Investing in Real Estate in Sri Lanka.

After the end of the war 7 years ago, Sri Lanka’s financial system has grown.  GDP expansion of 7% per annum has become usual. Building has expanded at double-digit prices and was 10.3% of GDP back in 2013. The IT/outsourcing firm is growing. Shangri-La, Moevenpick, and various other luxurious hotels have opened.

 

Tourist arrivals have escalated, soaring by 133% from 2010 to 2014 with almost 1.5 million tourists touring the country, a huge development even above the 11.9% yearly progress in tourist arrivals from 2000 to 2009.  There has been a remarkable expenditure on current foundations, and soaring internal migration from the regions into Colombo.

 

The famous places for buying land here are Colombo 1, 2, 3, 5, 7.  But due to suburban growth plans, Colombo 11, 10, 8 and Crow Island region can change notably, TKS Securities has predicted, and can become wanted sites for suburban and commercial use and also pleasure.

 

Over the gone year housing costs seem to have stopped, after rising since the war ended back in 2009 (but land costs are still soaring). Precise amounts are difficult to determine, as Sri Lanka has no fixed method to announce house costs. According to Lanka Property Web, a reference that could sadly not be thought as reliable due to its directory been tiny, Sri Lanka’s general house costs descended by 1.23% y-o-y in the year to Q2 2015 (-1.34% inflation-altered), and apartment costs soared by 0.7% (0.59% inflation-altered).  In Colombo, house costs reduced by 8.6% (-8.7% inflation-altered), and apartment costs reduced by 1.15% y-o-y (-1.26% inflation-altered), based on the same reference.

 

Four regions seem to have had house cost rises. The Northern Province had the largest house cost rise of about 23.47%. It was trailed by the Central Province (3.1%), the Sabaragamuwa Province (2.9%), and the Western Province, keeping out Colombo (1.2%). In comparison, the Southern Province and North West Province encounter price reductions of 10.1% and 2.4%, each.

 

Land costs have kept growing powerfully in Colombo, both in terms of Sri Lankan Rupees and in USD terms.  Statistics from the Research Intelligence Unit (RIU) indicate a normal review in Colombo 1 region from 8.5 million Rupees per plot in mid-2012, to 13.6 million Rupees per plot in mid-2015 (1 perch = 30 1/4 square yards or 25.29 square metres (sq. m.)).  Converted into USD, that is a review from USD2,509 per sq. m. to USD4,013 per sq. m.the usual cost of land in Colombo soared by about 5%, while land costs in a couple of regions inside the middle and secondary submarkets increased by 7% to 8% by the end of 2013.  In the reputable Colombo 7 region, top-quality suburban land has gone to 10 million Sri Lankan Rupees per plot, or USD2,745 per sq. m.  In Colombo’s 1st region, next-to the harbor, land costs are 50% costlier.