Nov 28, 2017 (LBO) – The overall prospects for the suburban land market beyond prime Colombo looks very promising as capital Colombo’s land prices leave the majority of the population out priced, a research firm says.
The Research Intelligence Unit (RIU), who are specialized in market studies in the real-estate industry in the island recently launching their Bare Lands market report says that the highest land prices are currently found in the Kotte, Sri Jayawardenapura area.
“Land prices in parts of Kotte for example have been escalating at well over 15 percent per annum according to real estate agents operating in this area,” the report says.
On average the annual price escalation of bare lands in the Western Province is between 7-8 percent.
However, you can witness double-digit growth in land plots across many parts of the province, particularly areas that have benefited from ongoing infrastructure development.
The report provides an overview of the real estate boom and an extensive profile of the bare lands market, land price escalation as well as the main players in the market.
RIU says that there are some 2.7 million people living in the Colombo district who cannot afford to buy an apartment.
“Furthermore, if we take the Western Province as a whole, then this number increases to around 5.5 million people.”
It is important point to note is that in keeping with ongoing infrastructural improvements one can expect to witness the same trend gather momentum across a much wider area, the report adds.
“There will be significant differences between areas that benefit from new road and rail infrastructure initiatives from those areas that do not. Hence, the impact on different geographical locations in the Western Province will need to be assessed on a case-by-case basis.”