How to Buy Investment Property in Bangladesh as a Foreigner

One of the first questions many people ask when considering buying real estate in Bangladesh is whether foreign ownership is even allowed.

YES - Foreigners are permitted to own buildings and apartments in Bangladesh, but are generally restricted from owning land outright. Land ownership is typically reserved for Bangladeshi citizens.
However, foreign investors can engage in long-term land leases, especially within designated economic zones or through joint ventures with local entities.

Investing in Bangladesh's Real Estate Market

Bangladesh’s real estate market is undergoing significant growth, fueled by rapid urbanization, a rising middle class, and large-scale infrastructure developments. Cities like Dhaka and Chattogram are at the center of this expansion, with an increasing demand for both residential and commercial properties. Affordable housing is gaining traction in suburban areas such as Uttara, Mirpur, and Purbachal, while luxury developments continue to thrive in elite neighborhoods like Gulshan and Banani. Government-backed projects, including the Padma Bridge and new economic zones, are opening up previously underdeveloped regions for industrial and commercial real estate investment.

Non-Resident Bangladeshis (NRBs) also play a major role, injecting capital into the market through remittances and property purchases, especially in Dhaka and Sylhet. Despite these opportunities, the market faces challenges such as regulatory ambiguity, risks of title deed disputes, limited mortgage access for foreigners, and relatively high interest rates. Still, the long-term outlook remains positive, particularly in areas benefiting from improved connectivity and the rise of green and smart building initiatives.

Rental Yields

Gross rental yields in Bangladesh for long-term tenants hover around 5% to 6%. The real NET yields are likely somewhere around 4% - 5%.

• Dhaka dwellings earn on average a rental yield between 6.23% to 7.52%, with an average of 6.87%.
• Chattogram dwellings earn on average a rental yield between 4.12% to 5.71%, with an average of 4.67%.

Popular investment destinations in Bangladesh (2025):

Dhaka

As the capital and economic center of Bangladesh, Dhaka offers the most diverse real estate opportunities. Affluent neighborhoods like Gulshan, Banani, and Baridhara are popular for luxury apartments, embassies, and corporate offices. Emerging areas such as Uttara and Mirpur are attracting middle-income buyers due to improved infrastructure and amenities. Notably, Rupayan City in Uttara stands out as the country's first mega gated community, featuring residential apartments, shopping malls, schools, and office spaces, making it an attractive option for both residents and investors.

Chattogram (Chittagong)

As Bangladesh's principal seaport and second-largest city, Chattogram is a vital economic zone. The National Special Economic Zone (formerly Bangabandhu Sheikh Mujib Shilpa Nagar), located nearby, spans over 33,000 acres and is being developed into a self-sustaining industrial hub. This zone is attracting significant investment in sectors like textiles, shipbuilding, and pharmaceuticals, boosting demand for residential and commercial properties in the region.

Purbachal New Town

Located northeast of Dhaka, Purbachal is Bangladesh's largest planned township, spanning over 6,000 acres. The area is set to become a major residential and commercial hub, featuring the Bangabandhu Tri-Tower complex, which includes three skyscrapers: Language Tower, Liberation Tower, and Legacy Tower. These developments aim to cater to multinational corporations and upscale residents, offering a mix of luxury apartments, commercial spaces, and essential community services.

Khulna

Situated in southwestern Bangladesh, Khulna is an emerging urban center with growing industrial activities, particularly in shipbuilding and jute processing. The city's strategic location near the Mongla Port and the Sundarbans positions it as a promising area for real estate investments, especially in affordable housing and commercial properties supporting local industries.

Rajshahi

Known for its educational institutions and silk industry, Rajshahi is developing as a regional hub in northern Bangladesh. The city's relatively low property prices and ongoing infrastructure improvements make it an attractive option for investors looking into residential and commercial developments catering to students, professionals, and small businesses.

Cox's Bazar

Famous for having the world's longest natural sea beach, Cox's Bazar is a prime location for tourism-driven real estate investments. The government's focus on developing the area into a major tourist destination has led to increased demand for hotels, resorts, and vacation homes, presenting lucrative opportunities for investors in the hospitality sector.​

Finding Properties for Sale

Here is the most popular property portal in Bangladesh:

• Bproperty.com
• Bikroy.com

If you're serious about buying or investing in Bangladesh, be sure to contact local brokers and visit the properties in person. This will give you a better understanding of the market and help you decide whether to move forward with a purchase or determine that it's not the right fit for you.

Due Diligence and Sales Contract

Due diligence is an essential part of purchasing real estate, especially for foreign investors navigating a complex regulatory environment. This process includes verifying the legal ownership of the property through a title search to ensure that it is free from disputes, mortgages, tax liabilities, or any other encumbrances. Buyers must also confirm that the property’s intended use complies with local zoning and land-use regulations. In Bangladesh, land can be privately owned, but acquiring clear, dispute-free documentation is critical due to common issues such as overlapping claims and inheritance-related complications. The title verification is typically conducted through the local land registry office and relevant authorities, and it is strongly recommended to hire a local lawyer or qualified real estate professional to assist with the process.

The purchase itself involves signing a formal sales agreement, commonly referred to as a “Bayna Nama” (Sale Deed), which outlines the property details, sale price, payment method, possession date, and obligations of both parties. This agreement must be notarized and then registered at the appropriate Sub-Registrar’s Office. The buyer is also responsible for ensuring that all applicable taxes, such as stamp duty and registration fees, are paid in full before the property can be officially transferred and recorded in their name. While Bangladeshi property law provides basic legal protections, buyers, especially foreigners, must exercise caution and perform thorough due diligence to avoid legal complications or fraud.

Financing for Non-Residents

Financing real estate as a foreigner in Bangladesh presents considerable challenges. Local mortgage options are generally not available to non-resident foreigners, as most Bangladeshi banks require borrowers to be citizens or permanent residents. Consequently, foreign investors typically finance property purchases using personal funds or by securing loans from international banks or private lenders based outside of Bangladesh. Another approach is to enter into joint ventures with local partners or entities, which can sometimes help navigate financial and legal hurdles.

Even when financing is possible, local banks tend to adopt a conservative lending approach, with high interest rates and loan-to-value (LTV) ratios often requiring buyers to make down payments of 30% to 50% or more. These conditions reflect the country’s macroeconomic environment, including inflationary pressures and a relatively high cost of borrowing. Because of these limitations, many foreign investors prefer to pursue all-cash transactions or explore alternative investment structures when entering the Bangladeshi real estate market.

Property Buying Costs and Taxes in Bangladesh

Further reading: Guide to Property Taxes in Bangladesh.