Sri Lanka’s Millennium Housing Developers to build 400 housing units in several locations in the country
Millennium Housing Developers Plc of Sri Lanka has reportedly stated that it was planning to construct 400 houses in three locations as there was unfulfilled demand for housing in the greater Colombo area driven by migration.
“Despite strong demand, residential construction remained weak, as the total number of housing approvals in Greater Colombo fell year on year,” Millennium Housing Chairman Harshith Dharmadasa has been quoted as saying.
“A severe shortage of low-end housing was evident caused by internal migration from rural to urban areas. Compared to the housing requirement of 100,000 units per annum, housing construction was only around 12,500 units per annum,” he has been quoted in the local media.
“Sri Lanka’s mortgage market remains very small, equivalent to around 3.6% of GDP in 2018, given the high interest rates and limited loan offerings,” he has noted.
However, it has also been reported that while housing volumes were down in 2018 prices of both land plots and houses had inflated around the island.
There was demand for affordable housing, “We envisage to building up to 400 houses at three new locations over the next two years to meet the growing demand for affordable residencies in Sri Lanka,” Dharmadasa has added.
OSL take:
Sri Lanka’s demand for housing in the country’s commercial capital, Colombo and it’s suburbs has seen a drastic increase due to the migration of individuals to the area. The ongoing development programme and the country’s economic policies have made it an attractive business destination in the South Asian region. Foreign companies could therefore explore business/investment opportunities in Sri Lanka’s housing as well as other key sectors as well.
| Article Code : | VBS/AT/19092019/Z_4 |