Micro apartments seen gaining a foothold in Sri Lanka

From affluent aristocrats to modest blue- collar employees, Sri Lankans who come from all walks of life are aiming to attain a home in the form of an urban apartment in Sri Lanka, says Lamudi. lk, the country’s main property portal.

As the country’s economy has grown, outperforming its influential neighbours at a rate of six to seven per cent over the past three years, the nation’s gross domestic product per capita has risen to US$ 3,256 ( according to World Bank statistics), bringing it ever closer to earning the states of a middle- income country, it said in a media statement.

“Such developments have sparked a rapid growth within the countries real estate industry, with planned property expansions such as residential developments, taking the lead. However factors such as concentrated investment in major infrastructure projects and internal migration towards cities including Colombo, have recently been contributing to high real estate prices. This has meant that properties in major urban areas have become increasingly unaffordable, a trend that has been further influenced by the fact that domestic banks are trimming their housing mortgage portfolios to reduce non- strategic lending activities. Nevertheless, the trend has opened new opportunities, as recently reported, particularly for small to mid- scale apartment developments in the islands western coast,” Lamudi said.

Affordable prices and attractive features have made micro living arrangements increasingly popular with residential property hunters from the country’s rapidly growing middle class. According to internal data from Lamudi, such modest residences, particularly those that are offered for rent, are some of the most affordable and well-equipped dwellings seen in the country. As of 2015, an all- encompassing micro apartment within an urban area in the western province can be obtained for a rent of roughly Rs. 12,000 or above, subject to the level of facilities being offered.

For a prospective property- seeker, the most popular locations for micro apartments are mostly found within the greater metropolitan region of Colombo, with areas such as Kollupitiya, Bambalapitiya, Wellawatta and Thimbirigasyaya dominating the list. From outside the commercial capital, the country’s second largest city Dehiwala - Mount Lavinia, as well as the urban area of Rajagiriya within the nation’s administrative capital, are the most popular zones for modern apartment seekers.

Commenting on the rapid opportunities opening in the micro apartment category in Sri Lanka, Lamudi Sri Lanka Managing Director Hugh van der Kolff, said: “With a growing population and an equally promising economy, innovative concepts such as micro apartments could be the answer for the island to address its emerging housing demand.”

As the country’s economy has grown, outperforming its influential neighbours at a rate of six to seven per cent over the past three years, the nation’s gross domestic product per capita has risen to US$ 3,256 (according to World Bank statistics), bringing it ever closer to earning the states of a middle-income country, it said in a media statement