How to Calculate Rental Yield on a Dhaka Apartment

Published Aug 13, 2026 · Investment / ROI

If you're buying for investment rather than to live in, learning how to calculate rental yield on a Dhaka apartment is the single most important skill that separates a good purchase from an emotional one. Two apartments with identical purchase prices can produce very different returns depending on location, unit type, and running costs — and the only way to compare them honestly is with a consistent formula. This guide gives you that formula, area-by-area benchmarks from current market data, and the adjustments experienced investors make that most first-time buyers miss.

The Basic Rental Yield Formula

Gross rental yield is calculated as:

Gross Rental Yield = (Annual Rental Income ÷ Property Purchase Price) × 100

For example, if you buy a Dhaka apartment for BDT 1.2 crore and it rents for BDT 60,000 per month (BDT 7.2 lakh per year), the gross yield is:

(720,000 ÷ 12,000,000) × 100 = 6%

That 6% figure is roughly in line with Dhaka's citywide average gross rental yield, which recent market data places around 6.9%. But citywide averages hide meaningful variation between neighborhoods, unit types, and price points — which is where the real investment decision happens.

Area-by-Area Rental Yield Benchmarks

Based on current market data, rental yields vary noticeably across Dhaka:

Gulshan and Banani — Residential apartments in these premium areas tend to yield closer to 5%, reflecting high purchase prices relative to achievable rents. Commercial spaces in the same areas, by contrast, can yield 8–10%, since commercial rents scale differently than residential ones.

Uttara and Mirpur — Mid-range areas like these tend to post higher yields, in the 10–12% range, because purchase prices are lower relative to rents that remain fairly strong due to steady demand from salaried professionals and families.

Bashundhara — Sits in a middle position, benefiting from strong rental demand tied to nearby universities and the growing commercial cluster, though some analysts flag oversupply risk in certain mid-range apartment clusters here, which can compress yields if too many similar units compete for the same tenant pool.

The pattern is consistent with a broader principle in real estate: prestige areas trade some yield for capital stability and lower vacancy risk, while mid-range areas trade some prestige for stronger cash-on-cash returns. Neither is objectively better — it depends on your investment goal. If capital preservation and long-term appreciation matter more to you than monthly cash flow, our guide on evaluating apartment price per square foot in Gulshan is a useful companion resource for that strategy.

Step-by-Step: Calculating Yield on a Specific Listing

1. Get the honest all-in purchase price, including registration costs (typically 10–12% of deed value for Dhaka apartments), not just the headline sale price.
2. Research achievable rent realistically, using current listings for comparable units in the same building or block — not a developer's optimistic projection.
3. Calculate gross yield using the formula above.
4. Subtract recurring costs to get net yield: service charges, maintenance fund contributions, property tax, insurance (if applicable), and an allowance for vacancy periods between tenants.
5. Factor in financing costs, if you're using a mortgage — with home loan interest rates in Bangladesh running roughly 10–14% in 2025–2026, leveraged purchases can significantly change your effective return, sometimes turning a healthy gross yield into a thin or negative net cash flow if the numbers aren't checked carefully. Our home loan guide for apartment buyers in Bangladesh breaks down current rate ranges in more detail.
6. Stress-test against vacancy. Assume at least one month of vacancy per year in your net yield calculation, even in strong rental areas, to avoid overstating your realistic return.

Net Yield: The Number That Actually Matters

Gross yield is useful for quick comparisons, but net yield is what determines your actual return. The formula:

Net Rental Yield = ((Annual Rental Income − Annual Operating Costs) ÷ Property Purchase Price) × 100

Operating costs typically include building service charges, a maintenance reserve, property tax, and — if financed — the annual interest portion of your mortgage payment. In Dhaka, service charges for well-managed buildings with elevators, generators, and security commonly run a meaningful percentage of rental income, so never treat gross yield as your take-home number when comparing properties.

Common Mistakes Investors Make When Calculating Yield

Using asking rent instead of achieved rent. Listed rental rates are aspirational; actual signed leases in the building are a more reliable input.

Ignoring vacancy periods. A property that sits empty for two months between tenants has its effective annual yield reduced proportionally — this is easy to forget when comparing properties on paper.

Comparing gross yield across areas without adjusting for risk. A 10% gross yield in an oversupplied mid-range cluster may carry more vacancy risk than a 6% yield in a tightly supplied premium area — the higher number isn't automatically the better investment.

Forgetting registration and transaction costs in the yield denominator. Since total registration costs for apartments typically run 10–12% of deed value, leaving them out of your purchase price meaningfully overstates your calculated yield.

This is also where the broader rent-vs-buy calculation intersects with pure investment yield — if you're weighing whether to buy an investment property at all versus continuing to rent your own residence and investing the difference elsewhere, our guide on renting vs. buying an apartment in Dhaka walks through that comparison directly.

Frequently Asked Questions