Why You Should Invest in Real Estate in Dhaka City Rather Than Rupganj, Narayanganj, or Mawa

The real estate market in Bangladesh is rapidly evolving, with numerous areas developing around Dhaka city. However, while places like Rupganj, Narayanganj, and Mawa are gaining traction, the most lucrative and secure investment remains within Dhaka City itself. As the economic, political, and cultural hub of the country, Dhaka offers unparalleled opportunities for investors, especially those looking to benefit from fast-growing property values.

Let’s break down the key reasons why investing in land inside Dhaka City Corporation (DNCC and DSCC) is a better choice compared to investing in surrounding areas like Rupganj, Narayanganj, or Mawa, backed by statistics and market trends.

1. Significant Price Appreciation: Dhaka's Rising Property Value

One of the key factors driving real estate investments is the rate of appreciation. In Dhaka, land prices have appreciated at a remarkable pace due to limited supply and ever-growing demand. Over the past decade, the average price of land in Dhaka city has increased by 10-15% annually.

Statistics:

• Gulshan: From 2015 to 2020, land prices in Dhaka’s prime location Gulshan increased from around BDT 2 lakh per katha to BDT 6-8 lakh per katha, reflecting a 200-300% appreciation.
• Uttara: In Uttara, land prices have surged from BDT 1.5 lakh per katha in 2015 to over BDT 4-5 lakh per katha in 2023, marking a steady 150-200% rise over 8 years.
• Bashundhara R/A: In the last five years, prices have jumped by approximately 100-150%, as demand for residential plots in planned areas continues to rise.

In contrast, land prices in Rupganj, Narayanganj, and Mawa have appreciated much slower. For example, in Rupganj, land prices have increased by only around 5-7% per year, and in Mawa, the growth is even slower at 3-5% annually. These regions are still in early stages of development, and infrastructure improvements are taking much longer to materialize.

Future Projections:

Experts predict that over the next five years, land prices in Dhaka could rise by 50-70%, especially in key areas like Gulshan, Banani, and Mirpur. Due to scarcity and high demand, this rate of appreciation is expected to far exceed that of Rupganj or Mawa, where prices might grow by only 20-25% in the same period.

2. Superior Infrastructure and Services in Dhaka City

Investing in Dhaka City offers immediate access to an established and expanding infrastructure. Dhaka’s urban development is unparalleled compared to other regions in Bangladesh. From roads to public transportation, Dhaka is far ahead in providing essential services that enhance the livability and desirability of the area.

Public Infrastructure:

• Metro Rail (MRT): Dhaka is on the verge of a transformative leap with the introduction of the Metro Rail system. By 2025, the MRT is expected to carry over 500,000 passengers daily, drastically reducing commute times and raising property values around MRT stations.
• Flyovers & Road Networks: Over the past decade, Dhaka has constructed a series of flyovers (Hatirjheel, Mayor Hanif, Mirpur-Airport Road) that have improved connectivity within the city, resulting in higher land prices in surrounding areas.
• Healthcare & Education: Dhaka hosts the country's top hospitals (e.g., Square, Apollo) and educational institutions (e.g., BRAC University, North South University). Proximity to these institutions raises property value as they attract professionals and families seeking urban conveniences.

Comparative Infrastructure in Rupganj, Narayanganj, and Mawa:

While Rupganj and Mawa are developing, they lag significantly behind Dhaka in terms of infrastructure. Large-scale projects like roads and bridges in these areas are progressing slowly, and it could take another decade for them to match even a fraction of Dhaka’s infrastructural development. As a result, land appreciation in these areas is far less significant.

3. Higher Rental Yields in Dhaka

Investing in Dhaka real estate offers not only appreciation in land value but also the opportunity for consistent rental income. Dhaka has a large population of tenants, including expatriates, corporate executives, and university students, leading to a higher demand for rental properties.

Rental Yields in Dhaka:

• In prime areas like Gulshan, Banani, and Baridhara, rental yields range between 6-8% annually.
• In middle-income areas like Mirpur and Mohammadpur, rental yields are typically around 4-6% annually.

In comparison, rental demand in areas like Rupganj or Mawa is significantly lower. Due to their distance from the city center and lack of developed infrastructure, tenants often prefer renting in Dhaka, where they have access to jobs, schools, and entertainment. Rental yields in these regions are typically below 2-3% annually, which makes Dhaka a far more attractive investment option for those looking for passive income.

4. Secure Investment and Legal Framework in Dhaka

Dhaka’s real estate market is highly regulated, with well-established legal frameworks in place. Property ownership disputes are less frequent within the city due to clear zoning laws and well-documented land ownership records.

Investment Risks in Outer Regions:

In areas like Rupganj and Narayanganj, there have been several cases of legal disputes and ownership issues. The process of acquiring clear titles is often complicated, which increases the risks for investors. Moreover, some of these areas are prone to flooding, which could impact long-term property value.

5. Land Scarcity in Dhaka: Supply vs. Demand

One of the primary reasons for the steep price appreciation in Dhaka is land scarcity. The city's land supply is extremely limited, especially in prime areas within DNCC and DSCC. As Dhaka continues to grow and develop, the supply of land becomes even more restricted, making existing properties more valuable.

Comparative Availability in Rupganj and Mawa:

In contrast, Rupganj, Narayanganj, and Mawa still have vast tracts of undeveloped land. While this may seem advantageous from a cost perspective, it also means there is less immediate pressure on prices to rise. The abundant supply of land outside Dhaka limits price appreciation, making these areas a longer-term investment with more uncertain returns.

6. Urbanization and Economic Growth: Dhaka as the Economic Hub

Dhaka accounts for over 40% of the country’s GDP, and the city is projected to continue growing at a rapid pace. As the political and financial capital, Dhaka remains the center for major corporations, industries, and international businesses.

This economic concentration results in a continuous influx of new residents, which further drives demand for housing and land. With population growth exceeding 5% annually, demand for land in Dhaka is far outstripping supply, making it a more robust and immediate investment opportunity.

Conclusion: Why Dhaka Is the Smarter Investment

Investing in real estate within Dhaka city offers faster appreciation, better infrastructure, and higher rental income potential compared to surrounding areas like Rupganj, Narayanganj, or Mawa. The price of land in Dhaka is set to rise by at least 50-70% in the next five years, driven by land scarcity, ongoing infrastructure projects, and increasing demand. In contrast, the outer regions may offer slower, longer-term growth with more risks and lower returns.

If you are considering investing in real estate, the clear winner is Dhaka City. It not only offers better financial returns but also provides security and convenience, making it the most attractive option for any smart investor.