Since the civil war ended over seven years ago, Sri Lanka has rapidly become a hotspot for investment among emerging markets. The booming property market in the island has become popular with those looking to invest in property. Considering the economic growth prospects of the country, real estate investment opportunities have also increased over the last few years and the trend is expected to continue in the future.
Interestingly cities across the country have also witnessed strong economic growth in the past few years, primarily on account of national level economic policies, improvements in infrastructure and the level of political stability.
When it comes to classifying cities in Sri Lanka in terms of business, real estate and commercialization, we hear a lot about Tier I and Tier II. As Tier I cities are highly commercialized metropolises, people still wonder what exactly Tier II cities are then. In the simplest perspective, Tier II cities are emerging cities which have the potential to be a Tier I city in the future.
Although Tier I cities witnesses the bulk of development, the issue with Tier I cities is that when it comes to economic boom and investment, they are inundated with growing investments in the industrial and service sectors along with the boom of large-scale investments in the real estate sector. Many developers tend to focus on these cities in order to realize ROI’s faster. On the other hand, as a result of all the development and commercialization the cost of real estate also increases significantly making it unaffordable to the majority of the middle-class population.
However, Tier II cities are in the process of developing both in terms of real estate and commercial opportunities. These cities tend to be up-and-coming and many companies and people tend to invest even though they haven't yet reached their peak. Real estate is usually relatively inexpensive here; however, if growth continues, prices will no doubt rise.
Tier II cities are part of the country’s growth and whose progress can help modernize suburban Sri Lanka to a Megapolis whilst in the process contribute significantly to the overall development of the country. The Government of Sri Lanka have initiated the creation of master plans for most of these cities and therefore, it would create a number of real estate development opportunities both in the short and long term.
Paramount Realty recognizes the present opportunity for growth and development in Tier II cities and believes that these cities provide significant opportunities for developers and investors.
Inspired by a vision to be the market leader in providing innovative real estate solutions, Paramount is focused on bringing the affordable living concept to these emerging cities whilst ensuring stakeholder returns. The real estate market in Sri Lanka is no doubt growing rapidly and it is every person’s dream to live in a comfortable and cozy home with all the modern amenities. Paramount is taking up this challenge to invest in such cities because these cities promise great potential due to the basic infrastructure, availability of land (at lower price points), emerging demographic/psychographic profiles, greener environment and overall GDP growth.