Colombo land value decelerates in second half of 2019

The growth in land values in the Colombo district decelerated to 10.8 percent year-on-year (YoY) in the second  half of 2019, from 14.9 percent YoY recorded in the first half of the same year, according to the Land Valuations Indicator (LVI) complied by the Central Bank (CB).

The indicator reached 138.9 points with a 10.8 percent YoY growth during the second half of 2019, backed by a 10.7 percent YoY growth in the residential land values, a 10.3 percent YoY growth in the commercial land values and a 10.3 percent YoY growth in the industrial land values. 

The CB also stated that the LVI increased by 5.1 percent in the second half of 2019, from the first half of 2019.

However, the CB data indicated that following a 16.3 percent YoY and 17.9 percent YoY growth in the land values in the first and second half of 2018, the growth in land values in the Colombo district slowed down throughout last year.

The growth in the commercial and industrial land values in particular have slowed after 2018.

The biannual LVI is based on the per perch bare land prices obtained from the Government Valuation Department covering all 13 DS divisions in the Colombo district.