Investment Property in Dhaka

Investment Real Estate in Dhaka

Investment Property in Dhaka
Investment Property in Dhaka

Dhaka property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Dhaka.

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Search Map of Dhaka Investment Real Estate

Dhaka ( DAH-kə or DAK-ə, Bengali: [ˈɖʱaka]) (ঢাকা), formerly known as Dacca, is the capital and the largest city of Bangladesh. It is the ninth-largest and the sixth-most densely populous city in the world, with a population of 8.9 million residents within the city limits, and a population of over 21 million residents in the Greater Dhaka Area. Dhaka is the economic, political, and cultural center of Bangladesh, and is one of the major cities in South Asia, the largest city in Eastern South Asia and among the Bay of Bengal countries; and one of the largest cities among OIC countries. As part of the Bengal plain, the city is bounded by the Buriganga River, Turag River, Dhaleshwari River and Shitalakshya River.

The area of Dhaka has been inhabited since the first millennium. The city rose to prominence in the 17th century as a provincial capital and commercial center of the Mughal Empire. Dhaka was the capital of the proto-industrialised Mughal Bengal for 75 years (1608–39 and 1660–1704). As the center of the muslin trade in Bengal, it was one of the most prosperous cities in the world. The medieval city was named Jahangirabad in honor of the Mughal Emperor Jahangir and hosted the seat of the Mughal Subahdar, Naib Nazims and Dewans. Medieval Dhaka’s glory peaked in the 17th and 18th centuries, when it was home to merchants from across Eurasia. It was the centre of a flourishing sea trade attracting European traders. The Mughals decorated the city with well-laid out gardens, tombs, mosques, palaces and forts. The city was once called the Venice of the East. Under British rule, the city saw the introduction of electricity, railways, cinemas, Western-style universities and colleges and a modern water supply. It became an important administrative and educational center in British Raj, as the capital of Eastern Bengal and Assam province after 1905. In 1947, after the end of British rule, the city became the administrative capital of East Pakistan. It was declared as the legislative capital of Pakistan in 1962. In 1971, after the Liberation War, it became the capital of an independent Bangladesh.

Dhaka is the financial, commercial and the entertainment capital of Bangladesh, and accounts for up to 35% of Bangladesh’s economy. Since its establishment as a modern capital city the population, area, social and economic diversity of Dhaka have grown tremendously. The city is now one of the most densely industrialized regions in Bangladesh. Dhaka is a major beta-global city, as it hosts the headquarters of several international corporations. By the 21st century, it emerged as a megacity. The Dhaka Stock Exchange has over 750 listed companies. The city hosts over 50 diplomatic missions and the headquarters of BIMSTEC. The city’s culture is known for its cycle-rickshaws, cuisine, art festivals and religious diversity. The old city is home to around 2000 buildings from the Mughal and British periods, including notable structures such as the Bara Katra and Choto Katra caravansaries.

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The financial stability of Dhaka has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Dhaka

Renting out your Dhaka buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Dhakaare – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Dhaka and be prepared to change your initial outlook.
  • Thoroughly research the Dhaka location with a special emphasis on fringe areas outside the main Dhaka metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Dhaka.
  • Ensure that your target investment property in Dhaka appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Dhaka properties yourself is an easy option, but are these savings justifiable when you run into Dhaka red tape? Physis Realty Dhaka office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Dhaka buy-to-rent sector.

With our expert guidance, investing in Dhaka provides the secure knowledge that your money is working harder than it would in a local Dhaka bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Dhaka, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Dhaka property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Dhaka

Flipping property in Dhaka

Flipping property is when we advise clients to buy a Dhaka property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Dhaka market has a time to react to the renovation.

The Flipping Strategy in Dhaka

Investment property flipping in Dhaka is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Dhaka real estate investments are sometimes referred to by professionals as ‘distressed’ Dhaka real estate.

What is distressed Dhaka property:

  • Dhaka property in need of renovation
  • Dhaka real estate with a change of puropose and use
  • Oversold Dhaka property
  • Bank repossessions in Dhaka

Put simply, long term investors in Dhaka purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Dhaka investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Dhaka property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Dhaka use a minimum profit value of 22% when looking at potential Dhaka projects. The reason for this is because there are lots that can go wrong in Dhaka property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Dhaka

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Dhaka, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Dhaka should be entrusted to only the highest-quality agency.

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