Sri Lanka’s real estate sector records significant growth in the last five years with luxury condominiums taking the lead
Sri Lanka has been on the path to development since the end of the civil war in 2009 and most of the development has been credited to the real estate sector in the past five years.
“As infrastructure continues to advance in the form of highways and large-scale projects like the Colombo Port City, Colombo as a destination is set to draw further investment appeal. The capacity to invest in premium real estate is increasing as the city transforms into one of the gateway cities in the South Asian region,” Eraj S Rajapakse, Senior Manager – Projects, Asia Capital PLC has been quoted as saying in the local media.
Asia Capital PLC is developing a luxury condominium – ‘447 Luna Tower’ – at a central location on Union Place.
According to reports, the apartments are priced in Sri Lankan rupees, while a majority of the other noteworthy residential developments in central Colombo are priced in US dollars (USD).
Reports state that investors will benefit from the greater capital appreciation of fixed LKR pricing as the US dollar appreciates and the cost of competing developments increase in LKR terms.
447 Luna Tower has reportedly been strategically positioned in the upper mid-range segment – with 70% of the inventory priced below Rs. 56 Million, which places it within reach of a wide market segment.
The project, which is scheduled to be completed in 2020, is poised to be the only condominium in the heart of the city to strike a perfect balance of elegant design, luxury living and convenience of location at a competitive price, a local media report stated.
This is the first of many projects to be undertaken through the joint venture formed between Sri Lanka’s Asia Capital and Japan’s Belluna. Other projects include a 300-room city hotel on Marine Drive in Colombo 3; an ultra-luxurious 57 villa resort in Galle and a resort endeavor with Marriott International to debut the Westin brand in Maldives with the “Westin Maldives Miriandhoo Resort” entailing a 70 room capacity.
Reports state that Belluna Co. Ltd. Japan’s long term plans with Asia Capital PLC reiterate the company’s confidence in Sri Lanka’s growing real estate industry.
The development recorded in Sri Lanka’s real estate market could be identified by the increase in the number of luxury condominium projects being carried out in Colombo and its suburbs. Some of these luxury condominium projects have even tied up with Sotheby’s UK to market their products to the international market. Also, the rapid development projects being carried out in Colombo and its suburbs have further increased the value of real estate in Sri Lanka’s capital, Colombo. A closer look at the progress recorded by Sri Lanka in many key fields, it would be wise for foreign businesses/investors to look at opportunities to invest in real estate in Colombo.
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