Colombo district land prices increase 6.9% YoY

The Land Valuation Indicator (LVI) for Colombo District rose 6.9 percent year-on-year in the first half of 2024, driven by increases across all sub-indicators — Residential, Commercial, and Industrial. 

Residential and Commercial LVIs each surged by 8.5 percent, while the Industrial LVI saw a more modest rise of 3.7 percent. 

On a semi-annual basis, LVI and its sub-indicators recorded stronger growth in the first half of 2024 compared to the latter half of 2023, with Industrial LVI lagging behind its counterparts.

The LVI, which has evolved from the Land Price Index (LPI), initially covered five DS divisions in Colombo District from 1998 to 2008 on an annual basis and from 2009 to 2017 on a semi-annual basis. 

Since 2017, its scope has expanded to all 13 DS divisions, with the first half of 2017 as the base period. 

The LPI was renamed as the LVI in 2020, and it continues to be published semi-annually.

The LVI calculation considers the varying nature of land use, with separate sub-indicators for Residential, Commercial, and Industrial lands. These are computed using the average per perch bare land price within each DS division, and the overall LVI is the simple average of these sub-indicators.