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Dhaka Rental Index Climbs: Investors Target Prime Properties for Higher Yields
Figures on index changes, average rents and location differences point to returns available from furnished units in prime spots.
How we reported this
The rental index in Dhaka grew by 6.2% year-on-year in Q4 2024, accompanied by a 0.54% quarter-on-quarter rise, according to data referenced in multiple market analyses. This growth occurred alongside average monthly rents of USD 173 for one-bedroom units, USD 189 for two-bedroom units, USD 247 for three-bedroom units and USD 515 or more for four-bedroom and larger units.
Rental Index and Demand Drivers
Approximately 68 to 80% of Dhaka residents live in rented accommodations, which sustains demand even as inflation remains elevated and rent controls stay limited. The combination keeps pressure on leasing prices and creates a steady environment for investors tracking yields. Reports from sources including the Financial Express and BD Reports note that these structural factors have supported consistent rental activity across the city.
Location-Based Rent Changes
Rent increases have differed by area, with Banani recording a 28% rise and Gulshan a 26% rise in the periods covered by available records. Uttara saw a 24% increase in the first half of 2023. These variations illustrate how returns can depend on specific neighbourhoods where demand stays strong, as detailed in analyses from the Association of Chartered Accountants of Pakistan and related market reviews.
Average Rents and Yield Figures
The listed monthly rent levels provide a baseline for calculating potential income. Studio apartments in furnished and serviced formats have shown the capacity to deliver up to 8% annual rental yields in prime locations, according to investment discussions hosted on video platforms and cross-referenced in property guides. This yield range emerges where furnished options command higher rents relative to purchase costs.
Investors evaluating entry points can review the documented index growth alongside neighbourhood differences and furnished-unit yields when assessing options. Market participants often compare these elements against broader economic conditions to determine timing for acquisitions or portfolio adjustments, drawing from the same set of rental statistics and location data.
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.