Sri Lanka’s Central Bank records increased in Land Price Index for Colombo District
The Central Bank of Sri Lanka’s latest compilation of the Land Price Index (LPI) for Colombo District has reportedly seen an increase as it has recorded 125.9 during the second half of 2018, which an increase of 18% compared to the same period in 2017.
The three sub-indices of LPI, namely residential, commercial and industrial have contributed to this increase, the local media has reported.
According to reports, the LPI is compiled covering all Divisional Secretariat (DS) divisions of Colombo District, using per perch bare land prices collected from the Government Valuation Department, in order to monitor the developments in the real estate sector.
The LPI was compiled from 1998 to 2017 covering five DS divisions in the Colombo District.
Reports further state that considering the increasing importance of monitoring land prices due to the recent developments in the real estate sector, the geographical coverage of LPI was later expanded to cover all DS divisions in the Colombo District.
OSL take:
Sri Lanka’s development drive has resulted in a continuous increase in land prices in the country’s commercial capital, Colombo. The demand for land for development/housing purposes in Colombo has increased during the past few years. Therefore, investing in real estate in Colombo or even in its suburbs would be an investment for the future. Foreign businesses/investors could look at forming partnerships with local companies to invest in Sri Lanka’s real estate sector.
| Article Code : | VBS/AT/12032019/Z_3 |