Colombo, Could 2025 — The Sri Lankan land market is gaining renewed energy, with Colombo and the broader Western Province main the best way in worth progress, based on the newest Land Worth Index (LPI) printed by LankaPropertyWeb (LPW).
The 2025 index reveals that land costs in Colombo metropolis (Colombo 1-15) have risen by 7% year-on-year, whereas the general Western Province recorded an 12% enhance — a notable leap from the 8% rise noticed the earlier yr. The report highlights a sustained upward pattern in land values, notably in Colombo’s suburbs and key districts like Gampaha and Kalutara.
Inside the Colombo district (excluding the Colombo 1-15 space), common land costs surged by 20%, underscoring a shift in investor focus towards suburban locales providing higher affordability and growth potential. Gampaha district noticed a powerful 14% rise, whereas Kalutara posted a extra modest however regular 6% enhance over the previous yr.
In keeping with LPW, demand has been particularly sturdy for lands priced under Rs. 500,000 per perch. This section noticed a exceptional 107% worth enhance between the primary quarter of 2020 and 2025. In distinction, high-end plots priced above Rs. 9.5 million per perch skilled restricted progress, suggesting a tilt in purchaser choice towards extra reasonably priced and mid-range properties.
Per Perch Worth Improve as a % (2024 Q1 – 2025 Q1)
(Principal Cities of Colombo District excluding Colombo 1-15)
Colombo’s actual property panorama continues to evolve. The central Colombo 1-15 space registered a 7% uptick in land values this yr, constructing on constant beneficial properties during the last 5 years. Nonetheless, it’s the rising suburbs which might be exhibiting probably the most dynamism. Kolonnawa led the district with a 21% worth enhance, pushed by its proximity to the town, improved transport hyperlinks, and ongoing city growth tasks. Piliyandala, Athurugiriya, and Homagama additionally recorded wholesome beneficial properties, reflecting sustained investor curiosity.
In Gampaha district, Yakkala emerged as a standout performer, with land costs hovering by 55%, whereas the Gampaha metropolis space itself recorded a 42% hike. The district’s enhanced connectivity, increasing infrastructure, and rising enchantment as a suburban hub have fueled this surge.
Kalutara district confirmed reasonable however constant progress, with Ingiriya was the town with the very best land worth 20% enhance in Kalutara district and Horana posting a big 16% enhance. Panadura reflecting a positive 7% rise, signaling renewed confidence amongst buyers and builders.
Per Perch Worth Improve as a Proportion (2020 Q1 – 2025Q1)
(Principal Cities of Colombo District Excluding Colombo 1-15)
LPW’s index information means that worth appreciation has been strongest in areas tied to infrastructure upgrades and suburban growth agendas. “It’s evident that demand has steadily shifted from district capitals to well-connected suburbs with promising progress prospects,” the report famous.
The market’s restoration follows a difficult interval marked by financial headwinds, together with excessive rates of interest and constrained lending from business banks. Nonetheless, with the Central Financial institution’s latest easing of financial coverage and stabilization of rates of interest, LPW expects the land market’s resurgence to proceed via the rest of 2025.
This index captures annual adjustments in land costs in probably the most populated province in Sri Lanka; Western Province. Publicly accessible asking costs for naked lands printed in LPW, and in different on-line media had been used within the evaluation. The Land Worth Index considers the bottom costs of 2018 equal to 100 when figuring out the value fluctuation within the years after. The Q1 2025 replace displays a comparability with the typical of Q1 2024.
Costs throughout the space could have their very own variances, similar to land near major roads or junctions being costly and above common. For those who want to receive extra correct costs on your land or neighborhood costs, then it is best to view ‘land on the market’ listings for that space, and test with an property agent or a registered valuer in your space.
Past the index, LankaPropertyWeb affords a set of instruments and assets for buyers and homebuyers, together with property listings, valuation experiences, worth meters, and market insights, reinforcing its place as Sri Lanka’s main on-line actual property platform.
For the total checklist of land costs for Q1 2025, go to: https://www.lankapropertyweb.com/land-prices/
