La­mudi fore­casts de­mand for prop­erty in Galle and Colombo

Daily Mirror (Sri Lanka) - - BUSINESS NEWS -

There is lit­tle ar­gu­ment that both Colombo and the city of Galle are two of the most de­vel­oped ur­ban re­gions in Sri Lanka.

What’s com­mon about these two re­gions is that they’re just eco­nom­i­cally de­vel­oped, but they are also highly cel­e­brated travel des­ti­na­tions that of­fers so much for lo­cals as well as in­ter­na­tional trav­el­ers. As such, these re­gions at­tract a large num­ber of prop­erty hunters, who seek high-end res­i­den­tial or com­mer­cial prop­er­ties in or near these two ci­ties.

The real es­tate mar­ket in Colombo

Be­ing Sri Lanka’s most de­vel­oped city, Colombo is home to the widest va­ri­ety of prop­er­ties span­ning from lux­ury and mid-range apart­ments, stu­dio apart­ments, lux­ury and mid-range houses, high end and af­ford­able com­mer­cial spa­ces, found any­where in Sri Lanka. Its growth in in­fra­struc­ture, tech­nol­ogy and econ­omy has re­sulted in many in­vest­ment projects which in­cludes The Colombo Port City, which draws its first in­vest­ment of US$ one bil­lion in mid-2018.

As a re­sult of the above, when com­pared to other re­gions of the coun­try like Galle, Colombo in­di­cates the high­est de­mand for prop­er­ties that cor­re­lates with its in­creas­ing prices. Hence the res­i­den­tial prop­er­ties that you see in Colombo are con­structed to of­fer you the most com­fort­able life within the city.

Ac­cord­ing to La­mudi re­search, ver­ti­cal liv­ing which was in­tro­duced to Sri Lanka not so long ago, is gain­ing the high­est pop­u­lar­ity within the com­mer­cial cap­i­tal in com­par­i­son to ci­ties like Galle. Thus, at present, a prop­erty hunter is given a plethora of op­tions such as Al­tair, Iconic Galaxy, Capi­tol Twin Peaks and many more to choose from, which aligns with their re­quire­ments.

Colombo shows the high­est price lev­els in com­par­i­son to other ci­ties, es­pe­cially for lux­ury apart­ments and mod­ern houses. Ad­di­tion­ally, an in­crease in land prices was also ob­served in the city of Colombo over the re­cent past. Cur­rently, av­er­age lux­ury apart­ment sale prices range be­tween Rs.60 and Rs.100 mil­lion. Lux­ury houses with a min­i­mum of two bed­rooms in­di­cate an av­er­age sale price of Rs.10 and Rs.50 mil­lion. The rental prices for com­mer­cial spa­ces in Colombo in­di­cate an av­er­age price be­tween Rs.50 and Rs.100 thou­sand per month. How­ever, price lev­els for such prop­er­ties vary ac­cord­ing to con­sumer re­quire­ments, fa­cil­i­ties of­fered, lo­ca­tions and the area of the space. How­ever, the fu­ture of Colombo’s real es­tate mar­ket will largely de­pend on the ex­pected in­fra­struc­ture de­vel­op­ments, which would come due to the pro­posed Western Re­gion Me­gapo­lis Planning Project (WRMPP).

The real es­tate mar­ket in Galle

Ac­cord­ing to La­mudi’s in-house Real Es­tate Mar­ket Re­port of Sri Lanka for 2017, the city of Galle has been recog­nised as one of the fastest emerg­ing metropoli­tan re­gions in the coun­try for lux­ury prop­er­ties. Real es­tate agents in the re­gion have in­di­cated that the de­mand for such prop­er­ties seems to be grow­ing at a sta­ble rate for the past few years. Galle is cur­rently at­tract­ing many for­eign in­vestors look­ing to lever­age the Galle Ma­rina and ex­perts be­lieve that many job op­por­tu­ni­ties can be cre­ated through Lux­ury yacht build­ing and ma­rina de­vel­op­ment. One of the main fac­tors that con­trib­utes to the grow­ing real es­tate in­dus­try within the city is its in­ex­pli­ca­ble value in tourism. Thanks to de­vel­op­ments like Weligama Bay Mar­riott Re­sort and Spa, Fair­way Galle, Amari Galle, Galle Beach Ho­tel, and in­fras­truc­tural de­vel­op­ments like the Galle Port, the city now of­fers a myr­iad va­ri­ety of prop­erty in­clud­ing many short-term rental op­tions.

In com­par­i­son to Colombo, prop­erty prices are low in Galle. Yet price lev­els have been in­creas­ing since the end of the 30 year civil con­flict. Cur­rently, lux­ury apart­ments for sale starts at Rs.30 mil­lion. While long term rental prices for lux­ury vil­las range from Rs.50 to Rs.100 thou­sand per month, monthly rental prices for lux­ury houses may range from Rs.10 to Rs.50 thou­sand de­pend­ing on the fa­cil­i­ties in­cluded.

Nev­er­the­less, the fu­ture of Galle seems to be a greener one. Due to its re­gional eco­nomic growth cred­its to the tourism in­dus­try, Galle may be­come the lo­ca­tion of high-end prop­er­ties with de­vel­op­ments such as Fair­way Galle fo­cus­ing on a more sus­tain­able fu­ture.

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