Like other urban areas in Bangladesh, Khulna is also facing acute housing shortage. The urbanization of the City has suddenly triggered up. To mitigate the additional housing shortage of Khulna City private land developers came forward with public sector. Most of their projects is located on the South-Western fringe of Khulna City. People are fascinated to buy the plots from those developers, because of low price and to avoid the complexity of land purchasing procedure. In absence of any control mechanism these residential areas are being developed without adequate provision of the utility services in a way of unplanned manner, contradictory to the Master Plan adopted by KDA. As a result, the uneven urbanization pattern impedes the harmonic growth of the city. There should be sufficient guidelines and provision for the private real estate development in the master plan of KDA.