Dhaka Real Estate Market Prices: A Comprehensive Guide for Buyers and Investors

Dhaka’s real estate market is a dynamic landscape shaped by urbanization, economic growth, and evolving consumer demands. Whether you’re a first-time buyer, investor, or commercial client, understanding pricing trends, investment opportunities, and market challenges is critical. This guide provides actionable insights to help you navigate Dhaka’s property sector confidently.

Current Market Trends

Residential Property Prices

Prices vary significantly based on location and amenities:

• Prime Areas (Gulshan, Banani, Baridhara): Luxury apartments range from BDT 10,000 to BDT 25,000 per sq. ft., driven by proximity to business hubs and premium amenities.
• Suburban Areas (Uttara, Mirpur, Purbachal): More affordable options at BDT 5,000 to BDT 10,000 per sq. ft., with growth fueled by planned infrastructure projects like the metro rail.

Commercial Property Trends

Corporate offices in Motijheel and Gulshan remain in high demand, while mixed-use developments (combining residential, retail, and recreational spaces) are gaining traction.

Key Factors Influencing Prices

Urbanization and Population Growth

Dhaka’s population is projected to reach 25 million by 2030, intensifying demand for housing. The city requires 100,000+ new flats annually to meet this need.

Construction Costs

Recent spikes in materials (e.g., cement +10%, steel +34%) have increased property prices, particularly in high-rise developments.

Land Scarcity

Limited land availability in central Dhaka has shifted focus to suburban areas like Purbachal and Bashundhara, where large-scale projects are underway.

Prime Investment Locations

High-End Areas

• Gulshan & Banani: Luxury apartments and corporate offices.
• Baridhara: Diplomatic zone with exclusive residential properties.

Emerging Hotspots

• Purbachal: Planned township with modern amenities.
• Uttara: Balances affordability and connectivity.
• Bashundhara: Popular for middle-income buyers near educational hubs.

Investment Returns and Future Outlook

Rental Yields

• City Centers: ~3% annual returns.
• Suburbs: ~3.3% due to lower acquisition costs.

Market Projections

The sector is expected to grow at 7.13% annually (2024–2028), driven by infrastructure projects like the Padma Bridge and metro rail.

Navigating Challenges

• High Price-to-Income Ratio: At 14.00, homeownership remains challenging for middle-income families.
• Legal Complexities: Zoning laws, taxes, and foreign ownership regulations require expert guidance.
• Economic Volatility: Inflation and political shifts can impact market stability.

FAQs

What is the average price per sq. ft. for apartments in Dhaka?

Prices range from BDT 10,000–25,000 in prime areas and BDT 5,000–10,000 in suburbs.

Which areas are best for investment?

Gulshan, Banani, Baridhara for luxury; Purbachal, Uttara for emerging opportunities.

What rental yields can I expect?

~3% in city centers and ~3.3% in suburbs.

Why are property prices rising?

Urbanization, rising construction costs, and land scarcity are key drivers.

Dhaka’s real estate market offers diverse opportunities, from luxury apartments to affordable suburban developments. By understanding pricing trends, legal requirements, and growth projections, you can make informed decisions.

Ready to explore your options?
Contact Amar Ghor BD today to leverage our expertise in property valuation, and tailored investment strategies. Let us guide you toward your dream home or profitable venture!