Private Sector Investments and Associated Risk Implications for Post-Disaster Housing Development in Dhaka

Dhaka is one of the most vulnerable cities facing exacerbated disaster risks from climate change impacts. While these risks have escalated rapid population growth has made Dhaka one of the fastest growing megacities in Asia with a very high housing demand. In the absence of significant interventions from the public sector, the private sector has become responsible for 70 per cent of the city’s physical development. The political economy of development and limitations in institutional arrangements allow private sector investors an almost free hand, resulting in increased and transferred risks to the public sector and city dwellers in general. Any post-disaster reconstruction in future will be influenced by these existing dynamics. Future plans for post-disaster reconstruction of housing in Dhaka must address issues of growing demand, limitations of risk-free land for development, ownership of land and housing, and limitations of resources.