As Dhaka's skyline rises, its agricultural lands and waterbodies are sinking under relentless urban sprawl. The capital, already one of the most densely populated in the world, is expanding in ways that threaten its own ecological and food security. To address this, the concept of Transfer of Development Rights (TDR) presents a powerful opportunity. It can help balance development and conservation, ensuring that growth does not come at the cost of Dhaka's natural assets.

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Is urbanisation in Bangladesh doomed?

Dhaka, one of the world's fastest-growing megacities, is facing an unprecedented crisis. Its rapid and often unplanned urbanisation has led to a stark decline in natural and agricultural landscapes. The Bangladesh Institute of Planners (BIP) found that Dhaka lost nearly 50 percent of its waterbodies between 1980 and 2020. Besides, according to a newspaper article, 60 percent of wetlands in Dhaka city have been lost in the last 30 years of which 23 percent were lost between 2010 and 2019. Simultaneously, agricultural land around the city has shrunk by 11,070.8 ha during the years 1978–2018, impacting not only local food production but also the broader ecological balance.

The consequences of such environmental degradation are dire. The World Bank estimated that the majority of Dhaka's residents face waterlogging each monsoon, leading to annual economic losses worth Tk 1,39,000 crores. Wetlands, which historically mitigated flooding by absorbing excess rainwater, are increasingly being filled for construction, further exacerbating urban flooding.

Another reason behind this crisis is decreasing flood flow zones. Flood-flow zones, crucial for maintaining Dhaka's ecological balance, are rapidly vanishing, leaving the city increasingly vulnerable to waterlogging, loss of groundwater recharge, and potential flooding. A study by the Center for Environmental and Geographic Information Services (CEGIS) revealed the illegal filling up of Dhaka's wetlands in the last decade, contributing to a severe rise in surface runoff and drainage issues. Meanwhile, BIP found that 36 percent of the water bodies in Dhaka have been lost to earth filling. And if this trend continues, all of Dhaka's temporary wetlands will disappear by 2035, which is alarming. Without strategic intervention, these trends could lead to an even more severe urban and environmental crisis.

Transfer of Development Rights (TDR) is a market-driven urban planning tool that helps preserve critical areas while accommodating growth where it is needed. It works by designating "sending areas" (agricultural or ecologically sensitive zones) and "receiving areas" (zones earmarked for higher-density development). Landowners in the sending areas are compensated by selling their development rights to developers who can then build more intensively in the receiving areas. This is a business-based approach and creates a win-win scenario where conservation is economically incentivised.

International practices and experiences demonstrate TDR's potential to succeed in preserving agricultural or ecologically sensitive areas. In Mumbai, for instance, TDR facilitated the redevelopment of slums while conserving green spaces. The programme generated a huge amount of transferable development rights, promoting both affordable housing and environmental conservation. The United States has over 283 TDR programmes, among which the majority is aimed at conserving farmland, forests, and water resources. China's Chongqing Land Quotas Trading programme has successfully balanced urban growth with farmland preservation. In the aforementioned cases, clear policies, strong market demand, and government oversight were the key. 

To implement an effective TDR programme, Dhaka must first identify sending and receiving areas. The learnings from the global practices could act as a framework for implementation. However, Dhaka's situation demands a tailored approach, adapting the existing models to local realities. For instance, unlike New York, Dhaka's informal settlements and complex land ownership patterns would require careful stakeholder engagement and targeted incentives. For Dhaka, TDR could prioritise areas like the Turag River Basin as "sending areas" while promoting higher-density development along major transportation corridors. This would not only conserve wetlands but also support the government's transit-oriented development goals. A successful TDR programme in Dhaka would require robust governance. Clear land titles, transparent valuation of development rights, and a regulatory framework to prevent misuse are critical. The government should initiate a pilot programme in collaboration with urban planners, real estate developers, and civil society organisations. Moreover, public awareness campaigns could help build support for TDR among landowners and the general public.

The Detailed Area Plan 2022-2035 for Dhaka Metropolitan Region (DMR) has mentioned that TDR will be mainly applicable in preserving agricultural land, floodplain or sensitive areas in the DMR area. However, implementing TDR in Dhaka will not be without challenges. Corruption, bureaucratic inefficiency, and potential market resistance could undermine its effectiveness. Therefore, building institutional capacity and ensuring transparency should be top priorities. Learning from the shortcomings of other TDR programmes globally, Dhaka must develop clear criteria for designating sending and receiving areas and avoid speculative land transactions that could sideline conservation goals.

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Why a national urban policy should be our top priority

The benefits of implementing TDR go beyond environmental preservation. A well-designed TDR programme could stimulate the economy by promoting well-planned urban densification and reducing the economic losses associated with waterlogging and heat stress. According to research by the International Centre for Climate Change and Development (ICCCAD), Dhaka's adaptation to climate risks could boost its Gross Domestic Product (GDP) through improved infrastructure and resilience. ICCCAD estimated that the average annual loss due to climate change impacts in Bangladesh is one to two percent of GDP. Additionally, preserving agricultural land would contribute to food security. With Bangladesh already facing challenges in food imports due to global supply chain disruptions, maintaining local production capacity is critical. By protecting peri-urban agricultural zones, TDR can help stabilise food prices and reduce dependency on external markets as well.

The introduction of TDR into Dhaka's urban planning strategy could redefine how the city grows, offering a balanced path that values both development and conservation. As policymakers consider the future of Dhaka, they must prioritise innovative tools to build a city that is not only livable but also resilient.

Sabila Binta Saif Sondhi is an urban planner and research associate at Bangladesh Institute of Governance and Management (BIGM). She can be reached at [email protected].

Views expressed in this article are the author's own.

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