Dhaka, one of the world’s most densely populated megacities, is home to a vast majority of residents who rely on rented accommodation. According to projections by the United Nations Department of Economic and Social Affairs in its World Urbanization Prospects, the capital is expected to become the world’s most populous city within the next 25 years, with its population projected to reach approximately 52.1 million.
At present, Bangladesh’s population stands at around 176.5 million, according to the latest data from the Bangladesh Bureau of Statistics, placing immense pressure on urban housing—particularly in Dhaka.
With house rents in Dhaka continuing to surge, questions are mounting over who is responsible for regulating the market and why meaningful government intervention remains limited. Despite the existence of legal provisions, weak enforcement and the absence of a coherent policy framework have left millions of tenants effectively unprotected, with their rights frequently undermined in practice.
Despite the scale of the issue, there is still no effectively enforced, comprehensive policy framework to protect tenants. Although a house rent control law exists, its implementation has long been weak, with many landlords in Dhaka routinely disregarding its provisions. Limited awareness initiatives by city authorities have done little to address the imbalance, leaving tenant-landlord relations increasingly strained and, in many cases, heavily skewed in favour of property owners.
Landlords often justify rent hikes by citing inflation, rising maintenance costs, higher utility expenses, and increased interest rates on home loans. However, tenants allege that rents are frequently increased arbitrarily—sometimes multiple times within a single year.
Interviews with residents across the capital suggest that annual rent increases have become routine. Analysis of data from various sources, including findings by Dhaka Tribune, shows that rents in different parts of the city have increased at least four to six times over the past 30 years, with some areas experiencing even steeper rises.
According to the Consumers Association of Bangladesh (CAB), the monthly rent for a two-room apartment in a concrete building was Tk2,942 in 1990. By 2015, it had risen to Tk18,150. The organisation notes that the sharpest increase occurred in the decade following 2006.
Tenants say rent hikes trigger a chain reaction of rising expenses, while incomes—especially for salaried employees—fail to keep pace.
“House rent and commodity prices increase every year, but our salaries do not,” said Ismail Hossain, a resident of Shewrapara.
The Rent Control Ordinance was first introduced in 1963, followed by the House Rent Control Act of 1991, which remains in force. The law states that rent cannot be increased beyond a “standard rent,” which may be revised every two years upon application by either the landlord or the tenant.
It also requires landlords to provide rent receipts, prohibits taking more than one month’s advance rent, and restricts rent increases within a two-year period unless significant structural changes are made. Violations of these provisions are punishable by financial penalties. However, in practice, enforcement remains largely absent.
Experts say the law does not clearly assign responsibility to any specific government authority, contributing to its ineffectiveness. Despite earlier efforts by Dhaka City Corporation to set indicative rent rates based on different areas, the current market shows significant deviations.
In 2008, the authority divided the city into 10 zones and set projected rents. In Dhanmondi, the highest rate along main roads was fixed at Tk13 per square foot.
However, recent listings on Manshir, a real estate marketplace, show rents in the same area reaching up to Tk45 per square foot.
Meanwhile, Dhaka Tribune analysed per-square-foot rental rates from listings on Manshir and found Tk21 in West Shewrapara, Tk60 in Banglamotor, Tk16 in Basabo, Tk13 in Shyamoli Housing (Adabor), Tk17 in Paikpara (Kalyanpur), Tk15 in South Pirerbag, Tk20 in Bhatara, Tk53 in Uttara Sector 14, Tk57 in Gulshan-1, Tk16 in Banasree E Block, Tk48 in Bashundhara I Block, Tk52 in Mohammadpur, Tk54 in Uttara Sector 4, Tk12 in South Donia (Jatrabari), Tk20 in Kazla (Jatrabari), Tk23 in Mirpur-6, Tk30 in areas adjacent to Baridhara DOHS, Tk22 in Talli Office Road (West Dhanmondi), Tk57 in Uttara Sector 3, Tk33 in Aftabnagar Block H, Tk88 in Banani, and up to Tk45 per square foot in Dhanmondi. These rents often exclude additional service charges and utility bills, which tenants say are frequently unjustified.
In many cases, landlords reportedly understate rental amounts in official agreements to evade taxes.
A tenant in Dhanmondi, requesting anonymity, said he pays Tk42,000 in rent, while the contract mentions only Tk23,000.
A revenue official acknowledged the practice, saying many landlords manipulate agreements to reduce holding tax liabilities.
Tenants across Dhaka shared similar experiences of sharp rent increases over time. In Shewrapara, Muzahidul Islam said his family rented a two-room flat in 2006 for Tk2,500, which now costs around Tk11,000—more than a fourfold increase.
A tenant in Madhubagh said his rent increased from Tk7,000 in 2010 to Tk19,600 currently, despite lacking basic facilities such as a functioning generator.
Another resident of Monipuri Para in Farmgate said his rent rose from Tk6,000 in 2007 to Tk18,000 in 2024 before he eventually moved out.
Urban planners attribute the persistent rise in rents to rapid urbanisation and strong demand for housing in Dhaka.
Estimates suggest that by 2030, around 45% of the country’s population will live in urban areas. Better access to education, employment, and services continues to attract people to the capital, increasing pressure on the housing market.
CAB Vice-President S M Nazer Hossain said tenants in Dhaka are among the most vulnerable, as neither landlords nor policymakers fully understand their situation. He called for urgent amendments to the existing law and the establishment of a dedicated authority to oversee rent regulation.
“The government can set area-based rent guidelines, but it must be done systematically,” he said, adding that rents are often increased two to three times a year, particularly when tenants change.
Officials from Dhaka North City Corporation also acknowledged limitations in enforcement. Chief Executive Officer Md Abdul Hai said the 1991 law remains in effect but does not empower local government bodies to enforce it directly.
“We cannot go beyond the legal framework. However, a social mechanism involving landlord and tenant associations could be developed to encourage compliance,” he said.
Dhaka North City Corporation Administrator Safiqul Islam Khan, who was present at the time, also expressed agreement with the remarks made by the chief executive officer.
As rents continue to climb and enforcement gaps persist, tenants across Dhaka face growing uncertainty, with few immediate solutions in sight.
Several countries enforce strong tenant protection laws to ensure fair housing. In Germany and Sweden, rent controls and long-term contracts offer stability. France and the Netherlands limit rent hikes, while Canada ensures strict tenant rights through provincial laws.
In the United States, federal laws protect renters’ rights by ensuring non-discrimination, fair credit checks, and accommodation for persons with disabilities. Landlords are also required to maintain safe living conditions, respect tenant privacy, and disclose hazards such as lead in older properties. While rules vary by state, these core protections define the legal boundaries of landlord-tenant relationships nationwide.
