Colombo, Sri Lanka – The Sri Lankan actual property market has been experiencing a notable surge in curiosity from abroad buyers, with a major 33% enhance in inquiries about Sri Lankan properties in 2023 in comparison with the earlier 12 months. This pattern is highlighted within the Actual Property Market Outlook Report 2024 (REMOR24) by LankaPropertyWeb, Sri Lanka’s main actual property portal.
Rising Demand for Residential Flats
The REMOR24 report reveals that residential flats are set to dominate Sri Lanka’s actual property market by 2025. The Western Province, with Colombo on the forefront, is main the cost. Colombo stands out with a dominant 90.6% share of the market, adopted by Gampaha at 8.9%, and Kalutara at 0.5%. Amongst condo configurations, the 3-bedroom structure stays essentially the most sought-after.
Search visitors from key worldwide markets has seen a major enhance. Expatriates from the USA, Canada (23%), the UK (20%), Australia, New Zealand (17%), and the UAE (5%) are driving this curiosity. This inflow is partly because of the favorable funding potential within the face of the Sri Lankan rupee’s depreciation in opposition to main currencies such because the US greenback and the British pound.
Sharp Improve in Luxurious Condo Costs
One of the putting findings of the report is the 48% enhance in common asking costs per sq. foot for luxurious flats in Colombo’s Central Enterprise District (CBD) from 2018 to 2023. This sharp rise underscores the rising worth and demand for high-end properties within the metropolis. Colombo 6 emerged because the best choice for abroad consumers, whereas native consumers favored Colombo 2. Rental preferences additionally favored Colombo 6 amongst each abroad and native renters.
Development within the Residential Housing Market
The residential housing market has additionally seen elevated abroad curiosity, significantly from markets just like the USA, Canada, the UK, Australia, New Zealand, and the UAE. This curiosity is mirrored within the increased search visitors and rising common promoting costs per sq. foot in Colombo and its suburbs. Negombo and Battaramulla are notable areas of demand, with Colombo 5 being the highest location for each abroad and native renters.
Land Market Developments
The land market has additionally proven substantial curiosity, significantly in naked land, which constitutes 46% of the demand. Land costs within the Western Province skilled a average 2% enhance from 2022 to 2023, with variations primarily based on land sort, together with tea, rubber, coconut, and beachfront lands.
Wanting Forward
The Sri Lankan actual property sector is poised for continued development, with over 8,000 new residential condo models anticipated to be added by 2026, contributing to a projected whole of roughly 42,000+ acknowledged models.
Daham Gunaratna, Managing Director of LankaPropertyWeb, emphasised the significance of the REMOR24 report: “Amidst financial shifts and market dynamics, our inaugural ‘Actual Property Market Outlook 2024’ goals to offer stakeholders with a complete view of Sri Lanka’s evolving actual property panorama.”
Tharindu Jayarathne, Head of Growth Consultancy & Analysis at LankaPropertyWeb, added, “Regardless of financial challenges, the resilience of Sri Lankan properties as an inflation hedge is clear available in the market’s efficiency by means of 2023. We anticipate sturdy development throughout gross sales, leases, and land sectors shortly.”
For extra detailed insights and to obtain the total Actual Property Market Outlook Report 2024, go to the LankaPropertyWeb web site.
About LankaPropertyWeb
LankaPropertyWeb is Sri Lanka’s main actual property portal, providing complete property listings, market traits, and consultancy companies. With a dedication to transparency and reliability, LankaPropertyWeb serves as a trusted useful resource for buyers, builders, and property seekers throughout the nation.
