A Guide to Dhaka’s Real Estate Hotspots and Their Property Values

Gulshan, Baridhara, and Banani have experienced substantial increases in both residential and commercial real estate prices over the past decade. This surge is driven by factors such as land scarcity, exclusivity, high-quality amenities, and enhanced security.

"Areas like Gulshan, Baridhara, and Banani are highly sought after due to their desirable civic amenities, which has significantly boosted demand and, consequently, prices. Over the last ten years, property values in these locations have risen by 40 to 50 percent compared to other areas," said Md Wahiduzzaman, President of REHAB.

He noted that in 2000, Gulshan had the highest average price for flats at BDT 2,450 per square foot, with Banani and Baridhara at BDT 2,200 and BDT 2,150 per square foot, respectively. "The price increases in these areas have been exceptionally rapid over the last decade," he added.

Currently, flats in Gulshan are being sold for BDT 18,000 to BDT 36,000 per square foot. In Banani, prices range from BDT 15,000 to BDT 19,000 per square foot, while in Baridhara, the range is BDT 22,000 to BDT 30,000 per square foot.

"The surge in real estate prices is closely linked to the high cost of land due to its scarcity. For instance, real estate companies pay up to six times more for land in Gulshan compared to other affluent areas like Bashundhara," explained an industry insider.

Moreover, within these exclusive zones, certain areas command higher prices. "Flats in North Gulshan are priced higher than those in South Gulshan. Baridhara's Diplomatic Zone, known for its secure environment, well-maintained surroundings, and proximity to embassies and international organisations, is particularly expensive," the insider added.

Khan Tanjeel Ahmed, General Manager of Business Intelligence at Bproperty, also highlighted that "Baridhara DOHS  is highly desirable due to its gated community, excellent security, peaceful environment, and high-quality residential options, making it especially appealing to families. In Banani, demand for apartments on Road 11 and 12 is particularly high among expatriates."

In addition to location, property prices are influenced by various factors such as the availability of large plots, the quality of raw materials, regulatory compliance, and agreements between landowners and real estate companies.

Aysha Siddiqa, Executive Director of BTI, emphasised that developers are compelled to raise prices due to the demand for premium amenities in these areas. The cost of development is significantly higher when larger plots are needed to accommodate these amenities. "The shortage of large plots suitable for modern buildings is a major factor driving up prices. An ideal plot size is one bigha, which allows for amenities like a gym, swimming pool, rooftop recreation space, garden, walking paths, and play zones. Plots smaller than ten katha cannot feasibly support such facilities," explained Aysha.

Given the scarcity of land in Dhaka, especially in these sought-after areas, developers sometimes have to make compromises. "We often create duplex apartments on smaller plots, incorporating exclusive features to meet the high expectations of potential buyers," Aysha noted.

Khan Tanjeel Ahmed of Bproperty highlighted that preferred apartment sizes vary across Gulshan, Banani, and Baridhara. "In Banani, the most popular sizes are between 1,500 and 2,000 square feet, which accounts for 72% of the demand, and between 2,000 and 2,500 square feet, representing 45% of the demand. Gulshan favours larger apartments, with 2,000 to 3,000 square feet making up 47.5% of the demand. In Baridhara, the preference shifts to even larger spaces, with 3,000 to 3,500 square feet accounting for 23% of the demand. However, in Baridhara DOHS, there is a significant demand for smaller apartments of 1,300 to 1,400 square feet, which represents 67% of the demand," he added.

Several leading names in Bangladeshi real estate are actively developing projects in these areas. BTI's Magnifico in North Gulshan features high-end amenities and smart home technology. Navana's Khodeja Pinewood in Baridhara is another notable project. Additionally, Bay's Chayaneer in Baridhara offers exclusive single apartments per floor, accessed via private lobbies for enhanced security and privacy. Desired features in these luxury apartments include landscaped gardens with walkways, infinity pools, fully equipped gyms, home automation, imported fittings, and advanced security services.

Major General Md Siddiqur Rahman Sarker (Retd.), Chairman of Rajdhani Unnayan Kartripakkha (RAJUK), discussed the Detailed Area Plan (DAP) and the concept of Floor Area Ratio (FAR), which varies based on factors such as the proximity of roads to plots and the population density of specific areas. "For example, the FAR for Gulshan-Baridhara is 5.8, while for Gulshan-Banani, it is 5.7. Baridhara has the highest FAR because its population density is the lowest," he explained.

Ayesha of BTI pointed out the discrepancy between builders who follow RAJUK regulations and those who do not. Non-compliant builders can offer lower prices and still make a profit, but they fail to meet regulatory standards," she said.

She further noted that companies might hand over apartments without providing the necessary occupancy certificates due to compliance issues. Without an occupancy certificate, a flat cannot be registered in the owner's name as required by regulations.

Shihab Ahmed, Senior General Manager and Head of Sales and Customer Service at Shanta Holdings Limited, emphasised that obtaining an Occupancy Certificate (OC) is mandatory to ensure a building complies with local laws, BNBC Codes, and safety standards. Issued by RAJUK, this certificate is valid for five years and must be renewed before expiry. "At Shanta Holdings, adhering to these regulations is a standard part of our development process, ensuring every project meets all legal requirements," he said.

While an OC is crucial for legal occupancy and property registration or transfer, it does not directly affect property prices. Factors such as location, amenities, design, and market demand are more important in determining property value. Shihab also highlighted that premium quality fittings and setups, often included as part of the property package, significantly impact the price of a flat.

Shihab Ahmed noted, "All Shanta apartments are finished with premium fittings, including internationally branded sanitary ware, high-quality flooring, and modern kitchen finishes. These features not only enhance the aesthetic appeal but also improve functionality. If clients wish to customise their property, they can do so with bespoke pricing. Ultimately, such customisations can lead to fluctuations in the flat's price."

Md Wahiduzzaman of REHAB believes that shifting negotiation patterns between property owners and real estate companies have also contributed to rising property prices. "Previously, the ratio was predominantly 60/40, but over the past decade, it has shifted to 50/50," he explained.

Additionally, developers in these areas emphasise the importance of completing projects on time. They believe that timely completion and delivery are essential for maintaining buyer trust and ensuring client satisfaction.