Understanding the Real Estate Market in Dhaka
Economic Importance of Dhaka
Dhaka, the capital city of Bangladesh, is more than just a metropolitan hub—it’s the beating heart of the country’s economy. With over 21 million people, the demand for housing here is exceptionally high. This densely populated megacity contributes more than 35% to the national GDP, attracting a constant influx of businesses and residents. All these factors create significant pressure on its housing market, making real estate one of the most lucrative—and expensive—sectors in the city.
Urbanization Trends and Housing Demand
Every year, tens of thousands of people migrate to Dhaka from rural areas. According to urban planning experts, Dhaka grows by an average of 300,000 people annually. This population boom accelerates housing demand, particularly in developed zones like Gulshan, Dhanmondi, and Uttara, thereby pushing up prices dramatically. Meanwhile, emerging areas like Mirpur and Purbachal are beginning to catch up, offering more affordable but steadily appreciating options.
Factors Influencing House Prices in Dhaka
Location
Location remains the most critical factor in determining house prices. Properties in central commercial hubs or diplomatic zones are naturally priced higher due to proximity to major offices, embassies, and shopping centers.
Infrastructure and Amenities
Good road networks, nearby hospitals, schools, and parks drastically impact pricing. For instance, areas connected by the Dhaka Metro Rail have seen an immediate rise in property values.
Type of Property
Whether it’s an apartment, duplex, or standalone house—prices vary. Apartments are the most common choice, while bungalows and duplexes cost significantly more, especially in premium zones.
Quality of Construction
Premium developers like Shanta Holdings or Navana Real Estate typically command higher prices due to modern architecture, imported fittings, and enhanced security systems.
Developer Reputation
Buyers trust reputable developers, which influences pricing. Projects by known names often sell at a premium due to guaranteed delivery, better facilities, and high resale value.
Price Comparison Across Key Neighborhoods
Gulshan and Banani
These diplomatic zones are among Dhaka’s most expensive. Average house prices here range from BDT 20,000 to 35,000 per sq ft, depending on exact location and building quality.
Dhanmondi and Baridhara
Known for elite schools and hospitals, these areas see rates between BDT 18,000 and 28,000 per sq ft. They combine both old and new developments.
Uttara and Bashundhara
Well-planned suburbs like Uttara range from BDT 9,000 to 16,000 per sq ft, while Bashundhara R/A remains slightly lower at BDT 8,000 to 13,000 per sq ft.
Mirpur and Mohammadpur
These zones offer affordable options ranging from BDT 5,500 to 10,000 per sq ft, catering to middle-income families and new buyers.
Purbachal and Keraniganj
These newly developing areas are priced between BDT 6,000 and 10,000 per sq ft, and are ideal for long-term investments.
Cost of Apartments vs Independent Houses
Average Apartment Price per Sq Ft
As of mid-2025, Dhaka’s city-wide average for apartments ranges between BDT 6,000 and 20,000 per sq ft, depending on location and features.
Cost Range for Duplexes or Bungalows
Standalone homes or duplexes, especially in areas like Baridhara DOHS, often exceed BDT 4–8 crore. Such properties offer more privacy but come at a much higher cost and maintenance responsibility.
Housing Price Trends Over the Years
Last 10-Year Comparison
From 2015 to 2025, the average cost of housing in Dhaka has nearly doubled, thanks to inflation, demand, and urban expansion.
Recent Price Hikes and Drops
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2020–2021: Stagnation due to the pandemic
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2022–2023: Moderate rise (~8–12%)
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2024–2025: Surge in demand due to metro connectivity and inflation, causing a rise of 15–20% in key zones
Investment Potential of Dhaka Real Estate
Rental Yields and ROI
In high-demand zones like Gulshan or Dhanmondi, monthly rents can fetch 2–3% annual rental yields, which is healthy for a mature market. Long-term gains are more appealing, with 20–30% appreciation over 5 years not uncommon.
Long-Term Appreciation
With planned infrastructure like Purbachal Expressway, DIA Megacity, and metro connectivity, newer areas offer huge upside potential for investors.
New Developments and Smart City Projects
Purbachal New Town
Planned to be South Asia’s largest smart city, Purbachal offers promising future returns. Although still under development, prices are catching up quickly.
Elevated Expressways and Metro Rail
These projects drastically reduce commute time and raise the value of nearby real estate. For example, property prices near Metro Line 6 have risen by 15–20% post-inauguration.
Government Policies Impacting House Prices
REHAB Guidelines
The Real Estate and Housing Association of Bangladesh (REHAB) enforces quality and regulatory frameworks, ensuring better buyer protection.
Taxation and Registration Costs
House registration costs range from 7% to 12%, including VAT, deed tax, and registration charges, significantly affecting total cost.
Hidden Costs When Buying a House in Dhaka
Registration Fees
Typically BDT 400–600 per sq ft, depending on the zone and project classification.
Legal and Brokerage Charges
Lawyers may charge BDT 25,000–100,000, while brokers can take up to 1% commission.
Utility and Maintenance Costs
Connection fees for WASA, DESCO, or TITAS and monthly maintenance in high-rises can add BDT 3,000–10,000/month.
How to Finance a Home in Dhaka
Home Loan Options
Top banks like BRAC, DBBL, and City Bank offer loans with interest rates from 8% to 11%, with repayment periods up to 20 years.
Down Payment & EMI Structures
Standard down payments are 30% of the value. For a BDT 1 crore flat, that’s BDT 30 lakh upfront, with monthly EMI of BDT 70,000–90,000.
Real Estate Market Outlook for 2025 and Beyond
Predictions from Industry Experts
Experts predict a steady 7–10% annual price growth, especially in suburban zones due to improved infrastructure.
Growth of Suburban Markets
Zones like Keraniganj, Turag, and Eastern Dhaka are rapidly rising as new hotspots for affordable, planned housing.
Pros and Cons of Buying a Home in Dhaka
Security and Value
Dhaka properties offer a secure investment and asset value that resists inflation and currency fluctuation.
Traffic and Overpopulation Challenges
Cons include congestion, poor planning in older areas, and overburdened utilities in parts of the city.
Tips for First-Time Homebuyers in Dhaka
Research and Site Visits
Never buy based on brochures. Visit at different times, inspect the area, and ask neighbors about noise and safety.
Budget Planning and Negotiation
Always add 10–15% to your budget for hidden costs. Negotiate with developers, especially in a buyer’s market.
Comparison with Other Major Cities in Bangladesh
Dhaka vs Chattogram
Chattogram is cheaper by 20–30%, but has fewer upscale developments compared to Dhaka.
Dhaka vs Sylhet
Sylhet real estate is booming due to foreign remittance but lacks the scale and variety of Dhaka’s market.
Digital Portals to Check Property Prices
Best Real Estate Websites in Bangladesh
These platforms offer verified listings and real-time price updates.
How to Verify Authentic Listings
Cross-reference listings, ask for developer credentials, and avoid offers that seem “too good to be true.”
Conclusion: Is Now a Good Time to Buy a House in Dhaka?
Yes, despite rising prices, the Dhaka housing market offers solid long-term value. Infrastructure projects, economic growth, and limited urban space ensure that real estate will remain a robust investment. Whether you’re buying for personal use or for investment, now is a smart time to enter the market—especially in emerging zones.
