House rents in Dhaka making life harder for salaried individuals

For web developer Arif, earning Tk80,000 a month does not leave as much room for savings and leisure as it might suggest.

He pays Tk28,000 in rent for his home in Dhanmondi. After utilities and other bills, he has to cut back on eating out and other non-essential spending, while saving for the future has also become harder.

“I earn Tk80,000 a month, but Tk28,000 goes straight to rent. After paying utilities and other bills, I have to be careful about eating out and other non-essential spending. Saving for the future has also become harder,” he said.

Arif’s experience reflects a growing squeeze on Dhaka tenants across income groups, as housing costs leave less room for savings, food, transport and other everyday expenses.

Nusrat, who works for a multinational company and earns Tk50,000 a month, pays Tk15,000 in rent in Uttara. She said transport, groceries and utility bills consume much of the remainder, leaving her with less to save.

“I have had to reduce my monthly savings and cut back on small expenses to manage the rising costs,” she said.

The pressure varies sharply by neighbourhood, with location having a major bearing on how much of a tenant’s income goes towards housing.

According to smartLET’s Rental Report 2026, average rents in the prime neighbourhoods surveyed ranged from Tk44,000 in Bashundhara Residential Area to Tk197,000 in Baridhara Diplomatic Zone–a gap of nearly 3.5 times.

Average monthly rent was Tk52,500 in Niketan, Tk105,300 in Banani, Tk140,500 in Gulshan-1 and Tk190,000 in Gulshan-2, according to the report, which analysed around 500 rental listings based on 12 months of field research.

Bashundhara also had the highest rental supply among the areas studied, with more than 400 properties available per month, while established areas such as Banani and Gulshan had more limited and relatively stable supply.

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For lower- and middle-income tenants, moving to a cheaper neighbourhood can bring another cost–longer commute and higher transport expenses.

“I chose to stay in Malibagh because it is more affordable than many other parts of the city, but the rent still takes a large share of my income. I also have to factor in higher transport costs and travel time when I go to work,” said Sabbir, who earns Tk30,000 a month.

The pressure is also reflected in national data. The Bangladesh Bureau of Statistics’ House Rent Index reached 122.36 in October-December 2025, up 5.24% from a year earlier. It had risen 5.19% year-on-year in July-September 2025.

At the same time, wage growth has lagged behind inflation. The national Wage Rate Index rose 8.18% year-on-year in June 2026, while inflation stood at 9.16%, according to BBS data.

The gap means even a modest rent increase can put additional pressure on household budgets.

For a tenant earning Tk30,000, a Tk10,000 rent consumes one-third of monthly income before food, transport, utilities or savings are considered. For someone earning Tk50,000, the same rent takes one-fifth of the salary.

Research by the Bangladesh Institute of Development Studies has also found that many poor households live in Dhaka’s slums to access cheaper housing, accepting poorer housing conditions, insecurity and overcrowding in exchange for lower costs.

Landlords, however, say rising maintenance and other property-related expenses have made it difficult to keep rents unchanged.

“The cost of maintaining a building has gone up significantly. Construction materials, repairs, security, holding tax and utility-related expenses have all become more expensive, so it is difficult to keep rents unchanged,” said Rafiq, a landlord in Dhanmondi.

Another landlord, Salma, who owns a flat in Uttara, said tenants often negotiate over rent increases, but some adjustments become necessary as maintenance costs rise.

The growing rent burden also affects household spending and workers’ choices about where to live, said Dr Mohammad Shahadat Hossain Siddique, a professor of economics at the University of Dhaka.

“When rent takes a larger share of household income, people have less money left for savings and everyday consumption. It can also influence where workers choose to live and how far they travel for work,” he said.

For many Dhaka tenants, the calculation is ultimately straightforward– after paying the rent, how much is left for everything else?