House Rent Situation in Dhaka: An Overview

Dhaka’s housing rental market has become increasingly difficult and complex in recent years. Below is a summary of the current situation, based on recent data and reports.

1. Sharp Increase in House Rent

Over the last five years, house rent in Dhaka has increased by about 29%.
(Source: The Financial Express)
In some high-demand areas, rents rose by as much as 24% in a single year (2023). For example, in Uttara, rent per square foot went from 20 BDT to 26 BDT.
(Source: The Financial Express)
During the October–December quarter of FY2023–24, average rents in Bangladesh increased by about 5.89%.
(Source: The Daily Star)

2. Rising Burden on Middle-Class Tenants

For many middle-income families, rent has become a major financial burden. Studies show that the rent-to-income ratio often exceeds 30%, leaving little room for other essentials.
(Source: IJFMR)
As a result, families are forced to cut back on food, education, and healthcare expenses to cope with high rent.
(Source: BanglaJOL)

3. Weak Rent Control and Enforcement

Although the House Rent Control Act (1991) was designed to regulate rent increases, it is rarely enforced in practice.
(Source: UNB)
Many landlords increase rent without notice or written agreements, leading to legal uncertainty for tenants.
(Source: RSIS International)

4. Key Reasons Behind Rising Rent

Rapid urbanization and migration from rural areas have sharply increased demand for housing.
(Source: Dhaka Courier)
High land and construction costs, along with housing being treated as an investment asset rather than a social need, have inflated prices.
(Source: UNB)
Development of infrastructure and transport (like the metro rail) in certain zones has further raised rent in those areas.
(Source: The Financial Express)

5. Areas with High and Low Rent

High-rent zones: Gulshan, Banani, Baridhara — premium areas with strong amenities.
(Source: Reddit)
Moderate-rent zones: Mirpur, Mohammadpur, Banasree — still affordable, but rising quickly.
(Source: Reddit)

6. Tips for Tenants

When looking for or negotiating rent in Dhaka, consider the following:

Keep rent within 30–40% of your income to maintain a balanced budget.
Always have a written rental agreement specifying duration, maintenance terms, and rent revision clauses.
Consider transport and location convenience — slightly higher rent may save daily commuting costs.
Explore less popular neighborhoods for better value and quality of life.
Evaluate safety and maintenance — a cheaper house with poor services may lead to higher long-term costs.

Conclusion

The housing rental situation in Dhaka has become particularly challenging for middle and lower-middle-income groups. Demand far outpaces supply, and regulatory enforcement remains weak. However, with informed decisions, area flexibility, and proper budgeting, it’s still possible to find a livable and affordable home in the city.