Land prices in Greater Colombo area increase by 64%
Lanka Property Web conducted an analysis during the end of last month to determine the extent of the change in land prices published on posts uploaded to its website. Prices amongst the top locations on the website increased by between 55 to 64 percent. Amongst the locations were Ragama, Gothatuwa and Kolonnawa where Thalahena topped the list. It was observed that the increased market price was aligned with the asking price for the lands published online. However, the real question is the sharp increase in demand for the aforementioned property locations that caused the shift in price – the expected factors being that Colombo is the commercial hub of the country, having majority of workplaces situated in the area, the rapid urban development of outer suburban areas and the improvement of transport connecting Colombo to Greater Colombo areas like Thalahena and Ragama. Transportation is the single most vital part of Colombo and as accessibility improves, so has the need for the local population to gravitate away from Colombo towards areas which are more affordable yet valuable in terms of their rising residential potential.
The forthcoming Colombo Light Railway is bound to further enhance the transition of the population from Colombo city to the outer suburbs. The Colombo Light Rail poses a golden opportunity to real estate developers and investors. The 75 km length system is divided into 7 phases and is expected to transform transport connectivity unlike any other transport corridor in the country. Accelerated real estate development is expected to be activated immediately following the completion of the Colombo Light Rail project. This will include the construction of impressive infrastructure such as magnificent skyscrapers and picturesque urban parks which will not only improve the standard of living of the area but will also create a highly appealing investment environment.
The improvement of transport connectivity is but a single factor pertaining to the fluctuations in present property prices. The affordability and lack of congestion in the aforementioned suburbs provide value added benefits to those wishing to relocate there. Land has and will always be an attractive option to investors as it provides an excellent method of fund storage which appreciates in value over time. This has several implications upon the economy in terms of higher value investments for both local and foreign parties. Further, PricewaterhouseCoopers (PwC) Sri Lanka says that the construction of more expressways is a contributory factor to higher prices for nearby properties. A study by PwC observed the relationship between the rapid development of roads and property and the increasing interest in investing along the expressway. It corroborated our conclusion that property developers might anticipate the rise in prices of land near expressway points and target to establish property there. This phenomenon is also expected to occur following the establishment of the Colombo-Kandy expressway where land prices could
rise similarly.
Opportunity Sri Lanka invites investors from all over the world to pay close attention to the Sri Lankan real estate market for there is rapidly growing opportunity here as development spreads outwards.
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| Article Code : | VBS/AT/09072019/Z_1 |