Bangladesh's land system in 2021 saw two notable changes: the expansion of the e-Mutation (digital title transfer) system and the streamlining of economic zone lease application procedures. While land disputes still account for over 40% of all court cases, the digitalization drive is gradually improving transparency in land registration.
Key Changes to Bangladesh's Land System in 2021
The Bangladesh government accelerated construction of a digital land management system in 2021. The e-Mutation (online title transfer) service was expanded to more regions, and the Digital Land Record project was formally launched. BEZA streamlined the one-stop lease application process within special economic zones, shortening processing times.
| Item | Pre-2020 | 2021 Change | Impact on Korean Companies |
|---|---|---|---|
| Title transfer | In-person application (DC office) | e-Mutation online expansion | Shorter processing time |
| Land records | Paper-based records | Digital DB construction underway | Easier ownership verification |
| SEZ lease application | Multi-agency multi-step process | BEZA OSS simplification | Shorter move-in preparation time |
| Cadastral survey | Manual survey-based | Drone and GIS survey introduced | Expected reduction in boundary disputes |
| Land tax payment | Cash payment primary | Mobile banking payment expanded | Simpler tax management |
| Dispute resolution | Court litigation-based | ADR (Alternative Dispute Resolution) pilot introduced | Expected shorter resolution time |
Foreign and Foreign Corporate Land Regulations
Direct land ownership by foreigners and foreign corporations in Bangladesh remains prohibited in principle. However, locally incorporated entities (which foreign companies can own 100%) may purchase and hold land. Within special economic zones (BEZA and BEPZA), foreign companies can enter into long-term lease agreements directly — making this the most practical land acquisition route for Korean firms.
4 Key Land Acquisition Strategies for Korean Companies (2021)
Land Acquisition Step-by-Step Procedure (2021 Basis)
Bangladesh's 2021 land system is steadily improving in the direction of digitalization. The expansion of e-Mutation and the introduction of GIS surveying make the land acquisition process more predictable for Korean companies. A two-track strategy — prioritizing Korea SEZ and working with specialist local law firms for general-area purchases — is the most effective approach in the 2021 environment.
The Bangladesh government's commitment to digital land administration is accelerating in partnership with governance improvement support from multilateral development banks such as the World Bank and ADB. Nationwide digital cadastral completion is targeted for 2025, and once complete, land-related disputes and administrative burdens are expected to decrease significantly. The framework for processing land-related permits through BIDA's One-Stop Service (OSS) is also being strengthened, gradually reducing the time burden on Korean companies.
Phase 1 plots at Korea SEZ (Araihazar) are largely allocated, and Phase 2 development is underway. Korean companies that are interested should register on the waitlist through official BEZA channels or the KOTRA Dhaka Trade Office — this is the most practical way to secure an occupancy opportunity. Recently, growing numbers of Korean SMEs in garment, electronics, and food sectors are actively considering SEZ entry.
For companies choosing private land leasing, monthly rents in industrial clusters on Dhaka's outskirts — such as Narayanganj and Gazipur — run $2–8 per m², roughly four to eight times cheaper than central Dhaka. These areas are cost-efficient for manufacturing factory sites and have reasonable logistics access to the main port (Chittagong).
Bangladesh's land market holds long-term asset value appreciation potential beyond simply serving as a production base location. Given that the urbanization rate is rising 2–3% annually and industrial land prices in the Dhaka-Chittagong corridor are steadily increasing, acquiring an industrial site in the name of a local entity is also worth considering from a long-term investment perspective. However, such decisions must only be made after completing full land due diligence and legal review.