4 September 2019 12:20 am Views - 661
Average land prices in Sri Lanka’s commercial capital, Colombo, rose 13.6 percent in the first half of 2019 (1H19) over the same period in the previous year, according to the Land Price Index (LPI) compiled by Central Bank’s Statistics Department.
The overall LPI reached an index value of 132.2 during 1H19 from the base period of 2017 first half and industrial LPI recorded the highest increase of 14.9 percent while the commercial LPI and residential LPI increased by 13.2 percent and 12.8 percent respectively.
LPI is measured biannually and covers all the divisional secretariat divisions in the Colombo district.
Double digit growth in land prices indicates a hot real estate sector in the Colombo region.
Analysts opine that the conclusion of Colombo Financial City could send Colombo mainland land prices further up.
Extremely higher valuation of some government-owned land parcels in the heart of Colombo during the previous administration, which were used for commercial purposes, sent the Colombo land prices skyrocketing, and as a result some land owners in Colombo saw their wealth shooting up overnight. Increasing land prices in Colombo have already made people to opt for vertical living with many high-rise apartments mushrooming in and around the city targeting the country’s growing middle class.
However, there is still a dearth of affordable housing in Colombo and the suburbs which the government and the private sector should need to fix.