Looking for the ultimate dream house? A piece of gem to reflect your inner desires of lavishness or comfort?
When it comes to costing, prices can be as unpredictable as the weather. There are multitudes of factors that must be taken into account when building a home inside the concrete jungle of Dhaka. Factors ranging from the price of property to the economic situation of the country; building a house may seem daunting. It really is not! We understand the struggles and to help make your process easier,we have provided a step by step guide of what it takes to build your own home and how much it costs.
Step 1: Looking for the Location
Without a doubt, location is of prime concern when it comes to the cost of building your own home. Choosing the right location can make all the difference in the world, hence you should be wise with your choice. Deciding on a location will help you determine the budget as well. To make the decision easier, let’s break down the locations within Bangladesh to have a better understanding of price according to region.
Divisions and District: Of the 7 main divisions in Bangladesh, Dhaka, and Chittagong are undoubtedly the most developed. They are also home to some of the most progressive cities in the country. As a result, land prices can be somewhat costly, in contrast to the other divisions, where it is affordable. Prices of land, including the cost of materials and labor are favorably lower in divisions such as Khulna, Barisal and Rajshahi.
City: Dhaka is by far of the most developed city in the country. Being the capital, Dhaka houses most of the population; it is the residential and commercial hub of the country. So naturally you can expect how expensive it would be in Dhaka in contrast to the smaller cities. Prices vary greatly in the city. However, if you happen to go to the outskirts of Dhaka, plot prices there drop somewhat. Any property, land or apartment situated near or on the main high road is always higher in terms of value.
Neighborhoods or Residential Areas: This is what it comes down to, neighborhoods and residential areas. Neighborhoods that are poorly developed have low property value and vice versa in certain parts around the city. For example, in Dhaka city, pricing of plots and housing will always vary from area to area. Residential areas such as Gulshan, Banani and Bashundhara will have a much higher price compared to that of areas such as Dhanmondi and Mirpur DOHS.
Banani and Gulshan residential areas could set you down to BDT 32,555,000 crore on average, excluding interior design and miscellaneous costs. Homes/lands situated in the Dhanmondi, Mohammadpur and Mirpur area are affordably lower.
Keep in Mind, when it comes to choosing your preferred area and dream house, your decision should be based on these factors: education, commute, safety and economic infrastructure. See which works best for you and your family and progress accordingly.
Step 2: Planning the Budget
If you are planning to construct your own home, there are various home loan schemes which can be seen as cost effective, depending on where you are willing to build it. You have to decide whether you have the necessary finance to go through with the project or require a housing loan.
On average, for either salaried or business accounts, private banks are providing about 9% to 13% interest rates.
Remember, if you do decide to get a loan from the bank, you will have to pay the monthly mortgage bills. It is always good to have a year’s bill saved up in advance as to avoid the stressful pressure of payments from monthly income.
Step 3: Hiring the Hand
Next is choosing the hands that will sketch your hopes into reality. If you are planning to build your own house without the involvement of real estate developers, you have to hire an independent architect or contractor, as mostly they are used to working with developers. Finding someone to lay your plans out to will be crucial as they will be responsible for the canvas of your dreams to see it through from root to roof.
Architects charge by the project, and it does not include labor and material costs. Contractors will include all necessary costing. The only drawback is the structure and design of your house might not be all that accurate. Costs of architects can vary. Looking to hire experienced architects will be somewhat expensive and be higher in contrast to their inexperienced peers. You will be looking at BDT 1,000,000 to 1,500,000 on average when it comes to decent architects.
If your architect cannot manage to hire labor on your behalf, contractors are the way to go. They have businesses sprawled across the country; the bigger the city, the better the contractors. Try to plan a budget before going through with this. Your contractor will be in charge of acquiring all the necessary materials needed for construction.
Cost of materials can be unpredictable. Therefore, if you are sourcing your own materials, it is important to do research and consult with your architect or contractor to determine your price range and the budget for this. It is important to find the right materials for the right price. Before you set sail on buying materials, compare prices and find the best deal for yourself. As of March 2018, each bag of cement, depending on brand and quality will vary between BDT 380 to BDT 430. Good quality re-bar (reinforced bar) is around BDT 70,000 to 73,000 per ton, while lower grade will go for around BDT 55,000 to BDT 60,000 per ton. Bricks will cost an average of BDT 9 to BDT 15, depending on quality and if you are looking to avail a truckload, the cost would be around BDT 27,000 per truck of bricks.
Note: Cost of certain materials like broken bricks or red sand drop significantly right after the holidays, but only for a short while.
Summation of costs:
Grey structure is the basic structure of your house which includes the foundation, walls and roof. The budget for the grey structure is comprised of the cost of bricks, cement, sand and other materials. Always keep around BDT 1,00,000 to BDT 3,00,000 extra to cover for unprecedented miscellaneous costs.
Depending on your budget, the location you have chosen to build your home and the costs that are to be incurred in such ventures, the total cost will vary. Using rough estimates, cost per square foot can range between BDT 2,500 to as high as BDT 9,000, depending on the location.
Whichever option you opt for when it comes to building your home, always ensure beforehand if the location is suitable for you and your family.