Over the last couple of years, Bangladesh has seen constant growth in the economy with significant development in major sectors across various industries. From a macroeconomic point of view, it is apparent that the growth would create an impact on individuals. That is why now our annual income per capita has risen to $1751. Considering this, the overall cost of living in the country had increased by 8.44% in 2017 according to Consumer Association of Bangladesh (CAB). And one of the core reasons for this increased expense in living is due to the rising cost of renting houses.
OVERVIEW OF HOUSE RENTALS IN DHAKA
Dhaka has a highly dense population, with around 79,000 people every square kilometer. The BRAC Institute of Governance and Development (BIGD) conducted surveys to catalog how housing was distributed in the city. It found that 82% of city dwellers live in a rental apartment. Of them, most are those running a business (51%) whereas service holders hold about 40%. On an average, the cost of renting has people spend 44% of their income on house rents.
WHAT FACTORS AFFECT THE MOST?
Tthere are several factors that affect property price directly and indirectly, creating an impact on the current rental condition of the country.
INFLUX OF PEOPLE INTO THE CITY
People from across the country are always coming into the city; the promise of a better life can keep no man away. But in influx of people has, and still does, put a strain on available housing. As renting houses is often the more feasible means of living, the strain is raising prices. The UN recently published a report stating that about 40% of the Bangladesh population could be urbanized by 2020. This rapid progression is bound to put more strain on the real estate scene in the country.
GAP BETWEEN DEMAND AND SUPPLY
Dhaka’s population is nearly 9,000,000 people at the moment. That is a lot of people to house. According to a study, the city needs 120,000 houses annually but only 25,000 properties are made available every year. This huge gap in supply and demand highlights how many people per house can be expected. This lack of availability is also certainly having an impact on the pricing schemes and cost of renting houses in the city.
HOME AND WORKPLACE PROXIMITY
There are pockets of locations within Dhaka that people associate with particular aspects of city life. Popular restaurants in Banani for great food Gulshan is known to be the strongest commercial hub in Dhaka. Therefore, those with offices and apartments in Gulshan would have excellent access to their business, cutting down on commute fares and time in traffic. Traffic in Dhaka has shifted down to about 7km/h. But the cost of renting houses in commercial areas is incredibly high. The personal balance must then be found between commute pros and renting cons.
The Complications of Renting HOUSES
The freedom of renting houses anywhere adds a level of complication to the decision. There are many great areas that provide many great facilities, but do the facilities suite your needs? Your office, your school, medical facilities and restaurants? These are all things that are great to have within arm’s reach. So when we look to renting houses, we need to find a balance between all the facilities we need and how close they are. Unless there is a priority facility that we need, we find a middle ground. So even though we have an immense amount of freedom when we live in rented apartments, finding one that covers all your requirements can be a headache.
There are thousands of good reason to start renting houses for you and your family. But we wanted to give you a good look at some of the factors you should really consider before you start. Then again, this is precisely the kind of thing we help out with at bproperty.com. So if you are looking at renting houses as an option or just have any queries on the matter, contact us. Speak to us through our website, knock us on our Facebook page or walk into one of our offices.
