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Dhaka’s housing rent plummets as pandemic disrupts livelihoods

With a fall in income, it has become harder for low-income groups to manage the bare minimum in Dhaka, a city which has been named as one of the most expensive cities in the world to live

Update : 18 Jun 2020, 10:12 AM

Many Dhaka dwellers have been forced to leave the city after being unable to bear the brunt of the ongoing Covid-19 pandemic, that has pushed many into poverty through layoffs and salary cuts.

A survey, by Brac in May this year, showed 95% of the people in low-income groups had a loss of income compared to the month of February, while 62% of the low-income people and daily wage earners have lost their jobs.

With a fall in income, it has become harder for low-income groups to manage the bare minimum in Dhaka, a city which has been named as one of the most expensive cities in the world to live.

This week, Mercer’s 2020 Cost of Living Survey, a widely recognized annual survey, ranked Dhaka as the 26th of the most expensive cities in the world to live, and also the most expensive city in the South Asian region.

Interestingly, or sadly, the house rent situation in Dhaka has scaled down significantly following the pandemic.

Mostafizur Rahman, who works as a textile engineer for Azad Rifat Textile mill in Narayanganj, had no other option but to leave the city due to the pandemic.

He, along with his wife and son, were living in a rented flat at Kuril for Tk12,000 a month. However, he could only work for two months – January and February— before the lockdown and public holiday was enforced to curb the transmission of the Covid-19 virus.

 “I joined work in January for Tk22,000 as salary per month. I had no salary for last three months. That’s why I along with my family have to return to my ancestral home to survive,” said Mostifizur.

Two months later, he also brought his belongings back to Patuakhali.

“I had to pay house rent despite not living there. I need money to spend on my family and for myself as well,” he said.

“If I have no income, how can I pay Tk12,000 as house rent? Besides, the landlord also added an extra Tk1,000 with the usual rent during this coronavirus situation. I was not able to cope up with the situation.”

Not only Mostafiz, his elder sister, who was living in a flat next to him along with her husband, has also left the city for their village town as well.

“My brother-in-law also left his two-room flat and rented a new one-room flat as he could not manage to bear its rent due to problems in his office,” said Mostafiz, adding: “So, he sent my sister back to the village.”

Many more are now opting to leave the city, and one of them is Ali Ahsan, who just graduated from a public engineering university a year back.

Ahsan was getting prepared for a government job exam and recently shifted to Rampura, where he rented a flat along with his friends.

However, he was forced to move back to his parent’s home in Sherpur after the restrictions began.

“I couldn’t pay the rent for last three months, even have not stayed at the flat, as I have no tuition during that time. The house owner has agreed to lessen the rent for last three months,” he said.

“It’s not being possible for me to stay in Dhaka and pay the rent during this pandemic.”

He is now opting to return Dhaka and take his belongings back.

House owners not getting tenants

Like the tenants, many house owners are also in trouble as they cannot find tenants to fill their vacant flats. Without tenants paying rent, they now need to bear all expenses related to their vacant properties.

Majeda Khatun, who owns a four-storey building and few tin-shed rooms in Poolpar of West Dhanmodi of Dhaka, has been searching for a tenant for one of her two-room flat what earned her around Tk14,000 a month.

“I thought I could rent it out for lesser price than earlier. But, people are not even responding to the ‘To-let’ sign hanging on the building for the last four months,” she said.

 Of the rest 3 rented out flats, all her tenants have paid Tk2,000 less in rent during the pandemic.

“What else could I have done when they requested me to lessen the rent? Actually, I think I might lose some existing tenants if I keep pressuring them for rent,” she added.

“None of the four families living in the tin-shed houses has paid rent over last three months. They are very low-income people, mostly pulling rickshaws for a living,” said Majeda.

 “I have nothing to do but to keep silent with the rent issue during this situation,” she said in a sad voice.

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