Colombo Land price movement records at its flattest in many years: RIUNIT
By: Staff Writer
January 30, Colombo (LNW): The Real Estate market in Sri Lanka has been experiencing significant growth in recent years and it is expected to reach a value of US$589.80bn by 2024.
The residential segment holds the largest share in the market, with a projected market volume of US$341.00bn in 2024.
This segment is anticipated to grow at an annual rate of 6.60% (CAGR 2024-2028), resulting in a market volume of US$761.60bn by 2028.
Amidst a growing tourism industry, Sri Lanka’s real estate market is experiencing a surge in demand for beachfront properties.
Customer preferences in the market have been shifting towards more modern and luxurious properties.
There is a growing demand for high-end apartments and condominiums, especially in urban areas. This trend can be attributed to the increasing urbanization and the rise in the number of middle-class and affluent individuals in the country.
Additionally, foreign investors are also showing interest in the Sri Lankan real estate market, further driving the demand for upscale properties.
One of the key trends in the market is the development of integrated mixed-use projects. These projects combine residential, commercial, and recreational spaces in a single development, providing residents with convenience and a wide range of amenities.
This trend is driven by the desire for a holistic lifestyle and the need for convenience in today’s fast-paced world
The research firm that specialises in the Sri Lankan real estate market says that the average land prices in Colombo city, denominated in LKR, experienced a marginal increase from Rs. 14.024 million per perch in November to Rs. 14.038 million per perch in December.
Similarly, when assessed in USD terms, the prices rose from $ 42,725 per perch in November to $ 42,965 per perch in December.
Its monthly real estate market surveillance update flagged Colombo 5 as having the highest growth rate of average land price per perch within the Colombo city land market. It has increased nearly by 3% (Y-o-Y) during the time period from December 2022 – December 2023.
In the suburban areas of Colombo, the trend continued with average land prices in LKR terms rising from Rs. 2.474 million per perch in November to Rs. 2.486 million per perch in December 2023.
In USD terms, this equated to an increase from $ 7,538 per perch to $ 7,611 per perch over the same period. RIUNIT ongoing research captured Rajagiriya as having the highest growth rate of average land price per perch in the Colombo suburban land market. It has increased nearly by 6% (Y-o-Y) during the time period from December 2022 – December 2023.
Whilst the land market is still on a positive incline, the rate of increase is extremely sluggish at present. Moreover, we at RIUNIT have witnessed high growth rates even during the civil conflict before 2009. However, we do expect the market to pick up toward the latter part of 2024.
The Research Intelligence Unit (RIUNIT), is the first agency to start collecting land price data in Sri Lanka and other Asian countries since 2003.