JLL observes huge dearth in supply of retail property space in Sri Lanka
Jones Lang LaSalle (JLL), a global real estate services firm stated that “… retail real estate growth in the Sri Lankan capital Colombo has not kept pace with growth in retail sector demand.”
At a presentation at the Sri Lanka Retail Forum 2017organised by Sri Lanka Retailers Association, JLL said that it observed an approximate lack of nearly two million sqft in Sri Lanka’s retail space.
JLL went on to state that it believed this gap will narrow by 2018 to 2019 to 0.7 million sqft taking into consideration the development of retail mall outlets numbering between eight to ten that is expected to be constructed.
Many of Sri Lanka’s current and future retail property spaces are situated in the Colombo 02 and Colombo 03 area and JLL stated that the retail market in Colombo would probably expand at a steady rate largely due to the country’s increase in available disposable incomes and growing tourism expenditure.
As stated by JLL, “…there are opportunities for developers to capitalise on the overall lack of quality retail space in the city.” This means that property developers have the potential to capitalise on Sri Lanka’s growing tourist industry that will no doubt increase retail activities, thereby increasing demand for retail real estate space.
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