February, 18, 2016
Lamudi Sri Lanka explores how the real estate market in Colombo has changed
When it comes to searching for real estate, Colombo is the most popular area in Sri Lanka for property-seekers. According to Lamudi Sri Lanka, more than 70 percent of website searches are for property in the country’s commercial capital.
Property demand in Colombo has risen in recent years, with prices increasing simultaneously. Its property market is considered to be the most luxurious in the country so far.
With an abundance of new hotels, as well as residential and commercial properties under development, both domestic and international buyers have begun to consider the real estate market as a reliable method of investment, and an alternative to the stock market and foreign exchange industry.
Based on data from the Lamudi Real Estate Market Report, property searches within Colombo predominantly focus on houses. However, apartments are growing in popularity. Commercial properties noticed a small increase in interest in the past year.
Data indicates 20 percent of searches for property within Sri Lanka were carried out from other countries. In fact, 15 percent of total searches for real estate in Colombo were by international property-seekers.
The top countries for property searches outside of Sri Lanka include: the United Arab Emirates, United Kingdom, Australia, Qatar, United States of America, Saudi Arabia, Canada, India and the Maldives. Many of these countries have been inhabited by Sri Lankans in the past for two popular reasons; the civil conflict and employment purposes.
Jafar Jafarov, managing director of Lamudi Sri Lanka, commented: “Interest in the local market is positive, as the real estate sector is still in the growth stage. With some international markets slowing down, investors are on the lookout for new and exciting locations to invest in. Sri Lanka is a very attractive prospect for many”.
With demand for property increasing, supply is intended to increase. According to the Real Estate Intelligence Unit, the supply of apartment units is expected to grow to reach 6000 units by 2018. The outlook for 2016 looks positive, with several investment projects reaching completion stage projects, along with new investors entering the market. In addition, the first REIT is expected to be implemented in the near future.