Sharp rise in city house rent
Wednesday, 26 December 2007
FE Report
House rent in Dhaka city has risen sharply over the years gobbling up almost half the incomes of average tenants as there is no effective body to protect tenant rights.
Tenants belonging to the upper middle, middle, lower middle and lower income groups are subject to the whims of the house owners in fixation of rent every year.
According to a survey conducted by the Consumers Association of Bangladesh, house rent in the Dhaka city increased by 249.62 per cent in the past 17 years.
The survey found that the year-on-year rise of the house rent in Dhaka city was 17.40 per cent in 2001, 13.49 per cent in 2002, 8.40 per cent in 2003, 9.96 per cent in 2004, 7.89 per cent in 2005 and 14.14 per cent in 2006.
House rent in Dhaka witnessed a galloping rise in 1991 by over 23 per cent and it continued afterwards, said the association.
CAB sources said there was a rent control division, headed by a joint district judge to settle rent related disputes.
Although there is a law-Premises Rent Control Ordinance 1991 -- to protect the tenancy rights, it is not time-befitting and of no use for the tenants, sources in the CAB added.
The people, especially those of middle and lower middle-class, were helpless while looking for accommodations with all necessary facilities at reasonable rents.
Besides, the developers, who build apartments in Dhaka, do not make apartments for the middle-class people at affordable prices. The Dhaka City Corporation (DCC) should have rent control offices in each of its wards, the sources also said.
Although holding tax of the DCC has not been raised, the house owners continued to enhance the rents, sources added.
They said people belonging to fixed-income middle, upper middle and lower middle groups spend nearly 50 per cent of their monthly incomes.
The sources said rise in the city population and a slump in construction have fuelled the rate of house rents.
According to tenants, the rent at different parts of the capital varies depending on the space, location and amenities. During the last five years, house rent increased between 20 and 25 per cent, said tenants at different locations.
In Mirpur, Mohammadpur, Basabo, Rampura, Khilgaon, Shahjahanpur, Mugdah, Maniknagar, Jatrabari, Jurain nd adjacent areas, monthly house rent rises by Tk 1,000 to Tk 2,000 a year. Average house rents range between Tk 3,000 and 5,000.
The increase of monthly rent of apartment ranged between Tk 3,000 and Tk 5,000 in Dhanmodi, Green Road, Elephant Road, New Eskaton, central Mogbazar, Malibagh, Siddeswari, Shantinagar, Segunbagicha, Azimpur, Poribagh, Farmgate and adjacent areas, where rent averages Tk 12,000 to Tk 15,000.
In Mirpur and the southeastern areas of Dhaka, a one-bed house is available at Tk 3,500 to Tk 4,500 excluding the utility bills while it ranges between Tk 5,000 and 7,500 for two-room flats.
In central Dhanmondi area, the rent for two-bed well-furnished flats ranges between Tk 40,000 and Tk 50,000, which was maximum Tk 30,000 five years back, tenants in the area said.
The rent for an ordinary flat in Dhanmondi is Tk 15,000 to Tk 20,000, which was between Tk 12,000 and Tk 15,000 five years ago.
In Gulshan, a normal two-bed house is available at between Tk 18,000 and Tk 20,000, which was between Tk 12,500 and Tk 15,000 five years ago, a tenant said.
Rent of a three-bed standard house in Lalmatia area ranges between Tk 17,000 and Tk 20,000, which was between Tk 12,000 and Tk 13, 000 in 2000.
The rent in slums also rose sharply by Tk 200 to Tk 300 per room this year. The house rent there ranges between Tk 300 and Tk 800.
Hassan Masud, a private university teacher, told the FE that there was no control over house rent in absence of effective government measures. He also said there is no authority to monitor the growth of house rent.
Both the house owners and tenants create problems at different situations, said Munira Sultana, a school teacher.
She said on many occasions the house owners add to the sufferings of the tenants by disrupting water supply and increasing rent without any valid ground while the tenants become disturbing for the owners for irregular payment of house rent.
Anower Hosain, a landlord in the city's Khilgoan area, said: "We are forced to increase house rent, because charges on utilities, including Gas, power and water, are raised by the government. Besides, cost of building houses has gone up sharply because of price hike of construction materials such as cement, sand and mild steel (MS) rod.
He also said the house owners, who live on earning from the rents, are also hurt by the price rise of essential commodities.
Jahanara Akter, a tenant of Mohamadpur area, said: "We have been virtually harassed by land lords by way of raising rents and rationing utility services, particularly water supply. Prices of essential commodities and house rent are soaring day-by-day".
She said if house rent escalates prices and service charges go up in proportion. "For example, tuition fees in kindergartens soar with the hike of house rents," she added.
"Although about 90 per cent of about 15 million people in Dhaka are tenants, there is no effective law to protect their rights. The existing rent control ordinance is mostly in favour of landlords," said a DCC official, adding that the law was not time-befitting and it should be revised.
According to the DCC, there are more than 0.2 million holdings in the city. Most of the house owners have a tendency to evade holding tax by concealing the actual rent taken from the tenants.
The house owners increase rent every year, but they do not pay tax accurately, sources said.
House rent in Dhaka city has risen sharply over the years gobbling up almost half the incomes of average tenants as there is no effective body to protect tenant rights.
Tenants belonging to the upper middle, middle, lower middle and lower income groups are subject to the whims of the house owners in fixation of rent every year.
According to a survey conducted by the Consumers Association of Bangladesh, house rent in the Dhaka city increased by 249.62 per cent in the past 17 years.
The survey found that the year-on-year rise of the house rent in Dhaka city was 17.40 per cent in 2001, 13.49 per cent in 2002, 8.40 per cent in 2003, 9.96 per cent in 2004, 7.89 per cent in 2005 and 14.14 per cent in 2006.
House rent in Dhaka witnessed a galloping rise in 1991 by over 23 per cent and it continued afterwards, said the association.
CAB sources said there was a rent control division, headed by a joint district judge to settle rent related disputes.
Although there is a law-Premises Rent Control Ordinance 1991 -- to protect the tenancy rights, it is not time-befitting and of no use for the tenants, sources in the CAB added.
The people, especially those of middle and lower middle-class, were helpless while looking for accommodations with all necessary facilities at reasonable rents.
Besides, the developers, who build apartments in Dhaka, do not make apartments for the middle-class people at affordable prices. The Dhaka City Corporation (DCC) should have rent control offices in each of its wards, the sources also said.
Although holding tax of the DCC has not been raised, the house owners continued to enhance the rents, sources added.
They said people belonging to fixed-income middle, upper middle and lower middle groups spend nearly 50 per cent of their monthly incomes.
The sources said rise in the city population and a slump in construction have fuelled the rate of house rents.
According to tenants, the rent at different parts of the capital varies depending on the space, location and amenities. During the last five years, house rent increased between 20 and 25 per cent, said tenants at different locations.
In Mirpur, Mohammadpur, Basabo, Rampura, Khilgaon, Shahjahanpur, Mugdah, Maniknagar, Jatrabari, Jurain nd adjacent areas, monthly house rent rises by Tk 1,000 to Tk 2,000 a year. Average house rents range between Tk 3,000 and 5,000.
The increase of monthly rent of apartment ranged between Tk 3,000 and Tk 5,000 in Dhanmodi, Green Road, Elephant Road, New Eskaton, central Mogbazar, Malibagh, Siddeswari, Shantinagar, Segunbagicha, Azimpur, Poribagh, Farmgate and adjacent areas, where rent averages Tk 12,000 to Tk 15,000.
In Mirpur and the southeastern areas of Dhaka, a one-bed house is available at Tk 3,500 to Tk 4,500 excluding the utility bills while it ranges between Tk 5,000 and 7,500 for two-room flats.
In central Dhanmondi area, the rent for two-bed well-furnished flats ranges between Tk 40,000 and Tk 50,000, which was maximum Tk 30,000 five years back, tenants in the area said.
The rent for an ordinary flat in Dhanmondi is Tk 15,000 to Tk 20,000, which was between Tk 12,000 and Tk 15,000 five years ago.
In Gulshan, a normal two-bed house is available at between Tk 18,000 and Tk 20,000, which was between Tk 12,500 and Tk 15,000 five years ago, a tenant said.
Rent of a three-bed standard house in Lalmatia area ranges between Tk 17,000 and Tk 20,000, which was between Tk 12,000 and Tk 13, 000 in 2000.
The rent in slums also rose sharply by Tk 200 to Tk 300 per room this year. The house rent there ranges between Tk 300 and Tk 800.
Hassan Masud, a private university teacher, told the FE that there was no control over house rent in absence of effective government measures. He also said there is no authority to monitor the growth of house rent.
Both the house owners and tenants create problems at different situations, said Munira Sultana, a school teacher.
She said on many occasions the house owners add to the sufferings of the tenants by disrupting water supply and increasing rent without any valid ground while the tenants become disturbing for the owners for irregular payment of house rent.
Anower Hosain, a landlord in the city's Khilgoan area, said: "We are forced to increase house rent, because charges on utilities, including Gas, power and water, are raised by the government. Besides, cost of building houses has gone up sharply because of price hike of construction materials such as cement, sand and mild steel (MS) rod.
He also said the house owners, who live on earning from the rents, are also hurt by the price rise of essential commodities.
Jahanara Akter, a tenant of Mohamadpur area, said: "We have been virtually harassed by land lords by way of raising rents and rationing utility services, particularly water supply. Prices of essential commodities and house rent are soaring day-by-day".
She said if house rent escalates prices and service charges go up in proportion. "For example, tuition fees in kindergartens soar with the hike of house rents," she added.
"Although about 90 per cent of about 15 million people in Dhaka are tenants, there is no effective law to protect their rights. The existing rent control ordinance is mostly in favour of landlords," said a DCC official, adding that the law was not time-befitting and it should be revised.
According to the DCC, there are more than 0.2 million holdings in the city. Most of the house owners have a tendency to evade holding tax by concealing the actual rent taken from the tenants.
The house owners increase rent every year, but they do not pay tax accurately, sources said.