The Real Estate Boom in Gulshan, Baridhara, and Banani: An In-Depth Analysis

Over the past decade, the neighborhoods of Gulshan, Baridhara, and Banani in Dhaka have witnessed a remarkable surge in both residential and commercial real estate prices. This increase is not merely a reflection of market trends but is driven by a confluence of factors that make these areas highly desirable for both living and investment. From land scarcity to high-quality amenities and enhanced security, the reasons behind this real estate boom are multifaceted.

The Demand Surge

According to Md Wahiduzzaman, President of the Real Estate and Housing Association of Bangladesh (REHAB), the demand for properties in these areas has skyrocketed due to their desirable civic amenities. "Over the last ten years, property values in these locations have risen by 40 to 50 percent compared to other areas," he stated. This demand is fueled by the allure of exclusive living environments that offer a blend of luxury and convenience.

In 2000, the average price for flats in Gulshan was BDT 2,450 per square foot, while Banani and Baridhara followed closely at BDT 2,200 and BDT 2,150 per square foot, respectively. Fast forward to today, and the prices have escalated dramatically. Flats in Gulshan now range from BDT 18,000 to BDT 36,000 per square foot, while Banani and Baridhara see prices between BDT 15,000 to BDT 19,000 and BDT 22,000 to BDT 30,000 per square foot, respectively.

The Scarcity Factor

One of the primary drivers of the price surge is the scarcity of land in these affluent neighborhoods. An industry insider explained that real estate companies are paying up to six times more for land in Gulshan compared to other upscale areas like Bashundhara. This scarcity not only inflates land prices but also creates a competitive market where developers are vying for limited plots.

Within these exclusive zones, certain areas command even higher prices. For instance, flats in North Gulshan are priced higher than those in South Gulshan, and Baridhara’s Diplomatic Zone, known for its secure environment and proximity to embassies, is particularly expensive.

The Appeal of High-Quality Amenities

The demand for premium amenities has also played a significant role in driving up property prices. Aysha Siddiqa, Executive Director of BTI, noted that developers are compelled to raise prices due to the high expectations of buyers for luxury features. The cost of development increases significantly when larger plots are needed to accommodate amenities like gyms, swimming pools, and landscaped gardens. "The shortage of large plots suitable for modern buildings is a major factor driving up prices," she explained.

In Banani, for example, there is a high demand for apartments on Roads 11 and 12, particularly among expatriates, due to the quality of life and amenities available in the area.

Preferences in Apartment Sizes

The preferences for apartment sizes vary across Gulshan, Banani, and Baridhara. In Banani, the most sought-after sizes range from 1,500 to 2,000 square feet, accounting for 72% of the demand. Gulshan favors larger apartments, with 2,000 to 3,000 square feet making up 47.5% of the demand. In Baridhara, the trend shifts towards even larger spaces, with 3,000 to 3,500 square feet accounting for 23% of the demand. Interestingly, Baridhara DOHS shows a significant preference for smaller apartments of 1,300 to 1,400 square feet, representing 67% of the demand.

Leading Developments in the Market

Several prominent real estate developers are making their mark in these areas. BTI’s Magnifico in North Gulshan features high-end amenities and smart home technology, while Navana’s Khodeja Pinewood in Baridhara is another notable project. Bay’s Chayaneer in Baridhara offers exclusive single apartments per floor, accessed via private lobbies for enhanced security and privacy. Desired features in these luxury apartments include landscaped gardens, infinity pools, fully equipped gyms, and advanced security services.

Regulatory Landscape and Compliance

The regulatory environment also plays a crucial role in shaping the real estate market. Major General Md Siddiqur Rahman Sarker (Retd.), Chairman of Rajdhani Unnayan Kartripakkha (RAJUK), discussed the Detailed Area Plan (DAP) and the concept of Floor Area Ratio (FAR), which varies based on factors such as the proximity of roads to plots and the population density of specific areas. For instance, the FAR for Gulshan-Baridhara is 5.8, while for Gulshan-Banani, it is 5.7.

However, not all developers adhere to these regulations. Aysha Siddiqa pointed out that non-compliant builders can offer lower prices and still make a profit, but they fail to meet regulatory standards. This discrepancy can lead to issues such as the inability to provide necessary occupancy certificates, which are crucial for legal property registration.

The Importance of Occupancy Certificates

Obtaining an Occupancy Certificate (OC) is mandatory to ensure that a building complies with local laws and safety standards. Shihab Ahmed, Senior General Manager and Head of Sales and Customer Service at Shanta Holdings Limited, emphasized that adherence to these regulations is a standard part of their development process. "At Shanta Holdings, ensuring every project meets all legal requirements is essential," he stated.

While an OC is crucial for legal occupancy and property registration, it does not directly affect property prices. Factors such as location, amenities, design, and market demand are more significant in determining property value.

Conclusion

The real estate landscape in Gulshan, Baridhara, and Banani is a testament to the dynamic interplay of demand, scarcity, and quality. As these neighborhoods continue to evolve, the factors driving property prices will likely remain complex and multifaceted. For potential buyers and investors, understanding these dynamics is essential for making informed decisions in this competitive market. As the demand for exclusive living spaces grows, the allure of these neighborhoods will undoubtedly continue to shape the future of real estate in Dhaka.

For the latest updates on real estate trends and developments, follow The Daily Star’s Google News channel.