manusath-derana

Colombo District land price increased by 12.6 p%

November, 10, 2017

During the first six months of this year, overall land price in the Colombo District has increased by 12.6 percent compare to the last year, latest analyze of the CBSL revealed.

During the period, highest increase of 14.6 percent was reported from industrial sector while residential and commercial sectors have been increased by 11.9 percent and 11.6 percent respectively.

In order to monitor the developments in the real estate sector, Central Bank of Sri Lanka (CBSL) has been compiling and analyzing several indicators. The bi-annual Land Price Index (LPI) which is compiled covering the Colombo District since 1998 is one of the indicators of this nature. In the compilation process of LPI, CBSL uses the land price data collected by the Valuation Department of Sri Lanka covering around 50 centers of five District Secretariat (DS) divisions: Colombo, Dehiwala, Homagama, Kaduwela and Kesbewa in the Colombo District.

In view of the diverse nature of the land use and to maintain homogeneity, three indices for residential, commercial and industrial lands are computed separately. The overall LPI is computed by taking the average of these three sub-indices.

On year on year basis for the period ending June 2017, LPI recorded a 12.6 per cent increase, continuing the recent trend in land price movements in the Colombo district. All three sub-indices of LPI (Residential, Commercial and Industrial) contributed to this increase.