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Property price is perhaps the most important determinant for your real estate investment decision. If the price is not within the budget, you probably would not purchase it even it meets the requirements. However, an important question remains, how would you know the proper value of the property? Sadly, as of now, there is no particular parameter for property pricing in Bangladesh, and we rely on several different factors to determine the price of a property such as an apartment or flat. These may vary based on location, property type, or even sometimes the seller. Although there are many factors affecting property prices, we have listed down some of the major factors that have a direct impact on property prices. So that you can make a better decision before buying property next time.

Supply And Demand

Price of apartments adjusts to market supply and demand
Bangladesh is still growing and the demand for accommodation is increasing day by day, making properties more expensive

One of the basic yet compelling factors affecting property prices is the dynamics between supply and demand. As the demand increases, the price of a property adjusts automatically to bring stability to the market. This supply and demand harmony for accommodation is very visible in Bangladesh, especially in Dhaka. Since most of the developments of the country are concentrated around the capital, people are more inclined to seek accommodations in Dhaka to find better opportunities. This is one of the major reasons why property prices are so high in Dhaka. Then again, the price of apartments in Dhaka differs from one location to another based on unique characteristics and amenities.

Market Interest Rate

Home loan interest rate is among the compelling factors affecting the property prices in Bangladesh
Home loan interest rate is among the compelling factors affecting the property prices in Bangladesh

The majority of home buyers rely on financial leverage and borrow a hefty sum of money. The market interest rate is the key that indicates how much money people would borrow from financial institutions. Low-interest rate means low cost for the borrowers, and therefore more people would apply for home loans. As home buyers have access to their required funds, demand for properties increases and so do the prices.

Likewise, a lower interest rate is beneficial to the developers because they incur less interest expense. Therefore, they can reduce the property price as well. Balancing the availability of funds to general mass and supply of apartments, the property market adjusts the amount to create a stable situation.

Economic Development

With the current economic growth rate, the property market is sure to flourish in near future
With the current economic growth rate, the property market is sure to flourish in the near future

Economic growth is also crucial in the pricing of property. With more growth, comes more jobs, and with more jobs, comes a higher demand for property for people to live in. Moreover, when a particular sector starts growing in a specific area, it attracts lots of things with it such as businesses and talent pools. Hence, the price of apartments tends to increase. For instance, take a look at Gulshan today. Many corporate HQ’s are now shifting here, and this is one of the contributing factors why property prices are soaring here.


Kuril flyover
A hassle-free transport and commuter link is essential for daily living, hence property prices tend to depend on this too

Area accessibility is also among the significant factors affecting property prices. Proper transportation facility for a hassle-free commute is amongst the basic needs. Also, close proximity to commercial hubs and popular places is also desired by many home buyers. Therefore, areas that are easily accessible and have an acceptable transportation standard tend to have higher prices than others.

Future prospects and developments also contribute to property pricing. Recently, the Bangladesh government has undertaken several commuter construction projects. One of the major projects is the Metro Rail in Dhaka City. If you have been following the trends, you can easily notice how the property prices in those areas with metro rail stations are increasing.

Apartment Features and Benefits

The unique characteristics of an apartment is also one of the contributing factors affecting the real estate prices
The unique characteristics of an apartment is also one of the contributing factors affecting real estate prices

The quality and feature of a property are two of the major factors affecting property prices. Then again, it is very subjective as there is no limit to luxury. Some common attributes can be generalized such as floor layout, size, parking, open space, emergency facilities, and quality of the property, e.g. construction materials.

Here, the developer brand also plays a big role. The country’s most prominent and trusted developers can easily charge a premium on their apartments, and people will be willing to pay the extra. Similarly, property type impacts the price too. For instance, condominium apartments benefits include an array of facilities within a gated community at an affordable price range. If these facilities were incorporated in a regular apartment building, surely the price would have been way higher.


Neighborhood plays an important role in determining the price of a property. Sometimes the location is more important than the property itself and it outweighs the other factors. A well-developed neighborhood with every amenity and facility is something that creates demand. And demand creates its own supply instigating the supply and demand cycle. 

Apart from all these, the necessities have a direct impact on the price of apartments as well e.g. safety and security, educational institutions etc. These are again subjective to personal needs. So before purchasing an apartment, know what you are paying for and if it is worth your investment.

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