The Real Estate market in Bangladesh is considered as stable and has been through steady growth as incomes rise. Economic and political stability, more extensive construction projects and falling interest rates have contributed to the industry’s mounting growth rates.
The industry’s estimated size in the next five years will shoot up to 25% more than in 2020. According to a Bangladesh Bureau of Statistics survey, its direct contribution to the GDP was 7.8% or 1.415 trillion as of 2019.
As middle-income earners show their interest in purchasing properties, the market must ensure that appropriate properties are being developed within every financing option. With the great potentiality of globalization and increasingly congested urban areas, the government is also taking initiatives to sustain its growth.
Let’s have a glimpse into our country’s property market in 2020 from the largest marketplace in Bangladesh, which will help you grow a birds-eye view of this emerging market.
Top Locations for Property Sale in Dhaka
Dhaka is one of the most densely populated cities in the world and home to around 25 million people. The vibe of coming into the capital city from all over the country has made this place a high demanding accommodation zone. Among all the localities in Dhaka, we have addressed some that stand as popular choices to sell your property.
Mirpur holds 12% of the entire property selling inside Dhaka. For the last few years, Mirpur has been considering a hotspot to buy plots, flats, and other commercial properties. Then there are Bashundhara, Uttara, Mohammadpur, and Rampura consecutively. Are you planning to sell or buy your Property? Consider these places to have a great deal ahead.
Top Locations for Property Sale (Outside Dhaka)
Are you thinking of selling your flat located outside of Dhaka? Well, look no further, as we are here with the statistics of the top locations of property selling outside of Dhaka.
As the statistic points out, port city Chittagong has got the most of the selling property posts with 52.5% of the entire. Then there are Rajshahi, Sylhet, Khulna, and Rangpur, according to posted ads’ ratio on best areas for property selling.
Top Locations for Property Rent in Dhaka
Dhaka is a megacity, and the city’s population is also increasing enormously, which drives most of them to find suitable accommodation. It’s also pretty challenging to find tenants based on the location of your property. However, by informing you of the top areas for property rent in Dhaka, you would get a clear perspective to step ahead.
Gulshan, the area of restaurants, embassies, and clubs are on the top of the list to rent a property based on the data. Then we can see there are Uttara, Mirpur, Mohammadpur, and Banani consecutively.
Top Locations for Property Rent (Outside Dhaka)
Except for Dhaka, people come and live in the other metro cities also around the country. So, as an owner, you don’t have to think much about renting your property now. By placing ads on Bikroy.com, it can go through ease.
According to the statistics, with an 80.1% ratio, Chattogram offers the most rent-ready properties after Dhaka. The other cities are consecutively Sylhet, Khulna, Rajshahi, and Barisal to rent your property.
Available Property for Rent by Price Range
Here we will go through the available property for rent based on the price group within Dhaka. The rising cost of construction has caused prices to shoot in many cases, but almost all the rentals are lying down around the range of 90k to 10k as their monthly fare.
To have a deeper look, we can see the maximum properties are offering rent within the 10k to 30k price group. On the other hand, the lowest advertisement portion (8.4%) has offered within the 30 to 39k range.
Available Property for Sale by Price Range
As Dhaka grows more congested and land prices rise, these numbers will help you estimate the current market situation. Let’s look at the price group of available properties for sale based on per sq. feet in Dhaka.
About 26% of the entire ads posted offering a price range of under 10k per sq. feet in Dhaka. Again within this group, almost 28.6% of all ads posted to sell property lie between the 5-6k group.
Property Buying Trend
The implication of lockdown at the end of March signaled the dropdown of Bangladesh’s property buying trend. However, it took some time to get back on the business again in July properly.
By the time the government has introduced the budget with some initial steps and lower interest rates that help the real estate market stand up on its foot again.
New vs. Used Flats
Changes in economic options, rapid urbanization in the country, and a boost in finance have started to push the real estate market into an era of growth. As the numbers are showing in the graph, almost every deal happening in flat purchasing is new. It is indicating that buying new flats is considered as an attractive investment option.
Besides, government initiatives to boost the industry with black money flows mean the growth will be sustainable for upcoming years also.
B2B Market Share
The graph indicates that almost 55% of the entire property market trading has taken place in Bikroy. At the same time, the other market has made up the other 45%.
Top Searched Locations
We can note that, as of 2020, Mirpur was the most searched area in Bikroy, followed by Uttara, Bashundhara, Dhanmondi, Gulshan, and Mohammadpur. That follows up; people are willing to live in Mirpur or Uttara, as we mentioned, lower-income groups are gradually showing their interest in the market.
Our in-house property analysts shed some light on the real estate market in the next five years according to the current data. As the graph indicates, Keranigonj may experience the highest growth in land prices within 2025.
Prices of lands and apartments in Uttara and Mohammadpur are also expected to go up by a significant proportion in the next few days. Whereas as Purbachal: a newly developed area is also expected to become more worthy.
As the demand of the real estate market never ends, it will increase the properties and as well as the price group. Creating pressure on the developers and property owners to move at a faster pace than the pre-pandemic rate so that the demands can be fulfilled.
In Bangladesh, the real estate market is very lucrative but often unpredictable. One must have a clear understanding of current market conditions for both cases in property selling and buying.
From the outside, it’s quite difficult to fully grasp everything that goes with real estate projects and how they are fulfilling the needs of the clients. However, the data from Bikroy serves a vital purpose of the current property market in Bangladesh.
The current world situation has shown us the importance of “home”- particularly that of your “own residence”. This is why we hope all real estate developers need to step up and think sensibly for the near future.