006. Due to the nature of the study, it
had to greatly rely on National Census, the last of which was carried out in 2001. Field work includes assessment of major cost components in the private
apartment housing market and to estimate the cost of designed housing packages that might prevail even in a high price housing market for the target group.
Data on different design parameters are collected from published reports and journals as secondary resources.
Multi-storey apartments are becoming increasingly popular to the city dwellers in Dhaka. Subsequently, the study was intended to assess the study
groups’ affordability to obtain an apartment unit as a mode of permanent shelter. To extract the actual situation in the study area, four factors are considered
to analyze are: 1) Population size 2) Housing characteristics 3) Household income, housing expenditure and 4) Costs of supply components in housing
market. These elements produce a wide diversity in the options available in cities in Bangladesh in addressing their housing problem. All data on
household income/expenditure and cost of supply elements (the most important parts of the affordability analysis) are based on 2005. Data on later dates
were not possible to ascertain in all required fields and also lacked authenticity. In the face of an increasingly deteriorating housing situation in Dhaka,
numeric data used in the study may differ to some extent compared to the up to date situation. In urban housing events of Dhaka, studies that actually
measure the dwellers ability and relative options in apartments are atypical. Some literature explores a low cost housing approach for the LIG but none of
the studies deal with MIGs issue; especially concerning access to apartments. So, this approach is a deviation from past approaches.

3. POPULATION GROWTH AND HOUSING SITUATION IN DHAKA

3.1 Population Growth
From a humble beginning as a small colonial town, Dhaka emerged as a prominent city when it was selected to be the capital of Bangladesh in the 1970s.
With a population of only 2,068,353 in 1974, the city's population increased to 3,440,147 in 1981 and more than tripled to 6,487,459 in 1991 due primarily
to rural urban migration that was triggered by urbanized development. The result was that while overall urban population growth averaged 5.4% between
1981 and 1991, Dhaka's growth averaged 6.5%. Since 1991, Dhaka's population has been experiencing a growth rate of 4.3% compared to a national
average of 3.2% (Table. 1). According to 2001 census, the population of Dhaka mega city was 9,913,000 with an annual growth rate of 4.3% (BBS, 2005).
The city area expanded from only 85 sq. km
in 1951 to 1464 sq. km in 2001. Annexation of Table 1. Population, Growth Rate and Density in Dhaka and Urban Bangladesh
new areas contributed 44.15% of the growth Bangladesh (Urban) Dhaka
during 1981-1991, while 22.31% was Gross
Year Annual Annual
contributed by natural growth during the same Population Population Total Area Density
Growth Growth
(million) (million) (sq. km) (person /
period while the other 33.53% increase took Rate (%) Rate (%)
sq. km)
place due to migration of rural people into 1974 6.2 6.6 2.0 10.4 336 6,156
1981 13.2 10.0 3.4 8.1 509 6,759
Dhaka city (Islam, 2005). The central city area
1991 22.4 5.4 6.4 6.5 1,353 4,7951)
is commonly referred to as Dhaka City
2001 28.6 3.2 9.9 4.3 1,464 6,771
Corporation (DCC) (Fig. 1), and has an area of Source: BBS, 2001, 2005
360 sq. km only with a population size of 5.37
million in 2001 (BBS, 2005, p. 100). The estimated population of DCC is 6.7 million in 2005. Population density of Dhaka mega city was estimated to be
6,771 persons/sq. km in 2001 which increased to approximately 8,260 persons/sq. km in 2005. However, the population density in DCC area is more than
three times of the mega city area, as in 1991 it was 15,333 persons/sq. km against estimated present (2005) density of 18,611 persons/sq. km
(Kamruzzaman and Ogura, 2006). The gross population density in the mega city area is 8,260 persons/sq. km, but this figure hides the reality to a large
extent. Less than 40 percent of the mega city area has been urbanized.
3.2 Housing Situation
The housing situation in Dhaka indicates that there exists a huge demand for affordable housing. Dhaka, a city of 12.6 million people increasing at 5%
rate, has an annual requirement of 80,000 new dwellings. The growth in housing supply has always lagged behind the demand. This has resulted in

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overcrowding with high occupancy rates and high room density. The unsatisfactory housing situation is further reflected in the total and per capita
availability of floor space of the main living area. Average total floor space for an urban household is only about 30m2 and per capita floor space averaged
5.1m2 in 1991, while in the densely populated slums, a floor area per capita as small as 1.2 to 1.5m2 is a common feature (Islam, 1996).
Public sector housing production is too limited in Dhaka. So, the city dwellers need to depend on the Dhaka City Corporation (DCC)
formal and informal private sectors for their housing solution. In absence of well-established formal land and
housing markets in Dhaka, the informal sector has been playing a major role in catering the housing needs. N
Uttara
Small-scale builders and developers and (self-help) owner-builders operating in the informal private sector,
0 2 4 km
are the largest suppliers of land and shelters in Dhaka (Islam, 2004). Generally the informal providers acquire Pallabi
land and gradually construct their houses with or without official approval of plans. Only a small proportion Cantonment
of households’ have access to housing finance. The majorities of the informal providers adopt piecemeal
Mirpur Gulshan
construction technique or build the house incrementally (Hoek-Smit, 1998). They start with small finance
and develop consistently. This is the prevalent way of house building in the informal sector and thus they Tejgaon
M. pur
Sabujbag
became the largest housing provider in Dhaka. Ramna
Dhanmondi Mitojheel
Lower middle and MIGs had been out of the city’s housing market as the demand for space and its cost Lalbag
Kotwali Demra
had increased enormously during Dhaka’s recent growth. The presence of the study group around the city Sutrapur
represents the significance of squatting who only gains access to the city’s housing stock through rental 100,000 – 200,000
200,000 – 300,000
markets. Most of the houses in the formal sector are designed and constructed in the western style i.e. 300,000 – 600,000

spacious and expensive. These houses are constructed to sale to the wealthy groups and the study group Figure 1. Population Distribution in DCC
abode there on rental basis. Families of lower middle and MIG often share main living space and services in
such houses. On the other hand, informal providers develop houses of low standard because of financial lacking. This study develops housing models,
designed for the study population, with affordable individual living space and sharing of services; which exhibits a number of housing options attainable to
their means and sustainable to decent housing environment.
3.3 Tenure Type and Dwelling Structure
Most of Dhaka’s middle income households do not own their house and have to squeeze into small rented apartments, usually shared, with other families
and the landlords. A tenure type analysis done by BBS (1991), which included Dhaka mega city, its municipality and other urban areas revealed that city
dwellers are mostly housed in private rental apartments in the municipality area of Dhaka. Apartments are now very popular for city dwellers. Private
rental houses are less common in other urban area where the percentage of owned and purchased houses is much higher.

4. HOUSEHOLD INCOME, HOUSING EXPENDITURE AND COST OF SUPPLY COMPONENTS

4.1 Household Income
Data on household incomes are notoriously difficult to compile since Table 2. Income Group and their Distribution in Dhaka (DCC)
most households and individuals have several sources of income, both
Monthly Household Households
Income Group
formal and informal. National censuses do not document household Income (US dollars*) Percent No.
income. The sources of income data are therefore the various sample Marginal < 37 20 221,400
surveys conducted by agencies or individual researchers (Islam, 2005). Lower 38 – 75 15 166,050
Lower Middle 76 – 149 25 276,750
The most comprehensive and latest data on the income of Dhaka
Middle 150 – 373 20 221,400
households are available for 2005 from Islam, 2005. It has made Higher Middle 374 – 746 13 143,910
estimates of distribution of households by their incomes in Dhaka city Lower High 747 – 1,492 5 55,350
and presented in Table 2. The target households comprise nearly the Higher 1,493 + 2 22,140
middle 45% of the total population in Dhaka. They roughly correspond *US$ 1= (approx.) 69 BD Taka (2007 Value)

with the 4th to 8th deciles of the population, which was divided into 10 groups equal in population in ascending order according to income.
4.2 Housing Expenditure
It was recognized that there is a strong positive relationship between total housing expenditure and household size. Clearly, a household with less
number of members is better off than a larger household with the same total expenditure. So, households were ordered into both deciles and income sub-
groups for comparison. The expenditure on housing includes rent, expenses incurred for repairs, insurance, interest on housing loans and imputations
towards owner-occupied houses. The middle income dwellers spend 11.98% of income on housing and another 5.38% on fuel and lighting (BBS, 2005,
p.353). According to newspaper reports published in different periods, and expert opinions on this expenditure pattern, actual housing expenses for those

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living in Dhaka appear to be more than three times as great. The research survey found it to be around 45% of income. The fragmentary data available on
expenditure by various income groups, however, indicate a general tendency for housing expenditure by low income households to claim a higher than
average share.
4.3 Housing Cost
In Bangladesh like other developing countries, house construction is predominantly a self-help activity. The capital of Bangladesh faces an acute
shortage of housing. An unholy alliance of social snobbery, technological conservatism and extravagant spending culture has pushed up the cost of
construction. A house price is comprised of land cost, labor cost and material cost. Together, the last two
Land Price in Dhaka, 2005
costs can be defined as the construction cost. In this paper we will try to analyze the land and
construction cost and would discuss emerging strategies.
N
4.3.1 Land Cost
Dhaka has experienced an unprecedented increase in land value since the early seventies. The value of
0 2 4 km
land in Dhaka city, mainly in the central area, has increased at a rate much higher than the increase in
cost of living in Dhaka. The
Table. 3 Land Value in Prime Locations in Dhaka price of typical residential land
Land Price (US$/sq. m) has increased 40 times
Location
1975 2005 (approx.) during the period
High Land Gulshan 35 1,560
1975-2005. In the absence of
Price Area Dhanmondi 35 1,340
Median Land Mohammadpur 25 550 any proper land value records
Price Area Shantinagar 28 550 it is very difficult to compare
Low Land Mirpur 14 335 the land value over the past
Price Area Goran 6 270
decades. But Fig. 2 and Table 3 270 US$ / sq. m
Source: Estimates from Field Survey ( 2006)
will provide some idea 335 US$ / sq. m 780 US$ / sq. m
550 US$ / sq. m 1,340 US$ / sq. m
regarding present land value and the increase between 1975 and 2005. Residential land values in prime 670 US$ / sq. m 1,560 US$ / sq. m
locations of Dhaka range between US$ 550 and 1,560 per square meter. Such figures prove that land
prices are too high compared to other developing countries. Figure 2. Residential Land Price in Dhaka in
2005 (Source: Field Survey, 2006)
4.3.2 Cost of Construction and New Housing (Apartments)
Escalating prices of conventional materials like bricks, cement and steel have made housing unaffordable. Following construction costs per sq. m at
different levels of quality was
Table 4. Costs of Construction (US$/sq. m) Table 5. Costs of New Apartments (US$/sq. m)
estimated during the field survey.
Type of Construction Price Location Price
Figures presented in Table 4
High quality construction (multi-family) 351 High Land Price Location 979
show that the construction costs Medium quality construction (multi-family) 259 Median Land Price Location 550
for a small 28m2 house, excluding Simple construction (multi-family) 150 Low Land Price Location 376
land cost, would be in the order of US$ 4,200. Such a house would be quite
affordable at a median income level. The inclusion of the costs of 100%
Proportions of Cost Components (%)

90%
developed land makes such housing solutions inaccessible even for
80%
households well above the median income. Cost of a dwelling unit in the
70%
private developers’ apartment varies mostly due to size and location. The 60%
sale price of new residential real estate varies per neighborhood and 50%
40%
depends mostly on construction quality and land prices. Table 5 is the
30%
estimates of 2005 from the field survey and documents of private real 20%
estate company in different land price locations within Dhaka. 10%
0%
1-Storey Multi Storey 1- Storey Multi Storey 1- Storey Multi Storey
5. ANALYSIS
Low Land Median Land High Land
5.1 Existing Housing Cost and Affordability Price Area Price Area Price Area

5.1.1 Relative Weights of Cost Components Land Land Servicing Structure

Housing consists of a series of components that may be produced in Figure 3. Estimates of Weights of Various Cost Components by
various ways and with different costs and standards. The survey aimed to Location and Type of Structure

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figure out the particular higher cost components and prompts a search for ways to economize it. The results presented in Fig. 3 point up the crucial weight
of land, service and structural costs in the total costs of a dwelling and hence in its affordability, if the cost components can be lowered to the extend
postulated by a reduction of livable space, sharing of services and the quality of construction. In a single storey building (multi-family), land cost
contributes nearly 65% of total dwelling cost while with multi-storied buildings, it is reduced to 34% in a median land price location. This result is also
indicative of the housing access difficulties of the study group in high land price location. The market price of land in different locations shows a
considerable increase towards the center, and multi-storey development seems to be the best feasible alternative as affordable shelter due the savings in
land cost2). Structural cost and land servicing cost—roads, paths, street lighting, curbs, storm drains—account less effect to the total cost in multi-family
construction.
5.1.2 Percentage of Population Unable to Afford Housing Cost at Different Expenditure Rate
An increase in the monthly housing expenditure contributes to more households being able to meet the housing cost of a minimum acceptable standard.
This section attempts to compare and give an indication of each income groups minimum housing expenditure required to meet the minimum housing cost.
There is no significant change in the number of affordable population within the LIG even when their housing expenditures exceed half of their income due
to poor fiscal capacity. The HIG also show the same result in reverse magnitude since they need less than 15% of income to get decent housing. But, the
results from the study group have greater significance. As depicted from Fig. 4, an expenditure–15% of monthly income, offer only 15% from lower-
middle groups and 33% from MIG to afford a cheap dwelling unit 3). Similarly, one-fourth of monthly income for housing contributes to 24% and 55% from
lower-middle and middle-income people respectively to afford the cheapest housing cost. Most importantly, a change in housing expenditure from 15% to
50% contributes 48% from lower-middle and 100% from MIG to afford a permanent shelter. This result has a significant implication to shape policy as
well as housing design.
Lower High Higher Middle Middle Lower Middle Low
100% 100%
Expenditure 15% of Income
Expenditure 20% of Income 90% 90%
Percentage of Affordable Population

Expenditure 25% of Income

80% 80%
Population Unable to Afford, %

Expenditure 33% of Income

Expenditure 40% of Income
Expenditure 50% of Income
70% 70%
60% 60%
Population Always Served
50% 50%
40% 40%
30% 30%
Population Never Served
20% 20%
10% 10%
0%
0%
Marginal Low Lower Middle Higher Lower High
Middle Middle High 93 80 70 60 50 40 30 25
Figure 4. Percentage of Population Unable to Afford the Cheap Living Space in sq. meter
Housing Cost at Different Expenditure Rate Figure 5. Effects of Living Space on Affordability

5.1.3 Estimated Population Able to Afford Housing of Various Space Standards at Median Land Price Location
Land cost has a tendency of occupying the major portion of the total cost. This means that, it is possible to derive a wide range of combinations by
adopting different living spaces with the result of lowering of the overall housing cost. For example, formal apartments are being built over 93 sq. m in
general which is beyond the affordability of most households (Kamruzzaman & Ogura, 2007). From the results presented in Fig. 5, it is evident that nearly
35% of the lower-middle class and 72% of MIG can afford a maximum of 40 sq. m living space in a median land price location4). Thus, maximum
affordable living space for the study population ranges from 35 to a maximum of 45 sq. m in median land price location. But the same groups can afford
over 50 sq. m floor area in a low land price location5).
5.2 Space Requirement by the Target Group
The urban household demand survey (1974) revealed that 71% of households in Dhaka demanded additional habitable spaces. The average demanded by
lower-middle and middle-income households were 25 sq. m and 28 sq. m respectively. It is suggested per head, a space norm of 7.37 sq. m and 8.55 sq. m
for the members of lower-middle and middle-income families respectively. Statistics of BBS, (2005) report the average household size is 4.8 people per
residence in Dhaka city. Thus for a family of 5 member, the minimum desired size of the house should be between 37 to 44 sq. m for the study groups.
Table 6 is an example aimed at deriving a minimum dwelling size for the study groups based on the recommendations forwarded by Ahmed (1974) and
Enam (1984). The size may appear very small. But it has been seen in the study that this is an ideal size considering the affordability and scope of future
enlargement. This is also close to the minimum standard for government employees. Figure 6 represents a typical floor plan of 43 sq. m for the lower-

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middle class public employees. These public apartments are highly subsidized which the lower-middle class can easily afford. But with current market
price at a median land price location, such apartment units can only be affordable to minute part of the lower-MIG.
5.3 Housing Cost Reduction and
Affordability Table 6. Space Requirement by the Study Group
Bath Dressing (Household Size: 5 persons, Max. 3 person/room)
Dining
Kitchen 1.07 x 1.22 x Reduction of housing cost to levels
1.91 x 1.14 m 1.14 m
1.65 x attainable by the study population is 2 Bed room, 10 sq. m each 20 sq. m
2.29 m
2.29 m 1 Multi purpose room 11.15 sq. m
imperative. To access the effects of
1 kitchen 3.17 sq. m
decreases in total housing costs—leaving 1 Toilet 2.5 sq. m
aside for the moment how these decrease Sub Total 37.72 sq. m
might be realized—hypothetical cost Add 6% wall area 2.26 sq. m
reduction of 15 percent to one-half were Add 10% for circulation 3.77 sq. m
Bed room Guest room
3.05 x 3.31 m 3.05 x 4.00 m Grand total 43.75 sq. m
applied to the existing lowest cost6).
Figure 7 is also indicative of what cost reductions are required to reach the target group. About a 50
percent cost reduction, for example, would enable the market to reach the whole MIG and 62% of
Veranda
the lower-middle class in Dhaka. Such reductions have a negligible effect on the LIG or HIG groups.
0 1 2 3 4 5m 5.3.1 Design of Housing Package by Different Standards
The methods by which reductions of cost can be achieved become an important factor. First,
Figure 6. Floor Plan for Public Employees, 43m2 reduced floor areas and building standards can lower the dwelling cost for each household.
Indigenous materials and conventional building construction methods can be substituted for higher-cost materials, and a lower quality of finish can be
100% considered. Second, lower service levels—the sharing of kitchens, toilets,
0% Cost Reduction
15% Cost Reduction 90% and bathrooms for example—can have an important impact on cost.
20% Cost Reduction
25% Cost Reduction
80% Substantial savings can also result from reducing the land area devoted to
Population Unable to Afford, %

33% Cost Reduction

40% Cost Reduction
70%
each dwelling: for example, by constructing row houses that share walls
50% Cost Reduction

60%
on both sides and four to six storey walk-up apartment buildings (Grimes,

Population Always Served

1976). Alternative methods for cost reduction involve tradeoffs (a)
50%
between single-family and multi-family structure, (b) between self-help
40%
method and multi-storey formal construction, (c) between vernacular
30%
form and modern form, (d) among different land area per household, (e)
20%
Population Never Served among various livable spaces (built-up covered area) per household, (f)
10%
among different service levels, (g) among location, and finally (h) among
0%
Marginal Low Lower Middle Higher Lower High High quality of construction and finishes. Among all these variables, this study
Middle Middle

Figure 7. Required Levels of Cost Reductions to Reach the Table 7. Design of Different Housing Packages
Study Population
Floor Service Finish
Housing Packages
analyzed the effects of floor area, service and construction quality. Numerous logical Area, m2 Level Quality
combinations can be attained by considering all these trade-offs, which have to be A-1 37 I M
A-2 37 I B
High Land Price

considered to take the appropriate housing decisions. Table 7 is an exercise in what A-3 37 S M
Location

could be accomplished through the selective reduction of various costs. A total of 6 A-4 37 S B
B-1 32 I M
different housing modes (A to F), each having 4 packages, are designed in the study. B-2 32 I B
Mode A, B is designed in high; C, D in median and E, F in low land price location B-3 32 S M
B-4 32 S B
respectively with different floor area, service and quality of finish. Mode A and B are
C-1, E-1 44 I M
C, D= Median Land

designed to have a floor area of 37 and 32 sq. m. It was found in the analysis that the C-2, E-2 44 I B
E, F = Low Land

study groups could not afford a floor area of over 37 sq. m in high land price location7). C-3, E-3 44 S M
C-4, E-4 44 S B
Again mode C, E are designed with a floor area of 44 sq. m and D, F have 37 sq. m. D-1, F-1 37 I M
Mode C, D is located in median and E, F in low price locations respectively. Service D-2, F-2 37 I B
D-3, F-3 37 S M
levels and quality of all packages are shuffled internally as in Table 7. For example,
D-4, F-4 37 S B
package A-1 and A-2 have individual services but medium and basic level of finish Service: I = Individual, S = Shared8)
quality respectively. Again, A-3 and A-4 have shared service with two different quality Finishing Quality: M = Medium, B = Basic

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of finish. The actual analysis covers 24 modes ranging from A-1 to F-49).
5.3.2 Cost Reduction of Different Housing Packages
Land, services, material and labor typically comprise the direct housing cost. Standards for space, service and finish materials in an appropriate level
optimizes the project cost. A return to the use of traditional building materials and the adaptation of new techniques to traditional building methods may be
a more socially beneficial way of lowering the cost (Grimes, 1976). Reductions in the costs of different housing packages were calculated on the basis of
the present market price of an average cheap apartment unit. The effect of changes in location are examined using land price at the high, median and low
land price location and is found to be the most vital element to control the overall achievement in cost reduction. For example, at high land price location,
20% cost reduction is made possible while at low land price area a maximum of 64% reduction is achieved while the other parameters remain the same
(Fig. 8). Accordingly, reduction in floor area was the second most significant element to drop housing costs. Application of construction and finish
materials of medium and ordinary (basic) types differ to a maximum 24% of the total unit cost. For instance, using floor tiles, door-window, electric and
sanitary fittings of the medium type rises 10% to 15% of the total unit cost in comparison with a basic finish and fittings. The application of new
construction technique with vernacular type construction is more affordable to study population and further discussed by Kamruzzaman and Ogura (2007).
5.3.3 Affordability at Different Housing Packages
Total dwelling costs are compared with the monthly payments required to amortize 40% of monthly income devoted to housing for twenty five years. In
this way the housing price to income ratio stands for 6.25 and the detail of this estimation is expressed in Fig. 9, exploring the monthly income required to
attain each housing package for the study population. Considering US$ 150 as the demarcation between lower-middle and MIG, Fig. 9 explains the two
study groups’ varieties of affordable housing options that are proportional to their income level, having a threshold price of US$ 12,828 and maximum
price of US$ 33,969 respectively.
A-1
F-4 70% A-3
Mode E & F = Low Mode A & B = High 37,000
Land Price Location F-2 A-2
60% Land Price Location

Lower Middle Income Group

Middle Income Group

E-4 50% B-1 A-1

32,000
Cost of Housing Packages (US$)

40% A-3
F-3 A-4
A-2
30%
B-1
20% A-4
E-2 B-3
27,000
10%
B-3
F-1 0% C-1 B-4 C-1
E-1 B-2
E-3 C-3
22,000 D-2
D-4 B-2 D-4
F-1 C-2
F-3 C-4 D-1
E-2 D-3
D-2 C-3 17,000 E-4
F-2
E-3 B-4
F-4 Threshold Price
Mode C & D = Median
E-1 C-2 12,000
Land Price Location
Reduction Rates C-4 D-1 80 120 160 200 240 280
D-3
Monthly Income (US$)
Figure 8. Reduction in Housing Cost at Different Packages Figure 9. Affordable Housing Packages for the Study Groups

5.4 Result
The results of the study suggest that the lowest-cost new housing is not
70%
Max. Cost Reducton Rate - Left Axis
affordable for the lower-middle and middle income dwellers. But if the cost of 65% 55%
Affordability Index-Right Axis
new housing units can be reduced by 50%, an average of 80% of study 60%
Cost Reduction Rate (%)

Affordability Index (%)

55% 45%
population can afford to pay for apartment units. Under reasonable
assumptions about reduced standards and livable space, housing can be 50%
35%
45%
brought within the range of all but the target families. The preceding analysis
40%
suggest that the MIG can afford housing at median land price locations only 25%
35%
with reduction of present cost ranging from 40 percent to 50 percent and 30% 15%
Mode C and D could help them by doing so. Similarly, the lower-middle 25%

income group can find their suitable housing option in Mode E and F where 20% 5%
Mode A Mode B Mode C Mode D Mode E Mode F
maximum 64% cost can be lowered in low land price location. As in the Fig.
10, housing cost could be reduced from 20% to a maximum of 64% and the Figure 10. Cost Reductions and Affordability Index of
Different Housing Packages
affordability index increases over 5 to 43 percent which seem to be attainable

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for the study group. These model developments of the housing packages may be compared to tenement housing which typically offers affordable housing
for majority of the city dwellers.
6. CONCLUSION
Present trend of housing development in Dhaka city is not only unaffordable to the study group but also inadequate to the demand. Particularly, high
land prices exacerbate the gap between the cost of new construction and the income of the study population. Savings in land prices may be considered as
the most important tool to reduce the housing cost for the target groups. At market price, the floor area of 37 to 44 sq. m is found to be the maximum
attainable cost in median land price location by the study groups. Different settings of mode C and D might suite MIG and mode E and F can serve the
lower-middle group. Medium rise dwellings—up to about 5 stories—are a viable alternative and can make tangible impact in the housing supply. Broadly,
the central finding made in this paper is that the paths of housing access for the lower-middle and MIG in a high priced housing market and the preceding
illustrations are indicative of where and how the study population should live within the city and by now, these options are prevailing in the city as an
attainable housing cost.
The proposed housing models are deemed to be best operated under the informal private sector management who somehow overcome financial barrier,
which is regarded as one of the most difficult problem to boost the housing production in Bangladesh despite the existence of other problems including
land, deficiency in planning, infrastructure, availability of local materials and ineffective hosing policy. In absence of formal finance, the informal private
housing sector holds the role of largest housing supplier in Dhaka as they adopt piecemeal construction technique which does not need bulk finance at a
time. They build their houses incrementally in different phases and thus remain consistent in the supply end. Enabling, facilitating and channeling the
potential of the informal sector with appropriate technology, might contribute well to the successful execution of the proposed housing models as well as to
increase the housing supply efficiency.

NOTES
1) Area of Dhaka mega city in 1991 includes the extended suburb and thus the city area is more than two and half times than that the city area in 1981.
2) Weights of various cost components are calculated based on figures in Table 3 and 4. A 5-storey walk-up apartment is considered as multi-storey.
3) An average minimum apartment unit is found to have a floor area of 65 sq. m at a rate of US$ 550 per sq. m. Thus the cheapest unit cost is US$ 35,750.
4) In a median land price location, the cost of living space in apartments is US$ 550/sq.m.
5) Cost of new apartment units in a low land price location is about US$ 376 per sq. m.
6) See note 3.
7) Kitchens, washroom and bathroom are considered as shared.
8) All the floor area estimation is considered the inner dimension, i.e. net floor area.
9) Individual costs of each design packages are estimated from field data and Table 3 and 4.

REFERENCES
1) Ahmed, M.: Urban Household Demand Survey: Institute of Statistical Research and Training, University of Dhaka, Dhaka, 1974
2) BBS, Bangladesh Population Census 2001: Analytical Report, Bureau of Statistics, Dhaka, 2001
3) BBS, Statistical Pocketbook of Bangladesh 2005, Bangladesh Bureau of Statistics, Dhaka, 2005
4) Grimes, O.: Housing for the Low-income Urban Families: John Hopkins University Press, Washington DC, 1976
5) Hoek-Smit, M.: Housing Finance in Bangladesh – Improving Access to Housing Finance by Middle and Lower Income Groups, GOB/UNDP/UNCHS, 1998
6) Islam, N.: Dhaka: From City to Mega city, Dana Printers Ltd, Dhaka, 1996
7) Islam, N.: The Poor’s Access to Land and Housing in Dhaka Paper written for the World Bank Dhaka Urban Poverty Study, 2004
8) Islam, N.: Dhaka Now: Contemporary Urban Development. Bangladesh Geographic Society, Dhaka, 2005
9) Kamruzzaman M. and Ogura N.: Urbanization and Housing Crisis in Dhaka City, Paper Presented at International Conference on “Homelessness: a Global Perspective”,
University of New Castle upon Tine, 9-13 January, 2006
10) Kamruzzaman, M. and Ogura, N. : Potential of Low-rise High-density Apartment Housing in Dhaka City, Symposium of Housing III- Neighborhood are More Than Houses,
May 20-23, Ar-Riyadh Development High Commission, KSA, pp 125-134, 2007
11) UNCHS: Review of National Action to Provide Housing for all Since Habitat. Nairobi: UNCHS, 1995
12) UNCHS: An Urbanizing World: Global Reports on Human Settlement, New York: Oxford University Press, 1996

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（2007年10月 9 日原稿受理，2008年 1 月23日採用決定）

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