Rapid industrialisation means 300x land price rise in Habiganj

Highlights

• Depending on the location, land price is now Tk5-10 lakh per decimal, which was below Tk3,200 even in early 2000s
• Development of the highway, availability of gas, electricity and labour contributed to the rapid industrialisation
• Pran-RFL first purchased a huge swath of land for expansion
• Now, there are more than 100 factories established along the Dhaka-Sylhet highway in 50km area of Habiganj

Prices of land in the northeastern district of Habiganj, particularly at its Shaistaganj and Madhabpur upazilas, have increased a massive 300 times in the past decade thanks to rapid industrialisation facilitated by the development of the Dhaka-Sylhet highway, availability of gas, electricity and labour.

Land prices started to spike sharply when local conglomerate Pran-RFL Group bought a piece of land at Olipur of Shaistaganj in 2010 to capitalise the improved road connectivity.

Later in 2014, Pran-RFL established a 220-acre industrial hub, called Habiganj Industrial Park, in the district.

The entry of Pran-RFL inspired other industrial groups to expand their footprints to the area, which ultimately led to the meteoric rise in land prices.

The land that used to be sold for below Tk3,200 a decimal or Tk1 lakh per Ker (32-decimal unit) on average a decade ago is now selling at Tk8-10 lakh per decimal, said Abu Md Zakaria, a schoolteacher who sold his land to Pran-RFL back in 2010.

"The land next to the highway was lowland. Although most of it was used for paddy cultivation, a lot of it would remain fallow. So, the price was nominal," he told The Business Standard.

But, most land in Habiganj is now precious, he said.

Apart from roadside lands, village lands are selling at Tk5-6 lakh per decimal, according to local people.

Local Union Parishad chairman Golam Kibria Chowdhury Belal, who helped Pran-RFL get land, told TBS, "The chairman of Pran-RFL Group first talked to me and expressed interest to buy land in our area. I readily managed land for them. Later Pran-RFL Group continued to buy lands here."

Entrepreneurs from different local and export-oriented businesses have so far established over 100 factories on the sides of the highway in 50km area, from Shaistaganj to Madhabpur. Square Group, Jamuna Group, Sayham Group, and Badshah Textiles are the most prominent among them. Some foreign companies are developing their facilities.

Local people said the highway-side lands are almost unavailable now for sale. Competition is going on between the owners of various industrial establishments to buy land a few kilometres away from the highway. Lands are also being sold at high prices in Nabiganj and Bahubal upazilas.

"There is not much space to buy now on the side of the highway. One can see many places are still vacant. The reality is that the spaces have been sold to different groups and await development," said Olipur-based businessman Majnu Mia.

Some places are lying vacant because they are not suitable for factories or their owners do not want to sell, he told TBS.

There are some groups who help different companies to get land in Habiganj. A member of such a group, wishing to remain unnamed, told TBS that they are now getting land at Tk5-10 lakh per decimal depending on area. "Many landowners are now reluctant to sell their properties as they believe the prices will continue to increase over the rolling of time," he added.

Anisur Rahman, a resident of Rajiura area, told TBS that some landowners are now erecting buildings to rent. The demand for such establishments is also higher now.

Meanwhile, Habiganj District Register Mizanur Rahman said although prices of land have increased meteorically, the government fails to benefit from that. "Lands are not being registered at the prices at which they are sold. Buyers take advantage of low registration prices by evading taxes," he told TBS.

"The new land law may close the opportunity to get land registered at false prices," added Mizanur Rahman.