Dhaka, the bustling capital of Bangladesh, stands as one of the world's most densely populated cities, housing over 22.4 million residents and ranking sixth globally in terms of population density (World Population Review). The city's dynamic landscape, characterized by rapid urbanization, is reflected in its housing market, particularly in the realm of rentals.
In recent years, Dhaka has witnessed a notable surge in its population, with a 3.39% increase recorded from 2021 alone. This growth trajectory is paralleled by a significant shift in housing dynamics, where approximately 80% of residents opt for rented accommodations. However, this convenience comes at a cost, with rent prices experiencing a staggering 30% hike between 2017 and 2021. Moreover, the subsequent fiscal year of 2022-2023 saw an additional 6% increase, placing a considerable strain on residents' finances, with expenditures ranging from 30% to 75% of their income directed towards rent payments.
To shed light on Dhaka's intricate rental landscape, an in-depth analysis was conducted utilizing a dataset sourced from Kaggle, derived from bproperties.com, a prominent platform for rental listings. The dataset encompasses information on 28,800 rental posts within Dhaka, featuring key variables such as location, area, number of bedrooms, number of bathrooms, and rent.
Statistical Distribution
Statistical description of numerical features
From the above table and my personal experience as a Dhaka-ite, the quintessential apartment configuration in Dhaka comprises two bedrooms and two bathrooms, with larger configurations (3 bed+2 / 3 baths) accommodating extended or affluent families becoming increasingly prevalent. Instances of multiple families/persons (varsity students/job holders) sharing one apartment to save money are also common nowadays. As such, there are listings of 1-bed and 1-bath rentals. They are most likely part of larger apartments.
The statistical examination of numerical features reveals a predominant range in apartment sizes, with areas spanning from 700 sqft to 1300 sqft, accompanied by corresponding rents ranging from 5000 to 25000 BDT.
The distribution and box plots for Area and Rent show the distributions are quite skewed. Rent distribution has a long tail meaning some rentals are exorbitantly expensive than most other rentals. These expensive rentals cater to the city's smaller wealthy populace. It may also be indicative of Dhaka's income inequality/wealth disparity.
A view from a lakeside park in Baridhara. The lake connects Gulshan and Baridhara
The maximum apartment area is 6300 sqft in this data. A quick search in our data leads to 3 such rentals that are all situated in Baridhara, have 4 beds and 5 baths, and are asking for rents of up to 400k/month. This coincides with the current trend of wealthier Dhaka-ites buying and renting apartments in North Dhaka's Baridhara, beside Gulshan, the most expensive area and the corporate hub in Dhaka. Baridhara also contains the diplomatic zone. So, many expats live in Baridhara. Many expats rent such large apartments (like 400k/month) usually unaffordable for most Dhaka folks. Both Baridhara and Gulshan situated in the northern precincts are renowned for their opulent residences and diplomatic enclaves, attracting both local elites and expatriates alike.
The largest number of bedrooms is 6. 2 rentals were found to offer 6 bedrooms: one in the previously mentioned posh Gulshan and the other in a neighboring area Tejgaon. Tejgaon was previously an industrial area but recently has witnessed a surge in demand, attributed to the influx of corporate offices and strategic locations vis-a-vis established commercial hubs like Gulshan and Banani.
The largest number of bathrooms is 8 and there is one rental offering 8 bathrooms. That's in Gulshan, unsurprisingly. However, an apartment with 4 beds and 8 baths is unusual and it would be better to view the actual rent-post to see what's up.
Number of Rentals by Location
If we analyze the number of rental offers by location(there are 68 unique locations of Dhaka in this data), we observe a very skewed distribution. Some areas have a lot of posts on bdproperties while others have very few.
The top 10 locations with the largest number of openings have burgeoning middle to upper-middle-class communities who are internet savvy and are dependent on the internet to find information. As such, they may use bdproperty to post rental opportunities. The top 3 areas (Mirpur, Mohammadpur, and Uttara) are probably the largest 3 locations of Dhaka city. Each may be equivalent to small towns.
Bashundhara, Badda, and Banasree have many large private universities nearby(NSU, BRAC, EWU, IUB, etc.). The student population of these varsities and their families seeking accommodation in these 3 areas has led to a boom in the rental business of these locations. This housing demand from the internet-savvy young population results in a great many posts of rentals in Bashundhara, Badda, and Banasree. So, it's understandable why the number of rentals posted is so high in these places. Except for Dhanmondi and Hazaribag, all other locations in the top 10 are in the Dhaka North City Corporation(DNCC). This may indicate a growing popularity for real estate/housing in the DNCC region. The corporate hubs (Gulshan, Banani, Tejgaon, Mohakhali), the bureaucratic hub(Agargaon), and many large-scale private universities are in DNCC. It's natural demand for accommodation will be high here. This concentration of housing demand and economic/educational facilities in DNCC means a growing focus on North Dhaka for urban development.
Now, let's look at the bottom 10 locations by rental posts. Except for Taltola and Mohakhali DOHS, the other 8 areas are in Dhaka South, an indication that Southern areas may be less desirable for the emerging solvent classes. Let's go by area. Bangla Motor, Paribagh, and Shahbagh are very small areas compared to others, and a lot of the plots there are commercial lots. So the rental listings are low. Mohakhali DOHS is a wealthy enclave and many of its inhabitants are the owners of the houses and don't rent out that often or use private means to rent out. Demra, Keraniganj, and Sadarghat are peripheral areas with a large lower to lower-middle-class population who are not so tech-savvy. These areas also have many wealthy conservative families who own their houses and probably won't use the internet to find new renters.
This analysis of the number of rentals by location unveils a disparity in rental distribution across Dhaka's diverse locales, with areas like Mirpur, Mohammadpur, and Uttara emerging as hotspots, fueled by burgeoning middle to upper-middle-class communities leveraging online platforms for rental postings. Conversely, peripheral areas and southern precincts exhibit comparatively lower rental activity, indicative of evolving preferences, probable lack of using online rental platforms, and socioeconomic dynamics.
Average Rent by Location
The rent distribution by area is also heavily skewed. From the statistical values below and considering the 25th and 75th percentiles, it's common to see rents ranging from 15k to 30k / month. This range caters to a wide variety of middle-class families.
Let's look at the top 10 and bottom 10 areas ranked by rent.
Gulshan, Banani, Baridhara, and the DOHS areas are well-known for their luxury apartments and upper-class residents. Gulshan and Baridhara also house most of the well-to-do expats. Overall environment, security, and various good-quality expensive amenities abound in these areas. So, the rent is high there. Except for Kakrail, Paribagh, and Lalmatia, the top areas are in Dhaka North indicating a high concentration of upper-class families in the north. Paribagh and Lalmatia are historical enclaves of rich educated families. A neighboring area of Lalmatia, Iqbal Road, is also another rich enclave. Whether any listing from Iqbal Road is tagged as Lalmatia is unknown for this data. I was a bit surprised to not see Dhanmondi in the top 10. It's 12th in this list. I guess this is a dataset bias. Dhanmondi has one of the largest concentration of expensive apartments in Dhaka. However, none of the openings for these apartments made it to the dataset for some reason. Maybe there was no available luxury apartment open for renting at the time of scraping the data from bdproperties.
Sadarghat, a peripheral South Dhaka neighborhood by the Buriganga
Looking at the bottom 10 locations by rent, they are peripheral areas or South Dhaka areas, or both. These areas have a high concentration of lower-middle-class families. They are highly congested, lack good infrastructure/amenities, and probably have a high crime rate.
It's noteworthy how posh areas' (Baridhara) rent is many times more than in comparatively modest areas (Demra). Baridhara's average rent of 140k is about 14 times greater than Demra's average rent (10k). The wealth inequality between the middle class and the upper class is ever-widening.
Correlation between Rent and Other Factors
The correlation analysis underscores a strong positive relationship between apartment size and rent(0.75), reaffirming the conventional wisdom of larger spaces commanding higher prices. However, this correlation doesn't extend uniformly to the number of bedrooms (0.43) and bathrooms (0.48), suggesting nuanced factors (concentration of wealthy families, commercial activities, environment, amenities/entertainment, etc.) at play within Dhaka's rental ecosystem. The area of houses is however highly positively correlated with the number of bedrooms (0.77) and bathrooms (0.81). The greater the area, the larger the number of bedrooms/bathrooms.
Given the positive correlation between rent and space, North Dhaka (especially Gulshan, Banani, Baridhara, and DOHS areas) rentals should offer larger apartment spaces compared to South Dhaka / peripheral areas.
From the chart above, the assumption is proved right. The wealthier families can afford larger apartments in the posh neighborhoods whereas the modest families have to contend with smaller apartments in congested and less solvent parts of the town. Such a phenomenon is a direct result of the wealth gap in a capitalist society.
In conclusion, Dhaka's house rent analysis unveils a dynamic landscape shaped by demographic shifts, urbanization trends, and socioeconomic dynamics. The post-90s capitalist economic boom has further divided the socioeconomic classes as can be seen from rental analysis. As the city continues to evolve, understanding these nuances becomes imperative for tenants, landlords, and stakeholders alike, fostering informed decision-making and sustainable growth within Dhaka's real estate sector.
Sources:
https://www.kaggle.com/code/taeefnajib/eda-prediction-of-house-rent-in-dhaka
https://www.kaggle.com/datasets/taeefnajib/house-rent-in-dhaka-city/data?select=houserentdhaka.csv
https://www.dhakatribune.com/bangladesh/261898/dhaka-ranks-world%E2%80%99s-sixth-most-populous-city
https://www.tbsnews.net/bangladesh/dream-owning-home-still-elusive-many
https://www.thedailystar.net/business/news/house-rent-the-rise-bbs-3440946
https://colab.research.google.com/drive/1x-50Q91lKnUUIBovVE5E1ngpkN7zUx-d?usp=sharing
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