Dhaka Renters Face Severe Housing Shortage As Leases End

Dhaka's renters are facing a daunting reality: with leases ending and a severe shortage of available units, many are struggling to find new places to live. The city's dynamic real estate market has led to a surge in demand for rental properties, leaving tenants with limited options.

This issue matters now more than ever, as the city's population continues to grow and the supply of rental units fails to keep pace. The consequences of this shortage are far-reaching, with many renters forced to consider alternative arrangements, such as sharing apartments or seeking out units in less desirable neighborhoods. The situation is particularly challenging for low- and middle-income households, who are often priced out of the market by rising rents and limited availability.

In Dhaka, neighborhoods like Gulshan, Banani, and Dhanmondi are traditionally popular with renters, but even these areas are experiencing a shortage of available units. Organisations like the Bangladesh Housing and Building Research Institute and the Dhaka Apartment Owners Association are working to address the issue, but progress is slow. Meanwhile, initiatives like the government's Ashrayan project, which aims to provide affordable housing to low-income households, are underway in areas like Mirpur and Uttara.

Understanding the Data

According to data from the Bangladesh Bureau of Statistics, the average rent for a three-bedroom apartment in Dhaka has increased by over 15% in the past year, to around 35,000 BDT per month. Meanwhile, the vacancy rate for rental units has plummeted to just 2%, making it a landlord's market. As of June 2026, the average price per square foot for rental properties in Dhaka was around 450 BDT, up from 380 BDT just six months prior. These statistics paint a stark picture of the challenges facing renters in the city.

So what can renters do when their leases end and they're faced with a tight supply of available units? One option is to consider negotiating with their current landlord to extend their lease or lock in a rent increase. Others may need to explore alternative neighborhoods or types of housing, such as shared apartments or guesthouses. The Dhaka North City Corporation and Dhaka South City Corporation also offer resources and support for renters, including guidance on tenant rights and responsibilities. By understanding the market and exploring all available options, renters in Dhaka can navigate the challenging rental landscape and find a place to call home.