Sri Lanka records sustained growth in the supply of high end luxury apartments with an upward incline in the market
The 2018 Research Intelligence Unit (RIU) annual report has reportedly noted that it is clear that Sri Lanka has enjoyed a sustained growth in the supply of high-end luxury apartments.
The report has stated that by 2016 and when calculated the number of developments that have been approved or are currently under construction, then the number of units will top 14,000 by 2020.
“An upward incline in the market is always good news but also carries with it the demand of hard work, greater requirements on knowledge and data as well as rising competition. Following a good year for the Sri Lankan real estate industry last year, 2018 promises to be another exiting year that has already witnessed the enactment of several government initiatives that we expect will serve to build international investor confidence,” Roshan Madawela, Founder and Chief Executive of RIU has been quoted as saying in a local media report.
The market will certainly benefit from the foreign and expat community who are likely to play a more significant role in the coming years ahead with the Cabinet approving new visa regulation changes for visitors and expats early this year.
“Already, the number of dual-citizenship that have been given to the diaspora community has increased significantly according to our sources,” the report has noted.
According to the newly released report, the Chinese Port City will function as a catalyst for future development and investment and the development process its self, which may last for up to another 25 years, will serve to increase demand for residential, commercial and hotel real estate within the prime Colombo area.
As the middle class grows and income rises, domestic consumption will increase with time and the demand for more international brands will grow, in the retail market space the report has stated.
According to the local media report, retail sales are forecasted to grow to US$ 51 Bn by 2022— up 70 percent from 2017 and per capita income will rise sharply to US$ 7,500 by 2020 from US$ 4,000 in 2016 according to most agencies.
RIU’s market intelligence report has stated that this sector has many shortcomings which in turn can be made into opportunities by the developers.
OSL take:
The sustained growth recorded in Sri Lanka’s luxury apartments is an encouraging sign for foreign companies engaged in the construction sector to explore investment opportunities in the country’s construction sector.
| Article Code : | VBS/AT/24082018/Z_4 |