, August 12 — Dhaka, the fourth most populous city globally with a population exceeding 24 million, is encountering an escalating and critical issue. This densely populated metropolitan area in Bangladesh witnesses continuous population growth as individuals regularly move into Dhaka. The primary reasons for migration to the city are poverty, seeking employment, and social pressures. As per the Population and Housing Census 2011, more than 12 million people resided in the Dhaka division. However, the Population and Housing Census 2022 indicates that currently, 44 million people live in the Dhaka division. Thus, the current population growth rate in the division is 1.74%. Between 1991 and 2001, the population growth was 4.15% and 7%, respectively.
The Responsibility of Tenants and Landlords and the Rising Price of Housing
The rental housing scene in Dhaka is marked by a significant power gap between property owners and renters, yet the issue extends beyond just insufficient oversight. It is driven by a harmful cycle where excessive land speculation leads to an overwhelming financial strain on the city’s large number of tenants.
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The surge in urban migration and rising population has led to a sharp reduction in affordable city land, making home prices unaffordable for middle- and low-income families. This issue isn’t solely about a lack of housing but also because land has become a high-return financial investment. For instance, land prices in Dhaka soared by an extraordinary 2,700% from 2000 to 2021, transforming real estate into a speculative item instead of a place to live.
In recent years, the cost of housing in Dhaka has been increasing due to clear economic factors. The profits from land speculation have surpassed those from traditional financial systems, leading a large influx of capital—comprising a significant share of the country’s ‘black money’ and a considerable amount of foreign remittances—into the real estate sector, which is pushing prices upward. As a result, rental costs have surged. Approximately 20-25% of Dhaka’s population owns their homes, while the remaining 75-80% rent. Many middle-class families within this group are struggling to cope with the rapid rise in rental prices, with an estimated 65% or more of their monthly income being spent on rent.
This uncontrolled setting continues even though a legal system is in place. The House Rent Control Act of 1991 was introduced to safeguard tenants from unreasonable increases and unjust evictions. Nevertheless, the legislation is generally seen as outdated and is rarely implemented, resulting in tenants having minimal or no real legal options when facing a market dominated by strong financial forces.
Because of the growing need for rental properties, landlords are increasing their rental prices. For numerous property owners, maximizing rental revenue is crucial to justify their costly investment in a market driven by assets. On average, tenants in Dhaka experience annual rent increases of 8-10%, with some areas seeing much higher rises, far exceeding income growth. The property owner sets the rent according to their own preferences, even though it is common for rent to go up three or four times a year. In exceptional cases, landlords may also exert pressure on tenants to leave if they cannot meet the demands.
In reaction to the increasing pressures, the incoming administration has recognized the public’s worries. Mohammad Ejaz, the head of the Dhaka North City Corporation, commented on the issue, saying, “We too are very worried about this situation. It’s really sad when 65% of someone’s income goes towards housing rent. We will implement actions to manage rental costs. Additionally, efforts will be made to revise and update the House Rent Control Act of 1991.” He also promised that these initiatives would be carried out during their current period in power.
The current crisis is experienced throughout the city, even though rental prices differ greatly among areas such as Bashundhara, Gulshan, Mohammadpur, and Mirpur. Various elements, including geographic position, property size, number of bedrooms, and number of bathrooms, are taken into account. In the end, these elements come together to form a highly difficult rental environment where the main influencing factor is no longer simply location or size, but rather the view of housing as an investment vehicle for monetary profit.
The Financial Impact of Expensive Housing
When elevated rental costs consume a large share of a household’s income, it leaves less money for spending, investing, or covering other expenses, thereby diminishing the overall multiplier impact of money moving through the economy. If landlords or investors collect high rents without making improvements to the housing stock or increasing the supply of available homes, this can lead to market inefficiencies. Wealth accumulates among those who seek rent, while fewer resources are available for creating new products or services. Additionally, young workers who allocate a substantial portion of their earnings to rent have less money left for personal development, marriage, starting a family, or pursuing higher education. Imposing high rents on the younger generation affects their future during a critical period of growth and development.
Government System and Municipal Management
The 2011 Local Government (City Corporation) Amendment Bill, passed by the Bangladeshi Parliament, enabled the government to dissolve the Dhaka City Corporation on November 29, 2011, after it was presented to the Parliament on November 23. The city corporation will be split into two entities, North and South, with the southern part managing a bigger share of the city. As each corporation will operate independently, Dhaka will have two mayors. The government claims that this division will ensure better quality municipal services for the city’s residents.
There are 54 wards that form the Dhaka North City Corporation, encompassing the thanas of Mirpur, Mohammadpur, Sher-e-Bangla Nagar, Pallabi, Adabor, Kafrul, Dhaka Cantonment, Tejgaon, Gulshan, Rampura, Banani, Airport, Khilkhet, Vatara, Badda, Uttara, and more. The Dhaka North City Corporation (DNCC) is currently headed by Mohammad Ejaz, who was named Administrator on February 12, 2025.
The Dhaka South City Corporation consists of 75 wards, including those in Paltan, Motijheel, Jatrabari, Kotwali, Sutrapur, Bangsal, Wari, Ramna, Gendaria, Chowkbazar, Lalbagh, Hazaribagh, Dhanmondi, Shahbagh, New Market, Khilgaon, Kamrangirchar, and additional thanas.
The Dhaka North City Corporation (DNCC) is currently headed by Mohammad Ejaz, who took office as Administrator on February 12, 2025.
At present, the Dhaka South City Corporation (DSCC) is managed by Md. Shahjahan Miah, who took office as Administrator on February 13, 2025. Additionally, there has been a recent court ruling indicating that Ishraque Hossain is the new mayor of DSCC, although this remains subject to further proceedings.
Struggles and Difficulties in Tackling Dhaka’s Housing Shortage
Urban Development Projects: The Dhaka North City Corporation (DNCC) and Dhaka South City Corporation (DSCC) have worked together using the Chittagong Development Authority’s framework to enhance city planning, with DNCC concentrating on managing traffic in densely populated regions such as Mirpur.
Housing Regulatory Shortcomings: Even with administrative decentralization, neither DNCC nor DSCC has introduced thorough rent control measures, making tenants susceptible to unpredictable rent increases. The absence of uniform rent guidelines, as suggested, continues to be unresolved.
Administrative Uncertainty: The latest administrative appointments and the unresolved mayoral position at DSCC indicate issues with governance, which could cause delays in essential housing initiatives.
Population Overload: The swift increase in population (1.74% per year) remains a challenge for city services, as companies also face difficulties in tackling the lack of housing.
Next Steps: User-Centric Standards and Rules
To tackle market imbalances and inefficiencies, and to create a more promising future for the Bangladeshi youth—who constitute over half of the nation’s population—rent for housing should be regulated through a standardized approach. The government needs to set guidelines for determining rental prices. This reduces unfair treatment of tenants. In Dhaka city, house rents can be set based on the aforementioned thirteen factors by implementing this estimation method, preventing landlords from arbitrarily deciding the rent.
