For both local and foreign buyers, commercial real estate in Dhaka has emerged as one of the most lucrative investment possibilities. The city’s fast urbanisation, ongoing economic expansion, and the creation of new business districts are the main causes of the need for office space, retail space, and mixed-use complexes.
Understanding how to determine the value of commercial property in Bangladesh is one of the key components of investing. The valuation of commercial real estate is more complex than that of residential apartments, where location and amenities are the most crucial factors. This is because several financial, legal, and market evaluations need to be considered.
BProp is your trusted property advisor and we assist investors in making wise real estate choices. This is a thorough method for determining the value of commercial real estate in Dhaka.
1. Location, Proximity & Demographics
The most crucial factor in determining a commercial property’s value is its location. Due to interest and demand from offices, banks, and retail establishments, commercial and business centres such as Motijheel, Gulshan, Banani, Dhanmondi, and Uttara might have a beneficial impact on prices. When assessing commercial property in Dhaka it is important to confirm:
- Proximity to commercial centres Offices that are close to business or commercial districts will draw more valuable tenants than those that are farther away.
- Transportation access – Improving access by road, metro rail, or bus route, improves rental potential.
- Access to transportation: Increasing accessibility by bus, metro rail, or road increases the likelihood of renting a property.
- Planned infrastructure in the neighbourhood: Upcoming construction projects in the area, such as flyovers or metro subway stations, may significantly raise the value of nearby real estate in the future.
2. Property Size, Layout & Usability
The ability of a property to generate even, steady rent is closely related to its value as commercial real estate in Dhaka. When assessing commercial property in Dhaka it is important to consider these factors:
- Tenant profile: Commercial Properties rented by government bodies, banks, multinational corporations, and well-known brands are worth more.
- Rental demand: Examine local rental rates in relation to the average rate. For example, an office building in Gulshan probably has a bigger rental income problem than one in Mirpur.
- Rates of occupancy: In general, demand is high for properties that are not vacant.
- Lease conditions: If a long-term lease is signed with a long-term renter. This increases the security of your investment.
3. Condition of the Commercial Property
The value and rentability of a property can be significantly impacted by its upkeep. The following are some examples of geographical aspects to evaluate:
- Tenants will pay more for high-quality construction, which includes a sturdy base and a contemporary building.
- The history of maintenance: neglected maintenance can result in costly repairs.
- The facilities offered include central air conditioning, alarm systems, backup generators, elevators, and more. These could make the property more appealing.
4. Legal & Ownership Verification
A clear title in the seller’s name is a crucial factor in Dhaka’s commercial property appraisal process. Properties with title challenges are riskier and frequently sell for lower prices.
- Verifying that the seller genuinely possesses title in their name is known as title deed verification.
- Mutation documents: Verify that the transfer of the property has been noted in the government’s land records.
- Verify land use approval: This is to make sure you can legally run your company once you acquire the property.
- Verify the property is free and clear of previous owners’ financial obligations by checking the mortgage status.
5. Comparisons in the Market
Comparing the property to similar properties in the same neighbourhood is the simplest method of estimating its worth. When assessing different commercial properties in Dhaka you should examine:
- Recent sales of comparable office or retail properties in the area; * Price trends per square foot for properties in Dhaka’s main business districts and corridors.
- Shifts in demand: As a result of startup demand, co-working space demand has been rising.
- To assist you in determining a reasonable price, the BProp can offer you thorough market research and comparisons.
6. Anticipated Rate of Growth
The potential appreciation of a property’s value largely depends on the trends of development in Dhaka. Factors that impact a commercial property’s growth rate include:
- Future infrastructure development (such as expansions of metro rail lines and expressway projects).
- Government plans – For example, taxes or a related policy to provide incentives in developed areas are often built into their future value.
- Changes or trends of demand – For example, retail demand may increase if population demand increases in an area such as Mirpur or Uttara.
- Properties in more developmental commercial areas, often provide higher (long term) appreciation.
In Conclusion
Determining the price per square foot is only one aspect of evaluating commercial real estate in Dhaka. The real market value is determined by a number of factors, including location, rents, future worth, and legal due diligence.
At BProp, we help buyers, sellers, and real estate investors navigate the intricacies of Dhaka’s commercial real estate market. We have the guidance you require whether you wish to expand on what is being created in Uttara, purchase a retail store in Banani, or build new office space in Gulshan. Please contact us if you would like to schedule an appointment with BProp’s team of specialists to find your ideal commercial property in Bangladesh.
