Sri Lanka’s Millennium Housing Developers to invest Rs. 5 billion to develop luxury apartments and affordable housing

Sri Lanka’s Millennium Housing Developers to invest Rs. 5 billion to develop luxury apartments and affordable housing

Millennium Housing Developers Plc of Sri Lanka, which is a publicly traded company, has reportedly stated that it was investing Rs. 5 billion to develop luxury apartments and affordable housing to meet growing demand. The statement by Millennium Housing Developers comes amidst fears of a bubble.
Millennium Housing has noted that concerns have been raised about a property bubble bursting in 2020 -2022 by some.
“With demand for luxury apartments and condominiums going up and supply at times overtaking demand, the bubble certainly seems like a possibility,” the company has been quoted as saying in a local media report.
“However, supply of affordable housing is estimated to be below demand as yet.”
There was a demand for housing from people migrating from rural to urban areas, particularly to Greater Colombo townships.
“This shift in the urban landscape is predominantly influenced by location and convenience factors related to employment and business proximities,” Chairman, Harshith Dharmadasa has reportedly said.
“At the higher end of the spectrum, investments by Sri Lankans who are living abroad are notable and will continue to surge if and when greater political stability is evident.”
Dharmadasa has noted that people were seen favouring smaller apartments.
“The propensity of demand for vertical properties offered by apartment complexes is particularly favoured due to the availability of multiple facilities and the perception of household security,” has been further quoted as saying.
Millennium Housing Development reported revenues of Rs. 1.7 billion in the year to end March 2018, up 31 percent from a year ago. Profits have grown 25 percent to Rs. 185.5 million.
Earlier this year, Millennium completed its 64-unit The Heights – Edmonton and launched three new projects to be completed in two years.

OSL take:

The decision of Sri Lanka’s Millennium Housing to invest a sum of Rs. 5 billion on the construction of luxury apartments and affordable housing, is indicative of the demand for such housing units in Sri Lanka. Recent media reports have stated that there has been a growth in the country’s real estate sector along with the construction sector. All these indicate the growing investment opportunities in Sri Lanka’s real estate, housing and construction sectors.

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Article Code : VBS/AT/11092018/Z_4

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