Real Estate investment in Colombo expected to triple in seven years | Daily News

Real Estate investment in Colombo expected to triple in seven years

Sales & Marketing Director, Capitol Developers, Rohith Dissanayake
Sales & Marketing Director, Capitol Developers, Rohith Dissanayake

 At the close of 2018 the real estate industry of the nation continued to experience steady local and international interest within the super luxury (priced at USD 400- 550 per sq ft), Colombo apartment segment (priced at USD 200 - 399 per sq ft), as well as the luxury beachfront apartment segment.

Capitol TwinPeaks at the Beira Lakefront

Reduced interest was seen mainly in the first-time home buyer segment due to fluctuating exchange rates and lack of investment knowledge, however, with the dawn of 2019, this too has begun to stabilise. Properties that proved to guarantee high capital gains and rental yields upon completion continued with closure of sales prior to the start of 2019.

The developments that have since 2017 commenced construction, began so suggesting that 2018/2019 will act as a remarkable year to invest in Sri Lanka’s property market, as the next 2-4 years show an expected 6000+ units to enter the market (KPMG, Sri Lanka Real Estate Report 2018).

A 2018 survey conducted in partnership by Lanka Property Web Real-estate Intelligence Unit (RIU) indicates that the majority of Sri Lankans prefer to invest in Real Estate, in comparison to the stock market or opting for bank savings.

The supermarkets business PBT of Rs.137 million in the third quarter is a decrease against the third quarter of the previous year. The property industry group PBT at Rs.14 million in the third quarter of 2018/19 is a decrease of 58 per cent over the third quarter of the previous financial year [Rs.34 million]. The Financial Services industry group PBT of Rs.936 million in the third quarter is a decrease of 39% over the third quarter of the previous financial year [Rs.1.54 billion].

Other, including Information Technology and Plantation Services industry group recorded a PBT of Rs.2.40 billion in the third quarter which is an increase of 78% over the third quarter of the previous financial year [Rs.1.35 bn].


 

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