Colombo land prices up 36% last year

Daily Mirror (Sri Lanka) - - BUSINESS NEWS -

Land val­ues in Colombo are grow­ing at a re­mark­able rate, a re­cent study has found. Ac­cord­ing to the National House Price In­dex main­tained by Lankaprop­er­ty­, av­er­age land prices in Colombo has in­creased by 36 per­cent within the last year alone, mak­ing it the big­gest in­crease in the real es­tate sec­tor, when com­pared against house and apart­ment prices. The over­all land prices for the coun­try have also shown an ac­cel­er­ated growth within the last year. More­over, a study by Can­dor Group which com­pared all in­vest­ment op­tions, in­clud­ing share market, sav­ings, bonds and prop­erty found that lands in Colombo re­mained the best per­form­ing as­set class. Colombo’s land prices heat map shows that Colombo 1, 3 and 7 re­mains the most ex­pen­sive, while 9, 13, 14 and 15 are the least ex­pen­sive.

Just to high­light how ex­pen­sive the Fort area is, a re­cent ad on Lankaprop­er­ty­web. com for a land near Pres­i­dent’s House was priced at 30 mil­lion per perch. Buy­ing the free­hold of lands in the coun­try is cur­rently lim­ited to res­i­dents, while for­eign in­di­vid­u­als can lease land on a 99-year lease. With the Port city adding 269 hectares of land in to Colombo and sales ex­pected to start by 2018, it’ll be in­ter­est­ing to see at what prices the lands will be sold at.

While it’s much cheaper to buy an apart­ment than to buy land and build a house in Colombo and on the out­skirts, own­ing lands re­mains the best long-term in­vest­ment due to its dou­ble-digit growth in the last few years, which shows no signs of re­ced­ing yet.

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