The Price Index for New Condominiums in the Colombo District reached 284.4 in the first quarter of 2026, marking a significant year-on-year increase of 18.5 percent. Despite this price appreciation, the Condominium Property Sales Volume Index experienced a year-on-year decrease of 15.2 percent, indicating a slowdown in market activity across Colombo and other major cities.

The Colombo District continues to be the primary hub of the market, accounting for 65 percent of total sales transactions during the quarter. A breakdown of sales by category reveals that single condominium projects in the Colombo District represented 59 percent of transactions, followed by projects in the Gampaha and Kalutara districts at 32 percent.

Market dynamics regarding price points shifted significantly during the first quarter of 2026. Transactions in the price ranges of Rs. 50 mn to Rs. 75 mn and above Rs. 75 mn recorded a slight increase, while those in the range of Rs. 25 mn to Rs. 50 mn recorded a decrease.

Specifically, transactions for luxury units priced above Rs. 75 million grew to represent 29 percent of the market, a sharp rise from just 11 percent a year ago. Similarly, the share for units priced between Rs. 50 mn and Rs. 75 mn rose to 23 percent from 22 percent in the previous year. Meanwhile, the share of mid-range units priced between Rs. 25 million and Rs. 50 million dropped to 29 percent, down from 49 percent a year prior. Units in the lowest price bracket of Rs. 0 to Rs. 25 mn remained relatively stable, accounting for 19 percent of transactions compared to 18 percent a year ago.

Inventory levels for completed projects are nearly exhausted. Data shows that 98 percent of units in completed single condominium projects have been sold, with only 2 percent remaining available. In ongoing projects, 51 percent of units are already reserved.

Purchasing patterns reveal that Resident Sri Lankans remain the primary buyer demographic. The majority of these buyers purchased units for immediate occupancy, and 80 percent of transactions were financed using the buyers' own funds rather than bank loans. For developers, the primary funding source for these projects continues to be pre-sale deposits, which account for 48 percent of development capital.

The broader real estate sector also saw rising costs. The Asking Price Index for lands in the Colombo District surged by 31.9 percent year-on-year by March 2026. During the same period, asking prices for houses and condominiums rose by 6.4 percent and 11.0 percent, respectively.