Bangladesh's Economic Growth and Dhaka's Land Prices

Dhaka is the capital of Bangladesh, experiencing significant economic growth, which is reflected in the rising prices of land within the city. This blog explores the relationship between Dhaka's rapidly increasing land prices and the broader economic development of Bangladesh, analyzing key factors driving these trends and their implications for the future.

Bangladesh's Economic Growth

Economic Growth of Bangladesh

As the economic and cultural hub of Bangladesh, Dhaka plays a pivotal role in the country's overall economic health. The city's rapid urbanization and population growth have led to increased demand for land, driving prices upward. This section delves into the factors contributing to Dhaka's prominence in Bangladesh's economy.

Dhaka: The Heart of Bangladesh's Economy

Bangladesh has been experiencing steady economic growth, characterized by rising GDP, increasing foreign investment, and expanding industries. This section examines the broader economic trends in Bangladesh and their impact on Dhaka's land prices.

GDP Growth

Bangladesh's GDP has been growing at an impressive rate, driven by sectors like manufacturing, services, and agriculture. This economic expansion has led to higher expendable incomes and increased demand for real estate in Dhaka. The last six year's GDP growth of Bangladesh is given below:

Industrial and Export Growth

The growth of industries, particularly the ready-made garment sector, has boosted Bangladesh's exports. This industrial growth has required the development of new industrial zones and logistics hubs in and around Dhaka, increasing the value of land in these areas.

Foreign Direct Investment (FDI)

The influx of foreign direct investment has played a crucial role in Bangladesh's economic growth. International companies setting up operations in Dhaka have increased the demand for commercial properties, contributing to the rise in.

Industrial and Export Growth

Dhaka's Land Prices: A Comprehensive Analysis

Dhaka, the capital city of Bangladesh, has experienced a notable rise in land prices in recent years due to high demand and limited availability. As per the latest data from 2024 sourced from housing industry reports, Baridhara stands out with the highest residential land prices, followed closely by Gulshan. On the other hand, Badda features the lowest land prices per katha.

Below data are the current land prices per katha in some of Dhaka's key areas:

Note: These figures represent the average market rates for residential land as of 2000 and 2024. It can vary based on the specific location and from time to time.

Land Registration Price

The market price for land is high, and the cost of land registration is also elevated, currently exceeding the 11% set by the government. In neighboring countries, registration costs can be as low as 3%. This makes the cost of land registration in Bangladesh significantly higher, leading to a substantial expense when purchasing land.

Dhaka's Land Prices

Factors Driving Up Land Prices in Dhaka

Several specific factors are driving the rise in land prices in Dhaka. Understanding these factors provides insight into the dynamics of the city's real estate market.

  • Speculative Investments: Many investors view land in Dhaka as a lucrative investment opportunity, expecting prices to continue rising. This speculation has led to increased demand and higher prices.
  • Limited Land Supply: Dhaka's geography limits the availability of new land for development. The shortage of land with high demand has resulted in steep price increases.
  • Government Policies: Government policies aimed at promoting urban development and attracting foreign investment have also influenced land prices. Incentives for development projects and favorable regulations have made Dhaka an attractive destination for both local and international investors.
  • Urbanization and Population Growth: Dhaka's population grows by approximately 500,000+ people annually, based on data from the Bangladesh Bureau of Statistics (BBS). Meanwhile, the Rajdhani Unnayan Kartripakkha (Rajuk) approves designs for around 2,500+ new buildings each year. According to the National Population Research and Training Institute, this megacity, with its 320,000 holdings, accommodates roughly 12 million residents. Only 20% of the population live in their own homes, while the remaining 80% live in rental properties.
Urbanization and Population Growth

Implications for the Future

The rising land prices in Dhaka have significant implications for the city's future and the overall economic growth of Bangladesh. This section explores potential outcomes and challenges.

  • Affordable Housing Challenges: As land prices continue to rise, affordable housing becomes a critical issue. The government and private sector must collaborate to develop solutions that ensure housing remains accessible to all income levels.
  • Urban Planning and Sustainability: Effective urban planning is essential to manage the growth of Dhaka sustainably. Policymakers must focus on creating a balanced development strategy that accommodates the city's expanding population while preserving green spaces and minimizing environmental impact.
  • Economic Opportunities: While high land prices present challenges, they also reflect the economic opportunities in Dhaka. Continued investment in infrastructure and industry can drive further growth, creating jobs and improving the quality of life for residents.
Last Words

Dhaka's rising land prices are a testament to the city's economic vitality and the overall growth of Bangladesh. By understanding the factors driving these trends and knowing the related challenges, business experts suggest investing in Dhaka’s land if possible as it is the most demanding area in Bangladesh.

Swadesh Properties Limited offers a great opportunity for those who want to buy land in Dhaka as a profitable secure investment for the future. In our land projects Shornali Abashon and Sunvalley Abashon, we offer a variety of plot/land options in sizes from 3 to 10 Katha for residential & commercial use.

Common Questions

Why are land prices in Dhaka increasing so rapidly?

Land prices in Dhaka are rising due to high demand driven by rapid population growth, urban development, and limited land supply. Significant investments in infrastructure and speculative real estate investments also contribute to the price surge.

How does Bangladesh's economic growth impact land prices in Dhaka?

Bangladesh's economic growth boosts disposable incomes and attracts foreign investments, increasing demand for residential and commercial properties in Dhaka. This economic prosperity directly drives up land prices in the city.

What factors should investors consider when buying land in Dhaka?

Investors should consider the location's future development prospects, current infrastructure, regulatory environment, and overall market demand. Understanding these factors helps in making informed investment decisions.

How does the housing market in Dhaka accommodate the growing population?

Dhaka's housing market struggles to keep pace with population growth, leading to high rental rates. With only 20% of the population owning homes, the majority live in rental properties, pushing demand for rental housing and further driving up land prices.

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It is among many residential real estate projects around 300-feet Purbachal Highway. It has a nice location, but yet to be developed. Therefore, we still need to see how it grows... Read More What Muhammad Mahfuzur Rahman Says

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Sun valley Baridhara Abashan is a future planed residential area, situated in madani Avenue, natunbazar, near United International University (UIU). This residential area is under construction... Read More What Ahmed Mitu Says

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