07 March 2022

Renting vs. Buying: What Is the Best Choice for People Living in Dhaka?

The expense of living in the capital city is always going to be very expensive. Whether one decides to rent or buy, a large portion of the income will go to bear the cost of accommodation. Both options have their own benefits and downsides. Hence, the conversation of renting vs. buying a home in Dhaka always becomes a heated debate. However, here’s a brief guide about the pros and cons of both renting and buying a home in Dhaka. 


When it comes to the mode of accommodation, the first concern is the availability of financial resources. Not everyone can afford to buy a home in the city. You must have a high annual income before thinking about buying a home in Dhaka. In addition to a high annual income, one must have enough savings to pay off the down payment as well. Moreover, if you take home loans to buy your home, you have to bear the burden of interest as well. Hence, buying a home in Dhaka is a very costly expense, and only if you have a high annual income and enough savings, you shall consider buying a home in Dhaka. 

On the contrary, if you have a low annual income and little amount savings, renting is the right option for you. Often, people with low annual income purchase a house with loans. However, in the long run, in most cases, they fail to pay off the interest, and the bank takes over the house. While it is a dream of everyone to have a house in their name, without proper financial backup, it cannot come true.


Our lifestyle is one of the key drivers in choosing whether you should buy a home or rent an apartment. Our lifestyle determines for how long we will stay in the same place. If you are not married and do not live with your family, renting is the obvious choice. Bachelors do not need a permanent home as they are likely to move from one place to another. Another key factor behind not opting for renting is whether or not you are planning to stay in the country. If you are planning to migrate to another country, a purchased home will become a burden. In addition, people who love to travel and stay lion-share of time of the year traveling should rather rent as that would be more cost-effective. 

Usually, people with families opt for buying a home in Dhaka. Generally, married couples who have kids who are studying in Dhaka plan to purchase a home. They are likely to stay in the same place for a very long time. Bachelors who live with their parents can also buy a home. As they are at the early stage of their career and will eventually settle, a home will reduce the tension of paying rent each month. 


Occupation is another key force in the debate about renting vs. buying a home in Dhaka. If you plan to buy a home in Dhaka, you should have an occupation that is based in Dhaka. In addition, there is no chance of transfer. Another key aspect is whether one is fully satisfied with their current employment or not. If your job is based in Dhaka and pays a high salary, there is no chance of transferring you to another location, and you are satisfied with your current position at the company, you may consider buying a home in Dhaka. For business people, if your business is based in Dhaka, and you are likely to stay in Dhaka for the majority of the time, then it is the best time to buy a home in Dhaka for you. 

On the other hand, renting is the right option for you if you are not settled with your current job. If you are planning to look for other opportunities in different locations, then renting would be a wise choice. Moreover, if your position at the job comes with the possibility of transferring to another location, you need to opt for renting. For business people, if your business requires you to travel to different places and you are not likely to spend the majority of time in one place, you should rent a place rather than buy an apartment. 

Capital Appreciation

Buying a home is an obvious long-term investment. However, it is also a long-term financial investment as well. The value of a property will rise as time goes by. Once you buy an apartment, you are set for a capital appreciation in the coming days. Meaning if you decide to sell your apartment after five years, you will be able to sell it at a much higher price than the amount you initially paid. Another key advantage of buying a property is that your property is free from the effects of inflation. Meaning the value of the property will adjust with the rate of inflation. Hence, your property in Dhaka is highly unlikely to ever drop in value. Rather the value will only go up with time. 

On the other hand, renting is not free from the effects of inflation. If the country’s inflation rate goes up, the price of the rent will go up in tandem as well. Moreover, most landlords in Dhaka increase their rent annually. In brief, renting is sunk cost that increases with time. 

Rental Income

If you buy a home, you have the option to not live in the apartment and rent it out. It is a very common practice in Dhaka. Many homeowners rent their apartments. The demand for rental houses is very high in Dhaka. The price of rent is always on the rise as well. Hence, many homeowners see their apartments as a means of monthly income. 

Tax Benefits

If you buy your home on a home loan, you will receive tax benefits. According to Tax Ordinance 1984, the interest of your home loan will be deducted from your taxable income. As a result, as long as you are paying off the home loan, you will keep on saving from tax benefits. 

Financial Strength

If you buy a property, you add great value to your overall wealth. Once you have a home of your own, you can use it as leverage to obtain higher loans from banks. Moreover, banks or other lending institutions give homeowners extra advantage as apartments are fixed assets that appreciate in value over time.

Size & Design

If you are renting, you are likely to crumple up in a small space. You cannot decorate the home you want as the structure of the apartment are often mundane and basic. Moreover, if you try to make any changes, the landlord will be onto you. If you are renting, you cannot express your own choice. Rather you have to adjust to the existing size and design of the apartment.

On the contrary, if you buy a home, you can design it the way you want. You can decorate your home according to your taste and choice. Your home will be an expression of your own personality. You can customize the rooms according to your preferences. 

Freedom of Choice

Most landlords in Dhaka close the door of their buildings by 11 PM at night. Both job holders and business people often need to work late. However, the landlords make a fuss about their tenants being late. It becomes a hassle to maintain a very strict timetable to get into the place you are paying to live. Tenants often feel like they are under a strict regime, and there are numerous rules and regulations to follow. 

However, if you buy a home, you are the owner. You are no longer under the law of anyone. You can get into your home any time you want. You do not need to maintain any curfew-like ultimatum each day. Rather, you can live freely.

Hidden Costs

If you are renting a place, you know exactly how much you need to pay after each month. You have a clear and concise idea about the cost of your accommodation. However, if you are buying a home, the cost does not end in paying the price of the home. Not knowing about the hidden charges is one of the frequent mistakes that homeowners make. Rather, there are various hidden costs included. Homeowners need to pay the holding tax. In addition, you need to pay the monthly apartment maintenance and repair costs. 

Additional Responsibility

If you are renting a place, you do not need to worry about anything else but the rent. However, if you buy a home, you include yourself in many other additional responsibilities. For example, you always need to ensure the proper maintenance of your home. If anything within your home does not function properly, you are responsible for fixing that. But if you rent, the landlord will fix it for you. Homeowners need to care for and maintain every little aspect of their property. They are also responsible for the security of the property as well. Another big responsibility is paying the utility bills. If you are renting, in most cases, you pay the landlord, and the landlord pays off the utility bills. However, once you become a homeowner, you have to pay your own bills. It is very crucial because if you fail to pay off the bills in time, your connection will be detached, and you will no longer receive utilities such as gas and electricity. 

Non-Liquid Asset

The value of the apartment sure increases with time. However, assets such as properties are not very liquid. Meaning you cannot cash or sell the asset very easily. It takes time to sell a property, unlike stocks in the share market, which you can sell instantly. Apartments, non the contrary, take a long time to liquify as interested buyers are hard to come by. Even if you find interested buyers, the legal procedure to transfer the ownership of the property also takes time.

Pride of Ownership

Buying a home in Dhaka is a dream of most Bangladeshi people. It is a milestone to reach. However, as the dream is very expensive to fulfill, only a few people can afford to call themselves proud owners of a home in the capital city of Bangladesh. It is certainly an elite group, and people take pride once they secure a home in the capital. People feel very accomplished and have a sense of achievement after they buy a home.


Whether one will buy a home or rent mainly depends on their solvency and affordability. However, financial capability is not the only factor before the conclusion. There are various other factors that are very influential in determining which choice is right for you. You must keep in mind that buying a home comes with a sense of lifelong security of accommodation, but it is a highly expensive decision. One must make a long-term commitment to purchase a home. In addition, one must be ready to bear the responsibilities that come with buying a home. On the other hand, if you are renting a place, your expense of accommodation becomes a sunk cost, unlike buying a home which is an asset. But if you are financially robust and you need mobility in your life, renting is the right choice for you. Finally, your decision of renting vs. buying a home in Dhaka should depend on financial capability, lifestyle, and future goals.


Is renting the cheaper option of accommodation in Dhaka?

Ans: Yes. If you are financially not capable of buying a home, then renting is your best option.

How can I buy a home in Dhaka at a reasonable price? 

Ans: A real estate company can help you in this matter and among many Mir Real Estate would be one of the best options for you. 

How can I calculate the rate at which my property is appreciating in value?

Ans: Usually, the value of a property appreciates based on the demand and economy or you may conduct a market to find the rate of increasing value.

How can I buy a home in Dhaka without the hassle of legal procedures?

Ans: If you do not want to go through all the legal hassles before buying a house, Mir Real Estate can assist you

Is it wise to buy a home for single people who do not live with their families?

Ans: If the person is not likely to stay at the same location for a long period, buying a property is a good idea considering the person has the financial capability.

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