Bangladesh's real estate sector has expanded significantly despite various challenges

Despite political instability at various times and two consecutive years of the Covid-19 pandemic, Bangladesh's real estate sector has significantly expanded. Over the past 15 years in particular, the country's housing market has seen its most substantial growth.
Buying an apartment and settling into it without much hassle has now become relatively accessible. This convenience has led real estate companies to undertake larger and more numerous projects across different cities in the country. As a result, the sector has also seen substantial investments.
Discussions with industry insiders reveal that demand has surged the most in the mid-range and ordinary apartment segments. Growing customer demand is expanding business operations and increasing investments. At the same time, a large market has emerged for luxury apartments developed by a few well-known real estate companies.
According to Statista Market Insights, the size of Bangladesh's real estate market reached $2.68 trillion at the end of 2024. Of this, the residential real estate market accounts for $2.5 trillion. The agency projects this market could grow to $3.53 trillion by 2028.
Their data also shows that the market size was $2.16 trillion in 2020, $2.28 trillion in 2021, $2.45 trillion in 2022, and $2.48 trillion in 2023.
Since 2012, the housing sector has seen annual investments of about Tk1.5 lakh crore (approx. $13 billion). Although investments dipped slightly in the two years following Covid, they have rebounded. While demand remains concentrated in urban areas, interest in real estate is also growing in rural areas. People are now seeking land or apartments wherever essential amenities are available.
According to the Real Estate and Housing Association of Bangladesh (REHAB), investments in the sector are broadly categorized into land purchases, residential houses or apartments, and commercial spaces. About 90% of this investment is directed toward the construction and purchase of residential homes or apartments.
Kamal Mahmud, former Vice President of REHAB, told The Business Standard that, since 2010, investments of around Tk1.5 lakh crore have been made annually in the housing sector. While there was a slight dip in investments during the two pandemic years, the overall trend remains strong.
He noted that after the formulation of the Detailed Area Plan (DAP) last year, the sector experienced a slowdown. DAP has imposed what many consider unreasonable restrictions on building heights and floor area ratios (FAR) in certain zones. This has hindered optimal land use and driven up apartment prices automatically. Consequently, developers are more hesitant to launch new projects, and buyer demand has also seen a slight dip. He added that annual investment had the potential to exceed Tk2 lakh crore if the DAP and other conditions were more favorable.
Kamal Mahmud also mentioned that the real estate sector used to attract a significant volume of undeclared (black) money, which the last national budget completely shut down. As a result, investments are likely to decline somewhat compared to previous years.
Still, rapid urbanisation and migration of people to cities for work continue to sustain demand for housing. Amid these conditions, people are still investing, and buyers continue to purchase apartments.
Real estate developers say the demand for real estate, especially in urban areas, is steadily increasing. Consumers are increasingly looking for affordable housing with modern amenities, good access to schools, hospitals, and shopping centers.
Additionally, there is growing interest in gated communities and high-rise apartment complexes, as they offer both a sense of security and a community lifestyle.
Demand rises for luxury apartments—though recent slump noted

In recent years, investments in luxurious apartments equipped with state-of-the-art materials and amenities have increased notably. However, after the political shift in August last year, this segment has taken a downturn.
Industry sources say that, over the past few years, wealthy businesspeople, expatriates, politicians, and bureaucrats have been the primary buyers of luxury apartments, seeking eco-friendly, spacious, and exclusive residential environments.
These premium apartments, priced between Tk5 crore and Tk40–50 crore, are mostly concentrated in Dhaka's upscale areas such as Gulshan, Banani, Baridhara, Dhanmondi, Bashundhara, Niketan, and Nikunja.
According to the Gulshan Sub-Registrar's Office, from January to July 2024, a total of 728 luxury flats priced between Tk6 crore and Tk21 crore were registered—collectively worth nearly Tk8,000 crore. In contrast, only 39 such apartments were registered between August 2024 and March 2025. Of those, just 21 were signed between January and March 2025, with only six in Gulshan.
Data from the Directorate of Registration shows that luxury flat transactions amounted to Tk21,000 crore in 2023. In previous years, this figure stood at Tk19,000 crore (2022), Tk15,500 crore (2021), Tk14,000 crore (2020), and Tk12,000 crore (2019). Despite consistent growth over several years, the market has suddenly turned downward.
Mid-range apartment demand on the rise
A recent report by online property marketplace Bproperty Limited indicates growing demand for mid-range apartments, typically priced between Tk80 lakh and Tk1.5 crore.
According to their data, of the newly brokered flats on their platform last year, 79% of 199 flats in Bashundhara were mid-range, 57% of 457 in Uttara, 18% of 345 in Mirpur, 53% of 411 in Dhanmondi, 29% of 291 in Mohammadpur, 47% of 48 in Banasree, 67% of 48 in Aftab Nagar, and 59% of 95 in Gulshan-Banani were also mid-range.
These flats generally range between 1,200 to 2,000 square feet and include around three bedrooms, 2–3 bathrooms, and two balconies. Mid-range buildings typically feature elevators, and such flats can comfortably house a family of five or six. Interior design has also become a fairly common feature in these units.
Who are the key players?
Several developers are leading in implementing both mid-range and luxury projects in Dhaka and other major cities. These include: Shanta Holdings Ltd. (SHL), Concord Real Estate Limited, Navana Real Estate (NREL), Sheltech (Pvt.) Ltd., Nakshi Homes Ltd. (NHL), Sanmar Properties Limited, Rangs Properties Limited, ASSURE GROUP, ABC Real Estate Company, Artisan Real Estate Company, Dom-Inno Real Estate Company, Alliance Properties, Epic Properties Ltd., Edison Real Estate, and Building Technologies and Ideas Ltd. (BTI), among others.
Real estate sector expanded despite multiple challenges
Industry experts say that since 2010, more than Tk1 lakh crore has been invested annually in the sector. Like other sectors, real estate also suffered a slowdown during the Covid-19 years (2020–2021). Interestingly, luxury apartment sales were still notable during that time.
Political instability during election years like 2014, 2018, and 2024 brought some short-term disruptions to the sector, but not any long-lasting effects. However, the political transition of August last year still has lingering impacts. While the ordinary apartment market has remained largely unaffected, mid-range and luxury segments have experienced noticeable effects.
REHAB President Md Wahiduzzaman told TBS that once an elected government takes charge, the problems in the housing sector will begin to ease and the market will rebound. He said the discontinuation of opportunities to invest undeclared money in real estate in the last budget has hampered investment. 
Although REHAB repeatedly urged the government to reconsider, no action has been taken so far. However, he noted, the government could still adopt a more flexible approach if it wishes to revive investment in the sector.