Introduction to Property Investment in Bangladesh
Real estate investment in Bangladesh offers compelling returns, especially in Dhaka and Chittagong. Here's what you need to know before making your first investment.
Key Metrics to Understand
Rental Yield
Gross rental yield = (Annual rent ÷ Property price) × 100
In Dhaka, typical yields range:
Capital Appreciation
Dhaka prime areas have historically appreciated 8–15% annually. Factor this into your total return calculation.
Cash Flow
After mortgage payments, maintenance, and vacancy, does the property generate positive monthly cash flow?
Due Diligence Checklist
Financing Your Investment
Most banks in Bangladesh offer home loans at 9–12% interest. RAJUK and NHB also offer institutional financing. A 30–40% down payment is typically required.
Tax Considerations
Rental income is taxable. Capital gains on property sales may also be subject to tax. Consult a chartered accountant before purchasing.