For many years, Bangladesh’s economy has witnessed ongoing debate over the provision allowing undisclosed or “black” money to be legalized. With the passage of the Finance Bill 2026, the government has officially abolished this facility. At the same time, the tax-free income threshold has been increased from BDT 350,000 to BDT 400,000, a Taxpayer Identification Number (TIN) is no longer mandatory for opening a new bank account, and tax as well as VAT reductions have been introduced for the education and digital sectors.
The real estate sector is one of the most significant contributors to Bangladesh’s economy. According to the Bangladesh Bureau of Statistics (BBS), the sector contributed approximately 7.93% to the country’s Gross Domestic Product (GDP) during the 2022–23 fiscal year. According to REHAB, when related industries such as construction materials, steel, cement, ceramics, glass, electrical products, transportation, and other supporting sectors are included, the sector’s total contribution rises to approximately 12–15% of GDP.
Currently, around 894 REHAB member companies are operating across the country. Every year, these companies hand over approximately 9,000–10,000 apartments and 5,000–6,000 residential plots. The sector directly and indirectly generates employment for more than 2.5 million people.
For years, it has been widely alleged that a portion of undisclosed income was invested in the real estate market through the purchase of land and apartments. This often resulted in property prices rising beyond actual market demand, making home ownership increasingly difficult for middle-income families and first-time buyers.
Potential Impact
In the short term, the market for high-value land and luxury apartments may experience some slowdown. Investors who previously relied on undisclosed funds may become more cautious in making new investments. As a result, sales of certain projects could decline, while cash-based transactions in the market may also decrease.
In the long run, however, the government’s decision has the potential to make the real estate sector more transparent, accountable, and institutionally driven. As investment increasingly comes from legitimate sources of income, the importance of bank financing, home loans, and institutional funding is expected to grow. Genuine homebuyers may also benefit from reduced artificial price inflation.
Real estate companies will now need to adapt to this new reality. Instead of depending heavily on cash-based sales, developers should place greater emphasis on bank financing, flexible installment facilities, affordable housing projects for middle-income buyers, and transparent financial management. Such changes could help the industry become more sustainable and align with international business standards.
However, experts believe that abolishing the opportunity to legalize black money alone will not bring the desired transformation. It must be accompanied by stronger measures to prevent money laundering, curb tax evasion, modernize the land registration system, strengthen digital tax administration, and ensure easier access to financing for legitimate investments. Only then will the real estate sector be able to play an even more effective role in promoting Bangladesh’s economic growth, employment generation, and sustainable housing development.
Tabassum Imam
Vice President
Real Estate Professionals Forum
