Market Trends: Is It a Good Time to Sell or Rent?

The Dhaka property market is changing quickly, and homeowners are increasingly faced with a common dilemma: sell your flat now or rent it instead? With property prices that are unpredictable, rising demand for rental apartments, and behavioral shifts in buyers, it is not an easy question to answer. 

And at BestBari, we strongly believe in empowering property owners to make the best-informed decision. In this article, we will look into the trends of the current property market in Dhaka, the pros and cons of selling and renting, and the key considerations in your decision.

Current Real Estate Market Trends in Dhaka

1. Steady Demand for Flats

In the face of uncertainties in the global economy, Dhaka continues to see strong housing demand driven by rapid urbanization and population growth. Areas like Gulshan, Banani, Dhanmondi, and Bashundhara R/A continue to be highly sought after irrespective of the prospect of buying or renting.

2. Rising Rental Market

A growing number of young professionals and families are opting for renting rather than home-buying largely because of the higher upfront cost of purchasing property. This is pushing rental yields higher in those desirable neighborhoods.

3. Construction and Development Boom

All over Dhaka, new projects are developing, particularly in Uttara, Mirpur and Purbachal. While the new developments offer buyers more options, it also makes selling more competitive landing with sellers.

4. Price Fluctuations

Prices in prime areas have been stable, as mid-range apartments in up-and-coming areas have been appreciating slowly. This just means if you’re looking to get the most out of your investment, you will need to time your sale.

Selling Your Flat: Pros and Cons

Advantages of Selling

Immediate Cash Flow: A one-time payment can be invested into business, another property, or another type of financial asset.

Avoids Long-Term Maintenance: If you sell the property, you’re no longer responsible for upkeep, maintenance, and tenant issues.

Capital Gains: If the market allows, selling can yield high profits above the original purchase price.

Disadvantages of Selling

Market Risk: If the value of housing continues to rise in the coming years, your housing will appreciate in value as well.

Tax Consequences: You may incur capital gains tax depending on how you structure your sale.

Loss of Rental Income: When you sell the property, you will no longer have the opportunity to generate monthly income. 

Renting Your Flat: Pros and Cons

Advantages of Renting

Stable Flow of Income: You can use steady rental income to make mortgage payments or as some passive income.

Appreciation: You still own the property and can take advantage of some increase in future value.

Flexibility: You have an option to sell the property later when the value rises in the market.

Disadvantages of Renting

Maintenance Costs:As a property owner, you will have a responsibility for things such as repairs, services, and sometimes renovation work. 

Tenant Issues:The possibility of tenants missing rental payments, or potentially damaging your property can be stressful. 

Vacancy Risks: If your apartment remains empty, you will not be producing income from it while having expenses associated with maintaining it.

Key Factors to Consider Before Deciding

1. Your Financial Goals

If you need a substantial sum of money right now, selling is probably preferable.

If you would rather have continuing income, then renting is a more stable way of financing.

2. Market Conditions in Your Area

If you’re in a neighborhood that is in demand for rentals, like Banani or Gulshan, then renting could realize you more wealth.

If you are in an area where new developments are attracting positive draws for buyers, selling could perform better.

3. Property Age and Condition

recent apartment in a good location tends to have a high resale value. 

An aging apartment may be a better rental property until prices increase in the market. 

4. Long-Term Plans

If you are going to relocate overseas, renting allows your ownership to be secure and earn interest. 

If you are relocating capital, selling the property allows you to access cash.

Tips for Selling Your Flat in Dhaka

Price your property competitively by finding listings similar to yours.

Show off the advantages of the location (close to schools, shopping, workplaces).

Make minor renovations to attract more buyers.

Promote your property on reputable websites like BestBari.

Tips for Renting Out Your Flat

1 Vet tenants carefully to avoid late rent payments. 

2 Provide a clean, well-kept multiple-occupancy flat for good tenants.  

3 Establish a clear rental agreement to protect your rights. 

4 Look into property management services as a low-maintenance option.

Final Thoughts: Sell or Rent?

The answer is contingent on your financial situation, ongoing goals, and the state of the market. If you require low liquidity, or if you want to turn around and reinvest, then selling might be the proper approach. If you’d rather receive a steady source of income, and you want to keep it in a more long-term value play, then renting might be your wiser option. 

At BestBari, we provide professional advice, have available properties, and offer personalized value planning that gets you the most value for your decision. 

See the latest flats for sale and apartments for rent in Dhaka now and see which option for buying a flat or apartment rental is best for you.