Sri Lanka’s private sector notes investment potential in property development
John Keels Holdings (JKH) Property of Sri Lanka has reportedly noted its expectation that the country’s commercial capital in Colombo would outperform suburban property developments in the long term.
The Company has further noted the there would be some short term failings in the sector due to the global Covid 19 pandemic, while the investment potential remains strong.
Head of JKH Property Nayana Mawilmada has been quoted as saying, “Are our cities going to change? Is everyone going to move to the suburbs and Colombo falter? I think no. If I was to make a forecast you are not going to make the kind of gains you expect in the suburbs. You will probably see a much bigger rally in the centre of the city and that value will retain. Covid-19 is a blimp in time, two years maximum.”
Mawilmada has been quoted as making these statements in the Echelon webinar ‘On Solid Foundations,’ which had taken on the topic of investment outlook for real estate.
According to reports, JKH has recently expanded its property pipeline with land acquisitions from Finlays and plans to expand development in the Victoria golf course.
It has been noted that sales velocities of apartments have faltered in the short term, but however, are a strong investment given the current interest rate environment with rates being below inflation, according to the Daily News.
Mawilmada has added that property as an asset class needs to be thought of more broadly and investors should consider an allocation to the commercial and retail property.
OSL take:
Sri Lanka’s property development sector was on a growth path when the country was affected by the global Covid 19 pandemic. Sri Lanka’s geographical positioning in the Indian Ocean, ease of doing business environment and the many trade agreements as well as trade concessions enjoyed by the country have made it a business hub in the South Asian region. All this has resulted in the increase of demand for house and property in Sri Lanka. Therefore investing in the property development sector would definitely yield positive results for foreign businesses/investors.
| Article Code : | VBS/AT/29102020/Z_7 |