The Sri Lankan Housing market

The Sri Lankan Housing market

As the Security Situation in Post war Sri Lanka continues to stabilize the prices of properties and real estate continue to show an upward trend. Every day more and more investors try to invest in the Sri Lanka housing and real estate. This is mainly due to the attention given by expatriate Sri Lankans seeking to return to their motherland after the end of the dreadful war which lasted for almost 3 decades.

Even though there are no solid information on a “Official House price” in Sri Lanka, Constructors as well as Home buyers agree that there has been a steep rise in houses as well as building material for houses over the past decade. It is safe to say that Sri Lanka has seen a double digit rise in prices within the housing market alone. According to the information released by local real estate analysts, the Value of housing apartments within the secondary market has risen by more than a whopping 100%  in the past several years alone. As more and more urban development is carried out in and around the city of Colombo, with the constructions of  tourist hot spots, casinos as well as highways that span the country.

The Housing market in the north and east is thriving after the end of the war. Most of the housing and infrastructure in the north and east got destroyed due to collateral damage caused by the war that raged on for close to thirty years. Thanks to the painstaking efforts of the Sri Lankan government as well as the support  from international Non-Governmental Organizations (NGOs) the Basic needs and infrastructure for civilian life is now being rebuilt at a rapid pace. The increase in demand for houses mostly for the internally displaced as well as those who lost their homes due to military combat operations has opened up a wide range of opportunities for housing developers and home builders island wide. But even in these areas, the housing cost still remains an all time high.

The rise in prices in the housing market has is not something that began recently. It all began with the Ceasefire agreement signed between the Government of Sri Lanka(GOSL) and the LTTE(Former Rebel group). Since then foreigners and Sri Lankan expatriates – working in US, UK, Australia, Canada etc began to show keen interest in investing in Sri Lanka. Even Now, more than 50% of Colombo’s condominium and apartment buyers are from overseas.

Combined with rapid economic growth and rising demand form both from local as well as foreign customers, the Sri Lankan housing market is booming, eventhough the costs are at an all-time high.

 

Read more about the facelift for Colombo : Introduction