Sri Lanka records high percentage increase in land prices in Greater Colombo area
A recent study on Sri Lanka’s lands and property sector has revealed that the demand for land in Thalahena, Gothatuwa and Kolonnawa are rising significantly, which in turn has resulted in the highest percentage increases in land prices in Greater Colombo areas.
LankaPropertyWeb.com has reportedly analyzed postings in its website to ascertain the change in asking prices for land in the Greater Colombo area.
Accordingly, Thalahena has topped the list, recording a year-on-year percentage increase of 64 per cent. Ragama, Gothatuwa and Kolonnawa continue to be popular with land prices recording a percentage increase of between 55-35 per cent.
The percentage increases are in line with the increases noted in the asking prices of land.
According to the study, in Thalawathugoda, the average price per perch is between Rs. 1.7-2 million. Interestingly, with the spike in percentage increase, neighboring suburb Thalahena, joins the same price category.
Land in Kolonnawa and Wellampitiya both fall within the range of Rs. 700,000 to Rs. 1 million and both areas have displayed a remarkable increase in land prices over the last year. The implications of these percentage increases in average price per perch of land are far-reaching.
The study has noted that the most expensive areas in Greater Colombo for average perch prices remain much the same as last year – areas that are closest to Colombo show the highest prices, with Dehiwala and Nawala the most expensive of the areas in Greater Colombo.
As Colombo is the commercial hub and where most of the workplaces are based, it is not surprising that land prices continue to be on an upward trajectory.
However, people are seeking living spaces outside of the city, which is reportedly most noticeable to the east of the Colombo city. A
LankaPropertyWeb.com has stated that there are certain pockets where land prices have shown slower growth i.e. Nugegoda, Rajagiriya and Pannipitiya areas (this could be due to prices already being high in these areas), prices in Athurugiriya, Pita Kotte, Maharagama, Kottawa and Hokandara all indicate an increase in percentage between 25-32 per cent.
OSL take:
Property/property development is fast becoming a lucrative business/investment opportunity in Sri Lanka. As noted by the latest study carried out by LankaPropertyWeb, land prices in the Greater Colombo area on the increase mainly due to the development work taking place in the country, especially targeting the country’s commercial capital, Colombo. Foreign businesses/investors could therefore explore the best possible ways of investing in property in the Greater Colombo areas.
| Article Code : | VBS/AT/02072019/Z_4 |