property
Dhaka Property Market Faces 120,000 Annual Unit Shortage for Buyers
Demand remains high at 120,000 units per year, but nearly 40% is unmet; tight supply and rising costs reshape the landscape for first-time buyers.
How we reported this
The Dhaka property market in 2026 presents a complex picture for new buyers: steady price growth, particularly in upper-mid-tier neighbourhoods, collides with a deepening supply shortage that is expected to worsen. Annual housing demand is estimated at roughly 120,000 units, yet almost 40% of that need remains unfulfilled, according to industry analysis [1].
This imbalance matters because the market has shifted dramatically over the past five years. Construction costs have surged by 30-40%, pushing the price of even a modest flat beyond BDT 75 lakh and forcing developers to raise prices on new projects [2]. At the same time, high borrowing costs and a wave of booking cancellations have caused flat sales to drop nearly 50% compared to previous peaks, creating a significant supply shortage [5]. For anyone looking to buy their first home in Dhaka in 2026, understanding where value is holding-and where it is shifting-is essential.
Where the Growth Is
The most active price growth in 2026 is not in the traditional premium enclaves but in the upper-mid zones. Neighbourhoods such as Uttara, Dhanmondi, and Bashundhara are experiencing annual appreciation of 10-14%, with per-square-foot rates ranging from BDT 8,000 to BDT 16,000 [4]. These areas have become the sweet spot for buyers seeking relative affordability combined with continued price upside. Meanwhile, Gulshan and Banani-long the city’s most desirable addresses-have stabilised after the sharp 25-40% price hikes witnessed in 2023-2024. Per-square-foot rates in those premium zones now sit between BDT 18,000 and BDT 28,000 [3].
What This Means for New Buyers
For a first-time buyer, the combination of high construction costs and limited new supply means that waiting is unlikely to produce cheaper options. The supply shortage, exacerbated by project cancellations and a drop in new launches, is expected to deepen in the near term [5]. Buyers who can secure financing-despite elevated borrowing costs-may find better negotiating leverage in premium zones that have stabilised, rather than chasing rising prices in the upper-mid zones. In those high-growth areas, competition is pushing prices up steadily, and acting sooner rather than later could matter [4].
The key takeaway is that Dhaka’s property market in 2026 rewards careful neighbourhood selection. The gap between premium and upper-mid zones is narrowing, and supply constraints are unlikely to ease quickly. New buyers should focus on verified developers, check construction timelines closely, and budget for cost overruns given the 30-40% rise in construction expenses over the past five years [2]. With annual demand outstripping supply, the market remains fundamentally tight-and those who enter it with a clear strategy are best placed to navigate the conditions.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.