Do the proper checks before buying apartments: Property developer

Oct 28, 2015 (LBO) – Sri Lankan apartment buyers are warned that there are risks in buying apartments and they should do the proper checks and minimize it, a property developer said.

“Apartment buyers need to be careful when buying as they are spending their lifetime savings,” Brahmanage Premalal, chairman of Prime Lands said.

“Most apartments are sold on pre sale basis so you get the property only 2-3 years later. You must ensure the developer owns the property, sometimes deeds are doctored.”

Then there are risks of non-completion, not meeting delivery deadlines, quality standards and not getting clear title which may lead to litigation, he said.

“You must do a good and through background check on your developer like previous projects they did and if they own the land that is being developed.”

There have been instances were some developers have gone bankrupt as they build the apartments relying pre-sales, he said.

Premalal was addressing an annual real estate conference in Colombo recently organized by Lamudi Sri Lanka, an online real estate platform.

Sri Lankas skyline has been growing in terms of the number of luxury apartment units with the market expected to reach 6,000 units by 2018-19.

Data shows that starting with only a handful of apartment complexes, the apartment market has grown rapidly since 2009 and the luxury housing stock stood at 783 units had grown steadily and by 2015 the number has gone up to 2,657 units.