Dhaka’s Old Town faces a housing crisis as rents soar and factories invade homes
Old Town, Dhaka, is facing a deepening housing crisis as rents surge and unsafe industrial encroachment spreads. Working-class families and students now struggle to afford homes, with many spending over 60% of their income on rent. The situation highlights long-standing failures in urban governance, from unregulated construction to weak tenant protections.
The area has a rich history of craftsmanship and resilience, with generations of families sustaining its commercial and cultural life. But in recent years, residential buildings have been converted into warehouses and factories, shrinking the housing supply. Rents have climbed by 30-45% in just five years, pushing many out of their homes.
Landlords often demand six to twelve months’ rent upfront, making it nearly impossible for low-income renters to secure housing. The crisis is worsened by unenforced zoning laws and a lack of inspections, allowing hazardous industries to operate in residential zones. The 2019 Chawkbazar fire, which killed over 70 people, exposed the deadly risks of unchecked industrial activity in living areas. Nearly three-quarters of Dhaka’s residents rely on rented apartments, yet policies still favour home ownership over tenant rights. Experts argue that restoring balance will require modernising rent laws, introducing transparent rent-setting mechanisms, and ensuring fair dispute resolution. Industrial encroachment must also be controlled, with dangerous factories relocated and fire safety measures strengthened. Public investment and community cooperatives could help preserve affordable heritage housing, preventing further displacement. While organisations like Berlin’s Mieterverein and local realtors have tackled similar crises elsewhere, no specific 2023 survey on Old Town’s rental market exists.
Without urgent reforms, the housing crisis in Old Town will deepen, forcing more families out of their homes. Strengthened tenant protections, regulated industrial zones, and affordable housing initiatives are needed to stabilise the situation. The area’s future depends on whether policymakers can address these long-ignored challenges.
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