London vs Dhaka: Cost of Living Comparison
Comparing London and Dhaka reveals a massive economic divide between a global financial hub and one of South Asia's fastest-growing megacities. London is significantly more expensive across every metric, with the overall cost of living being approximately 250% to 300% higher than in Dhaka. While London offers world-class infrastructure and higher wages, Dhaka provides an extremely low barrier to entry for those with foreign currency, offering a lifestyle that is far more affordable for basic necessities and services.
Is London more expensive than Dhaka?
Yes, London is vastly more expensive than Dhaka. In terms of local purchasing power, Londoners earn significantly more, but their expenses for rent and services are among the highest in the world. For someone relocating from London to Dhaka, a salary of $2,500 per month would facilitate a luxury lifestyle in Bangladesh, whereas the same amount would barely cover a studio apartment and basic utilities in the United Kingdom. When standardized in USD, consumer prices in London are roughly 180% higher than in Dhaka, excluding rent.
Housing and Rent: London vs Dhaka
The housing market is where the gap is most pronounced. In London, a one-bedroom apartment in the city center typically costs between $2,800 and $3,500 per month. In contrast, a modern, high-end one-bedroom apartment in Dhaka’s premium neighborhoods like Gulshan or Banani costs between $400 and $700. On average, rent in London is over 500% more expensive than in Dhaka. Property prices follow a similar trend, with London’s price per square meter being nearly 10 times higher than Dhaka’s real estate market.
Dining and Groceries: London vs Dhaka
Food costs in Dhaka are a fraction of those in London. An inexpensive meal in London averages $25, while a similar meal at a local eatery in Dhaka costs about $3 to $5. For a mid-range three-course dinner for two, Londoners pay approximately $100, compared to $25 in Dhaka. Grocery shopping for staples like eggs, rice, and local produce is roughly 60-70% cheaper in Dhaka. However, imported Western brands in Dhaka can be surprisingly expensive due to high import duties, sometimes matching London prices.
Transport and Connectivity: London vs Dhaka
London’s public transport system (The Tube and buses) is highly efficient but expensive, with a monthly pass costing roughly $200. Dhaka’s transport system is more chaotic and congested, but significantly cheaper, with monthly commuting costs rarely exceeding $25 for public transit and rickshaws. Fuel prices are generally higher in London. It is worth noting that while transport is cheap in Dhaka, the 'time cost' due to heavy traffic congestion is a major factor that expats must consider.
Lifestyle and Utilities: London vs Dhaka
Utilities, including electricity, heating, and water for an 85sqm apartment, average $350 in London, while in Dhaka, they typically range between $60 and $90. High-speed internet is relatively affordable in both cities, though London offers more consistent reliability. Leisure activities like cinema tickets ($18 in London vs $6 in Dhaka) and gym memberships ($60 in London vs $30 in Dhaka) further highlight the affordability of Dhaka for entertainment and health.
How to get from London to Dhaka
There are currently no direct flight routes between London (LHR) and Dhaka (DAC). Travelers usually opt for one-stop flights through major Middle Eastern or European hubs. Common routes include connections via Dubai with Emirates, Doha with Qatar Airways, or Istanbul with Turkish Airlines. The total travel time, including layovers, typically ranges from 13 to 16 hours.
The Verdict: London or Dhaka?
The choice between London and Dhaka depends entirely on your economic goals and tolerance for infrastructure challenges. London is ideal for ambitious professionals and families who prioritize safety, public services, and global career opportunities. Dhaka is a compelling choice for digital nomads or retirees with USD-based income who want to maximize their purchasing power and enjoy a lifestyle involving domestic help and luxury housing at a low cost. However, one must weigh the cost savings in Dhaka against the city's air quality and traffic challenges.
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