Sri Lanka’s condominium sales surge in 3Q as prices continue to stabilize
Daily FT: Condominium market activity in the Colombo District strengthened sharply in the third quarter of 2025, with sales volumes recording a significant year-on-year (YoY) increase alongside continued price appreciation, according to the Central Bank of Sri Lanka’s (CBSL) latest Real Estate Market Analysis.
The Price Index for New Condominiums in the Colombo District rose 12.7% YoY to an index value of 265.7 in 3Q 2025. At the same time, the Condominium Property Sales Volume Index, which captures transaction activity in the Colombo District and other major cities, surged 128.4% YoY, reflecting a sharp pickup in market turnover.
The CBSL noted that the Colombo District accounted for the largest share of condominium sales during the quarter.
Transactions in the Rs. 25 million to Rs. 50 million price range represented the highest proportion of activity, accounting for 40% of total sales. The report also showed that the majority of units in completed projects had already been sold, while 56% of units in ongoing developments were reserved, pointing to steady demand across different stages of project completion.
Broader property price trends in the Colombo District also remained positive during the quarter. Asking price indices for lands, houses, and condominiums recorded YoY increases of 22.5%, 7.9%, and 8.1%, respectively, highlighting continued upward pressure on real estate values.
The findings are based on responses from 18 condominium developers who participated in the CBSL survey for 3Q. CBSL said the results indicate improving market activity, particularly in mid-priced segments, amid stabilising economic conditions.
OSL take:
Sri Lanka has witnessed a steady increase in land prices in Colombo and key suburbs in the past few months indicating a growth in the country’s house and property market. This growth is mainly attributed to the country’s ongoing economic activities that are aimed at making Sri Lanka a hub in the South Asian region. The continued upward trajectory of Sri Lanka’s house and property market indicates that while ownership of house and property in Sri Lanka could result in the owners holding an asset that is constantly appreciating in value, exploring business/investment opportunities in the real estate sector could guarantee quick returns on investments (ROIs). The increasing sales in the condominium market also indicates the increasing business potential in Sri Lanka’s house and property sector. Given these factors, foreign businesses/investors looking at engaging in business in the region and in Sri Lanka specifically, look at investing in Sri Lanka’s house and property market as well.
| Article Code : | VBS/AT/20260106/Z_3 |