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Sri Lanka’s condominium market booms in the second quarter

Sri Lanka’s condominium market booms in the second quarter

The Morning: Sri Lanka’s condominium industry sees a rise with increased prices in the second quarter of 2024 as new projects by major developers jumped by almost 50% in the quarter, Central Bank data showed.
According to the price index for new condominiums, an upsurge in prices of new condominiums within the Colombo district was observed during Q2 of 2024.
The condominium market survey showed the index reached 240.9 during the quarter recording a quarter-on-quarter growth of 14.3%.
Moreover, the condominium property sales volume index, which covers the Colombo district and other major cities, increased significantly during Q2 as the index value recorded at 141.4 with a 47.8% increase compared to the previous quarter due to the launch of new projects by major developers.
The majority (about 56%) of condominium sales during Q2 was reported in the Colombo district followed by Gampaha and Kalutara districts.
Also, the largest proportion of transactions, accounting for 54%, occurred within the Rs. 25-50 million range, during Q2.
When the percentage of price categories were compared with the previous quarter, transactions below Rs. 25 million showed a slight decrease, while transactions between Rs. 50-75 million remained broadly unchanged.
“Three key funding sources for condominium developments were pre-sale deposits, bank loans and equity,” the Central Bank said, adding that pre-sale deposits were the main source of funding (38%) while bank loans and equity were utilised by 33% and 29%, respectively.

OSL take:
The boom recorded in Sri Lanka’s condominium market is indicative of the overall expansion in the country’s economy. The ongoing economic activities in the country and the increasing business/investment opportunities have resulted in the expansion of the country’s house and property sector, especially in the condominium market in Sri Lanka’s commercial capital, Colombo. The growth in the house and property sector in the country would witness a further growth with Sri Lanka targeting on becoming a regional hub. All these developments are indicative of the expanding business/investment opportunities in the country’s house and property sector. Foreign businesses/investors could look at the many business/investment opportunities in the house and property sector as well as related sectors in direct and indirect opportunities. Given the growing business potential in the house and property sector and the positive performance of local businesses engaged in the sector could also make foreign businesses/investors look at forming collaborations with local businesses with the aim of further expansion.

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Article Code : VBS/AT/20241010/Z_1

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