Real estate trends in the Colombo region
Dec 22, 2016 – As Sri Lanka’s fastest growing city and its capital, Colombo’s real estate sector has attracted the attention of investors from far and wide. Sri Lanka’s property market has grown immensely since the declaration of peace and it now attracts locals, foreigners and expats alike.
Leading property portal Lamudi proclaims that a number of these individuals and organisations go on to invest in the developing nation’s residential and commercial sector. Luxury projects such as Altair, Shangri-La, Avic Astoria, Cinnamon Life, and many mid-range projects make Colombo a successful hub for property. Let’s look at some facts and figures and examine the trends for property in Colombo.
Colombo’s buyers prefer houses to apartments
In general, property seekers looking to purchase in Colombo prefer purchasing houses rather than purchasing apartments. The reason for this could be that those who are only spending part of their week in the city (and who return home at weekends) are looking for a small crash pad and don’t necessarily want to buy.
Those who are willing to make the commitment to buy are likely to want a larger home, and this is why houses are more popular among this type of property seeker. Many home buyers are also considering the suburbs, thanks to improved public transport networks and the expressway, making it easier than ever both to commute and to get around the city.
Most popular areas
In terms of the most popular locations for home buyers, Colombo 5, 7 and 15 come out on top. This is because they have easy access to all necessary amenities. Immediate suburbs such as Dehiwala, Maharagama, Homagama, and Sri Jayewardenepura Kotte are also extremely popular.
For workers who want a crash pad apartment near the CBD, districts 3, 4, 5, 6 and 13 are much more popular, especially among those who are keen to purchase a place near the city’s commercial district (which takes up districts 1-4).
Purchasing a house in the CBD is unaffordable for the majority of the population, and this is why those who buy in the CBD mostly choose a more compact space. Those who start out living in the central business district often move to a house in the suburbs once they have a family. It is also true that since the city is undergoing so much change, areas that are less popular now are likely to become more popular in the future, meaning that house prices will surely rise everywhere.
High competition for purchasing land in Colombo
Many developers and investors are keen to purchase land when they move to a new area. Buying a plot in Colombo itself is not an easy task since empty plots are quite scarce within the city itself. Thus, the demand for land is quite high both from developers and buyers all over the city. Particularly popular areas for purchasing plots include Maharagama, Dehiwala and Sri Jayewardenepura Kotte.
Mid-range properties are still the most popular
The majority of buyers and renters currently looking for property in Colombo are focused on mid-range properties. Data analysis carried out by Lamudi highlights that two and three bedroom properties are currently the most sought-after.
Prices for property in this category range between Rs. 5 million ($ 33,334) to Rs. 25 million ($ 166,667). However, as developments increase in number and as the country attracts increasing numbers of visitors, demand for luxury property is also increasing.
Luxury apartment living is looking to become especially popular in suburbs such as Dehiwala and Battaramulla, where many potential foreign investors are keen to rent before they buy somewhere. Rental prices in Dehiwala for a luxury apartment start between Rs. 100,000 ($ 667) and Rs. 150,000 ($ 1,000) per month and go up to Rs. 400,000 ($ 2,667) for the most high-end apartments.
Colombo is rapidly becoming the most exciting city to live in in this region. Investors are picking up the pace in the hope of snapping up the best properties and building on the best land.
A report with all the details on trends and data for purchasing and/or property in Colombo is currently available for sale. Visit www.lamudi.lk for more details.