PricewaterhouseCoopers says expressway construction in Sri Lanka has increased property prices
PricewaterhouseCoopers (PwC) Sri Lanka unit has reportedly stated that the construction of expressways in Sri Lanka has led to sharp increases in nearby property prices, indicating potential investment opportunities in future projects.
“Property developers no doubt can take advantage of the various new expressways in the pipeline by planning ahead and investing in areas which are in close proximity to these expressways and exit points, which no doubt will see an increase to the price point in the coming years,” PwC has stated.
The assessment was included in a study done by the PwC Sri Lanka.
The report has covered the nexus between property and road development in Sri Lanka and the increasing need to invest along the expressway network.
“With the construction of expressways in the county, the land prices located specially near the exit points of the Southern and Outer Circular Expressways have skyrocketed during the period between 2012-15,” the statement has noted.
“The easy access from Colombo to the Southern Province also resulted in an increase in apartment complexes, office buildings specially in and around the Galle district, which up until recently was unaccustomed to such forms of developments which also includes high-rise buildings.”
With construction work for Colombo – Kandy Expressway kicking off in 2015, there has also been an increase in the land prices in the adjacent areas where the expressway is currently being constructed, PwC Sri Lanka has further stated.
“For example, we noted a significant increase in the land prices around Gampaha, Mirigama and Veyangoda during the 2016-19 period.”
Land prices in Gampaha rose by 37 percent and in Veyangoda by 34 percent.
“With the construction of the expressways, many property development companies have launched both land development and apartment projects along the expressways, capitalizing the ease of commuting to and from Colombo,” the PwC has added.
OSL take:
The latest report by PwC Sri Lanka on the increase in land prices around the expressways that are being constructed in the country has shown an ideal business/investment opportunity foreign businesses/investors looking at prudent as well as prudent business endevours that would yield quick and good results. Foreign businesses/investors could look at the possibility of setting up a business in Sri Lanka and purchasing lands around the proposed expressways that would be an investment for the future. Also, foreign companies looking at setting up businesses in Sri Lanka could also look at establishing in areas adjacent to the expressways as it would provide easy transportation facilities.
| Article Code : | VBS/AT/26062019/Z_8 |