Sept 15, 2007 (LBO) – A top Sri Lankan property developer says real estate is a sound investment because house prices do not fall, and construction costs goes up rather than down. The Ceylinco group says the property market has been a shock absorber to act as a hedge against inflation and other economic concerns in the past.
The company was responding to a recent story on LBO on the housing market.
The full text of the statement is published below:
Real estate a sound investment
Despite some reports in the press heralding doom and gloom for the local property market, several condominium projects are doing business as usual and have registered no tangible drop in demand. Their positive sentiments are supported by none other than the Central Bank, which authenticates this in its latest Annual Report: The demand for houses and urban infrastructure is expanding rapidly with population growth and urbanization. The report goes on to say: Private sector continued to play a vital role in the housing sectorâ€¦Construction of condominium housing