Bangladesh Housing Market 2025: Why Prices Are High & What Buyers Should Know

The housing market in Bangladesh is going through one of its most unpredictable phases in years. If you’ve been trying to buy, sell, or invest in property—especially in Dhaka or Chattogram—you’ve likely noticed: prices are climbing, sales are slowing, and rents just keep going up.

Let’s break down what’s happening and what it means for you as a buyer, renter, or investor.

Why Property Prices Are So High (Even for Small Flats)

Several factors are driving this steady rise in housing prices, particularly in Dhaka:

• Land scarcity: There’s just not enough land to build on in Dhaka, one of the world’s most densely populated cities.

• New DAP (Detailed Area Plan): Introduced in 2022, it restricts how much developers can build on a plot, reducing overall supply.

• Construction costs are up: Material prices jumped again in 2024–2025. Even if cement or rods got a bit cheaper recently, the apartments built with expensive materials are still hitting the market now.

• Inflation and economic uncertainty: With high inflation (~10%) and unstable politics after the 2024 “July Revolution,” many investors are holding back—but prices aren’t coming down.

According to REHAB, small flats in Dhaka now cost BDT 75 lakh or more, and upscale areas like Gulshan have seen 25–40% price increases in just 2 years.

The Shift to the Secondary (Resale) Market

As brand-new apartments become too expensive for many, buyers are turning to resale properties—flats in older buildings or secondary locations. Areas like Mirpur, Bashundhara, Uttara, and Mohammadpur are seeing a surge in interest.

Why? Secondary flats:

• Are cheaper per square foot

• Are often in established neighborhoods with ready infrastructure

• Offer room for negotiation

But be cautious: resale units often come with issues like unclear paperwork or outdated utilities.

What’s Happening in the Rental Market?

With buying difficult, more people are renting—pushing rents even higher.

• Nationwide house rent inflation was 5.97% YoY in late 2024.

• Almost 46% of households in Dhaka are renters—so demand remains strong.

Unfortunately, Bangladesh’s rent control laws are outdated and barely enforced, leaving tenants with little protection.

Mortgage Market: Still Out of Reach for Most

Let’s be real: home loans aren’t helping enough people.

• Loan interest rates now range from 11% to 16%, depending on the bank.

• Only 2.7% of Bangladesh’s GDP comes from housing loans.

• Most people still rely on savings or help from family.

This makes it almost impossible for middle-class families to afford a home—especially with skyrocketing prices.

New Projects Are Slowing Down

Developers are hesitant to launch new apartments due to:

• High land and construction costs

• DAP restrictions

• Political uncertainty

• Fewer buyers with ready cash

From an average of 14,000–15,000 flats sold annually in Dhaka (2017–2022), we’re now down to around 9,500 flats in FY24, with 2025 looking even weaker.

What Could Change in 2026?

Industry leaders expect some stabilization by mid-2026, but only if:

• Inflation drops

• Interest rates come down

• Political stability returns

• The DAP is revised to allow more construction

There’s also growing interest in:

• Affordable housing

• Suburban projects near Dhaka and Chattogram

• Sustainable building practices

• Resale investments (fix-and-flip)

Takeaways for Buyers & Investors

If you’re a homebuyer:

• Consider resale units with good infrastructure

• Don’t wait for prices to fall drastically—they may not

• Explore areas just outside the city core

If you’re a landlord or investor:

• Rental yields in Dhaka are still attractive (average 6.87%)

• Look at mid-income areas like Mirpur or Uttara

• Prepare for longer holding periods before selling

Bangladesh’s housing market may be tough right now, but its underlying demand remains huge. Over 6 million housing units are still needed across the country, and urbanization isn’t slowing down.

For serious buyers, smart investors, or even renters hoping to own one day—understanding the real numbers, risks, and trends is the first step.

Stay informed. Ask the hard questions. And choose wisely.